Plumbers face significant risks. However, purchasing insurance coverage to protect against those risks may not be as expensive as you think. This article will reveal the cost of different types of insurance plumbers typically purchase and explain the factors that impact those costs.
- How much does insurance for plumbers cost?
- Factors that impact the cost of plumbing insurance
- How to find plumbers insurance at a fair price
- What does plumbing insurance cover?
- Who needs plumbing insurance?
- Best plumbing insurance companies
How much does business insurance for plumbers cost?
Plumbers pay on average $125 per month, or $1,500 per year, for a $1 million general liability insurance policy, with $500 deductible.
Plumbing insurance costs depend on your business’s risks, coverages you select, policy limits, deductibles, equipment value, and other factors. Here is a breakdown of the costs of different coverages many plumbing businesses get.
| Plumbing insurance coverage | Average costs |
| General liability insurance | $125 per month |
| Workers comp insurance | $180 per month |
| Commercial auto insurance | $150 per month |
| Contractors’ tools and equipment insurance | $15 per month |
| Professional liability insurance | $85 per month |
| Surety bonds | $8 per month |
Keep in mind that these are just the averages. Your rates will be different. Be sure to shop around with a few companies or work with a broker to compare several quotes to find the cheapest one for you. Below are our recommendations of the top providers of plumbing insurance for your reference:
- CoverWallet: Best for comparing several quotes online
- Simply Business: Best for finding low-cost coverage
- InsurePro: Best for flexible pay-per-day coverage
- Thimble: Best for part-time plumbers
- NEXT: Best for comprehensive plumbing insurance policy at affordable rates
Cost of general liability insurance for plumbers
Plumbers typically pay a median premium of less than $125 per month, or just under $1,500 per year, for general liability insurance. This is for a policy with a $1 million per occurrence limit and a $500 deductible. This is the median value rather than the average because it eliminates outlier policy costs and presents a more accurate estimate of what your coverage could cost.
This insurance protects against injuries on your business property to non-employees, damage you or your employees cause to other people’s property while doing plumbing work, and certain types of advertising-related lawsuits.
The best way for plumbers to purchase general liability insurance is through a business owner’s policy (BOP). It bundles general liability insurance with commercial property insurance (and sometimes lost income coverage) at a discounted rate. It protects your business property along with the most common plumbing business risks. It also makes it easy for plumbers to add on additional coverages they need at a reasonable price.
Learn more at general liability insurance cost and the best general liability insurance companies
Cost of workers’ compensation insurance for plumbers
The median premium of workers’ compensation insurance for plumbers is less than $180 per month or just over $2,100 annually. This coverage, which most states require for businesses that have employees, helps pay medical expenses and lost wages for employees who experience work-related injuries and illnesses. It also pays death benefits and job retraining costs if a plumber can no longer do their regular work because of an injury or illness.
Learn more at workers comp insurance cost and the best workers comp insurance companies for contractors
Cost of commercial auto insurance for plumbers
The median cost of commercial auto insurance for plumbers is about $150 per month or approximately $1,800 per year. Commercial auto coverage protects the vehicles you and the people who work for your plumbing business drive for work-related reasons. Personal car insurance won’t cover accidents that happen while driving for business. Commercial auto insurance can help pay for damage to other people’s property and medical costs to others harmed in an accident. If you get the right coverage, commercial auto can also pay for accident-related vehicle damage to cars owned by you, your employees, or your business, along with medical costs not covered by health insurance for you, people who work for you, and passengers. It can also cover damage caused by weather, theft, and vandalism to vehicles owned by your business.
Learn more at commercial auto insurance cost and the best commercial auto insurance companies
Cost of contractor’s tools and equipment insurance for plumbers
Plumbers pay a median premium of about $15 per month, or $170 per year, for contractor’s tools and equipment insurance. This coverage helps pay for repairing or replacing lost, stolen, or damaged tools and equipment stored on a truck or job site. Plumbers often transport valuable tools and equipment to job sites, and the risk of damage or theft is high, which is why so many plumbers purchase this coverage.
Cost of professional liability insurance for plumbers
Contractors like plumbers pay a median of about $85 per month, or $1,000 per year, for professional liability coverage (often referred to as errors and omissions or E&O insurance.) This insurance protects plumbers against lawsuits by clients over late or incomplete work or unsatisfactory service. It pays legal and settlement costs and will protect you even from frivolous lawsuits.
Learn more at professional liability insurance cost and the best professional liability insurance companies
Cost of surety bonds for construction businesses and contractors
Businesses in construction and contracting fields, including plumbers, pay a median premium of about $8 per month, or $100 per year, for surety bonds. A surety bond pays back your client if you cannot fulfill the terms of a contract or other agreement you have with them.
Factors that impact the cost of plumbing insurance
Here are some of the top factors that impact the cost of plumbing business insurance coverage. Understanding them will help you gain control over your premium prices.
Size of the business
Larger plumbing businesses usually need more insurance coverage than smaller ones, which costs more. This doesn’t only apply to the number of plumbers, contractors, and other types of people who work for your company. If you have a relatively large client base, you face more risk of lawsuits and different kinds of claims, which will up your premium prices.
Insurer
Different insurers calculate plumbers insurance premiums differently. And they may have different preferences (appetites) for covering plumbers. This will impact the quotes insurers provide. You owe it to yourself and your plumbing business to get quotes from several insurance companies to compare coverages and prices.
Claims history
If you’ve made claims on your plumbing business insurance, it’s a sign to insurers that you’re likely to file claims in the future. So, if you’ve made claims on your insurance in the past, you can expect to pay higher premium costs.
Credit score
The credit score of the plumbing business owner can also impact premium costs. Credit scores are a measure of how reliable a policyholder will be in paying their insurance premiums. It also reflects how responsible people are. If you have a low credit score, you will likely pay more for insurance because you’re viewed as a greater risk. The reverse is also true: A high credit score can save you money on plumber insurance protection.
The type of plumbing you do
Plumbers that do dangerous outdoor work or projects in high-rise buildings will pay more for insurance than someone who does minor home repairs.
Business location
If your plumbing business is housed in a larger, more valuable space or at greater risk of fire losses. Also, some cities and states are known for their high rates of lawsuits. If you do plumbing work in one of them, you’ll pay more for insurance protection.
Limits and deductibles.
You’ll pay more for insurance with higher coverage limits. Also, if you select a higher deductible, you’ll pay less for coverage.
These aren’t all the factors that will influence your plumbing business insurance premium, but they’re among the ones that will have the most significant impact.
How to find cheap plumbing insurance?
Here are some tips to help you find the coverage you need at a reasonable cost:
- Shop around. Get quotes from a few companies or compare the multiple quotes generated by a business insurance marketplace or broker. Work with a top broker like Simply Business, InsurePro, or CoverWallet is a good way to compare several quotes to choose the cheapest one for your business.
- Take advantage of discounts. If they’re not offered to you when getting a quote, ask about them, whether you’re buying online or through an agent.
- Choose the right coverage: As you know, there are several coverages a plumber would need. You don’t need all coverages. Make sure you only buy the coverage that you need the most. If you don’t know exactly the coverage you need, you may want to work with a knowledgeable agent or broker.
- The right policy’s terms: Coverage limits and deductibles impact insurance rates in a significant way. Make sure you choose the right amount that works for your situation. Most policies has $1M coverage limit, but if you mostly work in some residential areas, you may not need $1M coverage, you can ask for a lower coverage limit such as $300K.
Taking these steps will help ensure you’re not paying too much for your plumbing business insurance coverage.
What does plumbing insurance cover?
As you can see above, there are several plumbing insurance coverages protecting your plumbing business against different types of risks. What plumbing business insurance covers depends on the specific coverage you get. In general, the most important policy plumbers should get is general liability insurance. That coverage protects businesses against bodily injury and property damage that caused to their clients.
Plumber general liability insurance isn’t required by law. However, most clients would require this coverage before they sign a contract with you.
Who needs plumbing insurance?
Plumbing insurance is purchased by people and businesses who do many types of work including:
- Plumbing contractors
- Septic system installers and maintenance people
- Drainage system installers
- Sewer contractors
- Piping and plumbing contractors
- Sump and water pump installation and service workers
- Water system balancing and testing contractors.
An experienced insurance agent or representative at a business insurer can help you figure out whether plumbers business insurance is right for you.
Best plumbing insurance companies
Many companies offer plumbing insurance, which can be overwhelming to find the best one for your business. We have done the research and here are our recommendations for the best providers of plumbing insurance for your consideration.
- CoverWallet: Best for comparing several quotes online
- Simply Business: Best for finding low-cost coverage
- InsurePro: Best for flexible pay-per-day coverage
- Thimble: Best for part-time plumbers
- NEXT: Best for comprehensive plumbing insurance policy at affordable rates
