Professional services
Plumber Insurance Calculator
Works insurance cost for a plumbing contractor, where water damage dominates the claims.
Result
An estimating tool, not insurance advice and not a quote. Underwriting sets real premiums on claims history, exact operations and contract requirements. What cover you need is a question for a licensed broker. Water damage claims are frequent and expensive, which is why plumbing liability rates sit above many trades. Hot work such as soldering often needs a specific endorsement and a permit procedure. Uninsured subcontractors are commonly added to your payroll base at audit, which produces large adjustments. Collect certificates before work starts.
Get a Free Business AuditHow the calculation works
Each line totalled annually and monthly with the share of revenue shown: general liability including completed operations, workers compensation, commercial vehicle, tools and equipment, and any licensing bond. Rating follows payroll and revenue, so premium rises with growth rather than with any change in cover.
What moves the number
- Payroll and revenue, which drive most lines.
- Whether the work includes torch or hot work.
- Completed operations exposure on installations.
- Service against new construction mix.
Where this one goes wrong
Water damage is the claim type that defines plumbing liability, and the loss is frequently far larger than the plumbing work: a failed connection in a finished building damages floors, ceilings, contents and the building's occupancy, and the property insurer will pursue recovery. Limits sized against the job value rather than the potential damage are the common error. Where soldering or other hot work is involved, policies frequently impose conditions or exclusions around it, and those conditions are worth reading before the torch comes out.
Before you quote
- Size limits against potential water damage, not job value.
- Read any hot work conditions or exclusions in the policy.
- Confirm completed operations covers past installations.
Where the rules come from
Questions
About this calculator
Why are plumbing liability claims so large?
Because water damage spreads far beyond the plumbing. A failed connection in a finished building damages floors, ceilings, contents and occupancy, and the property insurer pursues recovery. Limits sized against the job value rather than the potential damage are the usual error.
Does soldering affect my policy?
Frequently. Hot work using a torch commonly attracts policy conditions or exclusions, sometimes requiring specific precautions or notification. Those conditions are worth reading before the torch comes out, since a breach can leave a fire claim unpaid.
Why does premium rise when I grow?
Because most commercial lines are rated on payroll and revenue rather than on a flat price. Growth raises premium automatically, which means a budget built on last year's figure runs short, and it is better anticipated than discovered at renewal.
The formula
general liability on revenue, workers compensation on payroll at the class rate, plus commercial auto per vehicle
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How to use this calculator
- Annual revenue ($). Enter your own figure; the page starts at $720,000.
- Annual payroll ($). Enter your own figure; the page starts at $290,000.
- General liability rate per $1,000 of revenue. Enter your own figure; the page starts at 8.5.
- Workers compensation rate per $100 of payroll. Enter your own figure; the page starts at 4.6.
- Vehicles. Enter your own figure; the page starts at 3.
- Commercial auto per vehicle ($). Enter your own figure; the page starts at $1,900.
The result updates as you type, so you can try a figure, see what it does to total annual premium, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Annual revenue | $720,000 |
| Annual payroll | $290,000 |
| General liability rate per $1,000 of revenue | 8.5 |
| Workers compensation rate per $100 of payroll | 4.6 |
| Vehicles | 3 |
| Commercial auto per vehicle | $1,900 |
| Claims history loading | 0% |
What comes out
| Result | Value |
|---|---|
| Total annual premium main result | $25,160 |
| General liability | $6,120 |
| Workers compensation | $13,340 |
| Commercial auto | $5,700 |
| As a share of revenue | 3.49% |
About $25,160 a year across all three policies, 3.49% of revenue. Workers compensation at $13,340 is usually the largest line for this trade, and the experience modifier is the part you control.
How sensitive the answer is
Holding everything else steady and changing only annual revenue, this is what happens to total annual premium. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Annual revenue ($) | Total annual premium |
|---|---|
| $360,000 | $22,100 |
| $540,000 | $23,630 |
| $720,000 example above | $25,160 |
| $1,080,000 | $28,220 |
| $1,440,000 | $31,280 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Annual revenue ($)
- A money amount, starting at $720,000.
- Annual payroll ($)
- A money amount, starting at $290,000.
- General liability rate per $1,000 of revenue
- A number, between 0 and 60, starting at 8.5.
- Workers compensation rate per $100 of payroll
- A number, between 0 and 60, starting at 4.6.
- Vehicles
- A number, between 0 and 200, starting at 3.
- Commercial auto per vehicle ($)
- A money amount, starting at $1,900.
- Claims history loading (%)
- A percentage, between 0 and 200, starting at 0%.
What the results tell you
| Result | What it is |
|---|---|
| Total annual premium | The headline result. A money figure. |
| General liability | A money figure. |
| Workers compensation | A money figure. |
| Commercial auto | A money figure. |
| As a share of revenue | A percentage. |
Keep going
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