General Liability

• Third-party bodily injury and property damage from your plumbing work
• Client injuries at your shop or on a Michigan job site
• Products & Completed Operations - covers water damage claims that surface after the job is finished
• Personal and advertising injury (libel, slander)
• Additional Insured endorsements for GCs and property owners on permitted work
• Primary & Noncontributory and per-project aggregate as required by GC contracts

A failed connection that floods multiple units in a Michigan apartment building weeks after a repipe job is a classic plumber's claim. Completed Operations coverage is what responds - confirm your limits are adequate, as water damage claims can escalate quickly.

Errors & Omissions (Professional Liability)

• Claims alleging design or sizing errors on larger commercial plumbing systems
• Pipe sizing, venting, or backflow prevention design mistakes
• Relevant for plumbers providing system design or engineering-adjacent services
• Covers defense costs and damages separate from the physical-loss claims GL handles

Most residential repair work is adequately covered by GL's Completed Operations. E&O becomes relevant when you're sizing a system for a Michigan commercial build-out or designing a backflow prevention system.

Inland Marine (Tools & Equipment)

• Pipe benders, sewer testing systems, cameras, and power tools
• Coverage follows tools to Michigan job sites - not just your shop or vehicle
• Theft, damage, and mysterious disappearance at client locations
• Scheduled coverage for high-value equipment (sewer cameras, jetters, leak detection systems)

Standard Commercial Property covers tools only at your listed business address. Inland Marine protects your tools at every Michigan job site, covering theft and damage.

Builder's Risk

• Covers plumbing materials and unfinished rough-in work while a larger construction project is underway
• Applies when you're a sub on a Michigan ground-up build or major renovation
• Covers materials staged on-site before installation
• Typically arranged by the GC, but confirm your interest is properly reflected

If you're plumbing a new Michigan building or major renovation, confirm whether the GC's Builders Risk policy covers your installed work and staged materials.

Commercial Auto

• Service vans and trucks carrying tools, fittings, and replacement parts
• Liability for accidents on Michigan highways and city streets
• Hired & Non-Owned Auto for employees using personal vehicles for parts runs
• Physical damage coverage for owned vehicles and their tool inventory

A service van isn't just transportation - it's often a rolling parts and tool inventory worth thousands. Confirm whether tools and stock inside the vehicle are covered under Auto, Inland Marine, or both.

Workers' Compensation

• Required by Michigan law for any business with employees
• Medical bills and lost wages for back injuries, cuts, burns, and confined-space incidents
• Covers apprentices and journeyman plumbers alike
• Employers Liability protects against employee negligence suits
• Non-compliance fines can be significant; Michigan DOL actively audits contractors

Plumbing work carries elevated injury risk. Accurate payroll classification and a documented safety program help manage WC costs in this trade.

License & Permit Bonds

• Required by Michigan and many municipalities as a condition of contractor licensing
• Guarantees your work complies with code and licensing regulations
• Distinct from insurance - a bond protects the public, not your business
• Bid, performance, and payment bonds also available for larger commercial plumbing contracts

Michigan's permitting process for plumbing work typically requires proof of a current license and bond before a permit is issued.

Business Income & Commercial Umbrella

• Business Income: replaces lost revenue if your shop or storage facility is damaged by a covered loss
• Commercial Umbrella: adds $1M-$10M+ excess liability above your GL, Auto, and Employers Liability
• Umbrella often required by GCs and commercial property owners for larger Michigan projects
• Cost-effective way to reach the higher limits commercial contracts specify

A serious multi-unit water damage claim tied to faulty plumbing can exceed a $1M GL limit quickly. An umbrella is one of the most cost-effective ways to protect against that exposure.

Michigan Department of Licensing and Regulatory Affairs

Michigan requires a plumbing license to perform plumbing work for compensation, administered by the Department of Licensing and Regulatory Affairs. Proof of liability insurance is a condition of business license issuance and renewal - a lapse in coverage can jeopardize your license status.

Michigan Plumbing Permits

Plumbing work in Michigan requires permits issued through local municipalities, with inspections required before work is closed up or put into service. Permit applications typically require proof of your current plumbing license, a license/permit bond, and Certificate of Insurance. Failure to permit plumbing work can result in fines and can void insurance coverage if a claim arises from unpermitted work.

Backflow Prevention Regulations

Michigan requires backflow prevention devices on qualifying water service connections to protect the public water supply. Testing and certification of backflow devices is typically required annually for commercial and many multi-family buildings. Confirm your GL covers liability arising from backflow testing and installation work specifically.

Worker Classification in Michigan

Michigan applies specific tests to determine whether a worker is an employee or independent contractor. Misclassifying workers can trigger Workers' Compensation back-premium assessments and penalties. The Michigan DOL actively audits contractors - review your worker classifications before an audit.