If you’re a licensed plumber running your own operation—solo or with a crew—getting your insurance right up front can save you thousands in the long run.

But here’s the truth: plumbing business insurance isn’t one-size-fits-all. From your state license board to the GC writing your check, everyone wants to see different coverage—and those details can sneak up on you fast.

We’re going to break it all down:
What coverage you actually need. What it should cost. What fees to avoid.

Let’s get into it.

If you’re doing work for builders, GCs, or anyone besides homeowners, chances are you’ll get asked for special endorsements on your COI (Certificate of Insurance). These aren’t just paperwork—they can become death by a thousand fees.

Most common:

• Additional Insured

• Waiver of Subrogation

Less common, but still seen:

• Primary & Non-Contributory

• Per Project Aggregate

• Completed Ops

Here’s the kicker:
If your policy doesn’t include these on a blanket basis, you’ll get charged $150–$250 per request. We’ve seen contractors spend $2,000+ a year in endorsement fees alone.

We only write policies that include AI and Waiver blanket—unlimited certs, no extra fees.

Most plumbers don’t know this term—and that’s by design.

• Admitted carriers = Approved by your state, backed by an insolvency fund if they go under.

• Non-admitted carriers = Not approved. Usually come with extra taxes, fees, and zero state protection if the company goes belly up.

Here’s a real-world example:

• A policy with a non-admitted carrier might be $550…

• But once you add $350+ in fees, you’re paying over $900.

• An admitted version of that same coverage? Around $650—all in.

Lesson: Always ask your agent which type they’re quoting.
If they don’t know or won’t tell you, find someone who will.

This is where most contractors get blindsided—especially if you:

• Use 1099 subs

• Think you’re comp exempt

• Don’t fully understand how downstream labor affects your exposure

Let’s clear it up.

Simple formula: Class Code Rate × Payroll

There is more to it than that, like fees, taxes, etc.  But, this will give you a rough idea.

For plumbing (Class Code 5183), here are average rates at the time this artice was written:

• Georgia: 4.15%

• North Carolina: 3.09%

• South Carolina: 3.52%

So if your payroll is $100K in GA, your base premium is ~$4,150. Add minimal taxes/fees, and you’re good to go.  Again, this is a solid ball park idea, but time will have passed between when this article was written and you now reading it.  So, your best bet is to reach out so we can get you some EXACT numbers!

If you pay someone for labor and they don’t give you a valid Workers Comp cert?
You’re covering them. Period.
That includes:

• Subcontractors who are “exempt”

• Insured subs whose policies lapsed

• One-man crews without valid proof

Comp exemption just means you’re not legally required to carry it.
It doesn’t mean you’re not financially responsible.

If someone working for you gets hurt—and you don’t have comp—you’re still liable.
And if your sub’s coverage only goes to $100K? Any overflow comes knocking on your door.

If you don’t have employees—but use insured subs—you still need coverage in case something goes wrong downstream.

That’s where a ghost policy comes in.

It costs ~$1,600–$1,800 a year for $1M in coverage, satisfies licensing and GC requirements, and protects your business.

Medical:
Doctor visits, surgery, rehab, prescriptions—all job-related.

Indemnity:
Lost wages and death benefits to the worker or their family.

Most business owners exclude themselves to save money—and it can make sense.

Why?

• Health + disability coverage often costs less and does the same thing

• You avoid filing claims on your own business, which protects your mod rate

• Most states require minimum payroll for officers (even if you’re not making that much)

GL is the must-have. Covers:

• Injury to clients

• Damage to their property

• Slip and falls, jobsite risks, etc.

But it doesn’t cover:

• Faulty workmanship (that’s Professional Liability)

• Employee injuries

• Auto claims

Many carriers will bundle GL + PL for plumbers—do it if you can.

Pricing is based on a combination of:

• Gross Receipts

• Labor (W2 + 1099)

Examples from our clients at the time this article was written:

• $125K revenue, no employees → $650/year

• $860K revenue, $298K payroll → $1,810.64/year

If you’re using the same truck for work and weekend runs to Home Depot—you need to know what your policy does and doesn’t cover.

Personal auto policies may deny claims if the accident happens during work.

Options:

• Ask your current carrier about a business-use endorsement

• Or switch to a true Commercial Auto policy

Have employees using personal or rented vehicles?
You’ll need Hired and Non-Owned Auto coverage too.

In Georgia, average cost is $2,200–$2,500 per truck/year at the time this article is being written.  With the impact of inflation ,and with fraud on the rise, rates have been rising significalty as well.  This is one line of coverage that can see significant changes in price from one year to the next.

Slightly less in NC. Slightly more in FL.

Vehicle year/make/model, driver age, driving history, and business zip all play a role.

If you have a shop, warehouse, or office—you need property coverage.

This covers:

• Your building (if owned)

• Equipment stored on-site

• Fixtures, fittings, job materials

• Computers, records, and furniture

Pricing is highly variable—based on age, value, location, fire safety, and more. Needs to be quoted.

“Inland marine” just means stuff that moves.

Use this for:

• Tools in your truck

• Generators or compressors on job sites

• Skid steers or trailers you own

Key difference:

• Fixed equipment = Property policy

• Mobile tools/equipment = Inland Marine

Expect to pay ~1% of insured value annually. Exact pricing depends on what you own and how it’s used.

There are a lot of ways to overpay or under-protect when it comes to plumbers insurance.
The key is having an agent who knows your industry—and explains the “why” behind every coverage.

We do this stuff every day.
For real plumbers.
With real risks.
At prices that make sense.

Also, for more state specific information about plumbing contractor insurance requirements, check out these additional resources:

Georgia Plumbing Insurance and Licensing information: https://sos.ga.gov/index.php/licensing/plb/40

North Carolina Plumbing Insurance and Licensing information: https://www.nclicensing.org/

South Carolina Plumbing Insurance and Licensing information: https://llr.sc.gov/clb/CLB%20How%20to%20apply.aspx

Tennessee Plumbing Insurance and Licensing information: https://www.tn.gov/commerce/regboards/llp.html