Plumbing claims tend to be expensive. A failed fitting behind a wall or a water heater that lets go can soak floors, cabinets, and drywall across a whole house before anyone notices. That is why plumbers pay more for general liability than most trades, and why the limits you choose matter.
Most states and many cities license plumbers, and a bond or proof of insurance often comes with the license. Add a service van, a few employees, and specialty equipment like sewer cameras or jetters, and a plumbing business usually needs four or five coverages working together.
What insurance do plumbers need?
Here is how each type of plumbing insurance fits a typical plumber business, from what clients and states usually require to what depends on how you work.
General liability
Usually requiredWater damage claims make this the big one for plumbers. Pays for injuries and property damage you cause to other people.
About $147 a month for plumbersLicense & surety bonds
Usually requiredCommon for state or city plumbing licenses. A guarantee to your customer or the state that you will follow the rules and finish the work.
Workers comp
Usually requiredRequired in most states once you hire. Pays medical bills and lost wages when an employee gets hurt on the job.
About $179 a month for plumbersCommercial auto
Most carry itService vans loaded with parts. Covers trucks and vans you use for work, and the damage they cause.
About $285 a month for plumbersTools & equipment
Most carry itCameras, jetters, and press tools. Replaces tools and gear that get stolen, lost, or damaged.
Business owners policy
Depends on your setupIf you run a shop or keep inventory. General liability and business property bundled together, usually for less.
About $213 a month for plumbersHow much does plumbing insurance cost?
The typical plumber business pays about $147 a month, or $1,768 a year, for general liability, based on published customer data. Your price moves with your services, revenue, crew size, claims history, state, and the limits you choose.
| Policy | Typical monthly | Typical yearly |
|---|---|---|
| General liability | $147 | $1,768 |
| Business owners policy | $213 | $2,556 |
| Workers compensation | $179 | $2,148 |
| Commercial auto | $285 | $3,420 |
Source: Insureon cost data for this trade. Yearly figures without a published annual number are the monthly figure times twelve. These are typical figures, not quotes.
Want a number for your setup? Try the contractor insurance cost calculator, or see ways to get cheap contractor insurance.
Common plumber insurance claims
- Water damageRepipes, water heater installs, and drain work can lead to large property damage claims. This is the main reason plumber liability costs more.
- Sewer and gas linesSewer backups and gas line work carry higher stakes. Some policies limit cover for certain gas or sewer work, so read the exclusions.
- Injuries on siteA customer trips over a hose or tools in a hallway. General liability covers the medical and legal costs.
- Equipment theftCameras, press tools, and jetters are worth stealing. Tools and equipment cover replaces them so you can keep working.
Plumber license and bond requirements
Most states license plumbers, often in tiers from apprentice to master, and some cities run their own licensing. License rules may include exams, supervised hours, a bond, and proof of liability insurance. Confirm the requirements with your state or city plumbing board.
Confirm before you rely on this. Licensing and insurance rules change, and cities can add their own. Check with your state licensing board and a licensed agent before you bid.