As a plumbing contractor operating in Georgia, having adequate insurance coverage is essential to protect your business financially. From covering on-the-job injuries, property damage, and liability claims to ensuring compliance with state licensing and regulations, insurance plays a pivotal role in safeguarding your company’s wellbeing.

While insurance is a must-have, understanding the key factors that influence costs allows you to make informed decisions when structuring policies. This aims to get you the optimal protection at a competitive price point.

This comprehensive guide examines the criteria impacting plumber insurance premiums in Georgia, provides illustrative costs for plumbing businesses of all sizes, explores additional coverages beyond core policies, and shares tips on working with specialists to get tailored insurance optimized for your needs.

For plumbers in Georgia, having the appropriate insurance for plumbing is crucial. This typically includes liability coverage for plumbers to safeguard against third-party claims and workers’ comp insurance for plumbing companies to cover employee injuries sustained while working.

Key Factors Influencing Plumber Insurance Costs in Georgia

Several important criteria determine insurance costs for plumbers operating in Georgia:

Type of Work: Plumbers doing more hazardous work like sewer line repair, gas line installation, industrial plumbing, or water heater replacement tend to pay higher premiums than those focused on basic residential repairs and maintenance. The increased risk associated with specialized plumbing work leads to a greater likelihood of potential claims.

Number of Employees: The more plumbing employees you have, the greater your business’s exposure. Policies like workers’ compensation, commercial auto, and umbrella insurance cost progressively more as you add additional staff. A solo plumber may pay 50% less than one with 5 employees.

Revenue Size: Your company’s annual plumbing revenue directly impacts premium costs. Higher revenues represent a larger overall volume of work being performed. More plumbing jobs increase the chances of property damage, worker injury, or liability claims occurring. Data shows a strong correlation between a plumbing business’s annual revenue size and their insurance costs.

Geographic Location: Insurance rates can vary significantly across different regions of Georgia based on localized risk levels. Operating in urban metro Atlanta may lead to higher premiums than a quiet suburb, for instance, due to higher crime rates. Proximity to certain hazards like flood zones or coastal regions prone to hurricanes may also impact costs.

Claims History: Plumbers with a history of frequent past claims inevitably face higher insurance premiums across the board. Too many claims can even make securing coverage challenging. Maintaining a clean claims record helps keep insurance costs affordable long-term.

Policy Liability Limits: Paying for increased liability limits on general liability, auto, and umbrella policies adds cost compared to minimum statutory limits. However, higher coverage limits ensure your business is adequately protected in the event of a major claim or lawsuit. Georgia’s minimum required limits may not suffice for many plumbing businesses depending on their size and services.

Years in Business: New plumbing businesses often pay higher premiums when policies are first initiated until they build experience and credibility over time. Long-standing plumbing contractors who have been in business for 10+ years tend to qualify for discounts from carriers and, assuming they have an acceptable claims history, will pay lower premiums.

Credit History: Insurance carriers often review a plumbing business owner’s personal credit history when pricing policies. Better personal credit can help lower premium costs overall. This demonstrates financial responsibility and reduced risk in the insurer’s eyes. Poor personal credit scores may negatively impact pricing.

Safety Record: Plumbing contractors who are proactive about safety through employee training programs, use of protective gear and equipment, attention to OSHA compliance, and other safe work practices can often negotiate lower premiums during the underwriting process. Emphasizing safety initiatives shows the carrier your business is focused on reducing risk and claims.

Typical Small Plumbing Business Insurance Costs in Georgia

To give you a sense of typical insurance costs for smaller plumbing businesses in Georgia, let’s look at an illustrative example:

For a plumbing contractor based in Georgia with only 1 owner, 1 additional staff member, and $150,000 in annual revenue, average insurance premiums commonly fall within these ranges:

General Liability Insurance

Low End of Range: $4,600

High End of Range: $7,900

Workers’ Compensation Insurance

Low End of Range: $2,201

High End of Range: $3,852

Surety Bonds

Low End of Range: $250

High End of Range: $1,250

*Note: Surety bonds may not be required for all plumbers in Georgia depending on licensing needs. Verify bonding requirements with your local municipality.

As you can see, insurance costs for a small 1-2 person Georgia plumbing shop can vary significantly, sometimes by thousands of dollars annually. Factors driving whether a plumber falls at the higher or lower end of the premium range include:

  • Type of plumbing work performed – specialized trades tend to have higher premiums
  • Geographic location and risk environment
  • Rigor of safety practices and procedures
  • Business experience – new ventures pay more initially
  • Claims history – too many past claims drive up pricing
  • Owner’s personal credit score

New or risky plumbing businesses with prior claims will inevitably face annual costs at the upper end of the ranges shown above. Whereas experienced, safety-focused plumbing shops located in lower risk areas qualify for the lower premium pricing.

Typical Medium Sized Plumbing Business Insurance Costs

Let’s look at how insurance premiums scale for a mid-sized plumbing company:

For a Georgia plumbing contractor with 1 owner, 3 full-time staff members, and $500,000 in annual revenue, annual insurance premiums normally fall within these ranges:

General Liability Insurance

Low End of Range: $14,500

High End of Range: $21,800

Workers’ Compensation Insurance

Low End of Range: $6,603

High End of Range: $11,556

Surety Bonds

Low End of Range: $250

High End of Range: $1,250

With more employees and higher gross revenues, a mid-sized plumbing business faces significantly higher insurance costs across the board compared to a small 1-2 person operation.

New plumbing companies or those with concerning claims history get priced at the high end of these ranges by insurers. Whereas long-standing, safety-focused businesses are rewarded with lower premiums closer to the low end. Geographic risk factors and type of plumbing work specialization also impact costs.

Typical Large Plumbing Business Insurance Costs

Finally, let’s examine how insurance costs scale for a large plumbing contractor:

For a Georgia plumbing company with 1 owner, 5 employees, and $1,000,000 in annual revenue, average yearly insurance premiums typically span:

General Liability Insurance

Low End of Range: $24,800

High End of Range: $36,200

Workers’ Compensation Insurance

Low End of Range: $11,006

High End of Range: $19,260

Surety Bonds

Low End of Range: $250

High End of Range: $1,250

Total Estimated Annual Insurance Cost

Low End of Range: $36,050

High End of Range: $70,098

Due to their larger employee roster and higher annual revenues, large plumbing businesses pay significantly more in insurance costs across all major policy types.

As with mid-sized plumbing contractors, newer ventures or companies with concerning claims history get insurance pricing at the upper end of these ranges. While long-standing, safety-focused contractors can quality for the lower pricing tiers. Type of plumbing work, geography, credit score, and other factors also impact costs. If you’re looking for information on how to get your Georgia Plumbing License, we have a detailed article that will guide you through the process.

Additional Insurance Coverages for Plumbers Beyond Core Policies

While general liability, workers’ compensation, commercial auto, and surety bonds make up the core foundation of insurance for most plumbing contractors, you may need to consider additional supplementary coverages:

Commercial Auto Insurance: If company vehicles are used for plumbing business purposes, a commercial auto policy will be required. This covers liability and damage costs in the event of an accident while driving for work. Premiums typically run approximately $1,500 – $3,500 per vehicle annually.

Tools & Equipment Insurance: Also called inland marine insurance, this covers plumbing tools and equipment being transported or used off-site in the event of theft, damage, or other losses. About $250 – $750 per year.

Cyber Liability Insurance: With growing reliance on computers and technology, cyber insurance can provide vital protection if you ever experience a data breach or hack that compromises client information. Usually $750 – $1,500 annually.

Errors & Omissions Insurance: Also referred to as E&O, this coverage defends your business if accused of financial harm due to an alleged mistake, like installing the wrong pipes or failing to diagnose a problem. Typically $500 – $1,000 per year.

Employment Practices Liability Insurance: Guards against claims of discrimination, harassment, wrongful termination or other employee-related litigation. Ranges from $800 – $1,200 per year for most plumbing companies.

Umbrella Liability Insurance: This supplements coverage beyond the limits of other liability policies for added protection from major claims or lawsuits. Approximately $400 – $800 annually per $1 million in additional coverage.

How Insurance Carriers Calculate Premiums for Georgia Plumbers

Understanding how insurance carriers develop pricing for plumbing contractors can help guide decisions when structuring your policies:

  • For workers’ compensation insurance, employees are categorized using class codes defined by the National Council on Compensation Insurance (NCCI). Most plumbing technicians and plumbers fall under NCCI Class Code 5183. Each class code has rates tied to it which contribute to premium calculation.
  • The state where a plumbing business operates plays a major role in determining baseline insurance rates and regulations, which then influence regional pricing. Georgia has moderate plumber insurance rates compared to states like New York or California which have very high costs.
  • Payroll amounts figure prominently in workers’ compensation premium calculations, which are determined as: total annual payroll / 100 x class code rate x experience modification factor.
  • The experience modification factor (mod factor) for your business is based on past loss history. A higher mod indicates frequent claims and boosts your workers’ comp costs. Keeping a clean loss run helps ensure a low mod and reduced premiums.
  • For commercial auto insurance, insurers evaluate the number and type of vehicles, driver safety records, policy coverage limits selected, and other factors when pricing this coverage.
  • A plumbing company’s annual gross revenue size typically directly correlates to general liability premium costs. Statistics show higher revenues lead to increased insurance claims since more plumbing work is being done. Insurers thus increase general liability pricing accordingly.
  • Owners with poor personal credit may see higher premiums across all policy types, while excellent personal credit can help lower costs. Insurers associate better credit with reduced risk.
  • Paying for increased liability limits on policies offers higher protection but also adds to insurance costs. Georgia’s minimum liability limits often won’t suffice.

Tips for Getting the Right Insurance for Your Plumbing Business

Working with an insurance expert that focuses specifically on the plumbing trade is the best approach to ensure your business gets tailored coverage at competitive pricing. Here are tips on finding the right insurance partner:

  • Seek out agents and brokers who specialize in the plumbing vertical. They will understand the nuances of covering plumbing risks compared to other trades.
  • Ask about their plumbing specialty carrier access. The right partner will have established relationships with leading insurance carriers that cater to plumbing contractors.
  • Inquire about their experience advising plumbing businesses of your same size and service offerings. Similar plumbing clients indicates greater relevancy.
  • Ask for a coverage analysis based on your current (or planned) operations. This shows their ability to match your specific business profile to the optimal carriers and policy mixes.
  • Request referrals from other local plumbing contractors who work with the agency. Happy clients indicate aptitude working with plumbers.
  • See if they offer consulting on safety initiatives and credits to help control insurance costs over the long-term. The right agency will take a consultative approach.


Insurance coverage provides vital financial protection for plumbing businesses in Georgia, yet can be confusing to navigate and optimize. While actual premium costs vary based on multiple risk factors, partnering with an insurance specialist focused on the plumbing industry ensures your business gets the right coverage mix at competitive pricing. Take time to find an agent who understands the nuances of the plumbing trade. This safeguards your company’s liabilities and assets over the long-run as you continue growing.