Choosing the Best Plumbing Contractor Insurance

If you run a plumbing business, you already know how important it is to protect yourself with plumbing contractor insurance, tools and reputation.

Choosing the right plumbing contractor insurance helps cover accidents, property damage and even lawsuits—so you can focus on doing great work without the stress.

In this blog, we’ll break it all down in simple terms. You’ll learn:

Why plumbing contractor insurance matters
What types of insurance you need
How to choose the right policy for your business
Fun facts and real stats about insurance in the trades
A helpful table to compare insurance types
Leading insurance providers in the industry

Why Plumbing Contractor Insurance Is Top Priority

Running a plumbing business means working in people’s homes and around expensive equipment. Accidents happen—even to the best plumbers. Without plumbing insurance, your company could face devastating financial hardships.

Take a look at a few ways the right plumbing contractor insurance can protect your business:

A customer trips over your tools and breaks their arm
A burst pipe floods a home during a repair job
A plumber is injured on the job
Someone sues your business for damages

Worst of all, 75% of small businesses are underinsured or have no insurance at all. That’s a big risk for any contractor. Plus, most states require it.

Types of Plumbing Insurance

There’s no one-size-fits-all policy. Instead, plumbing contractor insurance is usually made up of several different coverages.

General Liability Insurance

Arguably the most important one, general liability insurance covers property damage, injuries and legal fees.

For instance, if a water line bursts while you’re working and floods a basement, this helps pay for the damage.

Fun Fact: The average plumbing company spends between $700 and $2,000 per year on general liability insurance.

Workers’ Compensation

Workers’ compensation covers medical costs and lost wages if your plumber gets hurt on the job.

In most states, this is required by law if you have employees.

Commercial Auto Insurance

If you drive company vans or trucks, commercial auto insurance covers accidents or damage. Keep in mind, conventional auto insurance won’t cover your commercial vehicles since they’re being used for business purposes.

Tools and Equipment Coverage

Tools and equipment coverage protects the gear you use every day—from wrenches to water jetters. Plus, if any tools or equipment get stolen or damaged, plumbing contractor insurance helps replace it.

Professional Liability (a.k.a. Errors & Omissions Insurance)

Professional liability insurance covers your plumbing business if a client claims one of your plumbers made a mistake that caused damage.

Types of Plumbers Insurance

Insurance Type	What It Covers	Is It Required?
General Liability	Damage to property, injuries, legal fees	Yes, often required
Workers’ Comp	Employee injuries, medical costs	Yes, if you have employees
Commercial Auto	Accidents in company vehicles	Yes, if your plumbers drive for work
Tools & Equipment	Stolen or damaged tools	No, but highly recommended
Professional Liability	Mistakes or poor workmanship	No, but very useful

How to Choose the Best Policy

Now that you know what’s available, how do you pick the right plumbing contractor insurance?

1. Know Your Risks

Every plumbing company is different. If you work on new construction sites, your risks are higher than someone who only does small residential jobs. Make a list of your biggest risks.

2. Get Multiple Quotes

Always compare at least three insurance providers. Ask about:

Coverage limits
Deductibles
Monthly vs. annual costs
What’s not covered (the fine print matters!)

3. Check Their Reputation

Stick with insurance companies that have high ratings and good customer reviews. Look for providers that specialize in trades like plumbing.

4. Ask About Bundling

Some insurers offer packages with all the policies you need—this can save you money.

Fun Fact: Many insurers give discounts for bundling general liability, auto and tools coverage. You could save 10-20% just by combining policies!

What Happens If You Don’t Have Insurance?

Skipping insurance might save money at first, but one accident can cost you thousands—or even your business.

Real Risks of Being Uninsured

A lawsuit from a client could cost $70,000 or more
Replacing stolen tools might wipe out your profits for the month
Without workers’ comp, you may have to pay all medical bills

43% of small businesses have been threatened with or involved in a lawsuit. Which means, you can’t afford to not have plumbing contractor insurance.

Leading Plumbing Insurance Providers in the Industry

Securing the right insurance is crucial for plumbing professionals to protect against potential risks and liabilities inherent in their trade. Several leading providers offer tailored insurance solutions for plumbers:

The Hartford: Offers comprehensive coverage options, including general liability and property insurance, specifically designed for plumbing businesses.
NEXT Insurance: Provides affordable, customizable policies with instant quotes and online management, catering to small plumbing contractors.
Progressive Commercial: Delivers a range of insurance products for plumbers, emphasizing flexibility and competitive rates.
Nationwide: Offers specialized coverage for plumbing professionals, focusing on risk management and industry-specific needs.
Travelers: Provides insurance solutions tailored to plumbing and mechanical contractors, highlighting their expertise in the construction sector.

Navigating the array of insurance options can be complex. Engaging an insurance broker can simplify this process, as they can assess your specific business needs and compare quotes from multiple providers to secure the most suitable coverage at competitive rates. This approach ensures that your plumbing business is adequately protected against unforeseen circumstances.

Want to minimize the chances of losing money and time? Schedule a personalized FieldEdge demo today!

Protect Your Business with the Right Plumbing Contractor Insurance

Running a plumbing company means being prepared—not just for your next job, but for the unexpected. With the right plumbing contractor insurance, you’ll protect your team, your tools and your future.

Key Takeaways:

General liability insurance is a must-have for all plumbing contractors
Add workers’ comp and commercial auto if you have employees or drive for work
Use bundled policies to save money and simplify your coverage
Always compare quotes and read the fine print
Staying insured keeps you compliant, competitive and confident

With smart plumbers insurance choices, you can grow your business without worry. That’s something worth investing in!

Need more resources for plumbing business success? Check out FieldEdge’s plumbing software built just for contractors. From scheduling and dispatching to invoicing and customer management, we help you run your business smoothly—so you can focus on the work you love.