As a plumber operating in Maryland, having the right insurance coverage in place is crucial to protecting your business from the many risks inherent to the plumbing trade. From property damage and injuries to lawsuits and equipment theft, unforeseen costs can sink an underinsured plumbing business.

But what insurance do Maryland plumbers need? And how much will adequate coverage cost on an annual basis? This comprehensive guide examines typical plumber insurance costs based on your business size and revenues. It also delves into the key factors that influence your insurance premiums in Maryland.

Arm yourself with an understanding of plumber insurance costs so you can make smart coverage decisions to safeguard the future of your business.

Maryland plumbers must have the proper insurance protection for plumbers to operate legally in the state. This typically includes liability insurance for plumbers to safeguard against third-party claims and workers’ comp for plumbing companies to cover employee injuries sustained while on the job.

Key Factors That Determine Plumber Insurance Costs in Maryland

Several important factors affect how much plumbers pay for essential business insurance coverages in the state of Maryland:

Annual Revenue: As your plumbing business generates more annual revenue, insurance carriers assume you are taking on more plumbing work. This increased volume likely translates into a greater chance of insurance claims occurring. More revenue means higher liability premiums.

Number of Employees: The more employees your plumbing business has, the greater the risk of injuries, claims filed, and damages occurring. Additional employees will drive up workers’ compensation and general liability insurance costs.

Claims History: Similar to auto insurance, if your Maryland plumbing business has a history of frequent past claims being filed, insurance carriers view your business as higher risk and will raise your premiums accordingly. Maintaining a clean claims history helps keep insurance costs in check.

Geographic Location: Where you operate your plumbing business within Maryland affects premium costs. More urban, higher-risk areas typically have higher insurance rates than more rural regions. Cost of living also varies regionally.

Policy Limits: The higher the liability coverage limits your plumbing business selects, the higher your insurance premiums will be. However, higher limits also lower your personal financial risk in the event of a large claim. Consider project and client contract requirements when choosing appropriate limits.

Equipment Values: For inland marine insurance covering your plumbing tools and equipment, premiums match the overall coverage limit to the total insured value of your assets. Higher equipment values equal higher potential payouts to you, meaning higher premiums.

Work Performed: If your plumbing business specializes in high-risk work like gas line installation, sewer and drain cleaning, or commercial plumbing jobs, your premium costs will likely be elevated compared to basic residential repair plumbers due to increased claims likelihood.

Business Size: In general, the larger your plumbing operation in terms of employees, fleet size, equipment values, and revenues, the more you can expect to pay for insurance coverage overall, since larger businesses represent amplified risks and greater potential for sizable claims.

Small Plumbing Business Insurance Costs in Maryland

To give you a better idea of actual plumber insurance costs in Maryland, here is an overview of typical coverages and premiums for a small plumbing contractor with 1 owner and 1 additional employee generating around $150,000 in annual revenues:

General Liability Insurance

  • Coverage: Financial harm to 3rd parties from bodily injury or property damage
  • Typical Limits: $1 million per occurrence / $2 million aggregate
  • Average Annual Cost: $4,300 – $8,000

Workers’ Compensation Insurance

  • Coverage: Injuries and lost wages for on-the-job accidents
  • Limits: Set by Maryland state regulations
  • Average Annual Cost: $2,473 – $4,327

Surety Bonds

  • Coverage: Fulfilling license and permit requirements
  • Bond Amount: Varies by city/county in Maryland
  • Average Annual Cost: $100 – $500

Some additional factors impacting insurance costs for small plumbing businesses in Maryland include:

  • Geographic service area – urban regions cost more to insure
  • Specialized plumbing work performed
  • Total value of tools and equipment
  • Driving records of employees if company vehicles are used

Medium Plumbing Business Insurance Costs in Maryland

Looking at a mid-sized plumbing company with 1 business owner, 3 full-time employees, and approximately $500,000 in annual revenues, here are the typical insurance policies along with estimated premium ranges:

General Liability Insurance

  • Limits: $1M per occurrence / $2M aggregate
  • Average Annual Cost: $13,600 – $20,400

Workers’ Compensation Insurance

  • Limits: Set by Maryland regulations
  • Average Annual Cost: $7,418 – $12,981

Surety Bonds

  • Bond Amount: Varies by jurisdiction
  • Average Annual Cost: $100 – $500

Some additional factors impacting insurance costs for medium-sized plumbing businesses:

  • Potential need for increased liability and workers’ comp limits
  • Use of company vehicles requiring commercial auto insurance
  • Specialized work like commercial plumbing and gas line installation
  • Claims history and ongoing safety record

Large Plumbing Business Insurance Costs in Maryland

Examining a larger plumbing contractor with 1 business owner, 5 employees, and about $1,000,000 in annual revenues, here are typical policies and premium ranges:

General Liability Insurance

  • Limits: $1M per occurrence / $2M aggregate
  • Average Annual Cost: $24,800 – $36,000

Workers’ Compensation Insurance

  • Limits: Set by Maryland regulations
  • Average Annual Cost: $12,363 – $21,635

Surety Bonds

  • Bond Amount: Varies by jurisdiction
  • Average Annual Cost: $100 – $500

Some additional factors impacting insurance costs for larger plumbing businesses:

  • Past claims history and loss run record
  • Use of subcontractors for high-risk work
  • Operation of a fleet of company vehicles
  • High value equipment and tools needing coverage
  • Specialized plumbing work performed

Additional Insurance Coverages Maryland Plumbers May Need

Apart from the core business insurances of general liability, workers’ compensation, and surety bonds required by law, plumbers in Maryland may need some of the following additional insurance coverages:

Commercial Auto Insurance

Protects company vehicles from damage and covers bodily injury/property damage if involved in an accident.

Cyber/Data Breach Insurance

Safeguards against losses from breaches involving client data and digitally stored company information. Especially pertinent for plumbers utilizing technology.

Errors & Omissions (E&O) Insurance

Covers financial harm to a third party resulting from mistakes, negligence, or failure to perform plumbing work properly.

Equipment & Tools Insurance

Insures plumbing tools and equipment on job sites and in transit between locations. Policy limits should match total asset values.

Commercial Property Insurance

Safeguards plumbing business properties like offices and warehouses from damage.

Umbrella Liability Insurance

Provides additional liability coverage above and beyond existing policy limits for added protection from major claims.

How Insurance Carriers Calculate Plumber Premiums in Maryland

To determine plumbing business premiums, Maryland insurance carriers take a range of factors about your company into account:

  • Geographic location within Maryland – impacts regulations, crime rate, cost of living
  • Industry class codes like 5183 for plumbers – indicates occupational risk level
  • Years in business – newer firms often pay higher premiums until operational history is proven
  • Annual gross revenues – more revenue means higher policy limits needed, driving up premium costs
  • Total number of employees – more payroll and staff increase workers’ compensation costs
  • Equipment values – inland marine policies match total insured asset value to coverage limit
  • Use of company vehicles – more vehicles increase auto insurance costs
  • Safety record and past claims – frequent past claims raise premiums over time
  • Specialized plumbing work – high-risk tasks like drain cleaning and gas line installation increase liability rates
  • Use of subcontractors – transferring high-risk work may lower direct insurance costs but increases risks

Getting the Right Insurance for Your Maryland Plumbing Business

Partnering with the right insurance agent or broker who specializes in the plumbing trade is key to getting tailored, affordable coverage for your Maryland plumbing business. Avoid generalist agents lacking plumbing expertise.

The ideal insurance partner understands the unique risks and hazards plumbers face and works with multiple top-rated insurance carriers to get you the optimal mix of coverage types and limits at the best rate possible.

Cookie-cutter insurance packages fail to address the specific risks your plumbing business faces. You need a customized insurance program designed for the distinctive assets, clients, locations, employees, vehicles, equipment, work activities, and legal environments specific to plumbing contractors.

An experienced plumbing insurance specialist will thoroughly evaluate your company to gain a deep understanding of your risk profile. Only then can they craft a tailored Maryland insurance solution addressing your specialized assets and exposures.

This type of personalized approach saves significant money over the long-term by avoiding coverage gaps through underinsurance or overpaying for unnecessary policies not needed. The result is complete protection tailored to your business, allowing you to focus fully on plumbing work rather than insurance.


As a plumbing business owner in Maryland, understanding typical insurance costs based on your business size and revenues, along with the key factors that influence your rates, enables smart coverage decisions. If you’re interested in pursuing a career in plumbing, check out our comprehensive guide on obtaining a Maryland Plumbing License for detailed insights and advice.

Revisit your insurance portfolio regularly as your plumbing business evolves to confirm your policies and limits keep pace with your operational growth and changing risk profile.

While premiums may feel like grudgingly paid necessary costs, proper insurance provides critical financial safeguards that secure your company’s future. Partnering with the right plumbing insurance specialist gives access to this essential protection at affordable rates.