How Much Does Plumbing Insurance Cost? 2025 Rates

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 business insurance 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 For instance, a plumber working in older buildings with outdated piping may face a higher risk of accidents or water damage, which can lead to higher insurance premiums compared to someone mainly installing fixtures in newer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

Business Owner’s Policy (BOP)

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

A BOP bundles general liability coverage with commercial property insurance, giving plumbers protection for third party injuries, accidental damage to client spaces, and loss of business equipment stored in an office or workshop. If a small electrical fire damages your inventory, tools, and workspace, a BOP would help pay for repairs and replacement.

Typical liability limits are $1 million per claim and $2 million total for the policy term, with separate limits for property coverage based on your equipment and workspace value.

Pricing varies based on the size of your plumbing operation, the value of your property, how often you work on customer sites, and which optional coverages you include.

Note: These are estimated annual Business Owner’s Policy (BOP) cost ranges for plumbing businesses based on aggregated average premiums reported for small and larger agencies and marketplaces; actual premiums will vary by business size, payroll, claims history, coverage limits, and state regulatory factors

General Liability Insurance

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

General liability protects against accidental injuries or damage to customer property. If a plumber accidentally breaks a bathroom fixture or causes water damage while replacing a pipe, this coverage would help pay for repairs and legal fees if needed.

Most plumbing businesses carry limits of $1 million per claim and $2 million total across the policy term.

Rates are influenced by business size, how frequently work occurs inside client homes or buildings, subcontractor use, and coverage limits chosen.

Note: These are illustrative, state-level estimates for general liability insurance tailored to plumbing businesses and are based on aggregated market data and typical small-to-medium plumber profiles and pricing patterns observed across both independent agencies and larger carriers; actual premiums will vary by business size, revenue, service mix (residential vs. commercial), claims history, location, selected limits and deductibles, licensing, and insurer underwriting.

Commercial Auto Insurance

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

Commercial auto covers business-owned vans and trucks used for transporting tools, traveling to job sites, or hauling water heaters and piping materials. If an employee is involved in a collision en route to a service call, commercial auto helps cover repairs, medical bills, and liability claims.

Plumbing businesses using employees’ personal vehicles instead typically need hired and non-owned auto coverage.

Cost depends on number of vehicles, driving history, mileage patterns, vehicle type, and selected limits.

Note: Estimates are annual average commercial auto premiums for plumbing businesses based on aggregated quotes and reported averages from both small and large insurance agencies and marketplaces; actual premiums will vary by vehicle count, vehicle types, driving records, coverage limits, business revenue, and state-specific rules

Workers’ Compensation Insurance

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

Workers compensation covers medical treatment, lost wages, and rehabilitation if an employee gets hurt while working. Injuries like strains from lifting pipes, slips on wet floors, or ladder falls are common risks in plumbing work.

Rates are influenced by payroll size, employee count, job classification, safety procedures, and previous claims.

Note: Estimates are annual average premiums for plumbing businesses based on aggregated data from small and larger insurance agencies and marketplaces; actual premiums will vary by payroll size, number of employees, classification codes, claims history, coverage limits, and state-specific regulations.

Professional Liability Insurance

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

Professional liability, sometimes called errors and omissions insurance, protects against claims of faulty workmanship, incorrect installation, or service errors. If a plumber installs a system incorrectly and the customer alleges negligence, this coverage helps pay defense costs and settlements.

Policies typically include limits of $1 million per claim and $1 million total.

Cost depends on business size, services offered, licensing, claims history, and coverage limits.

Note: These are estimated annual Professional Liability premiums for plumbing businesses based on aggregated averages from small and large insurance agencies and marketplaces; actual premiums will vary by business size, services offered, claims history, licensing, contract terms, limits and state regulatory factors.

Contractors Tools and Equipment

The average cost of contractors tools and equipment insurance for plumbers is about $20 per month.

This coverage protects hand tools, pipe inspection equipment, power augers, saws, torches, and other gear whether stored in a van, warehouse, or job site. If tools are stolen from a truck or damaged in transport, the policy helps pay for replacements.

Pricing is influenced by total tool value and mobility.

Note: These estimates are annual average premiums for contractors tools and equipment coverage tailored to plumbing businesses, derived from aggregated quotes and reported averages across small and large insurance agencies and marketplaces; actual premiums will vary by total tool value, whether tools are covered on-site or in vehicles, deductible choices, claims history, number of employees, business revenue, and state-specific regulations.

Commercial Umbrella Insurance

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

An umbrella policy increases the limits of underlying insurance such as general liability or commercial auto. If a major water damage claim exceeds base coverage limits, umbrella insurance provides additional protection.

Cost depends primarily on how much extra coverage a business selects.

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are annual average premiums for commercial umbrella coverage tailored to plumbing businesses, derived from aggregated quotes and reported averages across small and large insurance agencies and marketplaces; actual premiums will vary by coverage limits, underlying policy limits, claims history, number of employees, vehicle exposure, business revenue, and state-specific regulations.

Plumbing Business Insurance Costs By Provider

Plumbing business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: These estimates are based on average annual premiums for plumbing businesses compiled from market data covering both small and large agencies, reflecting typical coverages such as general liability, commercial auto, tools/equipment coverage, workers’ compensation, and professional liability; actual premiums will vary by state, annual revenue, payroll, fleet size, services performed, claims history, licensing, and selected coverage limits

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. This includes differences for:

• Commercial buildings
• Municipal buildings
• Residential buildings
• Basic plumbing work
• Commercial water heater installation
• Gas line installation

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. Similarly, different geographic locations come with separate licensing, permit, and building code regulations.

Credentials

Just as location will impact the requirements for licensing and permits, underwriters look at your bonding and credentials as a plumber. You can lower your costs with things like:

• Having a master plumber credential instead of just work experience
• Taking out bonds for your projects to increase your professionalism
• Keeping a high credit score to demonstrate financial security
• Keeping clean driving records for all staff who use company vehicles

All of this can help keep premiums down.

Equipment and Vehicles

Many plumbing companies offer services from service vehicles. This means fully-stocked vans and trucks will need higher coverage especially if their vehicles contain specialty machines or tools for on-site repairs/replacements.

Safety Record

It is important to keep a clean safety record; plumbing businesses with a history of claims for things like sewer backups or floods from improper installations might fight higher premiums long after the event in question.

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.

Consider this: Plumbing businesses that offer residential services and make around $100,000 per year have different risks compared to commercial operations with over $500,000 in annual revenue. 

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.

Consider this: If you work commercial projects, you may need $2 million or higher in liability coverage for your contracts. 

Optional Endorsements

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