PLUMBING · INDEPENDENT FRANCHISE
MR. PLUMBER
FRANCHISE
INSURANCE
You called your agent before you signed the franchise agreement. They said your existing policy would cover it. They built their business on residential contractors just like yours. They have not reviewed a plumbing franchise agreement before — and they did not see the additional insured requirements, the primary and non-contributory language, or the specific endorsement forms that distinguish a franchise-compliant policy from a contractor's policy.
The coverage in your file right now may be exactly what your state requires for a licensed plumber. That is not the same thing as what your franchise agreement requires. And it is not the same thing as what actually protects the investment you made to get into this brand.
This page covers both.
JUMP TO SECTION
COMPLIANCE REQUIREMENTS
1099 PLUMBER COVERAGE
EQUIPMENT THEFT FROM THE VAN
YOUR AGENT SAID YOU'RE COVERED
COVERAGE REQUIREMENTS
PREMIUM CALCULATION
BEYOND THE MINIMUM
FAQs
$1,000,000 per occurrence
GL MINIMUM (BENCHMARK)
$1,000,000 combined single limit
AUTO MINIMUM
$1,000,000 each accident
WC EMPLOYERS LIABILITY
6400 (Plumbing)
PRIMARY NCCI CODE
6010 (Excavation)
SECONDARY CODE RISK
ON THIS PAGE
COMPLIANCE REQUIREMENTS
1099 PLUMBER COVERAGE
EQUIPMENT THEFT FROM THE VAN
YOUR AGENT SAID YOU'RE COVERED
COVERAGE REQUIREMENTS
PREMIUM CALCULATION
BEYOND THE MINIMUM
FAQs
COMPLETE PROGRAM
SUBCONTRACTOR CERTIFICATE COMPLIANCE ACROSS YOUR FRANCHISE
Most home service franchisees use independent contractors or 1099 workers at some point. The coverage gap this creates is not obvious until a claim surfaces — and by then, the conversation is about who pays rather than what was preventable.
A lapsed subcontractor certificate is invisible until your carrier finds it. When they do, they invoke the subcontractor exclusion in your general liability policy. The work was done. The damage is real. The coverage is not there.
Rikor's subcontractor compliance monitoring tool tracks subcontractor certificates in real time. When a certificate lapses, you know before the next job starts — not after the claim comes in.
FRANCHISEE QUESTIONS
FREQUENTLY ASKED QUESTIONS
WHAT INSURANCE DOES A MR. PLUMBER FRANCHISEE NEED TO OPEN?
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You need commercial general liability, commercial auto, workers' compensation, and an umbrella policy at minimum. Your specific franchise agreement will specify required limits and the exact franchisor entity that must appear as additional insured. Confirm those requirements before binding any coverage.
DOES MY PLUMBING FRANCHISE INSURANCE COVER THE 1099 PLUMBER I BROUGHT IN LAST WEEK?
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Not automatically. Most general liability policies include a subcontractor exclusion that removes coverage for work performed by independent contractors. The endorsement that fills this gap requires the subcontractor to have a current certificate of insurance — current on the date of the job, not the date you hired them.
WHAT HAPPENS IF A PIPE I FIXED LEAKS MONTHS AFTER THE JOB?
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This is a completed operations claim. Your general liability policy covers completed operations if it is written on an occurrence form and completed operations is included in the coverage. The claim must be reported within the policy period, but the work that caused it can predate the claim by months or years. This is why occurrence form general liability — not claims-made — is essential for plumbing franchises.
DOES MY POLICY COVER MOLD THAT GROWS AFTER A WATER REPAIR?
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Mold is classified as a pollutant in most standard general liability policies. A mold exclusion or pollution exclusion removes coverage for bodily injury and property damage arising from mold. If you performed a repair and mold developed in the affected area after the job, the claim is likely excluded under your standard policy. Contractors pollution liability fills this gap.
WHO NEEDS TO BE LISTED AS ADDITIONAL INSURED ON MY MR. PLUMBER POLICY?
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Your franchise agreement specifies the franchisor's legal entity name. That exact name — no abbreviations, no substitutions — must appear as additional insured on your general liability and commercial auto policies. Your business entity is the named insured. The franchisor is the additional insured. These are two different roles.
DOES MY COMMERCIAL AUTO POLICY COVER MY TECHNICIAN DRIVING THEIR PERSONAL TRUCK TO A JOB?
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Not under the standard commercial auto policy without hired and non-owned auto coverage. A technician using their personal vehicle for business purposes is not covered by their personal auto policy (which excludes commercial use) or your commercial auto policy (which covers vehicles you own or lease). Hired and non-owned auto coverage closes that gap.
DOES MY PLUMBING FRANCHISE INSURANCE COVER SUBCONTRACTORS?
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Only if the subcontractor exclusion in your general liability policy has been endorsed to require current certificates from subcontractors. Most policies include this exclusion as standard. Confirm whether your policy has an endorsement removing it — and whether you are collecting and verifying current certificates before every job.
WHAT IS CONTRACTORS POLLUTION LIABILITY AND DO PLUMBERS NEED IT?
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Contractors pollution liability covers bodily injury and property damage from chemicals, biological hazards, sewer gases, or other pollutants that your work releases or disturbs. Standard general liability has a pollution exclusion that removes these claims. For plumbing franchises doing any drain, sewer, or underground work, the pollution exposure is not peripheral — it is the primary gap.
WHAT IS THE NCCI WORKERS' COMPENSATION CODE FOR PLUMBING?
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Standard plumbing work is classified under NCCI code 6400. If your technicians perform excavation, trenchless pipe bursting, or sewer main work, those activities may reclassify to NCCI code 6010 at year-end audit. That code carries a higher rate. Build the correct classification into the policy at inception — not at audit.
HOW MUCH DOES MR. PLUMBER FRANCHISE INSURANCE COST PER YEAR?
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There is no single number. Your workers' compensation premium depends on your payroll, your state's classification rates, and your experience modification. Your general liability premium depends on your annual revenue. Your auto premium depends on your fleet and your drivers. Your total annual cost depends on five variables: your state, your payroll, your fleet, your claims history, and your subcontractor use.
WHAT DOES IT MEAN FOR MY POLICY TO BE PRIMARY AND NON-CONTRIBUTORY?
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Primary and non-contributory means your general liability policy responds first when a claim involves your franchisor — before any policy the franchisor carries contributes to the loss. Your franchise agreement requires this language. Confirm it is on your declarations page before issuing a certificate of insurance to your franchisor.
CAN I USE A PERSONAL AUTO POLICY FOR MY PLUMBING SERVICE VAN?
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No. A vehicle used primarily for business operations must be insured under a commercial auto policy. Personal auto policies exclude commercial use. A personal vehicle used exclusively for plumbing jobs is not covered by a personal auto policy for those trips.
What a complete Mr. Plumber franchise insurance program looks like
Six things that define a program built for the actual exposure — not just the compliance checklist.
Every COI you have issued to your franchisor may be non-compliant if the correct legal entity name is not on the additional insured line. Pull one and check. It takes sixty seconds and the fix is a phone call to your agent.
The occurrence form on your general liability policy is the difference between a completed operations claim being covered and that same claim being denied because the policy period passed. Confirm the form type on your declarations page today.
Your 1099 workers are either covered by current certificates or they are a workers' compensation audit liability waiting to surface. Either state is manageable. Not knowing which state you are in is the problem.
The subcontractor exclusion in your general liability policy either has been endorsed to require current subcontractor certificates, or it is the clause your carrier will cite when the next 1099 job produces a claim. Confirm which is true for your policy.
Your technicians' personal vehicles on job days — without hired and non-owned auto coverage — are a gap in your program that costs nothing to close and can cost significant money if an accident happens while it is open.
The contractors pollution liability policy that most plumbing franchise programs are missing is also the policy that responds to your highest-probability claim. Sewage, sewer gas, and contaminated water are pollutants under standard GL exclusion language. The coverage that addresses them is straightforward and not expensive relative to the claims it prevents.
SUBCONTRACTOR RISK
A LAPSED SUB CERTIFICATE IS INVISIBLE UNTIL YOUR CARRIER FINDS IT
Most home service franchisees use independent contractors or 1099 workers at some point. The coverage gap this creates is not obvious until a claim surfaces. When a certificate lapses, your carrier invokes the subcontractor exclusion in your general liability policy. The work was done. The damage is real. The coverage is not there.
Rikor's subcontractor compliance monitoring tool tracks subcontractor certificates in real time. When a certificate lapses, you know before the next job starts — not after the claim comes in.
WADE MILLWARD, CIC
Founder & CEO · Rikor Insurance
Wade Millward has spent 18 years specializing in franchise insurance. He holds the Certified Insurance Counselor (CIC) designation and has reviewed hundreds of franchise disclosure documents across home service, food service, and commercial franchise verticals. He has built coverage programs for Authority Brands franchisees across electrical, HVAC, plumbing, and restoration trades.