Plumbing Insurance: Best Options, Coverage and Costs
Plumbers should have liability insurance. They may need it to start a project or qualify for a professional license.
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Updated · 6 min read
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Plumbers work in tight spaces, with pressurized systems, and on other people's property. It’s risky work, and small-business insurance offers necessary financial protection.
At minimum, plumbers should have general liability insurance. Employers, cities or states may require you to carry this coverage to work on a project or qualify for a plumbing license.
You’ll likely also need workers’ compensation if you have employees -— and may want it even if you don’t. Additional policies, like commercial auto and tools and equipment, can be valuable as well.
Here are some top companies, what you need to know about plumbing insurance and how to find the right coverage.
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Best options for plumbing insurance
NerdWallet’s editorial team chooses the best business insurance based on factors like:
- Relative number of complaints to state regulators for each company.
- How financially strong companies are, meaning how well they can pay claims.
- How easy it is to get a quote and buy a policy online.
We reviewed our top carriers to find companies that offer policies specific to plumbers. NerdWallet recommends getting multiple quotes to get the right coverage for your business.
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The Hartford
Best for working with an agent
If you’re unsure about your coverage needs, The Hartford may be a good choice. While The Hartford lets you get a quote online, you’ll need to speak with an agent before buying your policy. If you want to work with an agent directly, you can use The Hartford’s Agency Locator to find an agent in your area and contact them for more information on your insurance options.
The Hartford can customize insurance coverage for plumbing businesses. It offers a business owner’s policy for plumbers that includes commercial property, general liability and business income insurance. You can also get commercial auto, workers’ compensation and equipment coverage as part of your plumbing insurance policy. Read our review of The Hartford.
Travelers
Best for commercial plumbing businesses
With a specialty in construction businesses, Travelers has tailored policies for mechanical and plumbing contractors. They typically include general liability, workers’ compensation, commercial auto and umbrella insurance, but you can add more policies.
Travelers also offers accident prevention services and has a special claims department for construction industry professionals. You can’t get a quote or buy a policy online with Travelers, though. You’ll need to contact an agent. Read our review of Travelers business insurance.
Ergo Next
Best for fast coverage
If you want to get a quick, customized coverage, Ergo Next may be well suited for you. Ergo Next lets you buy your policy online and immediately download a certificate of insurance. You can also log in to your account at any time to add additional insureds for no extra cost, share your certificate of insurance or file a claim online.
Ergo Next offers a business insurance package for plumbers with multiple preset limits. It typically includes general and professional liability, commercial auto, workers’ comp, tools and equipment and commercial property insurance. Ergo Next did receive more complaints about its liability coverage than we’d expect given its size, though. Read our review of Ergo Next insurance.
What is plumbing insurance?
Plumbing insurance can include several policies that protect your business financially from unforeseen risks. The right insurance can help pay for scenarios plumbers and plumbing contractors may face, such as:
- Client injury or property damage due to a plumbing repair or project.
- Accusations that you made mistakes or were negligent in completing a job.
- Theft or damage to your plumbing tools.
- Getting into a car accident while driving to a job.
- Injury to one of your employees while working on a project.
Who needs plumbing insurance?
Plumbing professionals who need business insurance coverage include:
- Plumbing contractors and business owners.
- Septic system workers.
- Piping contractors.
- Drainage system installers.
- Sewer hookup contractors.
- Sprinkler installers.
- Sump pump installation and servicing contractors.
- Water pump installation and servicing contractors.
- Water system balancing and testing contractors.
Your city or state may require that you carry an insurance policy to start work on a residential or commercial project. Some states, like Florida and Ohio, may also require that you purchase business insurance to get your plumbing license.
Clients may also ask for proof of insurance coverage, called a certificate of liability insurance, before agreeing to work with you.
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What types of insurance do plumbers need?
At a minimum, plumbers should have general liability insurance and workers’ compensation. You may also need other coverage depending on your business.
General liability insurance for plumbers
General liability insurance pays out if someone claims your business caused them damage or injury. It covers costs due to claims of:
- Bodily injury.
- Property damage.
- Personal and advertising injury, such as libel or slander.
Say a client trips over a pipe you put on the floor while repairing a sink and breaks their wrist. General liability would cover their medical expenses and any legal or settlement fees if they file a lawsuit against you. This policy would also cover the cost to replace a client’s bathroom mirror if it shatters while you’re repairing the sink.
Workers’ compensation
If your employees are injured or get sick on the job, workers’ compensation insurance helps cover medical bills and lost income.
Most U.S. states require employers to have workers' comp for their employees, but it’s also a good idea for sole proprietors with physically demanding jobs, like plumbers. Health insurance typically won’t cover costs for work-related incidents.
For instance, say you or one of your plumbers falls off a ladder while fixing a pipe and dislocates a shoulder. Your workers’ compensation policy would cover any related medical expenses, including physical therapy. It would also pay a portion of lost income while you or the employee recover.
Additional business insurance for plumbers
| Type of insurance | What it covers |
| Vehicles that you use for business purposes, including driving to plumbing projects. It typically covers accident-related expenses from injuries, death or property damage. If you’re driving your work van to pick up supplies and accidentally hit a car, this policy would pay to repair the damage. It would pay for the other car’s damage and likely the damage to your work van too. | |
| Tools and equipment insurance | Covers costs to repair or replace equipment that is damaged or stolen. You can sometimes add this coverage to another type of policy, like your general liability insurance or business owner’s policy. Say your work truck was stolen, along with all your tools inside it. Commercial auto coverage would only pay to replace the vehicle. You’d make a separate claim to your tools and equipment policy for the stolen items. |
| Pays legal costs due to claims of professional negligence, error, breach of contract or failure to deliver a service on time. If you’re installing plumbing for a house remodel and make a mistake that causes the system to fail, the owner could sue you. This policy would cover your legal and settlement costs associated with the lawsuit. | |
| Covers business property or buildings that are damaged by certain accidents, weather events or other hazards. If a fire breaks out in your office and destroys all of your plumbing equipment, business property insurance would cover the costs to replace it. If the fire damaged your building, this coverage would also help pay for repairs. | |
| Business interruption insurance | This helps cover lost income due to a disaster at your business property that makes you unable to operate. It usually comes as part of a commercial property policy. Say an office fire closed down your business operations for a week while the building was repaired. Your business interruption insurance would cover a portion of your lost income to help cover bills and payroll. |
| Covers lawsuit-related costs due to claims of a defective or flawed product, such as pipes, tubes or tanks. It also covers property damage and bodily injury due to a faulty product. Say you install a new pipe in a kitchen sink, and a defect in the pipe causes it to break and flood the kitchen. Your customer could sue you for the damage. Your product liability insurance would cover the cost to repair the kitchen, as well as legal and settlement costs. | |
| BOPs typically include general liability insurance, commercial property insurance and business interruption insurance. They may be more cost-effective than buying these three policies separately, and you can often add coverages. Not all businesses qualify for BOPs, though. If your company has more than 100 employees or $5 million in revenue, you’ll likely need separate policies. |
Coverage gaps for plumbers to check
When evaluating policies, it’s important to check limits and exclusions, or what the insurance won’t cover. Plumbers should keep the following in mind.
- Policies may limit or exclude mold and bacteria. Plumbing leaks can lead to mold that makes people sick. Check whether your general liability policy will pay for those medical costs, as well as things like remediation. Even if it does, limits may be smaller for such claims. You may be able to increase those amounts if they’re not enough for you.
- How additional insureds are handled. If you’re a subcontractor, you’ll want to check how easy it is for you to list additional insureds on your policies. Most contractors require this before you can start work so any mistakes you make aren’t their responsibility.
How much does plumbing insurance cost?
According to data provided to NerdWallet by online brokerage Coverdash, the median annual insurance costs for residential plumbers are:
- General liability insurance: $2,200 per year.
- Business owner’s policy: $4,500 per year.
- Workers’ compensation: $4,800 per year.
The cost of your plumbing insurance will depend on a variety of factors such as:
- Business location.
- Number of employees.
- Nature of your plumbing work/types of projects your work on.
- Claims history.
- Number of policies.
- Amount of coverage.
For example, a self-employed plumbing contractor who only needs general liability and professional liability insurance will have relatively low insurance costs. A multi-employee business that needs commercial property, workers’ compensation and commercial auto insurance will have higher costs.
How to shop for plumbing insurance
Start by gathering key business details. Insurers will likely ask about your annual revenue, payroll, number of employees and the types of plumbing jobs you take. Based on the coverage you want, you may need info on your vehicles and equipment too.
You’ll need a Social Security number if you’re a sole proprietor. Otherwise, have your federal employer identification number (FEIN) handy.
From there, you have three main ways to shop:
- Work with an agent or broker. If your business is large or you want personalized guidance, contacting a professional is a good option. However, they can only quote from their carrier networks, and brokers typically charge a fee.
- Contact insurers directly. If you want to shop with construction specialists or specific companies you already trust, you can go to them directly. It takes more time to get the quotes separately, but gives you the most control.
- Use an online marketplace. Websites like Coverdash or Simply Business allow you to compare multiple quotes at once. You can often buy same-day, though you may end up with multiple insurers if you need several policies.
Once you have quotes, compare liability limits, or the max each policy will pay out. Also check the exclusions on each policy, or what it won’t cover.
To check up on the companies, read customer and independent reviews, and those from sites like the Better Business Bureau. You can check complaint data through the National Association of Insurance Commissioners.
Once you've chosen your policies, you’re ready to buy. Don’t forget to review them every year — sooner if you add employees, buy new vehicles or expand your service area.
