I'm a plumber and I want to start my own business. What's the best way to get general liability insurance?

If you're starting a plumbing business, I’d approach general liability insurance as a business setup item, not just something you buy at the cheapest price.

If you're in Connecticut, there’s an especially useful distinction: the state requires at least $20,000 of general liability insurance for Home Improvement Contractor registration, but that's only a minimum. Connecticut.gov For an actual plumbing business, I'd generally look at $1 million per occurrence / $2 million aggregate because that's a common commercial-contract requirement and gives you substantially more protection. Connecticut state contracting requirements, for example, use those limits.

What I'd do in your shoes

1. Get quotes from an independent commercial insurance agent/broker. Tell them you're a plumbing contractor and exactly what work you do—residential service, new construction, commercial, gas piping, water heaters, etc. The trade and type of work can materially affect your coverage and price.
2. Get at least 3 quotes. You can also use an online commercial-insurance marketplace to compare quotes. As a rough current benchmark, Insureon's 2026 data shows plumbers paying a median of about $147/month ($1,768/year) for $1M/$2M general liability, although your actual price could be considerably different.
3. Ask specifically for these coverages:

• Commercial General Liability (CGL): bodily injury and property damage.
• Products & Completed Operations: particularly important for plumbing because a problem can occur after you've finished the job.
• $1M/$2M limits as a starting point.
• Additional insured endorsements: useful when a GC, property manager, or commercial customer requires you to add them to your policy.
• Certificate of Insurance (COI): you'll frequently need this to prove coverage.
• Tools/equipment coverage: if you have expensive tools, consider an inland marine/tools policy.
• Commercial auto: if your work van is titled/used by the business.
• Workers' compensation: once you have employees, you'll need to address this separately.

4. Make sure the policy actually covers plumbing work. Don't simply buy a generic "small business" policy without telling the insurer what you do. Plumbing has risks involving water damage, completed work, subcontractors, excavation, gas piping, etc.
5. Give the insurer your actual business structure. If you're forming an LLC, for example, have the insurance policy issued to the LLC—not just you personally. Connecticut specifically notes that if you contract with consumers as an LLC, your contractor registration needs to correspond to the LLC.

One important Connecticut point

Connecticut separately requires the appropriate plumbing license to perform plumbing work. The state says individuals performing plumbing and similar skilled trades must have the appropriate Connecticut license.

And don't confuse general liability with workers' compensation. Connecticut guidance says workers' compensation can be required when employees are involved, while liability insurance protects against things like property damage and bodily injury claims.

My recommendation: Start by asking an independent agent for a $1M/$2M CGL quote specifically for a plumbing contractor, then compare that with an online quote. Don't choose solely on price—ask the agent to walk you through exclusions, completed-operations coverage, subcontractor coverage, and additional-insured requirements.

If you tell me what state you're in, whether you're going LLC or sole proprietor, whether you'll have employees, and roughly how much revenue you expect in year one, I can tell you what coverage I'd get and what I'd expect to pay.

The best way to get general liability insurance for a new plumbing business is to compare online quotes from multiple specialized commercial insurers or use a licensed digital broker that understands contractor classifications.

Watch this quick overview to see how independent contractors and small business owners quickly secure liability coverage online:

42s Best General Liability Insurance for Small Business 2.7K views  · 1 year ago YouTube · Merchant Maverick

Steps to Get Coverage

Key Coverage Types for Plumbers

If you share your state and whether you plan to hire employees , I can tell you if workers' compensation is mandatory and help you pinpoint exact licensing insurance minimums.

Starting your own plumbing business is an exciting step! Securing general liability insurance protects you from unexpected mishaps like a burst pipe flooding a customer's living room or a client tripping over your toolbox.

The best way to get coverage depends on whether you want a quick digital policy or a personalized advisory approach. Here is how to navigate the process efficiently:

Step 1: Decide How to Shop

• Direct-to-Consumer Insurtechs: Companies specializing in contractor coverage (like NEXT Insurance ) let you get a quote, customize your limits, and instantly download a certificate of insurance online in 10 minutes.
• Major Commercial Carriers: Traditional insurers (like The Hartford or Progressive Commercial ) offer robust policies and multi-policy discounts if you need to bundle commercial auto or tools coverage.
• Independent Local Broker: An independent agent works with multiple insurance companies to shop the best rates for your specific risk profile and state requirements.

Step 2: Know What Coverage You Need

• General Liability: Covers third-party property damage, bodily injury, and related legal fees. Most state licensing boards and general contractors require a certificate showing at least $1,000,000 per occurrence / $2,000,000 aggregate limits.
• Consider a BOP (Business Owner's Policy): If you have expensive tools, equipment, or a physical shop, a BOP bundles general liability with commercial property insurance at a discount.
• Check State/Licensing Requirements: Ensure your policy meets your specific local or state contractor licensing prerequisites.

Step 3: Gather Your Info Before Quoting

To get an accurate quote quickly, have the following ready:

• Your estimated annual revenue and payroll.
• Your exact business structure (LLC, sole proprietor, etc.).
• Details on your tools and equipment value.
• Your history of claims (if any).

If you'd like, let me know:

• Your state
• Whether you are working solo or hiring employees

I can give you more specific advice on licensing thresholds and extra policies (like workers' comp) you might need.

If you're starting a plumbing business in Michigan, I’d approach it like this:

1. Start with a commercial general liability (CGL) policy

For a plumber, this is the core policy. It generally protects you when your business is accused of causing bodily injury or property damage to someone else—for example, a customer slips at a job site or you accidentally cause water damage to a customer's property.

I'd start by asking for $1 million per occurrence / $2 million aggregate. Those limits are common for contractor contracts, although the exact amount you need depends on the jobs you're pursuing. For example, Michigan state contracts can require $1 million per occurrence and $2 million aggregate, plus additional coverage requirements.

2. Get 3 quotes—not just the cheapest one

You have two good approaches:

• Independent commercial insurance agent/broker: My preference for a new plumbing company. Tell them you're a plumbing contractor and have them shop multiple carriers. They can help you make sure you're not buying a policy with exclusions that matter to plumbers.
• Online small-business insurer: Faster and convenient. hiscox.com and nextinsurance.com both offer online quoting.
• Comparison broker: insureon.com lets you submit one application and compare quotes from multiple carriers.

As a rough benchmark, Insureon reports an average of $47/month for general liability among its Michigan customers, but plumbing can be more expensive depending on your revenue, type of work, employees, claims history, and limits.

3. Make sure the policy actually covers plumbing work

This is the part I'd pay particular attention to.

Tell the agent exactly what you'll be doing:

• Residential service/repair
• Commercial plumbing
• New construction
• Water heaters
• Sewer/drain work
• Gas piping, if applicable
• Excavation
• Remodeling
• Subcontracting
• Any work above a certain height
• Whether you'll have employees

Don't simply say "handyman" if you're actually operating as a plumber. Your classification and the work you disclose can affect coverage.

4. You'll probably need more than general liability

For a one-person plumbing company, I'd at least discuss:

Commercial auto — If you're using a vehicle for the business, don't assume your personal auto policy covers it. Michigan businesses with business-owned vehicles have commercial auto requirements.

Workers' compensation — This becomes important once you hire people. Michigan has workers' comp requirements based on employee count/status.

Tools/equipment coverage — General liability doesn't necessarily replace your tools if they're stolen from your van.

Inland marine/equipment coverage — Worth discussing if you're carrying significant equipment between job sites.

Umbrella/excess liability — More useful once you're doing larger commercial jobs or contracts requiring higher limits.

Surety bonds — Separate from liability insurance; you may need particular bonds depending on the licenses, municipalities, or contracts involved.

5. Get a Certificate of Insurance

Once you're insured, ask the agent for a Certificate of Insurance (COI). Customers, general contractors, property managers, and municipalities may ask for one before allowing you onto a job. Insureon notes that COIs can be issued to demonstrate that required coverage is in place.

What I'd do if I were starting your company

I'd call one good independent commercial insurance agent and say:

"I'm starting a plumbing contracting business in Michigan. I'm looking for $1 million/$2 million general liability coverage. I need coverage specifically for plumbing work and I want to make sure the policy works for residential and commercial jobs. Please quote me the appropriate additional coverages as well." Then get a second quote online so you have something to compare it against.

One important point: don't choose based solely on the monthly premium. A $40/month policy that excludes an important type of plumbing work can be much more expensive than a $60/month policy that actually protects you.

If you tell me whether you're going solo or hiring employees, what kind of plumbing work you'll do (service, new construction, commercial, residential, etc.), and roughly what you expect to gross your first year, I can give you a much more specific idea of what coverage and limits I'd buy and what you should expect to pay in Michigan.

Starting your own plumbing business is a huge milestone. Getting general liability insurance protects you if a pipe you installed leaks and ruins a client's hardwood floors, or if a customer trips over your toolbox.

The best way to get covered efficiently and affordably involves a few strategic steps:

1. Decide How to Shop (Direct vs. Broker)

• Digital Brokers & Insurers (Fastest): Companies like Next Insurance or online brokerages like Insureon and Simply Business let you plug in your trade, estimate your gross revenue/payroll, and get instant quotes and same-day certificates of insurance. This is great if you need proof of insurance immediately to pull a permit or land a gig.
• Traditional/Specialty Agents (Best for Customization): Working with an independent commercial insurance agent who specializes in contractors ensures you don't miss niche endorsements specific to plumbing (like "completed operations" or pollution liability for septic/drain work).

2. Know What Limits You Need

• Standard policies usually start at $1 million per occurrence / $2 million aggregate.
• Check your local licensing board or general contractors you plan to sub-contract for—many require specific minimum limits or demand to be listed as an "additional insured" on your policy before letting you touch a job.

3. Consider Bundling into a BOP

• Don’t just buy a standalone general liability policy if you can avoid it. Look into a Business Owner’s Policy (BOP) , which bundles general liability with commercial property or inland marine (tools and equipment) insurance. Plumbers rely heavily on expensive gear (locators, snake machines, press tools)—inland marine covers those tools if they get stolen out of your work van.

If you want to narrow this down, let me know:

• Will you be a solo operation or are you hiring employees? (This dictates whether you need workers' comp)
• Are you focusing mostly on residential service/repair or commercial new construction?

I can give you a better idea of what coverage limits and extra policies you'll actually need to check off your state's checklist.

Yes. If you’re starting a plumbing business in New York, I’d use an independent commercial insurance broker rather than buying the first online policy you see. New York’s Department of Financial Services specifically recommends shopping around and notes that independent brokers can represent multiple carriers.

What I’d get as a new plumbing contractor

At minimum, ask the broker for a Commercial General Liability (CGL) policy designed specifically for plumbers/contractors.

I'd discuss:

• $1 million per occurrence / $2 million aggregate as a common starting point.
• Products & completed operations — particularly important for plumbing because a problem can show up after you've finished the job.
• Additional insured endorsements — general contractors, property managers, or commercial customers may require these.
• Contractual liability — important when you're signing subcontractor/customer agreements.
• Tools and equipment / inland marine — protects your equipment while you're working at different locations.
• Commercial auto if you're using a truck/van for the business.
• Workers' compensation and disability coverage if you have employees; New York has specific requirements around these.
• Consider an umbrella/excess liability policy once you're taking on larger jobs. NY DFS notes that umbrella coverage can extend liability limits above the underlying policy.

One important point: the $1M/$2M numbers aren't universal legal requirements for every plumber. Your municipality, license, customer, general contractor, or particular contract can require different limits. For example, NYC currently requires licensed contractors subject to its insurance rules to carry at least $1 million per occurrence, while some New York State contracts require $2 million.

How I'd shop for it

Get 3 quotes from independent brokers and give each exactly the same information:

“I'm starting a plumbing contracting business. I'm looking for contractor-specific CGL, $1M/$2M limits, completed operations, additional insured capability, and coverage appropriate for plumbing work.”

Tell them whether you'll do residential, commercial, new construction, service calls, sewer/drain work, gas work, excavation, etc. Those details can materially affect what insurers will cover and charge.

Also ask each broker:

1. What plumbing operations are excluded?
2. Is there any exclusion for water damage or faulty workmanship?
3. Does the policy cover subcontractors?
4. Can you issue COIs quickly when a GC asks for one?
5. What does an additional insured endorsement cost?
6. Is completed-operations coverage included?
7. What's the deductible?
8. Is the policy occurrence-based rather than claims-made?

Don't just compare the premium. A cheaper policy with a plumbing-related exclusion can be a terrible deal.

A couple of local options

Since you're around Huntington Station, you could get quotes from local independent brokers such as:

• JW Hirschfeld Agency Inc — Huntington; specifically lists contractor insurance and general liability.
• Borg Insurance Agency — Huntington; handles commercial insurance and construction/contractor accounts.
• New York Risk Solutions Inc. — Huntington; particularly focused on commercial insurance and construction-related businesses.
• Lawrence R Bell Associates Inc. — Huntington; lists contractors insurance and business liability.

I'd probably start with JW Hirschfeld and New York Risk Solutions, because their listed specialties are particularly relevant to a plumbing/construction operation.

One more thing: make sure the policy is issued in your actual business legal name, especially if you're forming an LLC. New York's Workers' Compensation Board specifically recognizes business liability insurance under the business's own legal name as one characteristic of an independent business.

If you tell me (1) whether you're in Suffolk or Nassau County, (2) whether you're going solo or hiring employees, and (3) residential vs. commercial plumbing, I can search current 2026 options and give you a much more specific idea of what coverage to buy and what a reasonable premium should be.

Starting your own plumbing business is an exciting step, and getting the right general liability insurance is essential to protect your personal and business assets from third-party property damage or bodily injury claims.

The most efficient and cost-effective approach to getting general liability coverage involves a few practical steps:

1. Determine your coverage needs and limits: Most standard contractor and plumber general liability policies start with limits of $1,000,000 per occurrence and a $2,000,000 general aggregate. Make sure your policy includes products and completed operations coverage , which protects you if a leak or issue arises after you finish a job.
2. Compare online digital broker platforms: Use digital platforms built for small business contractors (like Simply Business, Insureon , or Next Insurance ) to compare quotes instantly across multiple top-rated national carriers.
3. Look into specialized carrier options: You can also look directly at major insurers known for small business contractor packages, such as The Hartford or Hiscox.
4. Consider bundling to save money: If you have a shop, store your tools in a van, or plan on hiring help, look into bundling general liability with other critical coverages. An inland marine policy (tools and equipment coverage) protects your expensive pipe threaders, augers, and hand tools, while a Business Owner's Policy (BOP) or commercial auto policy can save you money overall.
5. Request your Certificate of Insurance (COI): Once you purchase the policy, immediately secure your COI. You will need this proof of insurance to pull municipal permits, register your contractor license, or sign commercial contracts.

To help narrow down the best path, tell me:

• Will you be working solo or hiring employees?
• Are you focusing primarily on residential service or commercial contracting?

If you're starting a plumbing business in California, I’d approach general liability insurance like this:

1. Get quotes from a contractor-focused insurance broker

For a plumber, I would not just buy the cheapest generic small-business policy online. Ask for a broker who regularly insures plumbers/contractors, because your policy needs to properly address plumbing operations and completed work.

Commercial general liability (CGL) generally protects you when your business causes bodily injury or property damage to someone else—for example, a customer claims you damaged their home while doing a plumbing job.

When getting quotes, tell the broker:

• You're starting a plumbing business
• Whether you're a sole proprietor, corporation, or LLC
• Whether you'll have employees or subcontractors
• Residential, commercial, or both
• What kind of plumbing work you do
• Your expected annual revenue
• Whether you need coverage for a work truck/van
• Whether customers/general contractors will require certificates of insurance

2. If you're forming an LLC in California, pay particular attention

This is important: California LLC contractor licenses have specific liability-insurance requirements. For an LLC with five or fewer people/companies listed as personnel of record, CSLB currently requires at least $1 million in liability insurance. The required amount increases by $100,000 for each additional person, up to $5 million.

So if you're planning to operate as an LLC, don't accidentally buy a policy that doesn't meet the CSLB requirements.

3. Don't confuse liability insurance with your contractor bond

You'll generally need both, but they're different things.

California contractors generally need a $25,000 contractor's bond. The bond is not a substitute for liability insurance.

Think of it roughly as:

• General liability: protects your business against covered third-party injury/property-damage claims.
• Contractor bond: provides a different type of financial protection required for your contractor license.
• Workers' comp: protects employees who are injured or become ill because of work.

If you hire employees in California, workers' comp is generally required—even with only one employee.

4. I'd start by asking for $1M/$2M coverage

A common structure to ask the broker about is $1 million per occurrence / $2 million aggregate. But don't assume that's automatically the best choice—your customers, general contractors, or commercial contracts may require higher limits.

Also ask specifically about:

• Completed operations — particularly important for plumbing because a problem can surface after you've left the job.
• Products/completed operations aggregate
• Additional insured endorsements — often requested by GCs/property owners.
• Subcontractor coverage
• Tools and equipment — usually not covered by basic liability.
• Commercial auto if the vehicle is used for the business.
• Umbrella/excess liability if you're taking larger commercial jobs.

5. Get at least 3 quotes

I'd compare three quotes with identical limits and deductibles, rather than comparing premiums alone. Ask each broker:

"Is this policy specifically written for a plumbing contractor, and does it cover both my ongoing and completed plumbing operations?"

That's a much better comparison than simply asking, "What's your cheapest general liability policy?"

Also verify that the insurer/agent is properly authorized in California. CSLB's insurance filing process requires the insurer to be licensed in California or otherwise eligible under the applicable rules.

One California-specific wrinkle

If you're not an LLC, general liability isn't universally required simply because you're a California contractor. CSLB says CGL is not generally required for contractors, although it strongly recommends carrying it.

If you're an LLC, however, the CSLB liability-insurance requirement applies, so your business structure matters.

If you tell me whether you're planning to be a sole proprietor or LLC, whether you'll have employees, and whether you're doing residential or commercial plumbing, I can tell you exactly what insurance I'd look for and what I'd expect to pay in California.

Yes. For a plumbing business, I’d buy general liability through an independent commercial-insurance agent who regularly insures plumbers/contractors, rather than simply choosing the cheapest online quote.

General liability is designed to protect you when your work causes third-party bodily injury or property damage, and it can also cover defense costs and certain judgments/settlements.

What I’d do

1. Get 3 quotes Ask an independent agent to quote you with several insurers. The SBA specifically recommends using a reputable licensed agent and comparing rates, terms, and benefits.

2. Tell them exactly what you do For example:

   • Residential plumbing
   • Commercial plumbing, if applicable
   • New construction vs. service/repair
   • Water heaters
   • Gas piping
   • Sewer/drain work
   • How many employees/subcontractors you have
   • Approximate annual revenue

   Don't understate your operations just to get a lower premium.

3. I'd start by asking about $1M/$2M liability That's a common commercial limit structure, but your actual requirement should be based on your contracts, customers and licensing requirements. If a general contractor requires you to carry a particular limit, make sure your policy meets it.

4. Ask specifically about plumbing-related exclusions This is important. A cheap "contractor" policy isn't necessarily a good plumbing policy. Ask the agent whether the policy covers your actual work, including things such as water damage resulting from your work, excavation, hot work, sewer work, and subcontractors.

5. Get a Certificate of Insurance (COI) Once you're insured, you'll frequently need to provide customers, general contractors, property managers, etc. with a COI showing your coverage.

Don't stop at general liability

As a new plumbing company, I'd also have the agent quote:

• Commercial auto — if the company owns/uses trucks or vans.
• Workers' compensation — if you have employees; requirements depend on your state and circumstances.
• Tools/equipment coverage — particularly important for a plumber whose tools can be expensive to replace.
• Business owner's policy (BOP) — potentially useful if you have a shop/office and want liability plus property coverage bundled together. The SBA notes that BOPs combine common coverages and can simplify insurance.
• Umbrella/excess liability — worth considering as you start taking larger commercial jobs.

If you're in South Carolina

South Carolina's licensing rules are worth checking before buying the policy, because the requirements depend on whether you're operating as a residential plumbing contractor or under the state's general/mechanical contractor licensing system. The state's LLR specifically lists residential plumbing licensing requirements, while its Contractor's Licensing Board handles mechanical contractor/plumbing classifications.

The SC Contractor's Licensing Board currently identifies Plumbing as a Mechanical Contractor classification.

One important distinction: general liability insurance is not the same thing as a contractor surety bond. Depending on the license you're pursuing, you may need one or both.

My recommendation

If you're just getting started, I'd contact an independent commercial agent specializing in construction/trades and say:

"I'm starting a plumbing business and need a contractor policy. I want quotes for general liability, commercial auto, workers' comp if applicable, tools/equipment, and any bond or other coverage required for my plumbing license."

Then have them give you the policy limits, exclusions, deductible, annual premium, and certificate requirements in writing so you can compare apples-to-apples.

If you tell me what state you're going to operate the plumbing business in, whether you'll be residential or commercial, and whether you'll have employees, I can lay out exactly what insurance and licensing you'll likely need and what I'd prioritize first.

Starting your own plumbing business is a huge milestone. Getting general liability insurance is one of the first critical boxes to check—not only to protect your personal assets from a costly water damage claim or a client injury , but also because you will need a Certificate of Insurance (COI) to pull permits, register as a contractor, or sign commercial leases.

The best, most efficient way to secure the right general liability coverage breaks down into a few practical steps:

1. Decide How You Want to Shop

• Online Insurance Marketplaces & Insurtechs: Companies like Insureon or Simply Business allow you to fill out one digital form and compare quotes from multiple top-tier commercial carriers side-by-side. This is usually the fastest route for a solo or small startup.
• Specialized Direct Insurers: Companies that focus heavily on small business and contractor trades (such as The Hartford, Hiscox , or NEXT Insurance ) let you quote and buy directly online or over the phone with an agent who understands trade-specific risks.
• Independent Local Insurance Brokers: Working with an independent agent who specializes in commercial contractor insurance can be a lifesaver. They know your local state licensing boards, permit office requirements, and can shop across dozens of “A-rated” traditional carriers to find the best fit.

2. Know What Coverage and Limits You Need

• Standard Limits: Most general liability policies for plumbing contractors start at $1,000,000 per occurrence and a $2,000,000 general aggregate limit. Check your local municipality or state licensing board, as they often mandate these exact minimums before handing over your license.
• Products and Completed Operations: Make sure your policy explicitly includes this. If a joint you soldered or a supply line you installed fails a week after you leave the job and ruins a client's hardwood floors, this protects you.
• Consider Bundling (BOP): If you are renting a small shop or storage space, look into a Business Owner's Policy (BOP) , which bundles general liability with commercial property insurance.

3. Have Your Info Ready Before You Quote

Insurers will ask specific questions to calculate your premium:

• Your estimated annual gross receipts or projected payroll.
• The split between residential vs. commercial work (commercial jobs often carry higher risk exposure or require higher limits).
• Whether you plan on hiring subcontractors right away.

Real-World Advice

“I am a one man plumbing company. Just get the bare minimum for your state. Call around to different insurance companies. I switched every year until I found somebody I like.”

“Shop around for an independent agent/broker ... They'll not only help shop for insurance, but will or should guide you through the process.”

If you'd like to narrow this down, let me know:

• Are you planning to be a solo operation or do you have employees?
• Will you focus mostly on residential service/repair or new construction/commercial work?

I can help you figure out if you also need inland marine (tool) insurance or commercial auto right out of the gate.