How Does Business Insurance For Plumbers Work?

As a plumber, you might have a feeling that you don’t need insurance to cover you and your business from damage. But you are wrong. Have you heard of business insurance for plumbers?

In a perfect world, everything would happen according to plan. However, a misaligned pipe leading to the bathroom or tap could have severe damage to your customer and your reputation.

Do you know that you can transfer these risks to an insurance company? Yes you can. By purchasing plumbing insurance coverage, you will not be liable for any damage claims by your client on their properties.

What Is Plumbing Insurance?

Plumbing insurance refers to a variety of policies that shield your company against potential legal action, property damage, and financial obligations. Purchasing the right insurance policy can help cover some risks that plumbing contractors face on a daily basis while doing their job, such as:

  • Client injury or property damage resulting from a plumbing project or repair.
  • Accusations that you committed mistakes or were careless when doing a task.
  • Theft or damage to plumbing equipment
  • Getting into an automobile accident on the way to work.
  • Injury to a worker while working on a project.
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Who Needs Plumbing Insurance?

The following plumbing professionals should be insured:

  • Gas engineer
  • Gas fitter
  • Heating services
  • Ventilation services
  • Different types of plumbers
  • Gas Fitters
  • Drain Cleaners
  • Bathroom Installers
How Does Business Insurance For Plumbers Work?

What Types Of Business Insurance Do Plumbers Need?

  1. General liability insurance: This covers claims of third-party physical injury, property loss, and advertising injury. General liability insurance for plumbers can help with paying compensation and legal fees if something is broken or someone is hurt as a result of their job. Although it’s not required by law, having this coverage makes sense if you work with the general public.
  2. Public liability insurance: This type of coverage is very important to plumbing contractors working for community members. With this policy, you will get protection from lawsuits filed by the public in the event that someone is injured or that property is damaged as a result of the job you did. You can buy cheap public liability insurance for plumbers from any Insurer in your country.
  3. Employers’ liability insurance: Most states in the US mandate that companies provide workers’ compensation for their staff. For instance, if one of your staff dislocates their shoulder after falling off a ladder while repairing a pipe, your workers’ compensation coverage would pay for any associated medical costs. Even if you only have one employee, you are legally required to obtain this policy.
  4. Business interruption insurance: This policy helps in covering your loss of revenue in the event that unforeseeable events prevent your business from operating for a while.
  5. Business life insurance: This policy is important to plumbers as it is made to support the continuation of your company in the event that something unfortunate happens to you or other important business personnel.
  6. Commercial auto insurance: This includes vehicles that you drive to plumbing jobs or other business-related destinations. Commercial auto insurance covers costs associated with accidents that result in injuries, fatalities, or property damage. For instance, if you were driving your work van to the store to pick up supplies and unintentionally hit another car in the parking lot, this policy covers payment to fix the damage to the car.
  7. Commercial property insurance: This covers damage to business property caused by accident, extreme weather, or other dangers. For instance, if there is a fire accident in your office and it destroys your plumbing equipment, your commercial property insurance would cover the costs of replacing it.
  8. Tools and equipment insurance: This covers the cost of repairing or replacing business equipment that is damaged or stolen from your office or project site.
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How Much Is Insurance For A Plumbing Company?

The cost of insurance for plumbing contractors depends on your policy limits, risks, equipment value, and other factors such as:

  • Location of your business
  • Number of staff
  • Nature of your work
  • Claims history
  • Number of policies required
  • Amount of coverage
How Does Business Insurance For Plumbers Work?
A plumber

How Much Does Plumber’s Insurance Cost?

We will explain the different types of insurance for plumbing contractors and the costs associated with them.

1. General liability insurance costs for plumbers

For general liability insurance, plumbers typically pay a premium of $1,480 annually, or less than $125 per month. This covers against third-party injuries, property loss, and advertising injuries.

2. Workers’ compensation insurance costs for plumbers

For plumbers, the average monthly premium for workers’ compensation insurance is less than $180, or $2,130 yearly. This policy covers medical costs and lost wages resulting from injuries that happen at work.

3. Commercial auto insurance costs for plumbers

The cost of premium for commercial auto insurance is about $150 per month, or $1,795 annually. It covers the vehicle that you use to do your business.

4. Contractor’s tools and equipment insurance costs for plumbers

For contractor’s tools and equipment coverage, plumbers typically pay a monthly premium of $15, or $170 annually.

5. Professional liability insurance costs for plumbers

Also known as called errors and omissions insurance (E&O), professional liability insurance costs construction companies and plumbing contractors, on average, $85 per month or $1,000 annually.


Plumbers are highly qualified, certified tradespeople who install and fix pipes that transport water, gas, and other materials. Plumbing has been present in practically every building during the past century, from single-family homes to high-rise structures.

There is a liability in every project. A worker could get injured while soldering pipes; alternatively, a client could file a claim for damages due to a water heater leak. You can swiftly recover from losses with the right insurance for plumbing businesses.

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