Operating a plumbing business in the Sunshine State involves more than just fixing leaks and clearing clogs. To keep your business flowing smoothly, you need to safeguard against risks that could lead to costly problems down the road. The right insurance coverage acts as a shield, protecting you and your business from unforeseen liability, injury claims, property damage, and other hazards.

This guide provides plumbing contractors in Florida with insights on insurance costs based on your business size and revenues. We’ll overview the key factors that influence costs, illustrate premium ranges for small, medium and large plumbing businesses, highlight additional coverages to consider, and explain how insurers calculate your rates. Most importantly, we’ll discuss the value of partnering with an insurance specialist to get the optimal protection.

Plumbers working in Florida need to have the right plumbing insurance coverage in place. This usually includes general liability insurance for plumbers to protect against third-party claims and workers’ compensation for plumbing businesses to cover employee injuries on the job.

Key Factors Influencing Insurance Costs

Several elements determine the insurance premiums for your plumbing business. Understanding these key factors provides context on why costs differ.

Location – Florida’s dense population and exposure to severe weather events like hurricanes means higher risk and insurance costs compared to some other states. Insurers price policies based on your specific geographic location.

Line of Work – The plumbing tasks you specialize in impact costs. Complex commercial plumbing systems differ from residential. High-pressure pipe cleaning is riskier than routine drain cleaning. The nature of your work factors into premiums.

Business Size – As your plumbing business grows, so do your insurance needs and costs. More employees, higher revenues, larger contracts, and increased liability exposure mean higher premiums.

Prior Claims – Your loss history directly affects insurance costs. Too many claims can cause insurers to view your business as high-risk. Maintaining a clean claims record keeps premiums affordable.

Policy Limits – Higher liability limits or coverage amounts increase potential payouts, driving up premiums. However, skimping on limits could leave you underinsured during major claims.

Subcontractors – Extensive use of uninsured subcontractors may increase your liability risk, causing higher insurance expenses. Insurers prefer you directly hire employees rather than subcontractors.

Small Plumbing Business Insurance Costs

For plumbing contractors just starting out or with modest revenues around $150,000 annually, insurance costs typically range:

General Liability – $2,500 to $8,800

Protects against third party bodily injury and property damage claims.

Workers’ Compensation – $1,934 to $3,384

Covers medical bills and lost wages for injured employees.

Surety Bonds – $200 to $1,000

Meets licensing and permit requirements.

With just 1-2 employees, many small plumbing businesses operate as a limited liability company (LLC) or sole proprietorship. Because of less legal separation between the business and owner, securing General Liability and Workers’ Compensation is crucial. Though premiums are higher than personal policies, they provide essential protection for your business. Surety bonds are often mandated by the state or municipalities to license a plumbing contractor. Costs are reasonable at this business size.

Medium Plumbing Business Insurance Costs

For established plumbing contractors with around $500,000 in annual revenues and a modest employee count, typical insurance costs are:

General Liability – $23,800 to $35,700

Workers’ Compensation – $5,801 to $10,152

Surety Bonds – $200 to $1,000

At this stage, your plumbing business is large enough that incorporating as an S-corporation or LLC provides legal and tax benefits. Your General Liability and Workers’ Compensation needs are more complex. While premiums are higher than small plumbing businesses, costs are still reasonable relative to revenues and risk exposures. Surety bonds meet licensing requirements. If you are interested in obtaining a Florida plumbing license, we recommend reading our comprehensive article on this topic for information and guidance.

Large Plumbing Business Insurance Costs

For plumbing contractors operating on a larger scale with approximately $1,000,000 in annual revenues and 5+ employees, typical insurance costs are:

General Liability – $60,400 to $78,500

Protects against third party bodily injury and property damage claims.

Workers’ Compensation – $9,668 to $20,000+

Covers medical bills and lost wages for injured employees.

Surety Bonds – $200 to $1,000

Meets licensing and permit requirements.

Given your employee size and revenues, operating as an S-corp or LLC is recommended. Your General Liability costs are higher, as you likely take on larger plumbing projects with greater liability risk. Workers’ Compensation is more expensive with additional employees. Though premiums are higher, large plumbing businesses can more easily absorb insurance as an operational cost. Bonding enables licensing and permits.

Additional Insurance Coverages

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Consideration of Additional Insurance Coverage

For plumbing contractors in Florida, it is important to look beyond the fundamental requirements and closely assess various insurance options that might provide extra security for the business. The following outlines these different coverages:

Property Insurance: This insurance protects buildings, business assets, and equipment from losses caused by threats such as fire, wind, hail, theft, and vandalism. For contractors, the typical annual premiums can vary from around $500 to more than $2,000, depending on the property’s value and location.

Inland Marine Insurance: This particular coverage is designed to safeguard costly contractor tools and equipment while they are on a job site or in transit. The average premiums fluctuate between $250 and $750 per year, subject to the value of the equipment.

Commercial Umbrella Insurance: Providing a vital extra layer of liability protection, this insurance extends the coverage limits of general liability, auto, and employers’ liability policies. For plumbing contractors, adding an extra $1 million in umbrella coverage generally costs between $400 and $800 annually.

Errors & Omissions Insurance: This policy covers third-party financial losses that may arise from alleged mistakes or negligence in the performance of work. The typical annual premiums for plumbing contractors in this category range from $500 to $1,000.

Cyber Insurance: With the rising threats in the digital domain, this insurance has become nearly essential. It protects against data breaches, hacked systems, theft of customer information, and other cybercrimes. Average annual premiums are typically between $750 and $1,500.

Employment Practices Liability Insurance: This insurance protects plumbing businesses from legal actions related to employment issues such as wrongful termination, discrimination, harassment, and other employee conflicts. The annual premiums for this coverage usually range from $800 to $1,200.

How Insurers Determine Plumber Premiums

Insurance carriers utilize a range of factors about your plumbing business to calculate and price your policies. Here are key considerations:

  • Gross sales and payroll – Used to measure business size and corresponding risk.
  • Location – Geographic area determines baseline premiums and risk environment.
  • Claims history – Frequency of past claims indicates future risk. Too many claims drive up costs.
  • Work class codes – Classifies risk of work performed. Plumbing is code 5183.
  • Tools and equipment – More expensive equipment means higher premiums.
  • Vehicles – Number and type of vehicles affect commercial auto premiums.
  • Employees – More employees increase workers’ compensation premiums.
  • Subcontractor usage – Extensive subcontracting may increase premiums.
  • Discounts – Credits for risk management, work experience, business longevity etc.

Getting the Right Insurance for Your Plumbing Business

Understanding typical plumber insurance costs is helpful. However, your business is unique. Partnering with an independent insurance agent or broker that specializes in the plumbing trade provides access to top national and regional insurance carriers. These niche experts understand the risks facing plumbing contractors. They can secure tailored coverage at optimal terms and pricing.

The right insurance specialist will:

  • Take time to understand your specific business and risk profile
  • Access niche insurance carriers that focus on plumbing contractors
  • Negotiate the appropriate coverage and policy limits
  • Advise on cost-effective risk management strategies
  • Walk you through claims if issues ever arise

This expertise allows your business to get the coverage you need, properly valued, at the best possible price. Don’t go it alone. Consult a trusted insurance advisor to discuss the specialized insurance your plumbing business requires.


Running a plumbing company in Florida involves managing risks from severe weather, complex installations, high foot and vehicle traffic, and other hazards. Proper insurance coverage provides protection against unforeseen claims, employee injuries, property damage, and liability exposures that could sink your business. While premiums vary based on your revenues, location, services, payroll, and other factors, the right insurance is crucial, regardless of your plumbing company’s size. Partnering with an experienced plumbing insurance specialist ensures your unique risks are covered so you can keep Florida’s water flowing.