Plumbing Contractor Bond and Insurance Requirements Update

NOTICE: THIS IS A ONE-TIME MESSAGE BEING SENT OUT BY WASHINGTON STATE DEPARTMENT
OF LABOR AND INDUSTRIES.  YOU WILL NOT BE RECEIVING ANY FURTHER EMAILS
FROM THIS LIST.

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June 14, 2021

Hello, insurance and surety agents.

We want to tell you about a new law going into effect this summer that could affect your customers who are contractors.

The Legislature has created a new licensing category of construction contractors called licensed plumbing contractors. Starting July 1, only contractors with this license can do plumbing work.

To be licensed, plumbing contractors will be required, among other things, to carry both a:

• Washington Continuous Contractor Surety Bond in the amount of $6,000.
• General liability insurance policy covering up to:
  • $50,000 for injury or property damages, $100,000 for injury or death to one person, and

$200,000 for injury or death to more than one person.

Or

• $250,000 combined per

The new plumbing license is a big change for current general construction and specialty plumbing contractors. They will no longer meet state requirements to perform plumbing work under their current contractor registration.

The Washington State Department of Labor & Industries (L&I) is implementing the law. Here is some information from L&I that may help you and your customers:

• L&I will no longer register contractors under the “construction contractor specialty plumbing” category starting July 1. If contractors with that existing registration want to become licensed plumbing contractors, they must obtain a new bond for the new

• Some contractors may want to obtain the new plumbing contractor license and maintain their general construction contractor registration. A separate bond will be required for each registration and

• Contractors can use their liability insurance to meet both general construction contractor registration and licensed plumbing contractor requirements. However, they must submit separate certificates of general liability insurance for each license and registration showing the correct L&I program as the certificate holder. For instance:

• A general construction contractor’s certificate of insurance would name L&I Contractor Registration Section as
• A licensed plumbing contractor’s certificate would name L&I Plumber Certification Program.

 

If you have questions, please email plumbers@Lni.wa.gov. You can also read about the law’s bond requirements at RCW 18.106.410 and liability insurance requirements at RCW 18.106.420.

 

Thank you so much for your time.