Texas Plumber Insurance
What Texas Requires
Plumbing is licensed by the Texas State Board of Plumbing Examiners and the insurance requirement attaches to the Responsible Master Plumber designation rather than to the master license itself.
To hold the RMP designation you must file a certificate of insurance showing commercial general liability coverage of not less than $300,000 for all claims arising in any one-year period. The policy has to cover property damage and bodily injury claims whether they arise in negligence or on a contract, and it must cover every type of plumbing performed under the license — including LP gas, medical gas, and multipurpose residential fire sprinkler work if you do them.
The COI goes to TSBPE, signed by your agent, and it expires when the policy expires. You file a new one before that date.
- Permits stop when the COI lapses. A political subdivision issuing a plumbing permit is required to verify that the RMP has a current certificate on file with the board. Your insurance lapse becomes a city permit-desk problem the same day.
- The endorsement scope question. If you add LP gas or medical gas work mid-year and your policy doesn't contemplate it, your COI no longer matches your license scope. Tell your agent when your scope of work changes, not at renewal.
Sources: TSBPE Responsible Master Plumber requirements · TSBPE certificate of insurance form · Tex. Occ. Code § 1301.552
Where the State Minimum Isn't Enough
TSBPE's $300,000 per one-year period is a licensing floor, not a working limit. Almost nobody hiring you accepts it.
A contract can require more than the license does, and its insurance exhibit says how much. Before you buy to the state minimum, read the exhibit in the contracts you actually bid: the per-occurrence and aggregate limits, any umbrella or excess requirement, and the endorsements it names. If it asks for more than you carry, you'll be changing the policy mid-year.
Public and institutional owners set their own requirements above the state floor — read the insurance exhibit in the contract you're actually bidding.
Workers' Comp: Texas Is Different
In Texas, a private employer can choose whether to carry workers' compensation: under Labor Code § 406.002(a), an employer "may elect to obtain workers' compensation insurance coverage," except public employers and as otherwise provided by law. That creates three traps plumbers walk into.
If you go without it, you're a non-subscriber. You must file a notice of no coverage with the Texas Department of Insurance's Division of Workers' Compensation through its Employer E-File system, notify employees in writing, post notice at the workplace, and file annually. You also lose the common-law defenses that comp normally gives you, which means an injured employee can sue you directly for negligence.
If you work government jobs, it isn't optional. Contractors on state or local government building and construction contracts must provide workers' comp for every employee on the project.
If you use uninsured subs, their injuries can land on your policy. Your comp auditor will count an uninsured sub as your employee and charge you the payroll at your class rate. Collect certificates from every sub before they start, and check that the certificate was active on the dates they worked.
Sources: Tex. Labor Code § 406.002 · TDI Division of Workers' Compensation, non-subscriber notices and Employer E-File · Tex. Labor Code § 406.033 · Tex. Labor Code § 406.096 · TDLR electrical contractor license requirements
What Drives Your Premium
Three things, in rough order of impact:
- Payroll and class code. Comp is rated per $100 of payroll by class code. If your whole payroll is lumped into the highest-rated code, you're overpaying — including office staff who never touch a job site.
- Percentage of work at height, and commercial versus residential mix. Residential service work and high-rise commercial are different risks and often different carriers.
- Subcontractor spend. Money paid to uninsured subs gets added to your rating basis at audit.
Review your class code assignments with your broker before renewal, not after the audit catches the discrepancy. Audit disputes are winnable but slow, and the bill is due while you argue.
The Endorsements That Decide Whether You Get Paid
The coverage argument on a job site is almost never about the limit. It's about endorsements.
- CG 20 10 adds an additional insured for ongoing operations. CG 20 37 covers completed operations. A GC contract usually requires both.
- Primary and non-contributory wording means your policy pays first. Without it, your carrier can point at the GC's policy and stall.
- Waiver of subrogation gives up your carrier's right to recover from the GC after it pays. Check whether your contract's insurance exhibit asks for it.
- Blanket additional insured beats per-certificate endorsements once you're running multiple jobs. Ask whether certificates are unlimited or priced individually.
What You Should Actually Carry
Carry the coverages below, at the amount your license or your contract sets:
| Coverage | Why |
|---|---|
| General liability | At least the TSBPE minimum above. A contract's insurance exhibit can require more; read it before you bid. |
| Workers' compensation | Government jobs require it; subscriber status protects you from direct suit |
| Commercial auto | Personal auto policies exclude business use. A service van on a personal policy is a denied claim waiting to happen |
| Tools and equipment (inland marine) | Your GL covers damage you cause to others, not your own tools out of the van |
| Umbrella | When a contract's insurance exhibit calls for limits above your primary policy. The exhibit sets the amount, and whether it means umbrella or excess. |
| Installation floater | Materials on site before the job is complete, which property coverage does not reach |
Questions People Ask
How much liability insurance does a Texas plumber need?
To hold the RMP designation you must file a certificate of insurance showing commercial general liability coverage of not less than $300,000 for all claims arising in any one-year period. TSBPE's $300,000 per one-year period is a licensing floor, not a working limit.
Is workers' comp required for contractors in Texas?
In Texas, a private employer can choose whether to carry workers' compensation: under Labor Code § 406.002(a), an employer "may elect to obtain workers' compensation insurance coverage," except public employers and as otherwise provided by law. Contractors on state or local government building and construction contracts must provide workers' comp for every employee on the project.
What happens to my license if my insurance lapses?
For a Responsible Master Plumber, the COI on file with TSBPE is what lets you pull permits. If it lapses, the permits stop. A political subdivision issuing a plumbing permit is required to verify that the RMP has a current certificate on file with the board.
Can I get contractor insurance after being non-renewed?
A non-renewal is a placement problem with a deadline. It is not a verdict on your business, and it is not the same as a cancellation.
What's the difference between CG 20 10 and CG 20 37?
CG 20 10 adds an additional insured for ongoing operations. CG 20 37 covers completed operations. A GC contract usually requires both.