Quick Answer: Which carrier should plumbing contractors choose?

Hartford is the top choice for plumbing contractors. Plumbing businesses are explicitly included in Hartford's Construction & Contracting appetite, and they offer competitive rates, same-day coverage, and excellent claims support. Chubb is also a strong option for established plumbing companies seeking higher limits.

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Sources

U.S. Small Business Administration. "Insurance and Risk Management." SBA.gov, 2026. https://www.sba.gov/business-guide/manage-your-business/manage-risks-insurance
Occupational Safety and Health Administration. "Workplace Injuries and Illnesses." OSHA.gov, 2025. https://www.osha.gov
Bureau of Labor Statistics. "Occupational Employment and Wages." BLS.gov, May 2025. https://www.bls.gov/oes/
National Association of Insurance Commissioners. "Small Business Insurance Guide." NAIC.org, 2026. https://content.naic.org/

Plumbing Business Insurance Guide: Coverage, Costs & Best Providers (2026)

Running a plumbing business comes with significant risks. From burst pipes flooding a client's basement to injuries on job sites, plumbers face daily exposure to costly claims. The right insurance coverage isn't just smart—it's essential for protecting your business, your employees, and your financial future.

This comprehensive guide breaks down everything plumbing contractors need to know about business insurance: the coverage types that matter most, real-world costs by business size, claim examples from actual plumbing businesses, and which carriers offer the best protection for your specific needs.

Why Plumbing Businesses Need Specialized Insurance

Plumbing contractors operate in one of the higher-risk trades. You work with water systems in homes and businesses, handle heavy equipment, drive service vehicles daily, and manage crews working in potentially hazardous conditions. A single mistake—whether it's a faulty pipe installation that causes $50,000 in water damage or a slip-and-fall injury on a client's property—can threaten your business's survival without proper coverage.

Unlike standard contractor business insurance, plumbing-specific policies account for your unique exposures: water damage liability, installation errors, commercial vehicle usage, expensive tools and equipment, and workers' compensation for skilled trades. Generic policies often leave dangerous gaps that could leave you exposed when you need coverage most.

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Essential Coverage Types for Plumbing Contractors

General Liability Insurance

General liability (GL) forms the foundation of any plumbing contractor insurance program of any plumbing business insurance program. This coverage protects you when your business operations cause bodily injury or property damage to third parties.

What it covers:

Bodily injury to customers or visitors at your job sites
Property damage you cause while working (beyond your actual work product)
Personal and advertising injury claims
Legal defense costs, even for frivolous lawsuits

Real claim example: A Phoenix plumbing contractor was working on a bathroom remodel when their helper accidentally knocked over a decorative vase worth $3,500. While moving equipment through the hallway, they also scratched hardwood floors, causing an additional $2,800 in damage. The contractor's GL policy covered both claims, totaling $6,300 plus legal fees.

Most plumbing businesses carry GL limits between $1 million per occurrence and $2 million aggregate. For established contractors working on larger commercial projects, carriers like Chubb offer higher limits ($5 million or more) with broader coverage terms designed for premium risks.

Professional Liability (Errors & Omissions)

Professional liability insurance—also called errors and omissions (E&O)—protects plumbers when their professional services cause financial harm, even when there's no property damage or bodily injury.

What it covers:

Installation errors that lead to system failures
Design flaws in plumbing layouts
Failure to meet building codes
Negligent advice or recommendations
Defense costs for covered claims

Real claim example: A Seattle plumber installed a new water heater in a commercial building but incorrectly sized the expansion tank. Three months later, excessive pressure caused the tank to fail, flooding the building's basement and damaging $45,000 worth of stored inventory. The building owner sued for both the property damage (covered under GL) and the loss of business income from destroyed inventory (covered under professional liability). The professional liability policy paid $45,000 for the business interruption claim.

While not legally required, professional liability is critical for plumbers who design systems, recommend solutions, or work on complex commercial projects. Hartford offers competitive professional liability coverage as part of their plumbing contractor packages, with limits typically ranging from $500,000 to $2 million.

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Commercial Auto Insurance

If you or your employees drive vehicles for business purposes—whether it's a service van, pickup truck, or company car—you need commercial auto insurance. Personal auto policies exclude business use, leaving you dangerously exposed.

What it covers:

Liability for injuries and property damage you cause in accidents
Physical damage to your business vehicles (collision and comprehensive)
Medical payments for you and passengers
Uninsured/underinsured motorist coverage
Hired and non-owned auto coverage

Real claim example: A Dallas plumbing contractor's employee ran a red light while rushing to an emergency service call, striking another vehicle. The other driver sustained neck and back injuries requiring surgery. The total claim—including medical bills, lost wages, pain and suffering, and legal fees—exceeded $180,000. The contractor's commercial auto policy with $1 million in liability coverage paid the full claim, preventing business bankruptcy.

Commercial auto becomes expensive as you add vehicles and drivers, especially younger employees with poor driving records. Expect to pay $1,200-2,500 per vehicle annually depending on coverage limits, deductibles, and driver histories.

Workers' Compensation Insurance

If you have employees, most states legally require workers' compensation insurance. This coverage pays for medical expenses and lost wages when employees get injured on the job—and it protects you from lawsuits.

What it covers:

Medical treatment for work-related injuries and illnesses
Rehabilitation costs
Lost wages during recovery (typically 2/3 of regular wages)
Permanent disability benefits
Death benefits for families if an employee dies on the job

Real claim example: A Miami plumber fell from a ladder while installing pipes in a new construction home, fracturing his wrist and dislocating his shoulder. He required surgery and couldn't work for 12 weeks. Workers' compensation paid $38,000 in medical bills and $15,600 in lost wages, allowing him to recover financially while healing physically.

Workers' comp costs vary significantly by state and payroll classification. For comprehensive details on workers compensation requirements and costs, see our Workers Compensation Insurance Guide [1]. Plumbers typically pay $2.50-$8.00 per $100 of payroll, depending on location and claims history. A plumbing business with $200,000 in annual payroll might pay $5,000-$16,000 for workers' comp coverage.

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Tools & Equipment Coverage (Inland Marine)

Plumbers invest heavily in specialized tools and equipment—pipe threaders, drain cameras, hydro-jetters, and more. Standard property insurance often excludes tools used off-premises, making inland marine coverage essential.

What it covers:

Tools and equipment at job sites
Tools stolen from vehicles
Equipment damaged in transit
Specialized plumbing tools and machinery
No deductible or low deductible options available

Real claim example: A Portland plumber parked his van at a commercial job site overnight. Thieves broke in and stole $18,000 worth of tools including a professional pipe threading machine, drain inspection camera, and various specialized hand tools. His inland marine policy covered the full replacement cost minus a $500 deductible, allowing him to replace everything and continue working within days.

Tools and equipment coverage typically costs $400-$900 annually per $25,000 in insured value, depending on security measures and loss history.

Insurance Costs by Business Size

Plumbing insurance costs vary widely based on your revenue, employee count, coverage limits, and claims history. Here's what to expect:

Business Size	Annual Revenue	Employees	Estimated Annual Premium
Solo Plumber	$75,000-$150,000	0-1	$1,200-$2,000
Small Crew	$250,000-$500,000	2-5	$2,400-$3,200
Established Contractor	$750,000-$1.5M	6-15	$3,500-$6,000

These estimates include general liability, professional liability, commercial auto (2 vehicles), workers' comp, and tools/equipment coverage. Your actual costs may be higher or lower depending on:

Location: Costs vary dramatically by state (California and New York typically cost more)
Claims history: Previous claims increase premiums significantly
Coverage limits: Higher limits = higher premiums
Deductibles: Higher deductibles reduce premium costs
Type of work: Commercial/industrial work typically costs more than residential
Safety programs: Documented safety training can reduce costs 5-15%

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Best Insurance Carriers for Plumbing Contractors

Not all insurance carriers understand the unique needs of plumbing businesses. Here are two top carriers that specialize in contractor coverage:

The Hartford: Best for Small to Mid-Sized Plumbing Businesses

The Hartford has been insuring contractors for over 200 years and offers one of the most competitive programs for small and mid-sized plumbing businesses. Their Spectrum package bundles all essential coverages with contractor-specific features.

Why plumbers choose Hartford:

Competitive pricing for businesses under $1.5M in revenue
Fast online quotes and policy issuance
Excellent claims service with contractor-focused adjusters
Flexible payment plans (monthly options available)
Strong financial ratings (A+ by AM Best)
Optional equipment breakdown coverage for expensive tools
Discounts for safety programs and loss-free years

Best for: Solo plumbers and small crews looking for comprehensive coverage at competitive rates. Hartford excels at serving the mass market with efficient underwriting and claims handling.

Typical coverage package:

$1M/$2M general liability
$1M professional liability
$1M commercial auto
Statutory workers' comp
$25,000-$50,000 tools/equipment
Estimated annual cost: $2,200-$3,800 for a 3-person plumbing crew

Chubb: Best for Established Plumbing Contractors

Chubb represents the gold standard in commercial insurance, offering premium coverage with higher limits and broader terms for established plumbing contractors with proven track records.

Why established plumbers choose Chubb:

Higher coverage limits available ($5M+ liability limits)
Broader coverage terms with fewer exclusions
Superior claims handling and faster payouts
Coverage for high-value commercial and industrial projects
Excellent reputation with commercial property managers and GCs
Global coverage for contractors working internationally
Risk engineering services to prevent losses

Best for: Well-established plumbing contractors with $1M+ in revenue, clean claims history, and need for higher limits on commercial projects. Many general contractors and property managers specifically request Chubb-insured subcontractors.

Typical coverage package:

$2M/$4M general liability (higher limits available)
$2M professional liability
$1M+ commercial auto
Statutory workers' comp with enhanced benefits
$50,000-$100,000 tools/equipment
Estimated annual cost: $4,500-$7,500 for an established 8-person crew

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Comparing Coverage: Hartford vs. Chubb

Feature	Hartford	Chubb
Target Market	Small-mid plumbing businesses	Established contractors
Revenue Sweet Spot	$100K-$1.5M	$1M-$10M+
GL Limits Available	Up to $2M/$4M	Up to $10M+
Quote Speed	Same-day online quotes	1-3 days (underwriter review)
Pricing	Competitive, mass market	Premium (20-40% higher)
Claims Service	Excellent (A+ rated)	Best-in-class
Coverage Breadth	Standard contractor terms	Broader, fewer exclusions
Best For	Value-conscious contractors	Premium coverage seekers

Common Plumbing Insurance Claims (and How to Prevent Them)

Water Damage Claims

The scenario: Faulty installations, pipe failures, or system malfunctions cause flooding and water damage to client properties.

Claim example: A New Jersey plumber installed a new kitchen sink and failed to properly tighten the P-trap connection. Two weeks later, the connection failed during dinner cleanup, flooding the kitchen and dining room with water that seeped into the basement below. Damages totaled $22,000 for flooring, drywall, cabinetry repairs, and mold remediation. The contractor's general liability and professional liability policies split the coverage.

Prevention tips:

Double-check all connections before leaving job sites
Pressure test systems when possible
Use quality materials from reputable suppliers
Document pre-existing conditions with photos
Conduct follow-up inspections 24-48 hours after installations

Bodily Injury Claims

The scenario: Customers, property owners, or bystanders get injured due to your business operations.

Claim example: An Atlanta plumber was snaking a drain in a customer's basement and left the cable temporarily on the floor while retrieving additional equipment. The homeowner came downstairs to check progress, tripped over the cable, and fell, breaking her arm. Medical bills, lost wages from her job, and pain and suffering totaled $35,000. The contractor's general liability policy covered the full claim.

Prevention tips:

Mark work areas clearly with cones or caution tape
Communicate hazards to property owners
Clean up as you work, not just at the end
Never leave tools or equipment in walkways
Maintain $1M+ liability limits

Tool Theft Claims

The scenario: Expensive plumbing tools and equipment get stolen from vehicles or job sites.

Claim example: A Chicago plumber stopped for lunch and parked his van in a restaurant parking lot. While he was inside for 30 minutes, thieves smashed the rear window and stole $12,000 worth of tools including a sewer camera system, power tools, and hand tools. His inland marine policy covered replacement cost minus a $500 deductible.

Prevention tips:

Never leave tools visible in vehicles
Install security cages or lockboxes in vans
Use GPS trackers on expensive equipment
Photograph all tools for inventory documentation
Park in well-lit, high-traffic areas
Consider removing high-value items overnight

Vehicle Accident Claims

The scenario: Company vehicles are involved in at-fault accidents causing injury or property damage.

Claim example: A Denver plumbing contractor's employee was driving to a service call when he became distracted by his GPS and rear-ended a stopped vehicle at a red light. The other driver sustained whiplash injuries requiring physical therapy, and both vehicles sustained significant damage. Total claim costs including medical bills, vehicle repairs, and legal fees reached $45,000. The commercial auto policy paid the full amount.

Prevention tips:

Implement strict no-phone-while-driving policies
Provide hands-free phone systems
Screen drivers before hiring (check MVRs)
Conduct defensive driving training annually
Install dashcams to document accidents
Maintain higher liability limits ($1M minimum)

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Additional Coverage to Consider

Umbrella/Excess Liability

Umbrella policies provide additional liability coverage above your primary policies. For plumbing contractors working on high-value properties or commercial projects, a $1-2M umbrella policy adds crucial protection for catastrophic claims that exceed your base limits.

Cost: $400-$800 annually for $1M in umbrella coverage

Cyber Liability

If you store customer information digitally—names, addresses, payment information—you face cyber risk. Data breaches, ransomware attacks, and privacy violations can result in costly lawsuits and regulatory fines.

Cost: $500-$1,200 annually for small plumbing businesses

Employment Practices Liability (EPLI)

EPLI protects against claims of wrongful termination, discrimination, sexual harassment, and other employment-related allegations. As you grow your team, these risks increase.

Cost: $800-$2,000 annually depending on employee count

How to Save Money on Plumbing Insurance

Insurance is expensive, but these strategies can reduce your costs significantly:

Increase deductibles: Raising deductibles from $500 to $1,000 or $2,500 can save 10-20% on premiums
Bundle policies: Buying multiple coverage types from one carrier typically saves 10-15%
Implement safety programs: Documented safety training and protocols can earn discounts
Improve credit scores: Business credit affects commercial insurance pricing
Shop annually: Compare quotes from 3-5 carriers every year
Maintain clean claims history: Every year without claims improves your pricing
Install vehicle safety features: Dashcams, GPS tracking, and telematics can reduce auto premiums
Join trade associations: Groups like PHCC may offer access to group insurance programs
Pay annually: Paying yearly instead of monthly saves 5-8% in financing fees
Review coverage limits: Don't over-insure; match limits to actual exposures

Getting Quotes: What Insurers Need to Know

When requesting quotes, have this information ready:

Years in business and owner experience
Annual revenue (last year and projected)
Detailed description of services (residential, commercial, new construction, service/repair)
Number of employees and total annual payroll
Subcontractor usage and annual subcontractor costs
Claims history (last 5 years)
Vehicle information (make, model, year, VIN, drivers)
Tools and equipment (total value of owned equipment)
Desired coverage limits and deductibles
Current insurance information (if replacing existing coverage)

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Frequently Asked Questions

Q: Do I need insurance if I'm a solo plumber with no employees?

A: Absolutely. Even solo plumbers face significant liability exposure from property damage and bodily injury claims. Many clients (especially commercial ones) require proof of insurance before allowing you to work. At minimum, carry general liability and commercial auto coverage.

Q: What's the difference between occurrence and claims-made policies?

A: Occurrence policies cover claims for incidents that occurred during the policy period, regardless of when the claim is filed. Claims-made policies only cover claims filed during the active policy period. Most plumbers prefer occurrence coverage for general liability to avoid gaps if they switch carriers.

Q: Does my personal auto insurance cover business use of my vehicle?

A: No. Personal auto policies exclude business use. If you use your vehicle for plumbing work and have an accident, your personal carrier can deny the claim. Commercial auto insurance is essential.

Q: How much professional liability coverage do plumbers typically need?

A: Most plumbers carry $500,000 to $1 million in professional liability coverage. If you work on large commercial projects or design complex systems, consider $2 million or higher.

Q: Can I get insurance with previous claims?

A: Yes, but expect higher premiums. Carriers typically review the last 3-5 years of claims history. Multiple claims or large losses may require you to work with surplus lines carriers at higher costs.

Q: What happens if someone gets hurt and I don't have insurance?

A: You're personally liable for all damages, legal fees, and medical costs. A single serious injury claim can easily exceed $100,000, potentially forcing bankruptcy and closure of your business. Insurance isn't optional—it's essential.

Take Action: Protect Your Plumbing Business Today

Every day without proper insurance coverage puts your plumbing business at risk. A single water damage claim, bodily injury lawsuit, or vehicle accident could cost hundreds of thousands of dollars—potentially ending your business and threatening your personal assets.

Whether you're a solo plumber just starting out or an established contractor with multiple crews, the right insurance program provides essential protection and peace of mind. Hartford offers competitive coverage for small to mid-sized plumbing businesses with fast quotes and excellent service, while Chubb delivers premium protection for established contractors who need higher limits and broader coverage.

Don't wait for a claim to discover you're underinsured or have coverage gaps. Get quotes from multiple carriers, compare coverage terms (not just price), and work with an agent who understands plumbing contractor risks.

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Sources

U.S. Small Business Administration. "Insurance and Risk Management." SBA.gov, 2026. https://www.sba.gov/business-guide/manage-your-business/manage-risks-insurance
Occupational Safety and Health Administration. "Workplace Injuries and Illnesses." OSHA.gov, 2025. https://www.osha.gov
Bureau of Labor Statistics. "Occupational Employment and Wages." BLS.gov, May 2025. https://www.bls.gov/oes/
National Association of Insurance Commissioners. "Small Business Insurance Guide." NAIC.org, 2026. https://content.naic.org/

Your business is your livelihood. Protect it properly.