Plumber insurance shouldn’t be as complex as the piping systems you install. At ContractorNerd, we’ve transformed how plumbers shop for insurance through our proprietary quote platform that makes it incredibly easy to tailor coverage, get multiple online quotes, and buy insurance in minutes.
Our proprietary platform connects you exclusively with our network of contractor-friendly insurer partners to generate instant online quotes tailored for your business – including limits, deductibles and optional coverages such as tools & equipment and water damage liability. Our team of tech-enabled and specialized agents provides expert guidance throughout the process.
Data drives our entire approach – empowering plumbers to make smarter purchasing decisions. By analyzing more than 900 plumber insurance quotes from contractor-friendly insurers, we deliver clarity on which coverages are truly essential for your plumbing business and fair pricing expectations broken down by state and company size. In this guide you’ll learn about:
- Essential Coverage Types – General Liability (class codes 98483/98482), Workers Compensation (class code 5183), Tools & Equipment, and Commercial Auto for plumbers at every business stage
- General Liability Quotes – Typically range from 2.5% to 4.5% of annual sales, with analysis based on 900+ real plumber quotes across different revenue levels ($150K, $500K, $1M+)
- Workers Compensation Quotes – Range from $1.75 to $4.50 per $100 of payroll, with significant state-by-state variations in premium structures
- Specialized Plumber Coverages – Tools & Equipment (Inland Marine), Installation Floater, Professional Liability, and Contractor Bonds with typical quote ranges and coverage limits
- Business Growth Considerations – How insurance needs evolve from sole proprietor to established business with 5-10+ employees, including Umbrella and EPLI coverage
Let’s get started.
Plumbers Insurance – What Do You Need?
For plumbers, from independent contractors to those overseeing larger enterprises, choosing appropriate insurance coverage is essential for protecting your business. Below is a tailored breakdown for plumbers at various stages:
1. Sole Proprietor
As an independent plumber, you need core coverage to protect yourself and meet customer expectations:
Plumbers Liability (General Liability) – This is your fundamental coverage for property damage and bodily injury to non-employees. When customers ask if you’re “licensed and insured,” this is what they mean. Make sure your policy includes:
- Ongoing operations coverage for damage while you’re working on-site
- Completed operations coverage for problems that surface after you leave (like water damage from a leak in your previous work)
License Bonds – Required in most states to get your plumbing license. Buy these in 3-year increments when possible—they only cost a few hundred dollars and prevent expensive lapses.
Tools and Equipment Coverage (Inland Marine) – Protects the tools that keep you in business.
Contractor’s E&O (Faulty Workmanship) – Covers claims from defective work, materials, or products.
Commercial Auto – Essential if you have a dedicated work truck.
2. Growing Business (with Employees)
Once you hire your first employees, you’ll need everything above plus:
Workers Compensation – Required by law when you hire employees (not needed for subcontractors).
Installation Floater – Protects valuable materials and equipment in transit or stored at job sites. This is critical for expensive items like water heaters, boilers, pumps, copper piping, and high-end fixtures waiting to be installed.
Commercial Property – Covers your physical business locations like workshops, storage areas, and offices.
3. Established Business (with 5-10+ Employees)
As your plumbing business expands, consider adding:
Umbrella Insurance – Provides extra liability protection beyond your standard policy limits as your revenue and project volume grow.
Employment Practices Liability (EPLI) – Protects against employee lawsuits related to wrongful termination, discrimination, or harassment claims.
Plumbers Liability Insurance – aka General Liability for Plumbers
If there was a single coverage critical for all Plumbers, this is it. This insurance covers bodily injury, property damage, personal and advertising injury, products and completed operations, damage to rented premises, and medical payments. Types of claims commonly faced include:
- Property Damage: Accidental damage to a client’s building, floors, walls, etc.
- Bodily Injury: A client, visitor or bystander getting hurt due to your work activities.
- Defective Products: Lawsuits over an installed product that turns out defective.(Add-On)
- Completed Work: Lawsuits over issues from past completed jobs. (Add-On)
Liability Limits for Plumbers: Most plumbers will start with $1 million per occurrence; $2 million aggregate. Elevating your coverage from $500,000 to $1 million increases your protection significantly while only slightly affecting your premiums. As your business grows consider increasing limits to $2 million per occurrence; $4 million aggregate.
Liability Premium for Plumbers: For plumbers, this insurance typically costs between 2.5% and 4.5% of annual sales for coverage limits of $1 million per occurrence and $2 million aggregate. These average premiums are specific to the plumbing industry.
Key factors influencing these premiums include:
- Revenue: Higher revenue means more work and potential claims
- Policy Limits: Higher limits means more risk and higher premiums
- Claims History: Clean record means lower premiums
- Location: State regulations and cost of claims impacts premiums
- Class Codes: Different plumbers specialties carry varying risks; here are some class codes that plumbers use; most commonly 98483 (residential) and 98482 (commercial)
Plumbers Insurance – ContractorNerd’s Quotes Study
We analyzed over 900 General Liability insurance quotes from leading carriers for plumbers across different states and business sizes. Below is a comprehensive breakdown of typical general liability insurance premiums for plumbers and plumbing contractors based on our extensive market research. Each scenario assumes the following for each revenue size:
- $150K Revenue: Assumes 1 owner with ~10% subcontracting costs and 5+ years of operating without claims.
- $500K Revenue: Assumes 1 owner and 3 employees with ~10% subcontracting costs and 5+ years of operating without claims.
- $1M Revenue: Assumes 1 owner and 5 employees with ~10% subcontracting costs and 5+ years of operating without claims.
Plumber liability insurance premiums vary significantly based on annual revenue, with costs ranging from approximately 2.7% to 6.8% of gross revenue. Our analysis reveals that plumbers across different revenue brackets can achieve substantial savings by shopping for competitive rates, with potential savings ranging from 33% to 39% off national average premiums.
For small plumbing operations generating $150,000 in annual revenue, the national average premium sits at $7,450 per year. However, favorable rates can bring this down to $4,550, representing a 39% savings. As businesses scale, the percentage of revenue dedicated to insurance generally decreases, though absolute costs increase. Mid-size operations with $500,000 in revenue face average premiums of $20,580, while larger companies approaching $1 million in revenue can expect average costs around $40,790 annually.
| Revenue Level | National Average | Favorable Rate | Potential Savings | Low % of Revenue | High % of Revenue |
| $150,000 | $7,450 | $4,550 | 39% | 3.5% | 6.8% |
| $500,000 | $20,580 | $13,870 | 33% | 2.7% | 5.7% |
| $1,000,000 | $40,790 | $26,210 | 36% | 2.7% | 5.8% |
State-by-State Costs
To help plumbing contractors better understand regional pricing variations, explore our comprehensive breakdown of plumber insurance costs in every state nationwide. This state-specific analysis reveals how local factors impact your actual costs and identifies opportunities for savings in your market.
Workers’ Compensation Insurance for Plumbers
Workers’ Compensation Insurance is vital for plumbers, providing coverage for employee injuries on the job, including medical expenses and lost wages. Premiums are determined based on job classifications set by the National Council on Compensation Insurance (NCCI). Plumbers fall under code 5183, with rates typically ranging from $1.75 to $4.50 per $100 of payroll annually. Workers’ Compensation Insurance is often mandatory for businesses with employees. It covers work-related injuries and illnesses, including medical and rehabilitation costs, lost wages, and in severe cases, death benefits. For employers, this insurance also covers legal expenses and settlements if an employee sues for work-related injuries or illnesses.
WC Policy Limits for Plumbers: Generally, there’s no maximum payout limit for employee benefits in workers’ compensation policies, but this can vary based on state regulations.
WC Premium for Plumbers: $1.75 to $4.50 per $100 of payroll. Premium rates differ significantly across states. For instance, in New York, the premium is approximately $6,550 per $100K of payroll, while in Oregon, it’s around $1,160.
Key Factors affecting Workers’ Compensation premiums for plumbers include:
- Class Codes: Most code 5183; plumbers generally have higher rates compared to office jobs.
- State Regulations: Each state has different workers’ compensation laws and cost-of-living factors, affecting premium rates.
- Experience Modification: Reflects your safety record. A higher number of accidents increases the rate, while a good safety record reduces it.
- Total Payroll: The overall payroll impacts the premium, calculated as (payroll / $100) * rate * experience modification.
If you’d like to good deeper and try our calculator, check our guide on Workers’ Compensation Insurance for Plumbers.
Additional Insurance Plumbers Should Consider
Beyond the fundamental policies outlined previously, here are supplementary insurance options plumbing professionals should assess as their operations expand:
Tools & Equipment (Inland Marine Coverage) This specialized coverage safeguards your plumbing tools and equipment while transported between jobs and stored at work sites from damage, theft, or loss. Annual costs typically run $200-$2,000, with coverage limits ranging from $5,000-$15,000+. Individual item limits usually cap at $5,000 per tool or piece of equipment.
Plumbing Professional Liability Coverage Shields your business from claims alleging professional errors or oversights in plumbing services. Addresses situations where customers claim improper pipe installation, water system failures, or inadequate workmanship. Coverage includes professional oversight claims, legal representation, and settlement costs. Annual rates span $50-$500, with protection limits from $10,000-$1M+.
Commercial Auto / Fleet Insurance Fleet insurance secures your plumbing service trucks and vans while protecting against liability from accidents during work-related driving. Standard personal vehicle policies exclude commercial plumbing use. Expect $1,500-$3,050 annually per service vehicle. Basic coverage provides $100K individual injury, $300K total accident, and $100K property damage protection, though $500K-$1M limits offer superior security.
Plumbing Contractor Bonds These bonds ensure quality workmanship and meet state licensing standards. Bond requirements typically span $5,000-$25,000, with contractors paying 1-3% in premiums. Credit rating impacts your rates:
| Bond Value | Premium Grade Credit | Average Credit | Below Average Credit |
|---|---|---|---|
| $5,000 | $100-$150 | $150-$200 | $200-$400 |
| $10,000 | $100-$300 | $300-$500 | $500-$1,000 |
| $15,000 | $150-$400 | $400-$750 | $750-$1,500 |
| $20,000 | $180-$500 | $500-$1,000 | $1,000-$2,000 |
| $25,000 | $200-$500 | $500-$1,200 | $1,200-$2,500 |
State requirements differ significantly – California mandates $25,000 bonds while Texas enforces no uniform requirement.
Commercial Property and Business Personal Property Coverage This insurance secures your physical assets (pipe inventory, fixtures, specialized tools) from fire, burglary, weather events, and vandalism. Critical for plumbing operations maintaining parts warehouses, equipment storage, or fixture showrooms. Annual costs range $1,000-$5,000, influenced by facility value, area hazards (flooding, theft rates), and building materials.
Plumbing Business Package Policy (BOP) This package combines general liability with property protection into one policy. Ideal for established shops with physical premises, covering client accidents, property damage, business equipment, and operational interruptions. Generally offers reduced rates compared to individual policies though with decreased customization options. Rates reflect operation scale, geographic risks, loss history, and selected enhancements.
Excess Liability Coverage Rather than expanding base liability limits, excess coverage adds protection layers above existing general liability, vehicle, and workers’ comp policies. When major incidents exceed primary policy maximums, excess coverage provides crucial backup funding. Usually provides $1M additional protection (with $2M+ options). Annual investment: $500-$1,000.
Get Your Plumber Insurance Quote in Minutes – No Strings Attached
Could you be overpaying for plumber insurance? Does your policy truly cover the risks plumbing contractors face daily? You’ll have answers in minutes – without any obligation or hassle.
ContractorNerd’s quote platform lets you instantly discover whether your current rates are competitive. No commitments, no pushy salespeople, no mandatory phone calls. Simply receive transparent, competitive quotes from insurers who understand plumbing contractors, empowering you to make smart coverage decisions.
What makes ContractorNerd the go-to choice for plumbing contractors:
✓ All Your Insurance Under One Roof – From general liability and workers’ compensation to commercial vehicle and installation floater coverage – manage everything through a single platform. Stop coordinating between different brokers and insurance companies.
✓ Instant Digital Certificates – Close deals on the spot with immediate digital COIs. When property managers or general contractors need insurance verification, send it right from your mobile device. No back-and-forth, no waiting on your agent, no missed opportunities.
✓ Work Smarter, Book More Projects – While other plumbers wait days for insurance documents, you’re already providing certificates and scheduling jobs.
Get your tailored plumber insurance quotes now.
No hidden fees to compare rates, no pressure to purchase, and no aggressive follow-ups. Just honest, clear information about insurance options designed for plumbing contractors, so you can safeguard your business intelligently.
Plumber Insurance FAQs
What insurance do I need for plumbing?
You’ll need General Liability ($1M/$2M limits), Workers Comp if you have employees (class code 5183), and Tools & Equipment coverage. Most states require license bonds ($5,000-$25,000). Once you’re established, add Commercial Auto, Installation Floater for expensive materials, and potentially an Umbrella policy for extra protection.
What is general liability for plumbers?
It covers bodily injury and property damage you cause while working – like water damage from a bad connection or someone tripping over your tools. Plumbers use class codes 98483 (residential) or 98482 (commercial). Standard coverage is $1M per occurrence/$2M aggregate, costing 2.5-4.5% of annual revenue.
How much does plumbing insurance cost?
General Liability runs 2.5-4.5% of annual revenue – so about $7,450 yearly on $150K revenue. Workers Comp costs $1.75-$4.50 per $100 of payroll depending on your state. Tools coverage is $200-$2,000 annually. Commercial Auto adds $1,500-$3,050 per vehicle. Total insurance typically hits 5-8% of revenue.
What insurance codes do plumbers use?
For General Liability, use class code 98483 for residential work or 98482 for commercial plumbing. Workers Comp uses class code 5183 for all plumbers. These codes determine your rates – residential typically costs less since there’s lower risk than commercial jobs with bigger pipes and more liability exposure.