Starting or running a plumbing business comes with real risks—leaky pipes, property damage, even injuries on the job. That’s why insurance isn’t just smart; it’s essential. But if you’re asking, “How much is insurance for a plumbing company?” you’re not alone. Many new and seasoned plumbers struggle to balance protection and cost. In this guide, we’ll break down exactly what you’ll pay, what you need, and how to get the best value—so you can work with confidence, not worry.
What Types of Insurance Does a Plumbing Company Need?
Before diving into costs, it’s crucial to understand which policies are non-negotiable for plumbers in the U.S. Most plumbing businesses require at least three core coverages:
General Liability Insurance Covers third-party injuries or property damage (e.g., you accidentally flood a client’s basement).
Workers’ Compensation Insurance Required in nearly every state if you have employees. Pays for medical bills and lost wages if a worker gets hurt.
Commercial Auto Insurance Protects your service vehicles—standard personal auto policies don’t cover business use.
Optional (but highly recommended):
Tools & Equipment Insurance
Professional Liability (Errors & Omissions)
Business Owner’s Policy (BOP) – bundles general liability + property insurance
💡 According to the U.S. Bureau of Labor Statistics, plumbing is among the top 10 most injury-prone trades—making proper coverage critical.
How Much Does Plumbing Insurance Cost in 2024?
Actual costs vary based on location, team size, revenue, and claims history—but here’s what most U.S. plumbing businesses pay annually:
General Liability
$400 – $1,500
$300 – $3,000+
Workers’ Comp
$1,000 – $3,000
$500 – $10,000+
Commercial Auto
$1,200 – $2,500
$900 – $5,000
Business Owner’s Policy
$500 – $2,000
$400 – $3,500
Source: Data aggregated from Insureon, Next Insurance, and Hiscox (2023–2024 surveys of 1,200+ U.S. plumbing contractors).
Key Cost Factors:
Location: California and New York typically cost 20–30% more than rural Midwest states.
Payroll: Workers’ comp premiums are calculated per $100 of payroll.
Claims History: One claim can raise premiums by 25–50%.
Business Size: Solo plumbers pay far less than companies with 10+ employees.
📌 Real Example: Mike’s Plumbing (Texas, 3 employees, $350K revenue) pays $2,800/year total:
General Liability: $650
Workers’ Comp: $1,400
Commercial Auto (2 vans): $750
How to Lower Your Plumbing Insurance Costs (Without Sacrificing Coverage)
You don’t need to overpay. Here’s how smart plumbers cut costs legally and safely:
1. Bundle Policies
Combine general liability, property, and business interruption into a Business Owner’s Policy (BOP). Savings: 10–25%.
2. Raise Your Deductible
Opt for a $1,000 deductible instead of $500. Reduces premiums by 15–20%—just ensure you can cover out-of-pocket costs.
3. Invest in Safety Training
Document OSHA-compliant safety protocols. Some insurers offer discounts up to 10% for certified safety programs.
4. Pay Annually (Not Monthly)
Avoid 3–5% processing fees by paying your full premium upfront.
5. Shop Around Every 12–18 Months
Insurance rates change. Use digital brokers like CoverWallet or Thimble to compare quotes in minutes.
⚠️ Never skip workers’ comp to save money—it’s illegal in 49 states and can result in fines up to $100,000. Learn more about workers’ compensation laws in the U.S. .
Step-by-Step: How to Get Plumbing Insurance in 5 Easy Steps
Follow this proven process to secure coverage fast:
Assess Your Risks List all activities (e.g., drain cleaning, pipe installation, water heater repair). Note if you work in homes, commercial buildings, or both.
Gather Business Details Have ready:
Business license number
Annual revenue estimate
Number of employees + payroll
Vehicle VINs (for auto insurance)
Get 3+ Quotes Use online platforms (Next Insurance, Hiscox) or work with an independent agent specializing in contractors.
Compare Coverage Limits Don’t just look at price. Ensure:
General liability: at least $1M per occurrence
Workers’ comp: meets your state’s minimum
Auto: covers hired/non-owned vehicles
Buy & File Certificates Once purchased, issue Certificates of Insurance (COIs) to clients or landlords who require proof of coverage.
Plumbing Insurance: Common Mistakes to Avoid
Even experienced plumbers make these costly errors:
❌ Using personal auto insurance for work vans → Claim denial likely.
❌ Assuming homeowner’s insurance covers subcontractors → It doesn’t.
❌ Skipping tools coverage → A stolen van with $15K in gear isn’t covered under general liability.
✅ Pro Tip: Always name your client as an “additional insured” on your general liability policy when working on their property. It’s often required—and builds trust.
FAQ: Your Top Questions Answered
Q: Do I need insurance if I’m a solo plumber with no employees?
A: Yes. General liability is essential—even one accident (e.g., damaging a client’s floor) could cost thousands. Most states don’t require workers’ comp for solo owners, but clients often demand proof of liability insurance before hiring you.
Q: How much does a $1 million general liability policy cost for a plumber?
A: Typically $400–$900/year for a solo plumber with clean claims history. Add employees or commercial work, and it may rise to $1,200–$2,000.
Q: Can I get same-day plumbing insurance?
A: Yes! Digital insurers like Thimble offer policies that start in under an hour—ideal for last-minute job requirements.
Q: Does insurance cover water damage caused by my work?
A: Yes, but only if you have general liability. It covers accidental property damage, including water leaks from faulty installations. However, it won’t cover poor workmanship—only the resulting damage.
Q: Is business insurance tax-deductible for plumbers?
A: Absolutely. The IRS allows you to deduct ordinary and necessary business insurance premiums as a business expense (Publication 535).
Q: What’s the cheapest state to insure a plumbing business?
A: States like Ohio, Indiana, and Utah consistently rank lowest for contractor insurance due to lower litigation rates and regulatory costs. Expect 15–25% savings vs. coastal states.
Conclusion: Protect Your Business—Without Breaking the Bank
Understanding how much is insurance for a plumbing company isn’t just about numbers—it’s about peace of mind. With the right coverage, you protect your income, your reputation, and your clients. And with smart shopping, you can get robust protection for under $3,000/year—even with a small team.
Don’t gamble with your livelihood. Get quotes today, compare options, and invest in coverage that grows with your business.
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