How Much Does Plumbers Insurance Cost and What Affects the Price?

Burst pipes. Stolen tools. Accidental damage or even the odd injury at work. As a plumber, you know every job comes with its own set of risks. That’s why having the right insurance in place is paramount.

However, how much does plumbers insurance cost? While there’s no one-size-fits-all answer as the cost of cover can vary greatly depending on a range of factors we have pulled together this helpful guide, to take a look at the typical price range of the different types of plumbers insurance so you know what to expect. We’ll also explain what can affect the cost of your insurance and what you can do to keep costs down without cutting corners on protection.

The cost of plumbers insurance will depend on your business size, the type of cover you need and how much protection you’re after. However, to give you a good idea, here’s what you might expect to pay for some of the most common types of cover:

Public liability insurance

This is often the foundation of plumbers insurance policies. Public liability insurance protects you if your work causes injury or damage to someone else or their property. This could be a burst pipe damaging a client's kitchen floor for example. This policy could help cover the repair costs.

• Costs between £60-150 per year for micro businesses and upwards of £250 for small firms.

As a plumber you should normally select a minimum of £2 million for your public liability indemnity limit. The larger the property you are working upon, the higher the premium. It will increase dependent on the location - flat, commercial, industrial, hotels, hospitals cinemas etc - and if you are working on high-risk locations such as airports and bridges.

Employers’ liability insurance

If you employ staff, this is a legal requirement. Employers’ liability insurance covers claims from employees who are accidentally injured or become ill due to their work.

• Costs between £60 to £200+ per year depending on the number of employees and the nature of your work.

Professional indemnity insurance

Professional indemnity insurance covers you for legal defence costs in the event of you being negligent when giving advice, design or associated plumbing services causes a client to lose money.

• Costs upwards of £100 per year, but costs can rise depending on your level of involvement in project planning or consultancy.

Tools and equipment insurance

Tool insurance protects against theft or accidental damage to the tools you rely on every day.

• Costs between £50-200+ per year depending on the level of tools and equipment you are insuring. Excludes damage to tools whilst being used and theft whilst tools are left loaded in a vehicle overnight.

Van insurance

If you drive a van for work, you’ll need commercial vehicle insurance. Costs depend on your vehicle, age, driving experience, claims history, post code and how it’s used.

• Costs between £500-1,200+ per year for a typical work van.

There is no fixed price for plumbers insurance because no two plumbing businesses are the same. Your premium will be influenced by a handful of factors:

Type of cover required

The more policies you include, the higher your overall cost will be. If you’re a self-employed plumber, you might only need public liability and tools cover. But if you run a larger plumbing business, you may also need employers’ liability, contract works insurance and van insurance.

Level of coverage and policy limits

While higher coverage means greater protection, it also means a higher cost. If you increase your policy limits or add extra protection, for example for expensive tools or ongoing projects, this will raise your insurance costs.

You can also choose your excess level (the amount you pay towards a claim). Increasing this can reduce your premium, but it also means paying more out of your own pocket if something goes wrong.

Business size and number of employees

If you have a larger team, it typically means higher premiums. If you employ staff, you’ll need employers’ liability cover as it is a legal requirement. The more people you have, the more this coverage is likely to cost.

Nature of work and risk exposure

If you carry out high-risk plumbing work, like gas installations or projects in commercial buildings, you could face higher insurance costs. Working in hazardous environments or high-value properties also increases your exposure to potential claims.

Claims history

If you’ve made previous insurance claims, insurers could see your business as higher risk. On the other hand, a clean claims record would likely entitle you to a no-claims discount, reducing your premium.

Business location

Where you work can make a big difference to your premium. Metropolitan areas, where theft and accidents are more common, tend to attract higher premiums, especially for tools and van insurance. Rural areas can be cheaper, but it depends on the area.

Experience and qualifications

If you have years of plumbing experience, up-to-date qualifications and good safety practices in place, you may be seen as lower risk to insurers. Being a member of trade associations like the Chartered Institute of Plumbing and Heating Engineering (CIPHE) or Gas Safe Register can also put you in good stead when insurers look at your application.

Payment plan

Paying for your insurance annually is typically a cheaper option in the long run. Monthly instalments can be more manageable but will come with additional charges.

While insurance is a necessary business cost, there are a few practical ways to help lower your premium without compromising on coverage. These are our top five tips  to keep costs down:

1. Compare quotes from different insurers

Prices can vary significantly between providers. So, it’s a good idea to shop around and compare policies to see what each insurer offers, especially when it comes to included cover and limits.

2. Bundle policies with the same provider

Some insurers offer discounts if you take out multiple policies with them. This might be combining your public liability, tools and van insurance under one roof, which can also simplify paperwork and renewals.

3. Increase your voluntary excess

Choosing to pay a higher voluntary contribution to the first part of a claim, also known as a voluntary excess, can reduce your premium. Just make sure it’s an amount you could comfortably afford if something goes wrong.

4. Invest in security

Fitting alarms, secure locks or GPS trackers on your van and using secure storage for tools can help reduce the risk of theft, and in turn, lower your insurance costs. Let your insurer know about any security measures you’ve put in place.

5. Maintain a good claims record

Always complete a risk assessment before undertaking any plumbing jobs.

Plumbers insurance should always be there to protect your business, but that doesn’t mean it should break the bank. From policy limits and risk exposure to location and claims history, you can make more informed choices about your cover when you understand the key things that affect your premium.

Review your current coverage to ensure it aligns with your needs. At Everywhen, we offer tailored insurance solutions for plumbers, helping you find the right level of protection for your business and your budget. Get in touch today to discuss quotes or speak with one of our friendly advisors by calling us on 0330 818 7846.

Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems, we recommend that professional advice be sought.