The policies a plumbing business carries
For a plumber the claim to plan for is water damage: a fitting that lets go overnight can ruin floors, ceilings and cabinets. Ask your agent how your liability policy treats water damage and your own finished work.
| Policy | Average a month |
|---|---|
| General liability | $147 |
| Tools and equipment | $42 |
| Commercial auto | $285 |
| Workers' compensation | $179 |
| Surety or license bond | $8 |
| Business owner's policy | $213 |
| Professional liability | $67 |
| Commercial umbrella | $93 |
Averages are what Insureon's customers who are plumbers pay, from Insureon's cost page; most of its customers have fewer than five employees. Across all its small business customers, general liability runs $265 to $3,030 a year.
Claims plumbers plan for
- A supply line you replaced lets go overnight and floods a kitchen
- A drain machine cable damages an old cast iron line
- A water heater you installed leaks into a finished basement
- A torch scorches framing inside a wall
Ask your agent, in these words:
- Would my policy pay if a supply line you replaced lets go overnight and floods a kitchen?
- Would my policy pay if a drain machine cable damages an old cast iron line?
- Would my policy pay if a water heater you installed leaks into a finished basement?
- Would my policy pay if a torch scorches framing inside a wall?
Name the work you sell
A policy covers the work you describe on the application. From the plumbing services list, name each of these and ask whether any is excluded: water heater, tank (40 to 50 gal); water heater, tankless; heat pump water heater, installed; expansion tank, added; toilet, replace; faucet, replace; drain clog, clear; pipe leak, repair; garbage disposal replacement; shower valve or cartridge repair; repipe, per fixture; sewer line, dig and replace; sewer line, trenchless; sewer camera inspection.
A stocked van carries drain machines, cameras and parts worth more than many owners guess, which is what tools and equipment coverage is for. On the tools list, the items to list on the policy are drum drain machine sized for main lines; sewer inspection camera with locator; press tool with copper jaws; water heater dolly; gas leak detector and manometer; thread machine or power threader, and from the starter kit, pipe wrenches in two or three sizes and adjustable wrenches; basin wrench and a faucet socket set; tubing cutters and a pvc or pex cutter; torch kit, flux, solder and a flame protector; pex crimp or expansion tool.
State rules in the license
These are the insurance and bond lines in each state's plumbing license rules, from our plumbing license guide, which reads each state board's own pages. 28 of the 49 states we cover set an insurance or bond rule in the license itself. Click a state for the full license steps.
| State | Insurance in the license rules | Bond |
|---|---|---|
| Alaska | Proof of workers' compensation insurance where state law requires it, plus public liability and property damage insurance of at least $20,000 property damage, $50,000 injury to one person and $100,000 injury to more than one person. | A $10,000 bond for a mechanical or specialty contractor. |
| Arizona | You must attest that you comply with workers' compensation insurance laws. | Residential specialty: $4,250 if yearly volume is under $375,000, or $7,500 at $375,000 or more. Commercial specialty: from $2,500 for $150,000 or less, rising with volume. Dual licenses combine both amounts. |
| California | Workers' compensation insurance, or an exemption form if you have no employees. | A $25,000 contractor bond. A separate $25,000 Bond of Qualifying Individual may be needed for an RME or RMO. |
| District of Columbia | Not set in the license rules we checked | Plumbing and gasfitting bonds of $5,000 for the company and $5,000 for the designated master. |
| Florida | Public liability of at least $100,000 and property damage of at least $25,000, plus workers compensation or an exemption. | Not set in the license rules we checked |
| Hawaii | Bodily injury liability of $100,000 per person and $300,000 per occurrence, property damage liability of $50,000, plus workers compensation if you have employees. | A bond only if the board requires one. |
| Idaho | Not set in the license rules we checked | Compliance bond of $2,000 for the contractor certificate. |
| Illinois | Contractors: general liability of $100,000 per occurrence and $300,000 aggregate for bodily injury, property damage of $50,000 (or $300,000 combined single limit), and workers' compensation with $500,000 employer's liability. | Contractors: $20,000 indemnification bond or a letter of credit for the same amount. |
| Iowa | Public liability insurance of at least $500,000. Workers' compensation if you have one or more employees. | Surety bond of at least $5,000. Out-of-state contractors also file a $25,000 bond for contractor registration. |
| Kentucky | General liability insurance of at least $250,000, plus proof of compliance with workers' compensation and unemployment insurance laws. Proof is needed before the master license is issued or renewed. | Not set in the license rules we checked |
| Louisiana | Active master plumbers must keep certificates on file with the board showing general liability, workers compensation and service vehicle liability coverage. | Not set in the license rules we checked |
| Maryland | To contract work, a licensee needs at least $400,000 per occurrence: $300,000 general liability and $100,000 property damage. Umbrella policies do not count, and the Maryland State Board of Plumbing must be the certificate holder. | Not set in the license rules we checked |
| Massachusetts | When applying for a permit, the plumber must sign that they carry liability insurance, or present a waiver of insurance signed by the homeowner. | Not set in the license rules we checked |
| Minnesota | Liability insurance of at least $50,000 per person and $100,000 per occurrence, property damage of at least $10,000, and workers compensation. DLI must be listed as certificate holder. | A $25,000 surety bond on a DLI approved form. |
| Mississippi | Proof of general liability insurance is required for every license and renewal. There is no minimum for residential licenses. Commercial licenses need at least $300,000 per occurrence or $600,000 aggregate. Send proof of workers comp if you have 5 or more employees. | Not set in the license rules we checked |
| Nevada | Proof of workers comp coverage is required to get, keep and renew a license, unless you are exempt and sign an exemption affidavit. | A license bond set by the board at approval, from $1,000 to $500,000, based on license type, monetary limit, finances, experience and character. |
| New Hampshire | Business entities must show proof of liability insurance before the license is issued and at each renewal. | Not set in the license rules we checked |
| New Jersey | Not set in the license rules we checked | The board's reinstatement form asks for a $3,000 surety bond for each biennial renewal cycle. |
| New Mexico | Workers compensation insurance is required of all licensees. A sole owner with no employees may be exempt. | A $10,000 bond from a surety authorized in New Mexico, covering the full license period. |
| Ohio | Contractor liability insurance in your name, including completed operations, of at least $500,000. | Not set in the license rules we checked |
| Oklahoma | Active contractors need general liability of at least $50,000, with the CIB listed as certificate holder. | $5,000 surety bond (or $5,000 cash or certificate of deposit) for an active plumbing contractor. |
| South Carolina | Not set in the license rules we checked | Residential: $10,000 surety bond if you take jobs over $5,000. Commercial: a financial statement or surety bond for your group limit. |
| Tennessee | General liability and workers comp (or a valid exemption) are required. Minimum general liability is $100,000 for a monetary limit up to $500,000, $500,000 for $500,001 to $1,500,000, and $1,000,000 above that. | A CPA reviewed financial statement (audited above a $3,000,000 limit) less than 12 months old, or a contractor surety bond equal to at least 50% of the monetary limit requested. |
| Texas | A Responsible Master Plumber must keep at least $300,000 of commercial general liability insurance and file a certificate of insurance. | Not set in the license rules we checked |
| Utah | General liability of at least $1,000,000 per incident and $2,000,000 total, with DOPL as certificate holder. If you have employees you need workers comp; if not, a workers comp coverage waiver from the Utah Labor Commission. | Not set in the license rules we checked |
| Virginia | Not set in the license rules we checked | Class A firms need a $45,000 net worth and Class B firms $15,000, or either can post a $50,000 surety bond instead. |
| Washington | Liability insurance, or an assigned account, of $50,000 for property damage, $100,000 for injury or death to one person, and $200,000 for injury or death to more than one person. You also show workers' compensation coverage for employees working in Washington. | A $6,000 surety bond with the State of Washington named as obligee. |
| West Virginia | For the contractor license, proof of workers' compensation and unemployment coverage for all employees working in West Virginia. | A wage bond status affidavit is required with the contractor license application. |
States not listed either leave insurance to cities and counties or set no rule in the license. Your city, your customers and your contracts can still ask for more.
Workers' comp and bonds
The SBA says every business with employees must carry workers' compensation, unemployment and disability insurance. Insureon's average for plumbers is $179 a month, priced per $100 of payroll. A bond protects the state or the customer, not you; Insureon puts its yearly cost at a share of the bond amount:
| Bond amount | Estimated yearly cost |
|---|---|
| $5,000 | $25 to $500 |
| $10,000 | $50 to $1,000 |
| $50,000 | $250 to $5,000 |
Certificates of insurance
Builders, property managers and commercial clients usually ask for a certificate before you start. Keep a PDF on your phone so you can send it the day they ask.
Sources
- Insureon: Insurance cost for plumbers, checked October 9, 2026
- Insureon: General liability insurance cost, checked October 9, 2026
- Insureon: Workers' compensation insurance cost, checked October 9, 2026
- Insureon: Surety bond cost, checked October 9, 2026
- SBA: Get business insurance, checked October 9, 2026
- Koira: Plumbing license requirements by state (each row lists its board sources), checked October 9, 2026
Last checked October 9, 2026. This page is general information, not legal or tax advice. Rules change and differ by state and city, so confirm with the agency named before you act.