Obtaining adequate insurance is one of the most crucial steps when starting or operating a plumbing business in Wyoming. Without proper coverage, your company is vulnerable to lawsuits, property damage, and costly accidents that could put you out of business. This comprehensive guide examines the core insurance policies plumbers in Wyoming need, factors that influence costs, premium price ranges based on your business size, additional important coverages to consider, how insurance carriers calculate your rates, tips for getting the optimal protection, and why partnering with a plumbing insurance specialist is key.

Wyoming plumbers must have the appropriate plumbing business insurance coverage 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 working.

Key Factors That Impact Plumber Insurance Costs

As a plumber, your insurance premiums are determined by these key factors:

Location: Your rates will vary depending on where in Wyoming your business is domiciled. Densely populated cities tend to have higher premiums because of larger jury award payouts and more liability lawsuits. Rural areas often have lower rates. Local labor costs, crime rates, and hazard vulnerability also impact pricing.

Years in Business: As a new plumbing venture, insurers view your business as higher risk until you build a solid claims history. Well-established plumbers with a longer track record get the benefit of lower premiums. The age of your business is a key rating factor.

Annual Revenue: Your gross annual revenue is a major indicator of overall business activity and corresponding risk. More plumbing jobs and higher billings mean greater exposure, leading to higher insurance costs across the board. Revenue size is a primary premium determinant.

Number of Employees: The more employees you have, the more your premiums will rise for policies like general liability, workers’ compensation, etc. Each additional employee increases your business’s risk profile in the insurer’s view.

Claims History: If your plumbing company has a track record of numerous claims and losses, your premiums will be elevated. Minimal past claims help maintain lower insurance expenses.

Services Provided: Plumbers performing more hazardous tasks involving gas lines, sewer replacement, or excavation/trenching typically pay higher premiums than those focused on basic drain cleaning and pipe leak repairs. The breadth of your services influences your risk class.

Client Base: Serving mostly residential customers is perceived as lower risk than doing work for large commercial clients. Plumbers with a book of business concentrated on commercial work often pay higher premiums.

Subcontractor Usage: Routinely outsourcing jobs to independent subcontractors can help lower your premiums in some cases. But excessive subcontracting to avoid insurance obligations can also draw scrutiny.

Small Plumbing Business Insurance Costs

For small plumbing companies in Wyoming generating around $150,000 annually, with 1 owner and 1 additional employee, typical insurance premiums are:

General Liability – Covers third party injury and property damage:

  • Low End: $3,500
  • High End: $9,400

Workers’ Compensation – Mandatory coverage for employee injuries:

  • Low End: $2,343
  • High End: $4,100

Surety Bonds – May be required for licensing:

  • Low End: $50
  • High End: $250

At minimum, small plumbing businesses need to carry these three primary coverages. General liability and workers’ compensation are essential protections. Surety bonds provide access to work permits. If you’re interested in obtaining a Wyoming Plumbing License, read this comprehensive article to understand the process and requirements.

As your company grows to multiple employees, adding commercial auto coverage for company vehicles is recommended. Speak to an insurance professional about your specific risks.

Medium Plumbing Business Insurance Costs

For mid-size plumbing contractors with around $500,000 in annual revenue, 1 owner, and 3 employees, typical insurance premium ranges are:

General Liability

  • Low End: $15,800
  • High End: $23,700

Workers’ Compensation

  • Low End: $7,029
  • High End: $12,301

Surety Bonds

  • Low End: $50
  • High End: $250

As your plumbing business scales to this level, risks expand and premium costs increase accordingly. Umbrella or excess liability policies are commonly added at this stage to provide extra protection beyond the general liability policy limits.

Reviewing your insurance needs with a professional is advisable to ensure adequate coverage as your exposures grow. Compared to early stages, gaps in coverage are more financially threatening.

Large Plumbing Business Insurance Costs

For bigger plumbing contractors with approximately $1,000,000 in annual revenue, 1 owner, and 5 employees, typical premium ranges are:

General Liability

  • Low End: $33,700
  • High End: $43,800

Workers’ Compensation

  • Low End: $11,715
  • High End: $20,502

Surety Bonds

  • Low End: $50
  • High End: $250

Larger plumbing companies have more property and liability exposures. As such, they require more comprehensive insurance programs, often including:

  • Commercial auto policies
  • Tools and equipment coverage
  • Commercial property insurance
  • Cyber liability
  • Employment practices liability
  • Commercial crime coverage

Again, an insurance professional that caters to plumbers can guide you through appropriate policy limits, terms, and conditions as your business grows. Avoid coverage gaps that could spell financial ruin.

Additional Insurance Coverages to Consider

Beyond the core policies for small, medium, and large plumbing businesses outlined above, here are some additional coverages Wyoming plumbers may need:

Commercial Auto Insurance – Protects your company vehicles used for business purposes like driving to job sites in the event of collision, theft, or damage. Provides liability protection if your employee drivers cause accidents. Typically costs $1,500 – $3,500 per vehicle.

Tools & Equipment Insurance – Safeguards expensive plumbing tools, machinery, and materials on job sites and in transit. Usually costs $250 – $750 per year for smaller contractors. Needed for protecting expensive equipment investments as your business scales.

Commercial Property Insurance – Shields your business property like warehouses or plumbing supply stores from damage. Covers perils like fire, burst pipes, theft, vandalism, storms. Usually $500 – $2,000+ per year. Essential once your business owns real property.

Cyber Liability Insurance – With increased digital technology use, plumbers need protection in the event of a data breach and loss of sensitive client information. Usually $750 – $1,500 annually.

Employment Practices Liability – Defends against claims of discrimination, wrongful termination, sexual harassment, and other employee-related lawsuits. Around $800 – $1,200 per year typically.

Errors & Omissions Insurance – Also called professional liability insurance. Protects against financial losses due to plumbing mistakes and negligence that lead to client damages. Usually $500 – $1,000 annually.

Business Interruption Insurance – Replaces lost income if disaster or catastrophe forces your plumbing business to temporarily shut down.

How Insurance Carriers Calculate Premiums

Insurance carriers utilize a variety of data points and factors about your plumbing business to determine how risky you are to insure and calculate suitable premium amounts across different policy types:

  • General Liability – Primarily based on revenue, location, claims history, services provided, client base.
  • Workers’ Compensation – Payroll, employee class codes, experience modifier, workplace safety.
  • Commercial Auto – Driving records, vehicle types, number of vehicles, mileage, policy limits.
  • Tools & Equipment – Value of tools insured, storage practices, transportation methods, job site risks.
  • Cyber Liability – Revenue, data stored, security protocols, technology used.
  • Surety Bonds – Bond amount required, personal credit score/financial standing, claims history.
  • Business Owner’s Policy – A bundled policy is priced based on all the various factors above.

A plumbing insurance specialist that works with multiple carriers can identify the best combination of insurers to optimize pricing for your particular risks. An independent broker offers freedom of choice that captive agents can’t match.

Getting the Right Insurance for Your Plumbing Business

Partnering with an insurance agent or broker who focuses on providing coverage to plumbers and has access to top regional and national plumbing insurance carriers is key to getting adequate, cost-effective protection. Value an independent insurance expert that represents multiple carriers over a captive agent constrained to just one provider. An unbiased specialist will find you the best fit.

Consult an adviser well-versed in the daily risks faced by plumbers. Discuss the services you offer, locations you operate in, who your clients are, number of employees, and any special equipment used. Ask for guidance on minimum liability limits and additional policies like cyber or equipment coverage you may need. Inquire about package policies that efficiently bundle multiple coverages together under one simpler policy.

Review your insurance portfolio at least annually or whenever your plumbing business undergoes major changes in size, revenue, locations served, client base, or services offered. Any significant growth or shifts in operations merit a policy re-assessment to ensure your evolving coverage needs are fulfilled, avoiding costly gaps.

Documentation is key. Carefully record employee classifications, equipment inventories, vehicle VINs/values, square footage of properties, revenue figures, and other details to provide to potential insurers. Gathering this data makes securing quotes more efficient.

Plumbing contractor risks change overtime as your business grows. So your protection should grow in-step. Partnering with an independent insurance expert focused on the plumbing trade positions you best to get the appropriate policies at a competitive price – resulting in peace of mind.


Adequately insuring your plumbing business is essential, but navigating the various coverage options can be confusing. This guide provides an overview of typical plumber insurance costs in Wyoming, key coverages to secure, factors influencing premium pricing, guidance on optimizing your program, and why partnering with a plumbing insurance specialist is invaluable.

Use the information above as a helpful starting point when evaluating your risks and insurance needs at different stages of plumbing business growth. But always enlist an advisor who understands the daily risks plumbers face. This expertise ensures you get tailored solutions and preferred carrier access without overpaying. Invest in proper insurance so you can focus entirely on excelling at your plumbing services – while eliminating the financial risks that could otherwise put your livelihood in jeopardy.