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.
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.
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.
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.
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.
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.
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:
Business equipment coverage
Hired/non-owned auto liability coverage
Terrorism coverage
Customer property coverage
| 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.
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.
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.
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.
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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| 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.
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
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.
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.
| 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:
Theft
Vandalism
Water damage
Electrical surge
Electrical breakdown
Mechanical breakdown
Mysterious disappearance
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.
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:
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.
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 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.
| 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.
Get all the best quotes from leading providers in a click of a button!
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.
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
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
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
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
Responsive customer service
Compare quotes over the phone
A partner of many reputable insurance companies
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
On-demand coverage
A partner of Tivly
Sends an online copy of certificate of insurance even though your coverage is from a partner
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
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
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
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
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
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
Not all those who wander are lost.
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