Plumbers Insurance

It's easy to get plumbing business insurance and surety bonds if you have your company information on hand. Our application will ask for basic facts about your company, such as revenue and number of employees. You can buy a policy online and get a certificate of insurance (COI) with Insureon in three easy steps:

1. Complete a free online application.
2. Compare insurance quotes and choose policies.
3. Pay for your policy and download proof of insurance.

Insureon's licensed agents work with top-rated U.S. insurers to find affordable insurance and surety bonds that fit your plumbing business and provide peace of mind, whether you're a contractor, subcontractor, or employer.

Most states and municipalities require plumbers to be licensed and to carry certain types of insurance and bonds. For example, some states require separate licensing for septic system contractors, drainage installers, sewer contractors, or specialists working with sump pumps and water pumps, while others allow broader plumbing licenses that cover multiple services.

Even in states that don’t require plumbing contractors to be licensed, you might still need a license at the local level to work as a plumber.

In most cases, you’ll likely have to have a high school diploma or GED, and work for about four to five years in a plumbing apprenticeship, before you're eligible to take a licensing exam within your state.

Beyond legal requirements, having proper licensing, bonding, insurance, and permits shows you run a legitimate, reputable business, which can be important to prospective clients when you're looking to bid on plumbing jobs. Many homeowners or commercial clients won't even consider contracting you without proof of coverage, so being able to quickly provide a certificate of insurance can be the difference between winning or losing work—especially on time-sensitive projects.

Subcontractor certification is also considered a must in many contracting environments, as general contractors often require proof that anyone working under them meets licensing and insurance standards.

Yes, subcontractors can often be added to a plumbing contractor’s liability insurance policy as an additional insured, which helps extend certain liability protections while they're working on your behalf.

However, this isn't always enough on its own. Depending on the contract, general contractors or clients may require subcontractors to carry their own general liability insurance and provide proof of coverage before starting work.

It’s also important to note subcontractors should be properly certified and carry their own valid business insurance coverage in order to be eligible for most jobs—many contractors won't allow uninsured or uncertified subcontractors on-site at all. This helps reduce risk exposure and ensures compliance with project and licensing requirements.

Workers’ comp requirements can also become complicated when working with subcontractors. In some states, uninsured subcontractors may be treated similarly to employees for workers’ comp purposes, which could leave the hiring contractor responsible for injuries or claims.

In some cases, plumbing contractors may be required to request COIs from subcontractors and maintain them on file, especially for larger commercial or multi-site projects. Having COIs available quickly is often essential for keeping jobs moving and meeting client requirements without delays.

Yes, general liability insurance is essential for plumbing businesses because it helps protect against some of the most common and costly risks on the job, especially water damage claims. Even a relatively small issue like a leaking pipe, faulty installation, or missed connection can lead to extensive property damage.

Industry estimates have shown that water damage claims from plumbing incidents can average several thousand dollars per incident, with commercial water damage claims averaging $89,000 in mean loss in 2019, according to Chubb. In more severe cases, such as hidden leaks or long-term damage, costs can climb significantly higher due to repairs, mold remediation, and restoration work.

Plumbers also face heightened risk during colder months, when frozen pipes can burst and lead to emergency service calls and widespread property damage. These seasonal events often result in higher claim severity due to the urgency and scale of the damage.

Because of this exposure, many plumbing businesses also consider umbrella insurance an important additional layer of protection. Umbrella coverage helps extend liability limits for general liability, commercial auto, and employer's liability policies, which can often be critical when a single water damage claim exceeds base policy limits.

Without adequate coverage, even one incident can create significant financial strain, making general liability insurance a foundational part of risk management for plumbing contractors.

Plumbing liability insurance can provide critical protection, but it’s important to understand its limitations—especially when it comes to faulty workmanship. General liability typically covers third-party property damage or bodily injury, but many policies include a “your work” exclusion, meaning the cost to fix the actual plumbing work itself may not be covered if an error or defect occurs during installation or repair.

This is where professional liability insurance, also called professional indemnity insurance, becomes especially important. It helps protect your plumbing business from claims involving work mistakes that result in financial loss to a client.

Let's say a plumber incorrectly diagnoses a slab leak within a home. The customer could sue the plumbing business for the cost of fixing the water damage, including flooring repairs, new pipes, and mold remediation.

Claims protected by professional indemnity insurance include:

• Professional negligence
• Breach of contract
• Oversights and errors
• Breach of confidentiality
• Inaccurate professional advice
• Missed deadlines and undelivered services

While not always legally required by state laws, professional liability insurance is especially valuable for plumbers who provide installation, diagnostic, or design-related services.

No matter how careful you try to be, human error is inevitable, and the out-of-pocket costs associated with legal action can be expensive. Having the best professional liability insurance policy can protect your business in the event of an unsatisfied customer lawsuit.