Water Restoration Liability Insurance

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.

Water Restoration General Liability Insurance

	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.

On another token, a customer may visit your office, but because the floor is wet, they trip, fall, and dislocate their wrist. You could be held responsible for their injury. But with general liability insurance, you can pay for the medical costs, legal defense expenses, and compensation awarded to a plaintiff following a lawsuit.

How Much General Liability Insurance Does My Water Restoration Business Need?

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.

Will General Liability Insurance Protect Me If Independent Contractors File a Claim?

Independent contractors can file a claim for bodily injuries or property damage if they sustain a work-related accident while working for you. This exposure can be also covered by general liability insurance since independent contractors can be considered third parties.

Can General Liability Insurance Cover Defective Work?

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.

Is It Possible to Customize a General Liability Policy to Make It More Comprehensive?

Endorsements are available which you can use to customize a general liability policy. The most common ones are:

Business equipment coverage
Hired/non-owned auto liability coverage
Terrorism coverage
Customer property coverage

Water Restoration Professional Liability Insurance

	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

Restoring a house so that it withstands moisture once again is no easy feat. You have to diagnose the present condition of the structures. After that, you have to find the cause of the existing damage. When this is done, you’ll then have to find the right materials that will solve the issue. Finally, you have to make a design and proceed to work on the water restoration project.

You can commit mistakes during the planning phase or cause issues while carrying out the water restoration activities. A client might file a claim if delays that result in extra expenses happen. And so, you’ll need professional liability insurance.

Use the table above to see which insurance company offers the best professional liability policy for water damage restoration contractors.

What is the Purpose of Professional Liability Insurance for Your Water Restoration Business?

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. You may exercise the highest level of caution when restoring a home, but even the most skilled contractors make mistakes. Professional liability insurance guarantees that your business will continue to thrive even if you slip up.

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.

My Employee Was Negligent in Driving the Truck and the Materials for the Project Was Damaged. Can Professional Liability Insurance Help in This Situation?

No. Third-party property damage is excluded in the terms of professional liability insurance. Therefore, it won't reimburse the materials, which your client paid for, that got damaged or destroyed during a trip because of your employee’s negligence.

I Am Hiring an Independent Plumbing Contractor. Will My Professional Liability Cover Their Negligence or Mistakes?

No. Professional liability insurance will not grant coverage if a client decides to sue because the independent plumber you hired for a water restoration project is negligent or unskilled. However, you can protect yourself by asking the plumbing contractor to name you as an additional insured in the professional liability policy of their plumbing insurance package.

Commercial Property Insurance for Water Restoration Businesses

	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.

What Events or Exposures Are Covered by Commercial Property Insurance?

Commercial property insurance will reimburse your financial losses that resulted from the occurrence of these commercial threats:

Fire
Theft
Vandalism
Civil commotion
Riot
Sinkhole collapse
Volcanic action
Lightning
Weather
Impact
Falling objects
Aircraft
Vehicle

Are My Dehumidifier, Air Blower, Moisture Detector, Dump Machines, and Other Equipment Covered?

This type of fire and water damage insurance will provide a $15,000-$50,000 reimbursement if your water restoration equipment gets damaged or destroyed while in the office or warehouse you own, rent, or lease. This policy won’t grant coverage if your equipment got damaged or destroyed while in a client’s house, building, or any other location.

Does Commercial Property Insurance Cover Water Damage Restoration Supplies?

Yes. If the plastic sheetings, cardboard sheetings, chemicals, and zip door products get damaged or destroyed while in your water restoration business’s office or warehouse, then commercial property insurance can reimburse financial losses.

Business Owner’s Policy for Water Restoration Businesses

	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.

Tools and Equipment Insurance for Water Restoration Businesses

	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.

How Does Tools and Equipment Insurance Help You?

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:

Theft
Vandalism
Water damage
Electrical surge
Electrical breakdown
Mechanical breakdown
Mysterious disappearance

Are the Personal Tools and Equipment of My Employees Covered?

In its most basic form, tools and equipment insurance doesn’t cover the personal effects of your employees. Coverage can only apply if the insurance company sells an endorsement that covers this gap.

Workers' Compensation Insurance for Water Restoration Businesses

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.

Other Policies Included in Water Damage Restoration Insurance

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

The projects that water restoration contractors undertake have environmental-related hazards that may cause excessive pollution that might trigger illnesses in a third party. That can lead to a bodily injury claim. Pollution liability insurance covers the medical costs, the necessary repairs, and clean-ups if debris and chemicals are released to the environment by accident.

Commercial Auto Insurance

The chances are that you own a commercial van that enables you to travel to your client's location. To protect your vehicle, you need commercial auto insurance. 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

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

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

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.

Water Restoration Insurance Cost

	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:

Number of employees
Location
Coverage options
Years of experience
Your licensing and professional certifications
The tools and equipment you use
The projected annual income

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. Start by clicking the “Get Quotes” button on this page.

Best Water Restoration Insurance Companies

The insurance industry has many providers serving wide-ranging sectors. You need to identify an insurance carrier that provides industry-specific insurance products and services to ensure the policy you buy satisfies your unique business needs.

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 Water Restoration Insurance

Pros

Best overall
Issues an online proof of insurance instantly
Fastest general liability insurance
Great customer service and reputation
Excellent rates
Outstanding value for money
Get a 10% discount if you buy two or more policies

Cons

Couldn’t find any

NEXT is a small business insurance company that provides tailored policies for all small business needs through a tech-first approach. Founded in 2016 in Palo Alto, CA, the company is a relative newcomer in the insurance sector. However, 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.

With NEXT insurance, you can purchase a wide range of water restoration insurance policies, including general liability, professional liability, business owners' policy, tools and equipment insurance, workers' compensation, commercial auto insurance, commercial property coverage, etc. Customers can purchase these policies individually or bundle them up and get a 10% discount.

Being a technology-focused insurance provider, NEXT allows customers to easily access their insurance certificates online and even share them with others digitally without paying a cent. The only caveat is that the company offers online claims reporting, which can be challenging to traditional customers who prefer paperwork filing.

Best for: Best overall; Fastest general liability insurance

Average cost: $50 per month

Our rating: 10/10

CoverWallet Water Restoration Insurance

Pros

Compare quotes online
Cancel your coverage anytime
Stable rates
Terrorism coverage can be added to general liability insurance
Professional liability insurance has a waiver of subrogation

Cons

Not an insurance company but an insurance broker

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:

$2 million general liability insurance
$2 million professional liability insurance
Workers compensation insurance with a $1 million employer’s liability coverage
Business owner’s policy with a $2 million general liability coverage and $50,000 commercial property coverage

We want you to know that CoverWallet has an online quotes comparison platform. The company uses this to collect some basic information about your business and then issue quotes having features that click with the needs of your business.

Best for: Comparing insurance quotes for water restoration businesses online

Average cost: $54 per month

Our rating: 10/10

Tivly Water Restoration Insurance

Pros

Responsive customer service
Compare quotes over the phone
A partner of many reputable insurance companies

Cons

Not an insurance company but an insurance broker

Tivly (formerly CommercialInsurance.NET) 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 Water Restoration Insurance

Pros

On-demand coverage
A partner of Tivly
Sends an online copy of certificate of insurance even though your coverage is from a partner

Cons

Doesn’t underwrite its own water restoration insurance package

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 Insurance

Pros

Great service with in-house underwriting
A+ rated carrier for policy issuance
Real-time monitoring of insurance requirement
Online quotes available
Available in all 50 states

Cons

Insurance may only contain three policies

ARMR has been providing standardized environmental insurance policies for over 35 years. Since its founding, ARMR has expanded its niche to over 40 insurance markets, providing 150+ insurance products.

If you're looking for business insurance that covers the most critical and common risks, then ARMR is the best provider for you. The company offers various insurance products, including Commercial General Liability, Pollution Liability, and Professional Liability.

However, the insurer also offers an Environmental Services Package Policy that combines all three policies into a single insurance package with common coverage limits of liability. The carrier's maximum insurance policy limit is up to $25 million, and customers can expect to incur a minimum premium of $208 per month ($2,500 per year) with a minimum deductible of $5,000.

Even so, the ARMR determines the rates of insurance based on factors: the amount of insurance required, the mix of business, the revenue of your business, the state in which you operate, deductibles, and past losses.

ARMR works with your local insurance agents who are seasoned and have extensive knowledge in the industry. With such local authority and claims control expertise, ARMR offers real-time monitoring of insurance requirements and makes claims reporting hassle-free.

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 Insurance

Pros

A-rated insurance carrier
Monthly premiums with interest-free installments
Available in 50 states
Free loss control from professionals who understand the industry
Industry-specific insurance policies

Cons

Insurance only available through an insurance agent

Sadler & Co. has provided insurance products and services since 1957. That history and experience are critical because fire and water restoration insurance can be complex, and are not the things you can master overnight. With its special contractor insurance department, Sadler underwrites tailored insurance policies to a range of businesses in the water and remediation industry, including excavation contractors, asbestos abatement, emergency spill clean-ups, mold remediation contractors, demolition experts, etc.

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.

Customers can purchase insurance by submitting a simple application form, and you'll receive a quote from an A-rated insurance agent. Moreover, there are cost-saving opportunities when you partner with Sadler. The company has extensive online resources that can help you maximize efficiency, reduce liability, and mitigate risks. It also provides a flexible monthly billing system with no interest at all, further enabling you to save more money.

Best for: Industry specific coverage

Average cost: $100 per month

Our rating: 8/10