How Much Does Plumbing Insurance Cost? 2025 Rates

In 2025, U.S. plumbing businesses can expect to pay between $350 and $2,000 annually for comprehensive business insurance, averaging $30 to $165 per month. The primary cost drivers are location, coverage limits, licensing and safety practices, number of employees, revenue and business size.

How Much Does Plumbing Business Insurance Cost?

The average plumbing business in the U.S. pays between $350 and $2,000 per year for a full business insurance package. That breaks down to roughly $30 to $165 per month. However, this is just a ballpark range and actual costs can vary widely depending on your specific situation.

Every plumbing business has its own specific risks and insurance needs, so there’s no fixed price for coverage. A solo plumber doing basic home repairs will usually pay much less for insurance than a larger company that installs plumbing systems in new construction projects.

Several factors affect your insurance cost, like the kind of plumbing work you do, how many people you employ, the tools and vehicles you use, and your location. For instance, a plumber working in older buildings with outdated piping may face a higher risk of accidents or water damage, which can lead to higher insurance premiums compared to someone mainly installing fixtures in newer homes.

Here are some of the biggest cost drivers:

• Location (affects general liability and property insurance, higher risk in certain areas)
• Coverage limits (affects all policies, higher limits mean higher premiums)
• Number of employees (affects workers’ comp and general liability)
• Revenue and business size (affects general liability and business interruption insurance)
• Type and value of equipment (affects tools & equipment coverage and commercial property insurance)

Understanding these variables can help you better estimate your insurance needs and prepare for the real costs of protecting your plumbing business.

Average Plumbing Business Insurance Costs For Coverage Types

When it comes to protecting your plumbing business, different types of insurance cover different risks. Understanding the average cost, coverage details, and what influences pricing for each policy type can help you build a more effective insurance plan. Here’s a closer look at the major coverages most plumbing business needs.

• General liability insurance: $110 per month
• Business owner’s policy: $160 per month
• Workers’ compensation insurance: $190 per month
• Commercial auto insurance: $220 per month
• Commercial umbrella insurance: $255 per month
• Professional liability insurance: $70 per month
• Contractor’s tools and equipment: $20 per month

General Liability Insurance

The average cost of general liability insurance for a plumbing business is about $110 per month.

General liability covers third-party bodily injury, property damage, and advertising injuries. For example, if a plumber accidentally cracks a client’s bathroom tile while replacing a pipe, this policy would help cover the cost of repairs and any related legal expenses.

Typical policy limits are $1 million per occurrence and $2 million aggregate.

Factors that influence the cost include the coverage limits you pick, how big your plumbing business is, how often you’re at customer locations, and whether you hire subcontractors or add others to your policy can all affect your insurance costs.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $160 per month for a plumbing business.

A Business Owner’s Policy (BOP) combines general liability insurance with commercial property insurance for plumbing businesses. It helps protect against things like customer injuries, damage to client property, and loss or damage to your tools or office space. For example, if a small fire breaks out in your workshop and damages your plumbing equipment and storage area, the BOP would help pay for the repairs and replacements.

Typical policy limits are $1 million per occurrence and $2 million aggregate for liability, with separate property coverage limits based on the value insured.

The cost of a Business Owner’s Policy for a plumbing business is influenced by several factors, including the coverage options selected, the size of the business, the frequency of on-site work, and the overall value of business property and equipment.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a plumbing business is around $190 per month.

Workers’ compensation covers medical expenses, rehabilitation, and lost wages if an employee gets hurt while working. For example, if a plumber injures their back while lifting heavy pipes on a job site, this insurance would help pay for their treatment and provide income while they recover.

Policy limits are regulated by each state, but typically include medical costs and a percentage of lost wages without a set cap.

Premiums are influenced by the size of your payroll, the type of work employees perform , your claims history, and any implemented safety programs.

Commercial Auto Insurance

The average cost of commercial auto insurance for a plumbing business is about $220 per month.

Commercial auto insurance covers vehicles used by your plumbing business in case of accidents, theft, vandalism, or damage. For example, if one of your plumbers gets into an accident while driving a company van to a job site, this insurance would help cover repair costs and any claims from the other driver.

In most states, you’re required to have this insurance for any vehicles your plumbing business owns. If your team uses personal, rented, or leased vehicles for work, you’ll need hired and non-owned auto insurance (HNOA) instead.

Factors influencing the cost include the number and type of vehicles, how often they are used, the driving records of employees, whether deliveries are local or long-distance, and whether you add endorsements like hired and non-owned auto insurance (HNOA) for employee-owned vehicles used for deliveries.

Commercial Umbrella Insurance

The average cost of commercial umbrella insurance for a plumbing business is about $255 per month.

Commercial umbrella insurance provides extra protection for your plumbing business by extending the limits of your existing liability policies (like general liability, commercial auto, or employer’s liability).

For example, if one of your plumbers causes serious water damage to a customer’s home and the repair costs and legal fees go beyond your general liability policy’s limit, your umbrella insurance would help cover the remaining amount.

The cost of commercial umbrella insurance depends primarily on the amount of coverage you purchase.

Professional Liability Insurance

The average cost of professional liability insurance for a plumbing business is about $70 per month.

Professional liability insurance (also called errors and omissions insurance) protects your plumbing business against claims of negligence, mistakes, or failure to deliver services as promised.

For example, if a plumber installs a water heater incorrectly, and it later causes water damage and leads to a mold problem, the client might sue for poor workmanship. Professional liability insurance would help cover legal defense costs and any settlement or judgment.

Typical policy limits are $1 million per occurrence and $1 million aggregate.

The cost of professional liability insurance depends on things like the coverage amount you choose, how big your plumbing business is, and the type of work you do.

Contractors Tools and Equipment

The average cost of Contractors Tools and Equipment for a plumbing business is about $20 per month.

Contractor’s tools and equipment insurance helps protect the tools and gear used in your plumbing business if they’re lost, stolen, or damaged.

The price of contractor’s tools and equipment insurance depends on how much your tools are worth and the kind of work your business does.

What Factors Impact Your Plumbing Business Insurance Costs?

Plumbing Business insurance premiums are carefully calculated by underwriters based on your business’s risk profile. From your location and business size, to claims history, several factors influence what you’ll pay for coverage.

Type Of Plumbing Business

Different types of plumbing work come with different levels of risk, which can affect insurance costs. A plumbing business that handles large commercial projects or installs gas lines will usually pay more for insurance than a small operation that only does basic residential repairs.

Location

Where your plumbing business operates can have a big impact on your insurance costs. Areas with higher crime rates, more lawsuits, or greater risk of natural disasters like floods or earthquakes usually come with higher premiums.

Business Size

The size of your plumbing business affects your insurance costs because larger operations usually face more risk. More employees, vehicles, and job sites mean more chances for accidents or claims, which increases the need for higher coverage.

Claims History

If you’ve filed frequent insurance claims, underwriters will see you as higher risk, leading to higher rates. A clean claims record can qualify you for discounts.

Policy Limits And Deductibles

Higher policy limits mean better protection but come with a higher premium. Choosing a larger deductible can lower your monthly costs but raises your out-of-pocket risk when claims occur.

Optional Endorsements

Add-ons like business interruption, cyber liability, and hired and non-owned auto coverage tailor protection but increase your premium.

How To Lower Your Plumbing Business Insurance Costs

Running a plumbing business comes with costs, but your insurance doesn’t have to drain your budget. While you can’t avoid needing coverage, you can take smart steps to lower your premiums without giving up the protection your business needs.

Here are some practical ways to reduce your plumbing insurance costs:

1. Bundle Your Policies

One of the easiest ways to save is by bundling multiple policies. Most insurers offer a Business Owner’s Policy (BOP) that combines general liability and property insurance at a lower rate than if you bought them separately. If you also need workers’ compensation, bundling both through the same provider can lead to additional discounts. Not only does this simplify your paperwork, but it also makes your coverage more cost-efficient.

2. Ask About Discounts

Insurance companies often offer savings to plumbing businesses that show long-term commitment and low risk. For example, you may get a discount if you agree to a two- or three-year policy instead of renewing every year.

You might also save money by paying your premium in full upfront rather than choosing monthly payments. In addition, some providers offer discounts for things like having a clean claims history, proper licensing, or bundling multiple policies (like liability and property insurance).

3. Implement Safety Measures

Accidents can be costly for your plumbing business and your insurer. Taking steps to prevent injuries or property damage can help reduce your premiums over time. For example, ensuring that your team follows safety protocols like wearing proper protective gear, using secure ladders, keeping tools and equipment organized, and regularly inspecting vehicles for safety can all help lower your general liability risk.

4. Create A Safe Working Environment

A strong safety program can help reduce workers’ compensation costs for your plumbing business. This includes training your team on safe practices, such as proper lifting techniques, the correct use of tools, and ensuring everyone knows the proper safety measures when working with potentially hazardous materials (like gas lines or chemicals).

5. Maintain Proper Licensing And Certification

Insured plumbers with proper certifications and up-to-date licenses may qualify for lower rates. This shows your business follows industry standards and regulations, reducing the likelihood of errors or claims.