NYC Plumbers: 3 Costly Workers’ Comp Mistakes (and How to Avoid Them)

Caroline VegaContractors, Workers Comp for Construction Companies

NYC Plumbers 3 Costly Workers’ Comp Mistakes (and How to Avoid Them)

Plumbing might not be the first trade that comes to mind when you think of high-risk construction work, but in New York City, plumbers face a unique set of hazards and skyrocketing insurance premiums because of them.

Whether you’re rerouting water lines in a Midtown renovation or replacing a sewer main in Queens, your business needs the right workers’ comp strategy in place to stay protected and compliant.

Here are the three most common workers’ comp mistakes NYC plumbing contractors make, and how to avoid them.

1. Misclassifying Workers Under Class Code 5183

NY assigns plumbing work to class code 5183, which covers the installation and repair of water lines, drainage, fixtures, and piping systems. However, not every employee on your team belongs in this high-risk classification.

Common mistakes include:

  • Assigning clerical staff or estimators to 5183 instead of 8810 (clerical) or 8742 (sales)
  • Failing to separate out apprentices or helpers who perform lower-risk tasks
  • Reporting payroll for independent contractors who should be covered under their own policy

Every hour misclassified into 5183 drives up your premiums unnecessarily. Segment payroll by role and confirm correct class codes with your broker to avoid overcharges and audit issues.

2. Failing to Verify Subcontractor Coverage

Many NYC plumbers bring on 1099 subcontractors to handle overflow jobs or specialty work. But if those subcontractors don’t carry their own valid workers’ comp coverage, and you don’t have Certificates of Insurance (COIs) on file, you could be held liable.

The Workers’ Compensation Board treats uninsured subcontractors like employees for audit purposes. That means their payroll gets added to yours, increasing your premium and potentially triggering backdated charges.

What to do: Always require current COIs from every subcontractor. Set reminders to update them regularly and verify coverage before any job begins.

3. Ignoring NYC-Specific Compliance Risks

New York City imposes stricter enforcement and more detailed recordkeeping than many other areas. Common local risks that impact workers’ comp include:

  • DOB violations: Working without permits or proper safety plans can jeopardize your insurance
  • Prevailing wage jobs: Misreporting payroll on government contracts can lead to major penalties
  • Scaffold Law exposure: Even for plumbers, elevation work can trigger absolute liability if an injury occurs

Your broker should understand the city’s unique regulatory environment and help you create a comp strategy that accounts for it.

Workers Comp for Plumbing Contractors in NYC

How Enforce Coverage Supports NYC Plumbers

Enforce Coverage works directly with plumbing contractors across New York City to design coverage that fits your real-world job risks, not just a generic policy off the shelf. We help you:

  • Use class codes properly to avoid overpaying
  • Manage COIs for subs to reduce liability
  • Stay audit-ready and avoid surprise back charges
  • Navigate NYC compliance requirements
  • Explore pay-as-you-go billing for better cash flow

Don’t Let Workers’ Comp Drain Your Profits

If you’re a plumbing contractor working in NYC, you can’t afford to ignore workers’ comp pitfalls. The right strategy can protect your crew, lower your EMR, and save thousands per year in premiums. Get a quote now or explore contractor rates →