Business insurance is an essential asset for plumbers in Kansas, safeguarding against costly liabilities that could put your company in financial jeopardy. This comprehensive guide examines the key factors impacting insurance costs, provides illustrative premium ranges based on business size, highlights additional coverages to consider, explains how carriers calculate rates, and underscores the value of working with an insurance specialist to secure adequate, affordable protection customized for your plumbing enterprise.

For plumbers in Kansas, having the proper business insurance protection for plumbing is crucial. This typically includes liability protection for plumbers to safeguard against third-party claims and workers’ comp coverage for plumbing companies to cover employee injuries sustained while on the job.

Key Factors Influencing Insurance Costs

Insurance premiums for plumbers in Kansas depend on several important criteria that insurers use to gauge risk:


Insurance rates can fluctuate significantly across different cities and counties in Kansas owing to variance in risk exposure. Areas prone to severe weather events like tornadoes and hailstorms often entail higher premiums to account for potential property damage and liability claims. High crime locations can also drive up costs due to increased theft exposures. Geographic territories are prescribed rating factors used by insurance companies.

Years in Business

New plumbing contractors are regarded as higher risk versus established businesses with years of experience. As such, new ventures will face notably higher premiums that should gradually improve as several years of favorable loss run history are accumulated. After 3 to 5 years with a clean claims record, insurance costs begin to stabilize and become more affordable.

Annual Revenue

Higher gross revenues signal greater business activity which equates to increased general liability and property exposures. More revenue dollars result in higher potential losses, leading insurers to boost premiums. Low revenue operations enjoy lower premium factors.

Number of Employees

Additional employees directly increase the chance of workplace injuries, driving up workers’ compensation premiums. More staff also incrementally raise general liability risks due to more people interacting with customers and projects.

Claims History

Insurers closely examine past losses and claims activity. Frequent claims result in dramatically higher premiums due toelevated perceived risk. Maintaining a clean loss run record over several years helps plumbers secure lower insurance costs.

Nature of Work

Complex or hazardous plumbing tasks like sewer line replacements, drain cleaning services using chemicals, or commercial boiler installations may necessitate specialized insurance coverages and push premiums upward.

Industry Trends

Rising injury rates or claims payouts in the plumbing trade prompt insurance carriers to adjust rates industry-wide. Trends are monitored based on compiled plumbing contractor data and benchmarks.

Small Plumbing Business Insurance Costs

For a small plumbing enterprise in Kansas with 1 owner, 1 full-time employee, and $150,000 in annual revenue, typical insurance premiums fall within these ranges:

General Liability – $3,600 to $17,700

General liability insurance covers third-party bodily injury and property damage claims arising from your plumbing operations. Typical policy limits recommended are $1 million per occurrence and $2 million aggregate. Premiums are estimated at 2% to 6% of revenue.

Workers’ Compensation – $1,675 to $2,931

Workers’ compensation insurance covers medical treatment and lost wages for employees injured on the job. Plumbers fall under Class Code 5183 for rating exposures. Premiums range from $1.78 to $4.47 per $100 of payroll.

Surety Bonds – $50 to $250

Plumbing contractors in Kansas may need license and permit bonds. Typical bond amounts are $5,000 to $25,000. You pay 1% to 5% of the bond amount as the annual premium. Understanding the process and requirements for obtaining a Kansas plumbing license is crucial for aspiring plumbers in the state.

Several variables like business location, specific plumbing work, and history of past claims can push costs toward the higher end. New ventures and complex or hazardous tasks attract the top rates.

Medium Plumbing Business Insurance Costs

For a mid-sized plumbing company in Kansas with 1 owner, 3 full-time employees, and $500,000 in annual revenue, annual insurance premiums typically span:

General Liability – $4,100 to $18,700

Workers’ Compensation – $5,025 to $8,794

Surety Bonds – $50 to $250

The expanded employee count and higher revenue elevate premiums across all lines relative to a small 1-person plumbing operation. However, cultivating long-term business relationships and accumulating years of positive loss run history can help offset these factors to keep insurance costs affordable.

Large Plumbing Business Insurance Costs

A larger plumbing contractor in Kansas with 1 owner, 5 employees, and $1,000,000 in annual revenue can expect approximated yearly premiums of:

General Liability – $20,200 to $37,000

Workers’ Compensation – $8,375 to $14,656

Surety Bonds – $50 to $250

The sizeable employee roster and 7-figure revenues contribute to general liability and workers’ compensation premiums exceeding those of small to mid-size plumbing businesses. But scaling premiums appropriately and optimizing risk reduction through safety initiatives and customer service helps facilitate continued growth.

Additional Insurance Coverages

Apart from the core business policies detailed above, plumbers in Kansas should also consider these optional insurance plans based on their specific risk exposures and needs:

Commercial Auto Insurance – $1,500 to $3,500 per vehicle

Covers liability and damage involving company vehicles. Customized coverage can be added for expensive tools and equipment transported in vans and trucks.

Tools & Equipment Coverage – $250 to $750 annually

Also called inland marine insurance. Protects tools and machinery on job sites and in transit.

Errors & Omissions – $500 to $1,000 per year

Provides protection against financial loss stemming from alleged mistakes in service delivery.

Cyber Liability – $750 to $1,500 annually

Safeguards sensitive customer data stored digitally from malicious hacks and breaches.

Umbrella Liability – $400 to $800 per $1 million in coverage

Extra liability limit above existing policy limits for added protection from major claims.

These supplementary plans fill coverage gaps and account for emerging exposures as plumbing businesses grow in size and complexity.

How Insurers Determine Plumber Premiums

Insurance carriers utilize a broad range of criteria when calculating premiums for plumbing contractors. These includes:

  • Class codes designating occupational hazard levels
  • Geographic location factors and risk territories
  • Years in business and experience modifiers
  • Revenue size, projected and historical
  • Number of employees on payroll
  • Accident history and loss run records
  • Safety initiatives and risk management
  • Plumbing services provided and equipment/tools used
  • Subcontractor certificates of insurance and contracts
  • Desired policy limits and deductibles

In addition, insurers reference aggregated data and benchmarks for the plumbing industry as a whole when pricing individual policies. The composite risk profile derived from this exhaustive information provides the actuarial basis for pricing suitable premiums that accurately reflect exposures.

Getting the Right Insurance for Your Plumbing Business

Partnering with an insurance advisor who specializes in the plumbing trade is invaluable for securing adequate coverage at an affordable cost. Their expertise and carrier relationships enable custom-tailored solutions not readily accessible through standard agents.

Here are some key benefits a plumbing specialist provides:

  • Access to insurance carriers offering niche products designed for plumbing contractors
  • Guidance on meeting evolving insurance requirements for public and commercial projects
  • Help navigating complex workers’ compensation rules and classifications unique to plumbers
  • Insight into optimal coverage amounts based on typical damages and claims
  • Advice on risk exposures associated with new tools, techniques, or services
  • Proactive policy reviews and adjustments aligned with business growth
  • Assurance all insurance gaps are filled to avoid personal liability

This level of specialized support yields optimal coverage, confident compliance, and cost savings that cannot be matched through a piecemeal approach with generalist brokers. It also alleviates headaches so you can focus entirely on excelling in your plumbing profession.


The costs and types of business insurance policies needed for plumbing contractors in Kansas depend on several variables. While factors like payroll, revenue, and claims history do impact premiums, working cooperatively with an insurance specialist yields significant benefits. Their technical expertise tailored to the plumbing trade facilitates access to exclusive carriers and products otherwise unavailable. This enables the creation of a fine-tuned insurance program providing end-to-end protection without overpaying. Investing in comprehensive, quality coverage reduces risk so Kansas plumbers can thrive and grow.