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Water Restoration Insurance: Cost & Quotes From $11/mo

For your best business protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!

For your best business protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!

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Table of contents
1. What is Water Restoration Insurance?2. Water Restoration Liability Insurance3. Water Restoration General Liability Insurance3.1. How Much General Liability Insurance Does My Water Restoration Business Need?3.2. Will General Liability Insurance Protect Me If Independent Contractors File a Claim?3.3. Can General Liability Insurance Cover Defective Work?3.4. Is It Possible to Customize a General Liability Policy to Make It More Comprehensive?4. Water Restoration Professional Liability Insurance 4.1. What is the Purpose of Professional Liability Insurance for Your Water Restoration Business?4.2. The Client is Accusing Me of Overcharging for My Water Restoration Services. Can I Use Professional Liability Insurance if a Lawsuit is Filed?4.3. My Employee Was Negligent in Driving the Truck and the Materials for the Project Was Damaged. Can Professional Liability Insurance Help in This Situation?4.4. I Am Hiring an Independent Plumbing Contractor. Will My Professional Liability Cover Their Negligence or Mistakes?5. Commercial Property Insurance for Water Restoration Businesses5.1. What Events or Exposures Are Covered by Commercial Property Insurance?5.2. Are My Dehumidifier, Air Blower, Moisture Detector, Dump Machines, and Other Equipment Covered?5.3. Does Commercial Property Insurance Cover Water Damage Restoration Supplies?6. Business Owner’s Policy for Water Restoration Businesses7. Tools and Equipment Insurance for Water Restoration Businesses 7.1. How Does Tools and Equipment Insurance Help You?7.2. Are the Personal Tools and Equipment of My Employees Covered?8. Workers' Compensation Insurance for Water Restoration Businesses9. Other Policies Included in Water Damage Restoration Insurance9.1. Pollution Liability Insurance9.2. Commercial Auto Insurance9.3. Inland Marine Insurance9.4. Builders Risk Insurance9.5. Employee Dishonesty Insurance10. Other Questions Answered10.1. I Provide Insulation Services. Does My Water Restoration Insurance Cover This Activity?10.2. Can I Avail a Water Treatment Insurance Program if I Become Ineligible for Water Restoration Insurance?11. Water Restoration Insurance Cost12. Best Water Restoration Insurance Companies12.1. NEXT Water Restoration Insurance 12.1.1. Pros12.1.2. Cons12.2. CoverWallet Water Restoration Insurance 12.2.1. Pros12.2.2. Cons12.3. Tivly Water Restoration Insurance 12.3.1. Pros12.3.2. Cons12.4. Thimble Water Restoration Insurance 12.4.1. Pros12.4.2. Cons12.5. ARMR Insurance 12.5.1. Pros12.5.2. Cons12.6. Sadler Insurance 12.6.1. Pros12.6.2. Cons

As a water restoration contractor, your clients appreciate the help you provide in the pursuit of their insurance settlements, enabling them to get back on their feet and restore their properties after the unexpected has occurred. 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. For example, you may leave unprotected openings that expose a client's home's interior to environmental elements, resulting in further water damage. In another 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. 

Water restoration insurance protects your business when unexpected events occur. Just like your insured customers, you'll rest easy knowing that your insurance will solve the problem if something goes awry. 


What is Water Restoration Insurance?

Water restoration insurance 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:

  • Property damage

  • Pollution liability

  • Legal liability

  • Business interruption

  • Employee dishonesty

  • Equipment failure/breakdown

  • Bodily injury liability 


It's crucial for water damage restoration contractors to purchase this insurance to protect their businesses from the risks that lurk around restoration projects and ensure they have sufficient coverage in case a client requests for insurance.  

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?YesYesYes
Waiver of subrogation included?YesNoYes
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?YesNoIncluded
Hired/non-owned auto liability coverage included?YesNoExcluded
Equipment breakdown floater included?No YesYes
Can you get a certificate of insurance online?YesYesYes
Name additional insureds?YesYes
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. 

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Commercial Property Insurance for Water Restoration Businesses


CoverWalletNEXT (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 signsExcluded$2,500Excluded
Accounts receivableExcludedExcluded$5,000/$10,000
Money and securitiesExcluded$2,500$1,000
Lock and keysExcluded$2,500Excluded
Business interruption floaterExcludedIncludedIncluded
Equipment breakdown floaterExcludedIncludedExcluded
Inland marine insurance floaterExcludedExcluded$10,000
Employee dishonesty floaterExcluded$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


CoverWalletThimbleNEXT (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?YesYesYes
Name additional insureds for free?YesYesYes
BOP discount?YesYesYes


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


NEXTThimbleHiscox
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/$5,000No
Miscellaneous equipment also covered?$5,000/$10,000NoYes
Offered as an endorsement to general liability insurance?YesYesYes
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.


Other Questions Answered

I Provide Insulation Services. Does My Water Restoration Insurance Cover This Activity?

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.


Can I Avail a Water Treatment Insurance Program if I Become Ineligible for Water Restoration Insurance?

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.

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Water Restoration Insurance Cost


Cost per MonthCost per YearDeductible
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 insuranceDepends on the value of the property to be coveredDepends on the value of the property to be covered$500-$1,000
Inland marine insuranceDepends on the value of the property to be coveredDepends 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 MonthCost per YearBest for
NEXT$50$600Best overall; Fastest general liability insurance
CoverWallet$54$648Comparing insurance quotes for water restoration businesses online
Tivly$55$660Comparing insurance quotes for water restoration businesses over the phone
Thimble$55$660On-demand water restoration insurance
Sadler$100$1,200Industry specific coverage
ARMR$208$2,496Businesses 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. 

Compare Cheap Water Restoration Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

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


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