Insurance Requirements · United States · 2026

Do plumbers need insurance?

Yes — in nearly every U.S. state. Most states require licensed plumbers to carry Commercial Auto, General Liability, Workers' Compensation before they can operate. Here's what to buy, what it costs, and which carriers serve the trade.

Coverage checklist

Coverage	Requirement	Annual cost
Commercial AutoCA	Required	$1200.00–$2400.00/yr
General LiabilityGL	Required	$400.00–$850.00/yr
Workers' CompensationWC	Required	$1800.00–$4500.00/yr
Inland Marine / Tools & EquipmentIM	Recommended	$250.00–$800.00/yr
Business Owner's PolicyBOP	Optional	$550.00–$1400.00/yr
Commercial PropertyCP	Optional	$500.00–$2000.00/yr
Professional Liability / E&OPL/E&O	Optional	$500.00–$1200.00/yr

SOURCE · National carrier filings · BLS labor statistics · Updated 2026

Cost breakdown

Commercial Auto

$1200.00–$2400.00/yr

Cost factors

·Vans/trucks
·Driving radius
·Tools aboard

Work vehicles need commercial auto; personal policies exclude business use.

General Liability

$400.00–$850.00/yr

Cost factors

·Crew size
·Residential vs. commercial
·Revenue
·Gas work

Required by most plumbing licenses and GCs before bidding; water-damage claims are common.

Workers' Compensation

$1800.00–$4500.00/yr

Cost factors

·Payroll
·Experience mod
·Number of plumbers

Required once you have employees; slips, lifting injuries, and tool injuries are frequent.

Inland Marine / Tools & Equipment

$250.00–$800.00/yr

Cost factors

·Tool value
·Vehicle storage

Covers pipe wrenches, drain machines, and cameras stolen from a van.

Business Owner's Policy

$550.00–$1400.00/yr

Cost factors

·Shop value
·Inventory

Useful if you lease a shop or carry parts inventory.

Commercial Property

$500.00–$2000.00/yr

Cost factors

·Building ownership
·Inventory

If you own/lease a shop or warehouse.

Professional Liability / E&O

$500.00–$1200.00/yr

Cost factors

·Design work
·Contract size

Relevant for plumbing designers or plan-and-spec work.

Best carriers for plumber

Embroker

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Hiscox

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NEXT Insurance

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Simply Business

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Thimble

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Requirements by state

State	Coverage	Required?	Notes
Alabama	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Alaska	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Arizona	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Arkansas	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
California	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Colorado	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Connecticut	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Delaware	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
District of Columbia	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Florida	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Georgia	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Hawaii	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Idaho	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Illinois	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Indiana	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Iowa	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Kansas	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Kentucky	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Louisiana	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Maine	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Maryland	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Massachusetts	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Michigan	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Minnesota	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Mississippi	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Missouri	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Montana	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Nebraska	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Nevada	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
New Hampshire	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
New Jersey	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
New Mexico	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
New York	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
North Carolina	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
North Dakota	Workers' Compensation	Required	Statutory — Workers' comp is purchased through the state fund (monopolistic state).
Ohio	Workers' Compensation	Required	Statutory — Workers' comp is purchased through the state fund (monopolistic state).
Oklahoma	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Oregon	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Pennsylvania	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Rhode Island	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
South Carolina	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
South Dakota	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Tennessee	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Texas	Workers' Compensation	Optional	Statutory — Texas is the only state where workers' comp is optional for private employers.
Utah	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Vermont	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Virginia	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Washington	Workers' Compensation	Required	Statutory — Workers' comp is purchased through the state fund (monopolistic state).
West Virginia	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Wisconsin	Workers' Compensation	Required	Statutory — Required once you have W-2 employees; statutory limits apply.
Wyoming	Workers' Compensation	Required	Statutory — Workers' comp is purchased through the state fund (monopolistic state).

Frequently asked questions

Do plumbers need insurance?+

Yes. Plumbers face frequent water-damage and property claims. General liability, workers' comp, and commercial auto are the core policies, and most plumbing licenses require proof of liability coverage.

How much is general liability for a plumber?+

Typically $400–$850 per year for a small operation. Larger crews, commercial work, and gas-line work push premiums higher.

Is workers' comp required for plumbers?+

Yes in nearly every state once you have employees. Even solo plumbers often carry it because lifting and slip injuries are common. Texas is the only state where it's optional.

Does general liability cover water damage I cause?+

Yes — if you accidentally cause water damage to a customer's property during a job, general liability covers the resulting claim. It does not cover damage to your own property or workmanship guarantees.

Related professions

Other trades & contractors businesses

Appliance Repair Technician

Demolition Contractor

very-high risk

Electrician

very-high risk

Electronics Repair Technician

low risk

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