Plumbers insurance is critical, yet many business owners find it all too difficult to get plumbers liability insurance quotes and other insurance for plumbers. No more.
At ContractorNerd, we make plumbers liability and business insurance for plumbers tailored, easy, and data-driven. For this guide, we’ve analyzed quotes for over 900 plumbers from leading providers across the United States to provide transparency on what you need, what it should cost, and how to get quotes. Let’s start with the basics.
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:
- Solo Plumbers:
- Plumbers Liability (aka General Liability) insurance is fundamental covering property damage and non-employee bodily injury. Many customers will ask if you’re licensed and insured; this is the insurance they are asking about. This covers “ongoing operations” liability – which includes damage or injuries caused by workers while present on job sites.
- Plumbers should also include “completed operations” liability coverage on their General Liability policy. This protects against issues that arise after project completion, such as when a water leak from previously completed work causes structural damage to the customer’s building.
- Plumbers license bonds are typically required by most states for obtaining a plumbing license. They cost only a few hundred dollars and can be easily purchased online – it’s recommended to buy these bonds in three-year increments where available, as this protects against costly lapses while being relatively inexpensive.
- Tools and Equipment (aka Inland Marine) coverage is also recommended. This covers your tools which enable you to do good work.
- Contractor’s E&O (aka Faulty Workmanship) coverage protects you against claims arising out of faulty workmanship, materials or products.
- Commercial Auto coverage is needed if you have a truck you use exclusively for work.
- Plumbers Liability (aka General Liability) insurance is fundamental covering property damage and non-employee bodily injury. Many customers will ask if you’re licensed and insured; this is the insurance they are asking about. This covers “ongoing operations” liability – which includes damage or injuries caused by workers while present on job sites.
- Small Plumbing Business (2-3 Employees):
- Workers compensation is required when you hire employees (not subcontractors)
- Commercial property is important to protect workshops, lumber storage areas, and offices.
- Umbrella Insurance (or higher limits on your Plumber Liability) should be considered as your business grows in revenue and project count.
- Established Plumbing Business (5+ Employees):
- Installation Floater covers materials, equipment and property in transit to or stored at job sites awaiting installation – critical for plumbers who fabricate custom items like cabinets, countertops, or built-ins that need transportation and on-site storage before final installation.
- Employment practices liability insurance (EPLI) to protect owners against potential lawsuits from employees.
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 Cost – ContractorNerd’s Quotes Study
We analyzed over 900 General Liability insurance quotes from leading carriers for plumbers across different states and business sizes. While exact rates vary significantly by individual circumstances, average annual premiums for plumbers typically range from:
- Small Plumbing Business ($150K Revenue, 1 employee) – $4,000 to $7,000
- Medium Plumbing Contractor ($500K Revenue, 3 employees) – $14,000 to $18,000
- Large Plumbing Contractor ($1M Revenue, 5 employees) – $24,000 to $35,000
New plumbing businesses starting without history may pay 25%+ more initially, as insurers need time to evaluate the risk. After successfully operating for several years without incidents, premiums often decrease, reflecting a more favorable risk assessment.
Below is a table summarizing typical general liability insurance premiums for plumbers and plumbing contractors based on a sample of states. 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.
| State | $150K Revenue | $500K Revenue | $1M Revenue | |||
| Avg. Premiums | % of Revenue | Avg. Premiums | % of Revenue | Avg. Premiums | % of Revenue | |
| California | $12,930 | 8.6% | $25,060 | 5.0% | $45,550 | 4.6% |
| Texas | $7,710 | 5.1% | $21,460 | 4.3% | $47,550 | 4.8% |
| Florida | $9,730 | 6.5% | $28,470 | 5.7% | $62,910 | 6.3% |
| Pennsylvania | $10,080 | 6.7% | $28,100 | 5.6% | $57,940 | 5.8% |
| Illinois | $7,910 | 5.3% | $19,920 | 4.0% | $41,700 | 4.2% |
| Ohio | $5,680 | 3.8% | $14,710 | 2.9% | $26,780 | 2.7% |
| Georgia | $5,340 | 3.6% | $16,380 | 3.3% | $26,550 | 2.7% |
| North Carolina | $5,380 | 3.6% | $13,630 | 2.7% | $28,360 | 2.8% |
| Michigan | $5,100 | 3.4% | $13,620 | 2.7% | $27,810 | 2.8% |
| Massachusetts | $5,680 | 3.8% | $15,050 | 3.0% | $28,830 | 2.9% |
If you’d like to learn more about plumber insurance requirements in your specific location, we’ve developed comprehensive state-by-state guides covering all 50 states. These resources can help you understand the insurance requirements and recommendations for plumbing professionals in your area, ensuring your business has the right protection.
Be sure to review the different types of plumbers who should have insurance.
Potential Savings on Liability Insurance for Plumbers
Working with an independent insurance agent who specializes in Plumbing Liability insurance can often lead to better rates and more comprehensive coverage options. Below you’ll find examples of actual savings achieved by plumbing businesses at different revenue levels – same plumbing company, different insurance carrier. If your current premium is closer to the average rates shown above, we recommend you get quotes from multiple carriers to see if you could secure equivalent or enhanced coverage at a more competitive rate.
| State | $150K Revenue | $500K Revenue | $1M Revenue | |||
| Favorable Rate | Potential Savings | Favorable Rate | Potential Savings | Favorable Rate | Potential Savings | |
| California | $7,520 | 41.8% | $25,060 | 0.0% | $40,990 | 10.0% |
| Texas | $4,820 | 37.5% | $18,120 | 15.6% | $36,240 | 23.8% |
| Florida | $6,230 | 36.0% | $24,830 | 12.8% | $57,550 | 8.5% |
| Pennsylvania | $7,010 | 30.5% | $13,400 | 52.3% | $30,750 | 46.9% |
| Illinois | $4,480 | 43.4% | $14,260 | 28.4% | $28,050 | 32.7% |
| Ohio | $3,000 | 47.2% | $9,270 | 37.0% | $19,770 | 26.2% |
| Georgia | $4,750 | 11.0% | $15,170 | 7.4% | $3,540 | 86.7% |
| North Carolina | $3,640 | 32.3% | $9,950 | 27.0% | $20,440 | 27.9% |
| Michigan | $1,540 | 69.8% | $2,970 | 78.2% | $4,870 | 82.5% |
| Massachusetts | $2,710 | 52.3% | $5,300 | 64.8% | $11,350 | 60.6% |
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.
Most and least expensive states for Plumber’s Workers Compensation Insurance:
| State | Premium per $100K Payroll |
| New York | $8,920 |
| New Jersey | $6,020 |
| Vermont | $4,930 |
| Maine | $4,840 |
| Hawaii | $4,510 |
| State | Premium per $100K Payroll |
| West Virginia | $1,170 |
| Oregon | $1,190 |
| Indiana | $1,370 |
| North Dakota | $1,410 |
| Arkansas | $1,450 |
If you’d like to see other state rates and try our calculator, check our guide on Workers’ Compensation Insurance for Plumbers.
Additional Insurance Plumbers Should Consider
Beyond the essential policies detailed above, here are additional insurance types plumbers may need as their business grows:
Tools & Equipment Insurance (Inland Marine)
Inland Marine Insurance protects plumbing tools and equipment during transit and at job sites against loss, theft, or damage. Annual premiums range from $200-$2,000, with policy limits of $5,000-$15,000+. Most policies have per-item limits (typically $5,000).
Contractors’ E&O Insurance
Protects against business mistakes and negligence claims in plumbing work. Covers costs if clients claim faulty installations, water damage, or subpar service. Includes professional negligence claims, legal defense, and judgments. Annual premiums range from $50-$500, with policy limits of $10,000-$1M+.
Commercial Auto Insurance for Plumbers
Commercial auto insurance protects plumbing service vehicles and covers liability from accidents during business operations. Personal auto policies don’t cover business use. Premiums range from $1,500-$3,050 per vehicle annually. Standard limits are $100K per person, $300K per accident, and $100K property damage, though higher limits ($500K-$1M) are recommended for comprehensive protection.
Plumber Bonds
Bonds guarantee work quality and fulfill licensing requirements. Typical bond amounts range $5,000-$25,000, with plumbers paying 1-3% as premium. Premium costs vary by credit score:
| Bond Amount | Excellent Credit | Good Credit | Bad 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 |
Requirements vary by state – California requires $25,000 bonds while Texas has no statewide mandate.
Commercial Property Insurance for Plumbers
Commercial property insurance protects buildings and contents (tools, equipment, inventory) against fire, theft, vandalism, and weather damage. Essential for plumbing businesses with warehouses, storage facilities, or showrooms. Annual premiums range $1,000-$5,000, based on property value, location risks (disasters, crime), and building construction type.
Business Owner’s Policy (BOP) for Plumbers
A Business Owner’s Policy bundles general liability and commercial property insurance. This can be a better option for businesses with physical locations, it covers customer injuries, property damage, business assets, and business interruption. Typically you will see lower premiums than separate policies but less flexibility. Premiums based on business size, location, claims history, and additional coverage added.
Commercial Umbrella Insurance for Plumbers
An alternative to increasing your limits on your general liability policy is an umbrella policy. This type of insurance provides additional liability coverage, extending beyond the limits of your standard policies like general liability, auto liability, and employer’s liability. In the event of a substantial claim that surpasses the limits of your primary policies, umbrella insurance steps in, offering extra financial protection. Typically adds $1M coverage (up to $2M+ available). Annual premiums: $500-$1,000.
Employment Practices Liability Insurance for Plumbers
Protects against employee claims of discrimination, harassment, wrongful termination, and other workplace issues. Annual premiums: $1,000-$5,000. Policy limits: $100,000-$1M.
Cyber Liability Insurance for Plumbers
Protects against data breaches and cyberattacks, covering investigation, customer notification, credit monitoring, PR, and legal costs. Policy limits: $100K-$1M. Annual premiums: $300-$1,000.
Why Insure Your Plumbing Business With ContractorNerd?
Our specialized network provides multiple competitive quotes from leading insurance carriers, helping you find comprehensive coverage that fits your plumbing business needs. Drawing from our analysis of over 900 plumbing contractors across all states, we’ve seen our clients typically save 20-50% on their liability premiums by comparing options through our network.
Get quotes today to see potential savings for your plumbing business.