How Much Is Business Insurance
for Plumbers and Plumbing Contractors?

In 2009, Kitec – a plumbing pipe manufacturer – was sued for $90 million when faulty fittings led to corroded pipes and breaks in the line. While your business might not be installing millions of dollars' worth of plumbing fixtures, this lawsuit serves as a helpful example to plumbers concerned about their liability.

A plumber can be sued for problems with their installation and even for defects in the pipes and materials they use. Fortunately, plumbers can insure their company to protect them from the cost of lawsuits that could bankrupt their business.

Below, you'll find sample insurance quotes for basic insurance policies that plumbers need in order to sign contracts and become licensed.

Note: these sample quotes are only cost estimates. Your actual premiums may vary.

HOW MUCH IS
General Liability Insurance?

How Much Is General Liability Insurance?

For a plumber, General Liability Insurance is one of the most important insurance policies. Water damage, leaks, and other property damage lawsuits can all be covered under a plumber's liability insurance policy.

Say a customer's hard water damages pipes you've installed. The customer could sue you for negligence, alleging you should have warned them about potential mineral buildups and hard water damage. In cases where customers sue you for faulty installations, property damage, or injury, General Liability Insurance can protect your business from the cost of a lawsuit.

A typical General Liability Insurance policy costs plumbers between $671 and $1,740 in annual premiums.

Average Premiums, Deductibles and Limits on General Liability Insurance Policies for Plumbers
Name USD

Median policy premium:

$671 - $1,740

Per claim limit:

$1,000,000

Policy limit:

$2,000,000

Median policy deductible:

$1,000

To see how the cost of General Liability Insurance for plumbers compares with other industries, visit Insureon's General Liability Insurance Cost Analysis New browser window icon..

HOW MUCH IS
a Surety Bond?

HHow Much Is a Surety Bond / License and Permit Bond?

In order to be a licensed plumber, you'll usually need to have a License Bond or Permit Bond when you apply for your plumber's license. Make sure to check your local licensing requirements to see if these bonds are a part of your application.

To get bonded, a plumber typically pays $245 for their License / Permit Bond.

Average Premiums and Limits on Surety Bonds for Plumbers
Name USD

Median policy premium:

$245

Median policy limit:

Varies

HOW MUCH IS
a Commercial Auto Insurance?

How Much Is Commercial Auto Insurance?

Commercial Auto Insurance covers the cost of auto accidents and related lawsuits. If your plumbing service truck were in an accident, your business could be on the hook for repair costs, damages, and medical costs if the victim sued you. Commercial Auto Insurance can protect you from this risk and make sure that if you're in an accident, your business is able to cover its liabilities.

The typical Commercial Auto Insurance for independent plumbers costs $1,347 to $1,933.

Average Premiums, Deductibles and Limits on Commercial Auto Insurance Policies for Plumbers
Name USD

Median policy premium:

$1,347 - $1,933

Median policy limit:

$1,000,000

Median policy deductible:

$500

HOW MUCH IS
Umbrella Insurance?

How Much Is Umbrella Insurance?

Want more insurance in case of an expensive lawsuit? Umbrella Insurance adds extra coverage to General Liability, Workers' Comp, and Auto Liability insurance, so you can pay for lawsuits that exceed the limits on your coverage.

To add $1 million in Umbrella Insurance, plumbers typically pay $400 to $1,010.

Average Premiums, Deductibles and Limits on Umbrella Insurance Policies for Plumbers
Name USD

Median policy premium:

$400 - $1,010

Median policy limit:

$1,000,000

Median policy deductible:

Varies

To see how the cost of Umbrella Insurance for plumbers compares with other industries, visit Insureon's Umbrella Insurance Cost Analysis New browser window icon..

HOW MUCH IS
Workers' Compensation Insurance?

How Much Is Workers' Compensation Insurance?

In order to meet state requirements, plumbers usually need to have Workers' Compensation Insurance as soon as they hire employees. When an employee is injured on the job, Workers' Comp (also called Workman's Comp) pays for their medical bills and covers some of their wages (if they are unable to work).

Workers' Comp Insurance for small plumbing businesses typically costs $3,020 to $6,275.

Average Premiums, Deductibles and Limits on Workers' Compensation Insurance Policies for Plumbers
Name USD

Median policy premium:

$3,020 - $6,275

Per claim limit:

$100,000

Median policy limit:

$500,000

Median policy deductible:

None

To see how the cost of Workers' Compensation Insurance for plumbers compares with other industries, visit Insureon's Workers' Compensation Insurance Cost Analysis New browser window icon..

FREE QUOTES
on Plumbers Insurance

Free Insurance Quotes for Plumbing Contractors

For a free quote, talk with one of insureon's plumbing insurance experts by calling 800-688-1984 or submit an online insurance application.

Grab-n-Go Information

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