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a water restoration contractor, your clients appreciate the help you provide in the pursuit of their Water restoration insurance settlements. Such protection from fire and water damage losses gives them peace of mind, but does your business have the same level of coverage?
As you undertake various repairs or rebuilding projects, you get exposed to risks and hazards. In a situation, projects might display defects later after they’ve been completed. These can lead to lawsuits and send your business’ finances on a downward spiral.
It is a type of insurance coverage designed for businesses that operate in the restoration and remediation industry. Depending on your specific needs, your fire and water restoration contractors insurance policy may provide coverage for:
General liability and professional liability are the two types of water restoration liability insurance. These protect your water restoration business against lawsuits. The sections below discuss how each works.
| CoverWallet | NEXT (Best) | Thimble | |
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 |
| Name additional insureds? | Yes | Yes | Yes |
| Waiver of subrogation included? | Yes | No | Yes |
| Deductible | $500 | $500 | $500 |
A general liability policy offers financial protection if the operations of your water restoration business inflicted bodily injuries or property damage to clients.
Your employee might accidentally damage a client’s valuables while removing mold from the floors and walls; in that case, general liability insurance covers the repair and replacement costs.
Most water restoration businesses need to have a $1 million-$2 million general liability policy. Having this much coverage ensures that your business is well-protected and contract insurance requirements are met with ease.
Yes. Insurance companies include products and completed operations coverage in their general liability policy for water restoration contractors. This will cover costs if defects in a water restoration project caused further damage to a client’s building or resulted in injuries to the occupants.
Endorsements are available which you can use to customize a general liability policy. The most common ones are:
| CoverWallet | NEXT (Best) | Thimble | |
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $1,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $1,000,000 |
| Tenant’s legal liability coverage limit | $100,000 | $100,000 | $5,000 |
| Waiver of subrogation included? | Yes | No | Included |
| Hired/non-owned auto liability coverage included? | Yes | No | Excluded |
| Equipment breakdown floater included? | No | Yes | Yes |
| Can you get a certificate of insurance online? | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes |
| Deductible | $0 | $0 | $0 |
Also referred to as errors & omissions (E&O) insurance, this water restoration business insurance protects you in case of damages caused by negligence, a mistake, an error, or failure to provide a service.
| CoverWallet | NEXT (Best) | Thimble | |
| Building coverage limit (minimum) | $50,000 | $280,000 | $25,000/$500,000 |
| Contents coverage limit (minimum) | $50,000 | $18,000 | $25,000/$500,000 |
| Outdoor signs | Excluded | $2,500 | Excluded |
| Accounts receivable | Excluded | Excluded | $5,000/$10,000 |
| Money and securities | Excluded | $2,500 | $1,000 |
| Lock and keys | Excluded | $2,500 | Excluded |
| Business interruption floater | Excluded | Included | Included |
| Equipment breakdown floater | Excluded | Included | Excluded |
| Inland marine insurance floater | Excluded | Excluded | $10,000 |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 |
Commercial property insurance protects your office, its fixtures, furnishings, electronics, and equipment if destroyed or damaged by a covered event. Use the table above to see which insurance company offers the best commercial property insurance for water restoration businesses.
Get all the best quotes from leading providers in a click of a button!
Commercial property insurance will reimburse your financial losses that resulted from the occurrence of these commercial threats:
| CoverWallet | Thimble | NEXT (Best) | |
| General liability aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 |
| Commercial property coverage limit | $50,000 | $25,000/$500,000 | $280,000 |
| Optional policies can be added? | Yes | Yes | Yes |
| Name additional insureds for free? | Yes | Yes | Yes |
| BOP discount? | Yes | Yes | Yes |
A business owner’s policy allows you to bundle general liability and commercial property insurance into one insurance product. This results in cheaper premiums and easier policy management. Use the table above to see which insurance company offers the best business owner’s policy for water restoration contractors.
| NEXT | Thimble | Hiscox | |
| Aggregate limit | $3,000/$10,000 | $2,500/$5,000 | $15,000/$25,000 |
| Covers hired and borrowed equipment? | $3,000/$10,000 | $2,500/$5,000 | No |
| Miscellaneous equipment also covered? | $5,000/$10,000 | No | Yes |
| Offered as an endorsement to general liability insurance? | Yes | Yes | Yes |
| Deductible | $500 | $500 | $0 |
Your water restoration equipment doesn’t only get damaged or lost in the warehouse or office.
In fact, this usually happens while you and your team are working at the client’s house or taking a break at a local fast food restaurant. In connection, tools and equipment insurance reimburses your losses in such a situation.
Use the table above to see which insurance company offers the best tools and equipment insurance for water restoration businesses.
Tools and equipment insurance will grant coverage when these things happen to your water restoration equipment while it’s at a location outside of the premises of your business:
Don’t forget workers’ compensation insurance. You need this coverage to cover unexpected expenses with no problems. if a part-time or full-time employee falls from a height, slips, trips over a machine’s chord, get exposed to a harmful chemical, or gets cut by debris.
When work-related accidents happen, workers’ compensation insurance provides the money that covers the medical treatment, hospitalization, medication, rehabilitation, lost wages, and death benefits of an employee.
General liability, professional liability, commercial property, business owner’s policy, and tools and equipment insurance are the most common inclusions in a water damage restoration insurance package. But note that depending on which insurance company you work with, you can further avail of these policies:
Pollution liability insurance covers the medical costs, the necessary repairs, and clean-ups if debris and chemicals are released to the environment by accident.
This coverage protects you from third-party bodily injuries and property damages if your business car is involved in an accident, stolen, vandalized, or damaged by inclement weather.
Inland marine insurance will reimburse the cost of tools and equipment as well as water restoration supplies that get damaged or lost during transportation because of fire, theft, vandalism, and other covered perils.
Builders’ risk insurance is helpful if you’re working on a water restoration project that will run for days or weeks. If the materials and equipment you left on the project site get damaged or destroyed due to theft, explosions, vandalism, impact, lightning, and weather, builders risk insurance will reimburse your losses and see to it that the work won’t be delayed.
Employee dishonesty insurance will reimburse lost money if an employee commits social engineering, theft, destruction of money, embezzlement, and other dishonest acts against your business.
Remediation and installation are two very different things. Therefore, your water restoration insurance package will not cover the installation of stucco and other insulation. Consider purchasing an EIFS and insulation contractor insurance package to avoid coverage gaps.
No. A water treatment insurance program is designed for plants that process dirty water for consumption and daily use. Water restoration insurance is for businesses that are involved with the removal of dirty water and other debris in buildings and other areas.
The Client is Accusing Me of Overcharging for My Water Restoration Services. Can I Use Professional Liability Insurance if a Lawsuit is Filed?
Yes. Frivolous claims for overcharging can be covered by professional liability insurance. However, if it’s proven in a court of law that you or an employee tried to milk the customer, then coverage will never apply.
| Cost per Month | Cost per Year | Deductible | |
| General liability insurance | $71 | $852 | $0-$500 |
| Professional liability insurance | $90 | $1,080 | $0-$500 |
| Pollution liability insurance | $140 | $1,680 | $500-$1,000 |
| Commercial property insurance | $80 | $960 | $1,000-$2,500 |
| Business owner’s policy | $130 | $1,560 | $500-$1,000 |
| Workers compensation insurance | $200 | $2,400 | $2,000-$5,000 |
| Commercial auto insurance | $150 | $1,800 | $1,000 |
| Builders risk insurance | Depends on the value of the property to be covered | Depends on the value of the property to be covered | $500-$1,000 |
| Inland marine insurance | Depends on the value of the property to be covered | Depends on the value of the property to be covered | $500-$1,000 |
The average water restoration insurance cost is $71 per month or $852 per year for a $1 million general liability policy. Factors that affect the cost of premiums are:
Here’s another table showing how much the recommended charge for their $1 million general liability policy for water restoration contractors:
| Cost per Month | Cost per Year | Best for | |
| NEXT | $50 | $600 | Best overall; Fastest general liability insurance |
| CoverWallet | $54 | $648 | Comparing insurance quotes for water restoration businesses online |
| Tivly® | $55 | $660 | Comparing insurance quotes for water restoration businesses over the phone |
| Thimble | $55 | $660 | On-demand water restoration insurance |
| Sadler | $100 | $1,200 | Industry specific coverage |
| ARMR | $208 | $2,496 | Businesses looking for an inclusive insurance package |
Consider comparing quotes to get the best coverage at a reasonable price.
Get all the best quotes from leading providers in a click of a button!
Here are some reviews of the best water restoration insurance companies. Read to know their pros, cons, and cost of a $1 million general liability policy.
NEXT is a small business insurance company that provides tailored policies for all small business needs through a tech-first approach. it handles its own claims as it’s independently rated by AM Best for superior financial strength, unlike other online insurers that depend on their parent companies.
Best for: Best overall; Fastest general liability insurance
Average cost: $50 per month
Our rating: 10/10
CoverWallet doesn’t have a water restoration insurance package. What it sells instead is a remediation service insurance bundle that’s made up of the following:
Best for: Comparing insurance quotes for water restoration businesses online
Average cost: $54 per month
Our rating: 10/10
Tivly® covers water restoration businesses through its insurance package for different types of contractors. Policies you can avail from this are general liability, commercial property, business owner’s policy, and more. You need to call a Tivly® representative to compare quotes and know the limits of your policies.
Best for: Comparing insurance quotes for water restoration businesses over the phone
Average cost: $55 per month
Our rating: 10/10
Thimble sells a water restoration insurance package. However, it will redirect you to a Tivly® representative. Nonetheless, Thimble is a good option because any customers it sends to its partner quickly get a desired coverage with no hassle.
Best for: On-demand water restoration insurance
Average cost: $55 per month
Our rating: 9/10
ARMR has been providing standardized environmental insurance policies for over 35 years.
The company offers various insurance products, including Commercial General Liability, Pollution Liability, and Professional Liability.
Apart from that, the company boasts an A+ rating for customer-focused policy issuance. ARMR is licensed in 50 states, and its insurance packages are acceptable to all major business franchises and networks.
Best for: Businesses looking for an inclusive insurance package
Average cost: $208 per month
Our rating: 8/10
Sadler & Co. has provided insurance products and services since 1957. That history and experience are critical. Fire and water restoration insurance can be complex, and are not the things you can master overnight.
You can rely on Sadler to provide quality insurance forms at competitive prices on virtually any policy. It’s your one-stop shop for general liability, professional liability, business auto insurance, bailees coverage, commercial property insurance, and environmental liability coverage.
Best for: Industry specific coverage
Average cost: $100 per month
Our rating: 8/10
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Disclosure: Insuranks.com is an independent educational comparison service and an advertising-supported publisher. Some of the companies/offers that appear on the website are from our partners which we may receive compensation from. This may influence which companies/offers we write about and where and how it appears on the site. However, this does not impact our assessments. We solely highlight companies, products, and offers that can help you make smarter insurance decisions.
