Plumbing Business Insurance Cost & Quotes (2026)
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Plumbing contractors need two essential insurance policies: General liability (GL) protects against third-party property damage and bodily injury claims, while workers’ compensation (WC) covers employee injuries and is mandatory in most states with employees.
Plumber insurance costs vary dramatically across states, with our analysis of 900+ quotes revealing differences that can impact your bottom line by thousands annually. General liability premiums range from 0.8% of revenue in Kansas to 9.8% in South Carolina, while workers’ compensation rates show an even starker 7.6x variation – from $1.17 per $100 payroll in West Virginia to $8.92 in New York.
For a typical $500K plumbing business, total insurance costs range from $16,210 to $38,420 annually depending on location. Our data covers three business profiles: solo operations ($150K revenue), mid-size firms ($500K revenue with 3 employees), and larger contractors ($1M revenue with 5 employees) – all with 5+ years claims-free history and 10% subcontractor usage.
The findings reveal massive savings opportunities through strategic shopping. Kansas contractors can reduce GL premiums by 69.4%, while even expensive states like Louisiana offer 56.5% potential savings. These variations – representing $6,710 in possible GL savings for a mid-size plumber – underscore why obtaining multiple quotes is critical.
This guide examines both essential coverages plus the full spectrum of available policies to help you optimize your total insurance investment.
After exploring the costs in detail, it’s crucial to understand the full range of plumber insurance coverage available– from general liability and workers’ compensation to professional liability, tools coverage, and commercial auto – as your total insurance investment depends on which policies your business truly needs.
Lastly, many plumbers do other types of jobs. Here are some other cost studies that might be helpful: HVAC Contractor Insurance Cost, Electrician Insurance Cost, and Appliance Repair Business Insurance Cost.
These benchmarks come from ContractorNerd’s analysis of plumbing insurance quotes. See methodology
General Liability Premium Ranges:
National Average
3.5% to 6.8% of annual revenue (at $150K revenue level)
Favorable Markets
2.7% to 5.7% of annual revenue
Potential Savings
33% to 39% of current GL premium possible when moving from average to favorable market rates
Workers’ Compensation Rates
Class 5183
Plumbing
$1.17 to $8.92 per $100 payroll
Six Major Cost Drivers
Classification Codes
Different GL and WC classifications based on type of plumbing work performed
Years in Business
Primarily affects GL rates; newer businesses typically pay higher premiums
Subcontractor Usage
Impacts both GL (uninsured sub exposure) and WC (payroll audits)
Business Size
GL based on revenue projections; WC based on actual payroll
Claims History
GL claims affect rates for 3-5 years; WC claims impact experience modification factor
Geographic Location
GL varies by local court costs and competition; WC set by state rating bureaus
Plumber General Liability Insurance Rates
Blended Residential and Commercial Plumbing
Most plumbing contractors operate across both residential service and commercial construction markets. The data below reflects a typical blend of these operations, with rates varying based on the specific mix of work performed.
Revenue Level
National Average
Favorable Rate
Potential Savings
High % of Revenue
$150,000
$7,450
$4,550
39%
3.5% – 6.8%
$500,000
$20,580
$13,870
33%
2.7% – 5.7%
$1,000,000
$40,790
$26,210
36%
2.7% – 5.8%
*Potential savings represent the possible reduction when moving from average to favorable market rates
GL Risk Advantages
for Residential Work
Predictable work scope reduces unexpected claims
Direct customer relationships improve communication
Limited public exposure during off-hours work
Lower average claim severity than new construction
GL Risk Challenges
for Residential Work
Water damage claims from fixture failures
Mold allegations from undetected leaks
Property access disputes with homeowners
Tool theft from service vehicles
GL Risk Advantages
for Commercial Work
Controlled jobsite access reduces public exposure
General contractor oversight of safety protocols
Clear project specifications minimize scope disputes
Newer building materials reduce corrosion claims
GL Risk Challenges
for Commercial Work
Coordination delays creating liquidated damages
Underground utility strikes during excavation
Multi-story water damage from pipe failures
Contractual liability from indemnification clauses
GL Risk Challenges
for Residential Work
Water damage claims from fixture failures
Mold allegations from undetected leaks
Limited public exposure during off-hours work
Lower average claim severity than new construction
for Commercial Work
for Residential Work
Controlled jobsite access reduces public exposure
General contractor oversight of safety protocols
Clear project specifications minimize scope disputes
Newer building materials reduce corrosion claims
Workers’ Compensation Note: Plumbers typically classify under 5183 with rates varying dramatically by state from $1.17 to $8.92 per $100 payroll. Those performing significant HVAC or sheet metal work may have split classifications.
Plumber Insurance Cost by State
50-State Interactive Heat Maps – General Liability & Workers Comp Analysis
Most plumbing contractors operate across both residential service and commercial construction markets. The data below reflects a typical blend of these operations, with rates varying based on the specific mix of work performed.
Plumber Insurance Cost Metrics by State
Explore insurance costs and savings opportunities across the United States
Show State-by-State Data
| State | GL Premium Range | GL Savings % | GL Competitiveness | WC Rate (Class 5183) |
|---|---|---|---|---|
| Alaska | 1.50% - 1.50% | 0.00% | 0 | $3.71 |
| Alabama | 1.90% - 5.10% | 52.40% | 70 | $2.96 |
| Arkansas | 2.30% - 4.50% | 30.50% | 30 | $1.45 |
| Arizona | 2.10% - 4.90% | 19.30% | 40 | $2.69 |
| California | 2.10% - 6.20% | 32.20% | 10 | $4.22 |
| Colorado | 2.40% - 6.10% | 33.30% | 30 | $2.65 |
| Connecticut | 3.30% - 5.00% | 20.00% | 50 | $4.47 |
| Delaware | 2.10% - 4.40% | 26.70% | 30 | $3.83 |
| Florida | 1.70% - 6.30% | 13.10% | 0 | $3.70 |
| Georgia | 2.50% - 4.00% | 11.00% | 20 | $3.71 |
| Hawaii | 1.40% - 3.10% | 22.10% | 0 | $4.51 |
| Iowa | 2.40% - 3.80% | 11.90% | 40 | $2.97 |
| Idaho | 2.10% - 4.80% | 42.60% | 90 | $3.88 |
| Illinois | 1.60% - 4.90% | 21.10% | 50 | $4.06 |
| Indiana | 2.70% - 4.80% | 18.90% | 20 | $1.37 |
| Kansas | 0.80% - 5.90% | 69.40% | 70 | $2.34 |
| Kentucky | 1.40% - 4.70% | 62.70% | 70 | $1.78 |
| Louisiana | 3.10% - 8.40% | 56.50% | 0 | $2.91 |
| Massachusetts | 1.50% - 4.20% | 54.60% | 70 | $3.08 |
| Maryland | 2.50% - 4.10% | 11.10% | 50 | $3.34 |
| Maine | 2.50% - 3.90% | 13.00% | 30 | $4.84 |
| Michigan | 1.90% - 4.00% | 7.00% | 70 | $3.06 |
| Minnesota | 1.70% - 5.40% | 59.40% | 100 | $3.71 |
| Missouri | 1.30% - 3.60% | 53.50% | 70 | $3.65 |
| Mississippi | 2.00% - 5.00% | 42.50% | 70 | $2.33 |
| Montana | 2.30% - 5.30% | 54.30% | 40 | $4.04 |
| North Carolina | 2.50% - 4.40% | 24.40% | 40 | $3.30 |
| North Dakota | 2.10% - 4.50% | 36.80% | 40 | $1.41 |
| Nebraska | 2.00% - 3.30% | 5.50% | 50 | $3.26 |
| New Hampshire | 3.10% - 5.00% | 14.50% | 70 | $3.62 |
| New Jersey | 4.20% - 7.50% | 23.50% | 70 | $6.02 |
| New Mexico | 2.60% - 5.00% | 30.50% | 30 | $3.46 |
| Nevada | 1.60% - 4.90% | 60.10% | 20 | $2.78 |
| New York | 5.20% - 8.70% | 12.20% | 10 | $8.92 |
| Ohio | 2.00% - 3.80% | 11.70% | 50 | $1.80 |
| Oklahoma | 2.60% - 3.50% | 18.20% | 10 | $3.49 |
| Oregon | 2.50% - 5.90% | 26.70% | 90 | $1.19 |
| Pennsylvania | 2.00% - 6.30% | 65.00% | 50 | $3.86 |
| Rhode Island | 2.80% - 5.70% | 19.80% | 30 | $3.91 |
| South Carolina | 4.30% - 9.80% | 13.50% | 30 | $3.54 |
| South Dakota | 2.40% - 5.90% | 39.20% | 70 | $3.84 |
| Tennessee | 1.40% - 4.30% | 61.30% | 70 | $1.78 |
| Texas | 1.50% - 4.90% | 25.50% | 20 | $2.29 |
| Utah | 2.50% - 4.50% | 13.90% | 100 | $2.00 |
| Virginia | 1.20% - 2.90% | 48.20% | 40 | $2.56 |
| Vermont | 2.40% - 4.10% | 14.40% | 50 | $4.93 |
| Washington | 2.90% - 5.70% | 34.30% | 10 | $3.28 |
| Wisconsin | 2.10% - 4.70% | 32.40% | 50 | $3.39 |
| West Virginia | 2.00% - 6.30% | 44.10% | 50 | $1.17 |
| Wyoming | 2.30% - 4.10% | 16.70% | 40 | $3.48 |
The four heat maps above provide instant visual insight into plumbing contractor insurance costs across all 50 states:
1. GL Premium Ranges – Visualize how general liability costs as a percentage of revenue vary nationwide, from as low as 0.8% in Kansas’s competitive markets to over 9.8% in South Carolina’s high-cost environment. Darker shades indicate higher premium ranges, helping you benchmark your current costs against regional averages.
2. GL Savings Opportunities – Discover potential premium reductions available through strategic shopping, ranging from 12.2% in New York’s saturated market to over 69.4% in Kansas where significant carrier competition exists. This map reveals where shopping efforts yield the greatest returns.
3. Carrier Competition Levels – Understand market dynamics affecting your negotiating power. States with higher competition percentiles offer more carrier options and aggressive pricing, while lower percentiles indicate limited options requiring specialized broker relationships.
4. WC Rates per $100 Payroll – Compare workers’ compensation costs for plumbing Code 5183 across all states, from West Virginia’s nation-leading $1.17 to New York’s $8.92. This dramatic 7.6x variation significantly impacts total labor costs and competitive positioning.
Plumber Workers Comp Rates by State
Workers’ compensation rates vary dramatically based on state-specific rating bureaus and loss experience. The primary plumbing classification (5183) shows extreme variation across states.
Five Lowest WC Rate States
Class 5183
Five Lowest WC Rate States
Class 5183
Total Plumber Insurance Cost by State
For comprehensive benchmarking, we’ve analyzed states offering the best combined value considering both GL market dynamics and WC rates.
Top 5 Most Affordable Combined Insurance States
Kansas
Exceptional GL market with the lowest minimum rates nationally combined with moderate WC costs creates strong value for contractors
GL range for revenue
0.8% to 5.9%
GL potential savings
69.4%
possible when moving from average to low rates
WC rate
5183
$2.34
per $100 payroll
Virginia
Outstanding combination of low GL rates and reasonable WC costs with conservative legal climate supporting both
GL range for revenue
1.2% to 2.9%
GL potential savings
48.2%
possible when moving from average to low rates
WC rate
5183
$2.56
per $100 payroll
Oregon
Despite higher GL ranges, Oregon offers the second-lowest WC rates nationally, creating strong overall value
GL range for revenue
2.5% to 5.9%
GL potential savings
26.7%
possible when moving from average to low rates
WC rate
5183
$1.19
per $100 payroll
West Virginia
Despite higher GL ranges, Oregon offers the second-lowest WC rates nationally, creating strong overall value
GL range for revenue
2.0% to 6.3%
GL potential savings
44.1%
possible when moving from average to low rates
WC rate
5183
$1.17
per $100 payroll
Missouri
Highly competitive GL market with significant savings opportunities despite moderate WC rates
GL range for revenue
1.3% to 3.6%
GL potential savings
53.5%
possible when moving from average to low rates
WC rate
5183
$3.65
per $100 payroll
Top 5 Most Expensive Combined Insurance States:
New York
Highest WC rates nationally combined with severe GL pricing creates most expensive insurance environment
GL range for revenue
5.2% to 8.7%
GL potential savings
12.2%
possible when moving from average to low rates
WC rate
5183
$8.92
per $100 payroll
South Carolina
Highest GL rate ranges in the data with limited shopping benefits, though WC rates remain moderate
GL range for revenue
4.3% to 9.8%
GL potential savings
13.5%
possible when moving from average to low rates
WC rate
5183
$3.54
per $100 payroll
New Jersey
Second-highest WC rates with high GL ranges, though moderate shopping opportunities exist
GL range for revenue
4.2% to 7.5%
GL potential savings
23.5%
possible when moving from average to low rates
WC rate
5183
$6.02
per $100 payroll
Connecticut
Above-average costs in both GL and WC with limited market competition
GL range for revenue
3.3% to 5.0%
GL potential savings
20.0%
possible when moving from average to low rates
WC rate
5183
$4.47
per $100 payroll
Louisiana
While GL shopping provides significant savings potential, base rates remain among the highest
GL range for revenue
3.1% to 8.4%
GL potential savings
56.5%
possible when moving from average to low rates
WC rate
5183
$2.91
per $100 payroll
Note that even in expensive states, strategic shopping can yield significant savings.
Kansas contractors can potentially reduce GL premiums by 69.4%, while Louisiana shows 56.5% savings potential despite high base rates.
What Does Plumber Liability Insurance Cover?
Understanding GL Limit Structures
General liability limits significantly impact both premium costs and protection adequacy. Most plumbing contractors choose between three standard limit configurations:
$500K
Per Occurrence
$1M Limits
Aggregate
Suitable for smaller residential service work
Typical premium impact: Base rate
May not meet commercial contract requirements
$1M
Per Occurrence
$2M Limits
Aggregate
Industry standard for most plumbing contractors
Typical premium impact: No increase from base rate
Meets most residential and light commercial requirements
$2M
Per Occurrence
$4M Limits
Aggregate
Required for large commercial projects and municipal work
Typical premium impact: Moderate to significant increase from base rate
Often achieved through primary plus umbrella coverage
Deductible Strategies
Deductible selection provides premium flexibility while requiring careful cash flow consideration:
$0 Deductible
Maximum insurer responsibility from first dollar
Appropriate for new businesses with limited reserves
Premium impact: Base rate
$2,000 Deductible
Eliminates nuisance claims while preserving major loss protection
Provides minor to modest premium reduction
Requires maintaining operating reserves
Specialized Plumbing Endorsements
Faulty Workmanship Coverage
Available as a GL endorsement with sublimits, this coverage addresses allegations of improper installation or design errors. Critical for contractors providing system design or consultation services beyond pure installation work.
Tools & Equipment Coverage
While often available as a GL endorsement for hand tools, contractors with significant equipment investments should consider separate inland marine policies. Service plumbers with fully equipped trucks typically need substantial tool coverage.
How to Lower Your Plumber Insurance Cost
Strategic Shopping Timeline
General Liability Renewal Approach
Begin shopping 60 days before renewal to allow proper underwriting and negotiation. Submit applications to 5-7 carriers simultaneously, emphasizing safety records and specialization expertise. Avoid last-minute shopping which limits options and prevents premium financing arrangement if needed.
Workers’ Compensation Timing
Start WC shopping 90 days prior to renewal, particularly when seeking alternative rating factors or retro programs. State funds require longer lead times than private carriers. Coordinate WC renewal with GL when possible to maximize account credits.
Workers’ Compensation Optimization Strategies
Classification Code Management
Proper employee classification can generate substantial savings. A plumber with $300,000 payroll in New York at $8.92 per $100 pays $26,760 annually. The same payroll in West Virginia at $1.17 per $100 costs only $3,510. Document time allocation through daily work logs and separate payroll records by work type.
Payroll Segregation Tactics
Separate clerical employees from field classification for significant savings. A $40,000 clerical salary in New York saves $3,568 when properly classified versus field rates. Maintain detailed records showing physical separation from plumbing operations.
Experience Modification Management
Focus on claims under $10,000 which disproportionately impact mod calculations. Implement return-to-work programs reducing lost time claims. Consider deductible programs to eliminate frequency-driven mod increases. A 0.80 mod versus 1.20 mod saves 33% on manual premium.
Premium Audit Preparation
Organize records by classification code before audit. Exclude overtime premium from payroll calculations. Document subcontractor certificates of insurance. Proper audit preparation prevents unexpected additional premiums and supports classification arguments.
General Liability Cost Reduction
General Liability Renewal Approach
Formalized safety programs with weekly toolbox talks, documented training, and written procedures support premium credits. Focus on water damage prevention protocols and excavation safety given plumbing-specific exposures.
Subcontractor Management
Require certificates showing appropriate GL limits from all subs. Implement written agreements transferring liability. Track insurance compliance through dedicated software. Uninsured subcontractor exposure can significantly increase GL premiums.
Claims Management
Report claims immediately regardless of perceived merit. Investigate and photograph all incidents thoroughly. Never admit liability or promise payments. Maintain 5-year claims history documentation for underwriting credits.
Contract Review Protocols
Avoid blanket hold harmless agreements accepting others’ negligence. Limit liquidated damages to reasonable amounts. Require mutual waiver of subrogation on larger projects. Poor contracts create uninsurable exposures affecting renewals.
Methodology
Data Source
These insurance cost benchmarks come from ContractorNerd’s proprietary analysis of over 900 plumbing contractor insurance quotes across all 50 states. As a licensed insurance agency, we have direct access to actual carrier pricing from A-rated insurers.
What the Numbers Represent
- General liability premiums: Actual market rates shown as a percentage of revenue, reflecting low-end and high-end pricing (2.7% to 6.8% nationally)
- Workers’ compensation rates: Current manual rates for NCCI classification 5183 (Plumbing), before experience modifications or schedule credits
- Revenue tiers: $150K, $500K, and $1M annual revenue
- Business profiles: Solo operations ($150K), mid-size firms ($500K with 3 employees), larger contractors ($1M with 5 employees)
- Savings calculations: Difference between national average and favorable market rates
Assumptions
- Standard coverage forms ($1M/$2M GL limits)
- 5+ years claims-free history
- 10% subcontractor usage
- No significant endorsement modifications
- Mixed residential service and commercial construction operations
Limitations
These rates are for informational and comparative purposes only. Your actual premium will depend on your specific business characteristics, claims history, location, and carrier underwriting. Get a personalized quote for accurate pricing.