How much does plumber insurance cost?

Plumber insurance cost per month, by policy

Plumber insurance cost starts at roughly $115 to $147 a month for general liability, then grows with every tech you hire and every van you add. The table below lines up the medians published by two large online insurance marketplaces, plus ranges from a direct-to-business carrier.

A median is the middle price, so one very cheap or very pricey policy doesn't skew it. That makes it a fair starting point. It still isn't your price. Yours will hinge on your payroll, revenue and claims history, plus the work you do and the limits you pick.

Look at the spread between sources. Umbrella runs $93 a month at one marketplace and $250 at the other. Rates differ because each source sells to a different mix of shops, sizes and states. A real quote built on your own payroll and work mix is the only number you can budget on. Get a quote for your plumbing business →

What $1 million in liability costs a plumber

A general liability policy with $1 million per occurrence and $2 million aggregate costs a plumber a median of $115 to $147 a month. That works out to about $1,378 to $1,768 a year. "Per occurrence" is the most the policy pays for one claim. "Aggregate" is the most it pays in a policy year.

Read the limits on any quote that looks cheap. One direct carrier's plumber packages list per occurrence limits from $300,000 to $1 million. A $300,000 policy may meet a state license rule, but GCs and property managers often ask for $1M/$2M on your certificate of insurance.

Most plumbers reach $2 million or more by stacking an umbrella on top of their general liability. Umbrella cost depends mostly on the limit you buy.

What drives your plumbing insurance cost

Six things move your plumbing insurance cost more than anything else. Most of them sit right on your own books.

Payroll and class codes

Workers' comp is priced per $100 of payroll, at a rate set by your class code. Most plumbing payroll falls under NCCI class 5183, plumbing "not otherwise classified." One published state-by-state comparison puts the 5183 rate anywhere from $1.17 to $8.92 per $100 of payroll.

Your experience mod then moves that rate up or down. The mod compares your injury record with other shops in your class. A mod below 1.00 is a credit, a mod above 1.00 is a debit, and a new shop with no history usually starts at 1.00.

Revenue and the work you do

General liability is often rated on your revenue and payroll, and on the type of jobs you run. Repiping, water heater swaps and sewer or septic line work tend to price higher, because a failed joint can turn into a large water damage claim. Commercial jobs can also price differently than residential service calls.

Sewer and trench crews may not rate as plumbers at all. In NCCI states, sewer construction has its own comp class, 6306, separate from 5183. If you run laterals with a mini-excavator, ask how that payroll is classed.

Claims history

Past claims follow you from carrier to carrier. Underwriters usually ask for your loss runs, which are the claim reports from your past policies. On comp, those losses also feed your experience mod.

Limits and deductibles

Higher limits cost more. A higher deductible lowers the premium, but you pay more out of pocket on each claim. The median plumber general liability policies above carry a $500 deductible.

Vans and drivers

Commercial auto tracks how many vehicles you run, what they're worth, the limits you pick and each driver's record. One driver with a bad record can raise the price on the whole policy.

Your state

State rules set the floor. Texas requires a Responsible Master Plumber to carry at least $300,000 in commercial liability. Florida requires plumbing contractors to keep at least $100,000 in public liability and $25,000 in property damage coverage. California raised its contractor license bond to $25,000 on January 1, 2023.

Comp rules vary even more. Texas lets most private employers opt out of workers' comp. At the other end, that same comparison lists New York's 5183 rate as the highest, at $8.92 per $100. Check your state's rules on our Texas, Florida and California pages.

Example: how payroll sets your comp bill

Example scenario: a shop runs three techs at $60,000 a year each, so field payroll is $180,000. Say the carrier's rate for class 5183 is $3.00 per $100 of payroll. That rate is made up for this example, picked from inside the published range.

• $180,000 ÷ 100 = 1,800 units of payroll
• 1,800 × $3.00 = $5,400 a year before the mod
• With a 0.85 mod (a credit): $5,400 × 0.85 = $4,590
• With a 1.25 mod (a debit): $5,400 × 1.25 = $6,750

Same shop, same payroll, and a $2,160 gap that comes from claims history alone. Taxes, fees and state surcharges would sit on top. Get a quote for your plumbing business →

Plumber insurance cost as your shop grows

Your insurance bill doesn't climb in a smooth line. It jumps at a few points, and each one ties to a step in growing the shop. Price those jumps into your next bid or your next hire.

One truck, no employees

A one-truck owner-operator usually needs general liability, a license bond where the state asks for one, commercial auto and tools coverage. For an owner working alone, MoneyGeek puts general liability plus commercial auto at roughly $570 a month combined. That's well above the marketplace medians, which shows how far sources can split.

First hire

Your first W-2 tech usually brings workers' comp, and comp is often the biggest single line for a shop with a crew. MoneyGeek puts a crew with comp added at around $845 a month. Your own number rides on the payroll you report and the class code each person lands in.

Second van

Each van adds to the auto premium, and each new driver's record counts as much as the van. If techs drive their own trucks to jobs, ask about hired and non-owned auto, which is meant for vehicles your business uses but doesn't own.

First GC contract

This is where limits jump. GCs and property managers often want $1M/$2M general liability, an umbrella, and endorsements such as additional insured. Each adds cost, and each is easier to price before a contract lands than on the day it does.