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Plumbing Insurance: Small Business Insurance for Plumbers

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Whether you’re a carpenter , a handyman , gas engineer , or an electrician , working in trades is very profitable as many people in the United States look for the services of specialists. However, for the sake of this guide, we’re going to focus on an entirely different kind of tradesman insurance - plumbing insurance.


If you want to avoid risking your whole business in case something goes wrong with a job, it’s typically a good idea to get your hands on a plumbers insurance policy. We’re going to outline what you need to know about insurance for plumbers, including the average cost as well as going over some of the best carriers.

What is Plumbing Insurance?

Insurance for plumbers and plumbing companies has liability coverage. Plumbing liability insurance can be categorized into several types depending on which cases they provide protection. But in a nutshell, all function to help the policyholder pay for attorney fees and other legal costs as well as compensation to the concerned party. 


Types of liability insurance plumbers and plumbing companies get are:

  • General liability

  • Professional liability

  • Public liability


General liability insurance kicks in when a client accuses a plumber or plumbing company of causing injuries or property damage while working. Here’s a table showing the most common injuries plumbers can cause and their compensation:

Type of Injury Cost of Compensation
Slip and falls  $50,000
Cuts and lacerations $10,000
Burns $30,000
Property damage $74,000


Products and completed operations is an optional coverage in general liability insurance and become useful if a client accuses a plumber or plumbing company of doing a measly job.  Plumbers have liability for any finished project for as long as 1 to 6 years.  And if the project turns out to be a complete failure, the client can sue for damage.  Here are some examples:

  • DeLong Plumbing, Heating, and Air Conditioning faces charges from the children of their client who died because of carbon monoxide poisoning improperly installed water heater caused. 

  • Tiger Plumbing, Heating, Air Conditioning, & Electrical Services faced charges accusing them of damaging the client’s property and failing to fix a water and sewer line extending from his house to the city line.

  • Philadelphia Gas Works, together with the city government of Philadelphia, faces a lawsuit accusing them of poor maintenance of the gas lines which led to death and burning of homes of concerned residents.


Professional liability insurance will kick in when a plumber or plumbing company is accused of causing damage because of negligence or lack of expertise. Examples are when improper piping is installed, there’s failure to exercise necessary caution while working, and so on. Here’s a perfect real life example where professional liability insurance can help:

  • Pearl Plumbing, Inc. faces a lawsuit accusing them of defrauding consumers in the course of recommending the unnecessary replacement of sewer pipes.


Plumbing Liability Insurance

Insurance for plumbers and plumbing companies have liability coverage. Plumbing liability insurance can be categorized into several types depending on which cases they provide protection. But in a nutshell, all function to help the policyholder pay for attorney fees and other legal costs as well as compensation to the concerned party. 


Types of liability insurance plumbers and plumbing companies get are:

  • General liability

  • Professional liability

  • Products and completed operations

  • Public liability


General liability insurance kicks when a client accuses a plumber or plumbing company of causing injuries or property damage while working. Here’s a table showing the most common injuries plumbers can cause and their compensation:

Type of Injury Cost of Compensation
Slip and falls  $50,000
Cuts and lacerations $10,000
Burns $30,000
Property damage $74,000


Professional liability insurance will kick in when a plumber or plumbing company is accused of causing damage because of negligence or lack of expertise. Examples are when improper piping is installed, there’s failure to exercise necessary caution while working, and so on. Here’s a perfect real life example where professional liability insurance can help:

  • Pearl Plumbing, Inc. faces a lawsuit accusing them of defrauding consumers in the course of recommending the unnecessary replacement of sewer pipes.


Products and completed operations become useful if a client accuses a plumber or plumbing company of doing a measly job.  Plumbers have liability for any finished project for as long as 1 to 6 years.  And if the project turns out to be a complete failure, the client can sue for damage.  Here are some examples:

  • DeLong Plumbing, Heating, and Air Conditioning faces charges from the children of their client who died because of carbon monoxide poisoning improperly installed water heater caused. 

  • Tiger Plumbing, Heating, Air Conditioning, & Electrical Services faced charges accusing them of damaging the client’s property and failing to fix a water and sewer line extending from his house to the city line.

  • Philadelphia Gas Works, together with the city government of Philadelphia, faces a lawsuit accusing them of poor maintenance of the gas lines which led to death and burning of homes of concerned residents.


Plumbers Public Liability Insurance

Plumbers public liability insurance is helpful when plumbers or a plumbing company faces lawsuits community members file. This is important for carrying out large scale projects wherein any improper work doesn’t only affect the client but  other people as well.  It’s important to distinguish the difference between public liability and general liability. To make it simple, public liability applies to lawsuits raised by the public against a plumbing business. On the other hand, general liability will take care of lawsuits raised by clients. 


Other Plumbing Business Insurance 

Aside from general liability insurance, public liability insurance, and professional liability insurance, there are other kinds of protection plumbing businesses should get. Other recommended business insurance are:

  • Commercial property insurance

  • Commercial auto insurance

  • Business interruption

  • Crime insurance

  • Cyber liability  insurance

Commercial Property Insurance

Commercial property insurance protects a plumbing business’s building against fire, extreme weather, vandalism, theft, and other named perils. Its purpose is to reimburse expenses for a damaged building’s repair or reconstruction. Note that this doesn’t provide coverage for rented spaces. 


If the plumbing business is just renting a commercial space, then adding rented premises coverage to commercial property insurance must be considered.  Again, the function is still the same - cover repair and reconstruction costs if a rented property is damaged by fire, extreme weather, vandalism, theft, and other named perils. 


Aside from the commercial space, a plumbing business also needs to take care of equipment and tools used for work. And so, commercial property insurance can be added with stocks and contents coverage. Stocks and contents coverage is an optional policy that pays for the repair and replacement costs of damaged or lost work tools and equipment. However, coverage only kicks in the event of fire, theft, vandalism, and other named perils. 


Commercial Auto Insurance

A plumbing business can’t operate well without its own cargo van , flatbed truck , or any other vehicle that can carry a lot of load aside from passengers. To cover a vehicle used for business purposes, carriers offer commercial auto insurance. 


Commercial auto insurance has auto liability coverage. Auto liability coverage answers costs if the plumbing business’s vehicle caused a vehicular accident and injured third parties or damaged property. 


Another coverage in commercial auto insurance is physical damage. Physical damage coverage can be classified into two types - collision and comprehensive. Collision insurance covers costs if the plumbing vehicle crashed into an object or another person’s vehicle. But note that this one doesn’t provide coverage if the vehicle rammed a deer, cow, or any other animal on the road. 


Comprehensive insurance covers most of the loopholes of collision insurance. This will cover the resulting damage after the plumbing business’s vehicle collided with an animal. Comprehensive insurance also takes care of damage as a result of fire, theft, vandalism, extreme weather, and malicious mischief. 


Employees riding the plumbing vehicle will sustain injuries if a vehicular accident happens. And so, it’s smart to add accident coverage.  Commercial auto insurance with accident coverage can cover the emergency treatment of employees riding the plumbing vehicle who got injured after the accident happened. 


Business  Interruption Insurance

Unforeseen events might force a plumbing business to cease operations momentarily. But even how problematic the cause is, employee wages, loans, taxes, and other operational costs must still be paid. 


Business interruption insurance kicks in if a plumbing business has to cease operations to solve an issue or move to a new place. The policy provides money equal to a portion or the full value of the plumbing business’s average revenue. The insurance money received can be used to pay for employee wages, loans, taxes, and other operational costs. 


Crime Insurance

Theft and burglary will incur losses for a plumbing business. This is why there’s crime insurance to cover this peril. Basic crime insurance will help recover monetary losses if third parties commit the following:

  • Theft

  • Forgery

  • Data breach

  • Fraud


Outsiders aren’t the only ones who can commit crimes against a plumbing business but employees too. And so, crime insurance offers an employee dishonesty coverage . This policy reimburses financial losses if an employee commits any of the following:

  • Document manipulation

  • Fraud

  • Social engineering

  • Destruction of money and business assets

  • Theft


Cyber Liability  Insurance

Cyber liability insurance is particularly useful for plumbing businesses running a website or any other digital system to collect payments and market services. It provides coverage the moment clients file a claim because their sensitive information such as credit cards, bank accounts, and phone numbers got exposed. With cyber liability insurance, the plumbing business can pay for defense costs and settlements. 


Workers Compensation Insurance for Plumbers

Plumbing is one of the most dangerous jobs in the United States. This is due to the following reasons:

  • Plumbers working in sewage systems might get exposed to toxic gasses and get killed or suffer from injuries or diseases

  • Plumbers are always at the risk of slipping or falling while at work

  • The task of plumbers involves lifting heavy weights, uncomfortable work postures, continuous repetitive movements, and the use of specialty tools that might cause injuries


With that being said,  the work environment of plumbers are filled with hazards. In connection to this, the  Bureau of Labor Statistics reports that exposure to toxic substances and harmful work environments led to 672 worker fatalities .  Here’s a table showing the cost of most common injuries plumbers experience

Type of Injury Cost
Repetitive Motion Injury $40,000
Carbon Monoxide Poisoning $140,151
Fractures $5,000
Burns $214,000
Cuts and lacerations $7,158
Death $1,220,000


It’s best if plumbers and plumbing companies get workers comp insurance. A workers comp insurance will pay for the medical cost of plumbers and lost income when a work-related injury happens. In addition, in case of death,  workers comp insurance also provides death benefits and provides financial assistance to the deceased amounting to $4,000 for the burial fee and 75% of the deceased’s weekly take home pay as financial assistance to the family.  


To be clear, only the direct family of the workers comp insurance policyholder or additional insured can receive benefits. The spouse will receive money until death or remarriage whereas the children will receive money until 18 years old. 


Plumbing Insurance Coverage

Liability coverage offers $1 million up to $2 million to the policyholder. The deductible the policyholder needs to pay starts at $500. Note that paying for lesser deductibles means that premiums for plumbing insurance coverage and others will be expensive. 


Commercial property insurance with plumbers tools insurance offers a $60,000 minimum policy limit. If the plumbing business is large, then the carrier can extend the limit to more than $1 million. The median deductible for commercial property insurance is $500 - $1,000. 


Commercial auto coverage for plumbing businesses and contractors offers a  $50,000 or lesser minimum limit. However, carriers suggest that a policyholder should have a $500,000 up to a $1 million policy limit for comprehensive protection. 


Carriers leave the policyholder to decide how much money business interruption insurance can give. This can be as low as $100,000 or as high as more than $2 million


The limits of workers comp insurance start at $500,000 up to more than $1 million. Also, the policyholder can decide to get workers comp insurance for their plumbing business to not have any limits. 


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Plumbing Insurance Cost

Plumbing insurance cost depends on factors like the type of plumbing business (company or independent contractor), number of employees, types of coverage included, and many more. This section shows the cost of plumbing insurance based on which policies the policyholder wants to have. 


Plumbing Liability Insurance Cost

  • Plumbers and plumbing companies pay $119 a month or $1,428 a year for a general liability coverage having $1 million policy limit

  • Plumbers and plumbing companies pay $67 a month or $804 a year for a stand-alone professional liability coverage

  • Plumbers and plumbing companies pay $130 a month or 1,560 a year for a general liability coverage having products and completed operations as an additional option


General liability insurance for plumbers is usually the more expensive kind of coverage, though there are additional factors that will influence how much you spend on it. For example, if you have a larger plumbing business, your insurance will be more expensive because of the larger risk the insurer is taking.

Carrier Monthly Rate for Plumbing Insurance Annual Rate for Plumbing Insurance Best for
CoverWallet $32.75 $393.00 Plumbing insurance quotes comparison online
Thimble $34.91 $418.92 Short term plumber’s insurance
NEXT $42.50 $510.00 Plumbers and plumbing businesses planning to get two or more insurance policies
Hiscox $49.39 $592.68 Plumbing general liability and professional liability with generous limits
State Farm $50 $600 Customizable plumbing insurance
Geico $59 $708 Commercial auto insurance for plumbers


Along with the size of your plumbing business, your history as a plumber will also be considered by the insurer. If you have a history of making mistakes when you work with clients, then insurance companies will be less likely to trust you, resulting in more expensive rates.


Plumbers Public Liability Insurance Cost 

  • Plumbers and plumbing companies pay $45 a month or $540 a year for a public liability insurance


The cost of public liability small business insurance for plumbers tends to be a little more affordable than general liability coverage. However, once again, you can’t expect rates to be uniform because of the wide range of factors that carriers consider when you’re purchasing insurance.

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Best Plumbing Insurance Companies

Whether you’re looking for plumbing contractors insurance or plumbers tools insurance, you’ll want to carefully consider which insurance company you intend to work with. Instead of just opting for affordable plumbing insurance, you’ll want to be sure that you’re working with the best plumbing insurance companies. That said, read the reviews below to the know the pros, cons, and $1 million general liability insurance rate of the best carriers. 


CoverWallet Plumbing Insurance

Insuranks rating 10/10
Best for Plumbing insurance quotes comparison online
Average cost $32.75 per month
Year Founded September 2015 and acquired by AON at 2020
CEO Inaki Beringuer (former)
Headquarters 101 Avenue of the Americas 18th Floor New York, NY 10013 United States
Customer Support (646) 844-9933
AM Best Rating A ( excellent)
BBB Rating A+
Number of Complaints 158

Why Get Insured by CoverWallet?

  • Has an online quotes generator that allow you to compare the offers of different insurance companies

  • Get insured online

  • Offers more than 17 types of business insurance products

Why Take CoverWallet with a Grain of Salt?

  • Not an insurance company. Therefore, the policies CoverWallet offers are underwritten by its partners

CoverWallet isn’t really an insurance company. It’s an insurance broker selling plumbing insurance to its partners such as CNA and Progressive. Nonetheless, we included it in our list because it also offers tailored plumbing insurance by customizing the insurance products of partners.


Plumbing businesses can choose between four insurance options. For those who don’t need a lot of protection, CoverWallet offers plumbing insurance that only include general liability coverage. On the other hand, those who want more than one kind of protection, can choose to get plumbing business insurance having general liability and professional liability, general liability with professional liability and workers comp, or a customized insurance plan which can be added with any insurance policies needed.


Thimble Plumbing Insurance

Insuranks rating 9/10
Best for Short term plumber’s insurance
Average cost $34.91 per month
Year Founded 2015
CEO Jay Bregman
Headquarters New York City
Customer Support hello@verifly.com
AM Best Rating A+ ( excellent)
BBB Rating A+
Number of Complaints 53

Why Get Insured by Thimble?

  • Get covered online

  • Insurance for plumbers by the hour, day, week, or month

Why Take Thimble with a Grain of Salt?

  • Some customers reported that Thimble took long to respond upon being asked about the status of claims

Thimble offers short-term general liability insurance for plumbing businesses and independent plumbers. Coverage can last for hours, days, weeks, or months. Just like the company above, Thimble allows customers to get insured online.


NEXT Plumbing Insurance

Insuranks rating 7/10
Best for Plumbers and plumbing businesses planning to get two or more insurance policies
Average cost $42.5 per month
Year Founded 2015
CEO Guy Goldstein
Headquarters 75 California Ave, Palo Alto, CA 94304, United States
Customer Support 1-855-222-5919 and support@nextinsurance.com
AM Best Rating A- (excellent)
BBB Rating A+
Number of Complaints 13

Why Get Insured by NEXT?

  • Get instant proof of insurance which can be sent to clients in different ways

  • 10% discount when bundling policies

Why Take NEXT with a Grain of Salt?

  • Some customers reported that NEXT’s agents were rude over the phone

NEXT offers streamlined online solutions in its plumber's insurance. Through its platform, the company allows customers to add or remove insurance policies, pay premiums, and get instant proof of insurance. Policies included in NEXT’s plumbing business insurance are general liability with tools and equipment coverage, workers compensation, commercial auto, and commercial property insurance. Get a 10% discount if you buy more than one policy from NEXT.


Hiscox Plumbing Insurance

Insuranks rating 6/10
Best for Independent contractors looking for comprehensive coverage that’s tailored to their industry at affordable rates
Average cost $49.39 per month
Year Founded 1901
CEO Aki Hussain
Headquarters Atlanta, Georgia
Customer Support 1-866-424-8508 and customer.relations@hiscox.com
AM Best Rating A - excellent
BBB Rating A-
Number of Complaints 12

Why Get Insured by Hiscox?

  • Offers hefty limits on its liability insurance for plumbers

Why Take Hiscox with a Grain of Salt?

  • Complaints from customers are considerably high

Hiscox offers general liability and professional liability for plumbers and plumbing businesses. This company is great for customers who want to get more than $2 million in coverage.


State Farm Plumbing Coverage

Insuranks rating 5/10
Best for Customizable plumbing insurance
Average cost $50 per month
Year Founded 1922
CEO Michael L. Tipsord
Headquarters Bloomington, Illinois, United States
Customer Support 800-782-8332 and customer service portal
AM Best Rating A++ ( superior)
BBB Rating B
Number of Complaints 538

Why Get Insured by State Farm?

  • Affordable general liability coverage

  • Wide range of policies

  • Customizable policies

Why Take State Farm with a Grain of Salt?

  • Pricey public liability policies

State Farm is one of the largest insurance companies in the United States, and the company was founded in 1922. State Farm is known for using exclusive agents, ensuring that only their agents are the only ones who can sell State Farm insurance products.


State Farm plumbing coverage includes property coverage, installation insurance, mobile equipment coverage, and general liability. Also, the company allows clients to fully customize their policies.


Geico Plumbing Commercial Insurance

Insuranks rating 4/10
Best for Commercial auto insurance for plumbers
Average Cost $59 per month
Year Founded 1963
CEO Todd Combs
Headquarters Chevy Chase, Maryland, United States
Customer Support (800) 841-2964 and customer service portal
AM Best Rating A++ ( superior)
BBB Rating A+
Number of Complaints 178

Why Get Insured by Geico?

  • Cheap prices for commercial auto insurance

  • Offers personal and advertising injury, cyber liability, and other business insurance coverage for small and big plumbing companies in partnership with Hiscox.

Why Take Geico with a Grain of Salt?

  • Doesn’t have its own insurance for plumbers and offers policies from its partners

Geico


Geico plumbing commercial insurance is available to customers in partnership with Hiscox. This policy will cover plumbers in case of property damage, physical injuries, and advertising injury.


How to Get Cheap Plumbing Insurance Quotes?

Get cheap plumbing insurance quotes using our online tool. To start, click the “Get Quotes” button and fill-up the form. Once you’re done doing so, our cheap insurance generator will then give you the quotes from different companies. You won’t get spammed and all the quotes you’ll receive will show all the exact rates of the plumbing business insurance that accredited carriers offer.



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