Plumbing Insurance Cost

Last Updated on December 27, 2023
Written by CPA Alec Pow | Content Reviewed by CFA Alexander Popinker

As a plumber, you try to meet your customers’ expectations as best as possible. Despite your best efforts, chances are that something will go wrong. If your services cause injury or damage to your customers or third parties, your company is exposed to the risk of being sued. Moreover, you could be accused even without good reasons. So, having plumbing insurance is a pretty good idea.

An authorized plumber repairs any defect in the sanitary installations, from the replacement of pipes and columns to the unclogging of the installations and the installation of sanitary objects, offering warranty certificates for the work done.

How much does plumbing insurance cost?

The cost of plumbing insurance varies from one provider to another and is affected by factors such as your claims history, coverage, experience, and services. You should expect to pay anywhere between $40 and $90 per month.

Plumbing insurance overview

As a plumber, you can face several risks on each job and project you do. An accident may happen the moment you enter someone’s office or house. When your job entails working with water systems and pipes, a minor or massive leak may cause significant damage and be very expensive.

With plumbing insurance, you are covered from possible lawsuits from all your business activities. Before starting any job, no matter the size, it is essential to have coverage.

What does plumbing insurance cover?

There are significant potential liabilities that plumbers are exposed to every day.

In general, standard plumbing insurance policies will protect you from time-consuming and expensive lawsuits in situations like:

lost wages during recovery;
third-party bodily injury;
ongoing medical care, such as rehab;
third-party property damage;
work-related illness and accidents;
personal injury;
subcontractors’ errors;
completed/products operations;
retroactive claims for previously contracted work;
professional negligence.

What won’t plumbing insurance cover?

Even though the range of potential possibilities you are protected against with standard policies is wide, most policies will not cover some common risks and you will need extra insurance. These are some of the things that you probably won’t get with a standard policy:

repayment to customers for unsatisfactory work;
equipment theft and breakdown;
automobile accidents;
damage or loss to property while offsite or in transit.

Additional plumbing insurance coverage will be affected by the package you choose.

Make sure you carefully read your policy and understand your protection, so you can add policies to fill in any missing points.

Benefits and risks

There are various advantages offered by plumbing insurance to cover risks, such as:

cover legal costs – in case a third party, customer, or employee files a lawsuit against you, the expenses with it will be covered by your plumbing insurance, including damages and attorneys’ fees.
peace of mind – plumbing insurance gives you peace of mind as you know that your business is covered if something happens outside of your control. Moreover, customers prefer to hire plumbers who are insured adequately.
protect your assets – no matter if you have a large business or you are a sole proprietor, the expenses for damages are very high and may lead to bankruptcy.

Tips for buying plumbing insurance

Keep in mind the following tips before deciding what plumbing insurance to purchase:

Compare prices: Every insurer has its own policy costs, so if you want to find the best coverage and rates take several quotes into consideration.
Identify your risks: Make sure you analyze your services with a lot of attention and identify possible risks. For instance, if you work in businesses and homes where water damage costs may be very high, you want to be sure that the potential liabilities are covered by your limits.
Work with an independent agent: An independent insurance agent is able to direct you toward plumbing insurance providers with the best costs and the most experience in this field.

Other types of insurance you might need

Commercial property insurance costs around $1,000 per year and covers the costs of repairing or replacing your own damaged assets.
Professional liability insurance costs almost $700 per year and covers your business for possible liabilities if your advice, training, or work causes a customer to suffer a financial loss.
Commercial auto insurance costs anywhere between $900 and $1,200 per year and offers protection in case the vehicles used in your business are stolen or damaged in an accident.
General liability insurance costs around $550 per year and offers protection to your business in case of accident or injury claims, misleading or false advertisement, and property damage. It pays for the related expenses and costs.

Plumbing Insurance FAQs

Do I need insurance for my plumbing equipment?

If you work as a plumber, then it is essential to ensure your tools so you can do your job. In case these are broken or stolen and you are not insured, you will have to pay for replacing them, but you will also lose potential projects. If your equipment is insured you can be sure that you are able to repair or replace it very fast, and recover any lost earnings.

What is a surety bond?

A surety bond covers the cost of paying clients back if you are not able to complete a project or the work is less than satisfactory.

What is employment practices liability insurance (EPLI) and as a plumber do I need it?

Employment practices liability insurance (EPLI) offers protection to a company against lawsuits from work-related claims such as discrimination, harassment, breach of contract, and wrongful termination. Any business that has employees could need this coverage. Even if you have a small company, it is still at risk of a lawsuit, and the damages and defense costs may be very high if found liable.

Final thoughts

Plumbing insurance offers protection against possible financial loss from lawsuits related to your service. You can know that your policy covers possible risks and have the peace of mind that your business is protected if you understand the plumbing insurance costs and determine your needs.