How much does plumbing insurance cost?
Plumbers' insurance costs depend on the type of insurance, coverage limits, deductibles, and factors such as your business's location and number of employees. Save money on business insurance by comparing quotes from different providers with Insureon.
Top plumbers' insurance policies and their cost
Here are the top business insurance policies for plumbers and their average monthly cost:
- General liability insurance: $147 per month
- Business owner's policy (BOP): $213 per month
- Workers' compensation insurance: $179 per month
- Inland marine insurance: $42 per month
- Commercial auto insurance: $285 per month
- Professional liability insurance: $67 per month
- Commercial umbrella insurance: $93 per month
- Surety bonds: $8 per month
Our figures are sourced from the median cost of policies for plumbing contractors who apply for quotes with Insureon. The median offers a better estimate of what your business is likely to pay because it excludes outlier high and low premiums.
General liability insurance
Plumbing businesses and contractors pay an average of $147 per month, or $1,768 annually, for general liability insurance. Some plumbers need proof of insurance for this policy to sign a commercial lease or a client contract.
A general liability policy can pay for medical expenses from accidents, such as a customer who trips over your toolbox and suffers an injury. It can also cover costs if someone sues your business over a bodily injury, property damage, or advertising injury.
This is the average general liability policy for plumbing contractors who buy from Insureon:
Premium: $147 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500
The cost of general liability insurance depends on factors such as the coverage limits you choose, the size of your business, the amount of foot traffic you have, and any subcontractors or additional insured endorsements.
Learn more about how your premium is calculated and how to save money on your general liability policy.
Business owner's policy
Plumbing businesses and contractors pay an average of $213 per month for a business owner's policy, or $2,559 annually. Only small, low-risk businesses are eligible for a BOP.
A BOP is an insurance package that bundles two important types of coverage at a lower cost. It includes general liability coverage to protect against common lawsuits, and commercial property insurance to cover stolen or damaged business property.
This is the average business owner's policy for plumbers who buy from Insureon:
Premium: $213 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500
The cost of a business owner's policy depends on factors such as the insurance options you choose, the size of your business, the amount of foot traffic you have, and the value of your business property.
Workers' compensation insurance
Plumbers pay an average of $179 per month for workers’ compensation insurance, or $2,150 annually.
Workers' comp helps pay for medical costs from work-related injuries and illnesses. Most policies include employer's liability insurance, which covers the cost of lawsuits related to workplace injuries.
There's usually no limit to how much a workers' comp policy can pay for employee benefits, though it depends on state laws.
The cost of a workers' compensation policy depends on factors such as the number of employees you have and the type of work they do. Learn more about how workers' comp costs are calculated and how to save money on your policy.
Inland marine insurance
Construction contractors, including plumbers, pay an average of $42 per month for inland marine insurance, or $505 annually.
Also called tools and equipment insurance, this policy covers your property whether it’s in transit or at a jobsite. It can pay for lost, stolen, or damaged wrenches, drills, pipe cutters, and other portable equipment.
The cost of inland marine coverage depends on the value of your tools and equipment and the type of work you do. Items valued at over $2,500 may need to be scheduled separately on the policy.
Commercial auto insurance
Plumbers pay an average of $285 per month, or $3,415 annually, for commercial auto insurance.
Most states require this coverage for vehicles owned by a business. For personal, rented, and leased vehicles used by your business, look to hired and non-owned auto insurance (HNOA) instead.
Commercial auto insurance covers financial losses in the event of an accident involving your business vehicle. It can help pay for property damage, medical bills, and legal costs. When buying a policy, you'll need to make sure your coverage limits match the requirements in your state.
The cost of a commercial auto policy depends on your coverage needs, the value of the vehicle, and your insurance claims history. Learn how insurers calculate your premium and how to save money on your commercial auto policy.
Professional liability insurance
Plumbers and other construction businesses pay an average of $67 per month, or $808 annually, for professional liability insurance. Plumbing businesses can often bundle this policy with general liability insurance for a discount, at a combined average of $150 monthly.
This plumber's liability insurance covers legal fees related to professional negligence, such as a newly installed water heater that doesn't match a customer's specifications. It's also called errors and omissions insurance (E&O).
This is the average E&O insurance coverage for contractors who buy from Insureon:
Premium: $67 per month
Policy limits: $1 million per occurrence; $1 million aggregate
Deductible: $1,000
The cost of professional liability insurance depends on factors such as the coverage limits you choose, the size of your business, and your profession. Find out how insurers set professional liability premiums and how to save money on your policy.
Commercial umbrella insurance
Construction businesses and plumbing contractors pay an average of $93 per month, or $1,111 annually, for commercial umbrella insurance.
You can buy this policy to boost the limits of your underlying general liability, commercial auto, or employer's liability insurance. When the underlying policy reaches its limit, commercial umbrella insurance activates to cover costs over that limit.
The cost of commercial umbrella insurance depends primarily on the amount of coverage you purchase.
Surety bonds
Plumbing contractors and businesses pay an average of $8 per month for a surety bond, or about $100 annually, though costs can vary considerably.
A surety bond reimburses your client if you're unable to fulfill the terms of a contract or other agreement. You may need a surety bond to get a plumber's license for certain types of work. Clients may also ask you to carry a bond before they'll allow workers on their property.
The cost of a surety bond is a small percentage of the total bond amount, so it primarily depends on the size of the bond.
Key factors influencing policy costs
Here are some of the top factors that determine insurance premiums for plumbers during the underwriting process:
- Services offered. A plumber who specializes in low-risk projects, such as leaky faucets, can expect lower insurance rates than a plumbing business that takes on septic line work or water heater installation.
- Types of coverage purchased. It costs more to purchase insurance policies that protect against a wide range of risks than basic coverage.
- Business property and equipment. Press tools, pipe threaders, and other expensive equipment costs more to insure than low-cost items, like wrenches and hacksaws.
- Number of employees. A larger workforce brings a higher risk of employee accidents and mistakes, which raises the cost of workers' comp, general liability, and similar policies.
- Years of experience. Plumbing contractors with more years of experience tend to pay lower premiums than newer businesses due to lower associated risks.
- Annual revenue. Increased business revenue is associated with higher risks and more frequent claims, which raises insurance costs.
- Policy limits and deductibles. Policies with higher limits cost more but cover more expensive claims. Choosing a higher deductible can lower your premium, but your insurance won't activate until you pay the full amount.
- Claims history. It costs more to insure a plumbing business that has filed an insurance claim in the past than one that has a clean history of claims.
- Location. Regional factors such as crime rates, population density, and property values affect how much you pay for business insurance.
How do I get plumbing contractors insurance?
Insureon can help you find affordable plumber's insurance coverage in three easy steps:
- Fill out an easy online application with details about your plumbing company.
- Compare free quotes from top-rated U.S. providers.
- Select a policy and pay the premium to begin coverage.
Our licensed agents will help make sure your insurance matches your business risks, your budget, and state requirements. Once you've bought a policy, you can download a certificate of insurance (COI) for proof of coverage. Most small businesses can get covered within minutes of applying for quotes.
What our customers are saying
The average costs on this page were derived from our data on small business owners in the plumbing field who purchased policies through Insureon. Most of our customers have less than five employees, annual revenue ranging from around $50,000 to more than $200,000, and five years or less in business.
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