Plumbing License vs. Insurance: What’s the Difference?
For homeowners, property managers, or contractors hiring plumbing professionals—or for plumbers themselves—it’s crucial to understand the difference between a plumbing license and plumbing insurance. At Plumbing Insurance, we often get asked: “Why do I need both?” or “Does a license cover damages?” The answer is no—and here’s why both are essential.
What Is a Plumbing License?
A plumbing license is a certification issued by a state or local authority that allows a plumber to legally perform plumbing work. In California and other U.S. states, being licensed proves that a plumber has completed the required training, passed state exams, and is up to code on local regulations.
Hiring a licensed plumber ensures that:
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They’ve met safety and quality standards
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They follow building codes
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They can obtain permits and pass inspections
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They’re legally allowed to perform plumbing services
If you’ve searched “licensed and insured plumbers near me,” you’re already on the right track—licensing is a must for legality, but insurance is what protects everyone from financial loss.
What Is Plumbing Insurance?
Plumbing insurance is business insurance specifically designed to protect plumbers from the financial risks that come with the trade. From accidental water damage in a client’s home to injuries on the job, the right coverage keeps both the plumber and the client protected.
At Plumbing Insurance, we specialize in tailoring insurance for:
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Residential plumbers
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Commercial contractors
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Independent tradespeople
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Plumbing businesses across California
Key Types of Plumbing Insurance Coverage
Here are the main types of coverage we recommend:
1. General Liability Insurance for Plumbers
This is the most important type of plumbers insurance cover. It protects against:
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Property damage
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Bodily injury
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Legal costs from third-party claims
Also referred to as plumbers liability insurance or plumbers public liability insurance, this policy ensures you don’t pay out-of-pocket if something goes wrong during a job.
2. Business Insurance for Plumbers
Covers your tools, commercial vehicle, and can include workers’ compensation. It’s ideal for plumbing companies looking for full protection.
3. Residential Plumbing Insurance
This protects plumbers working in homes from claims related to water damage, faulty installations, or injury. It also supports plumbing insurance for homeowners who hire licensed pros and want verified protection on the job.
4. Plumbers Report for Insurance
Many homeowners’ policies now require a plumbers report for an insurance claim, especially when filing for water damage. We help you issue professional reports for clients that meet insurer requirements.
Why You Need Both: License AND Insurance
Being licensed confirms your expertise. Having insurance for plumbers confirms your responsibility.
Without a license, your work may be illegal.
Without insurance, your business (and your client’s property) is at risk.
Clients are increasingly requesting plumbers insurance quotes before signing contracts. And insurance companies often ask for a plumbers report for insurance claims to verify damage causes.
So if you’re in the trade, investing in a quality plumbers liability insurance policy could protect your entire career.
What Does Plumbers Insurance Cost?
If you’re wondering, “What’s the average plumbers insurance cost?” — it depends on your business size, coverage limits, and services offered.
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Small residential plumber: From $500–$1,200/year
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Mid-size commercial plumber: $1,500–$3,000/year
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Large contractors: $5,000+/year with umbrella policies
We offer instant plumbers insurance quotes and flexible options tailored for every type of business.
Plumbers Insurance in California (CA)
At Plumbing Insurance, we proudly serve plumbers across the state with the best plumbers insurance California (CA) options available. Whether you’re just starting or need a new policy, we’ll connect you to affordable insurance for plumbers CA with high coverage and fast claims processing.
Towergate Insurance: A UK Perspective
For our UK readers, Towergate Insurance is one of the most recognized names in plumbers insurance. They offer solid liability insurance for plumbers, but based on customer feedback, their digital experience and response times can vary. While Towergate provides broad UK-based coverage, U.S.-based plumbers, especially in California, are better served with a local provider who understands state-specific codes and risks.
Final Thoughts
The difference between a plumbing license and plumbing insurance is simple but critical:
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License = Legal right to work
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Insurance = Financial protection
Make sure your plumbing business has both.
At Plumbing Insurance, we make getting covered fast and easy. Get your plumbers liability insurance quotes today and protect your tools, your team, and your future.
