Every plumber knows they need insurance. What most don’t know is that in roughly half the states, the plumbing license itself comes with an insurance minimum, and the number is set by law. Texas wants $300,000 on file with the board before a city will issue you a permit. Louisiana quietly raised its minimum to $500,000. Maryland requires $400,000 combined and won’t accept an umbrella policy. In other states, the board sets nothing, and your customers and general contractors decide.
This guide covers all 50 states and DC: the liability minimums tied to plumbing licenses, the license bonds, and the workers’ comp thresholds that catch small shops. Figures come from each state’s statute, rule or licensing board wherever we could find one, and we flag the few that come from secondary sources. Current as of November 2026.
Quick answer: 23 states attach an insurance or bond requirement to the plumbing license. The liability minimums range from $50,000 (Oklahoma) to $500,000 (Louisiana, Iowa, Ohio commercial), plus $1,000,000 in New York City. Bonds run from $2,000 (Idaho) to $25,000 (California, Minnesota). In the other states, the board sets no minimum, but workers’ comp is still mandatory almost everywhere once you hire, and most general contractors won’t take a sub under $1,000,000.
On this page
What the State Actually Requires
Plumbing insurance rules come in three layers, and only the first is optional in some states:
- License-linked liability minimums. Texas ($300,000), Louisiana ($500,000), Iowa ($500,000), Maryland ($300,000 + $100,000), Florida ($100,000 + $25,000), Illinois ($100,000 / $300,000), Minnesota, Oklahoma, Washington, Alaska, Utah and Ohio (commercial) write a dollar figure into the licensing rules. No certificate, no license, and in Texas and Massachusetts, no permit.
- License bonds. California ($25,000), Minnesota ($25,000), Illinois ($20,000), New Mexico ($10,000), Oklahoma ($5,000), Iowa ($5,000), New Jersey ($3,000), Idaho ($2,000), Washington ($15,000 specialty), Arizona and Nevada (set by volume or monetary limit) and South Carolina (by license group). A bond protects your customers, not you, and you repay the surety for any claim it pays.
- Workers’ comp. Mandatory from the first employee in most states. The exceptions are a handful of states with 3-to-5-employee thresholds (table below), Texas, where private employers can opt out, and South Dakota.
In the states where the board sets nothing, the minimums are set by whoever is paying you: general contractors ($1,000,000 per occurrence and $2,000,000 aggregate is the standard ask), commercial property managers, and city permit offices.
Plumber Insurance Minimums by State
The 23 states, plus New York City, with an insurance minimum or bond attached to plumbing licensing. GL is general liability, PD is property damage, BI is bodily injury, CSL is combined single limit.
| State | Liability Minimum | Bond | Notes |
|---|---|---|---|
| Texas | $300,000 CGL per year | — | Certificate on file with TSBPE |
| Louisiana | $500,000 aggregate | — | Raised from $100,000 (2022–23) |
| Iowa | $500,000 public liability | $5,000 | +$25,000 bond if out of state |
| Ohio | $500,000 (commercial) | — | Local bonds for residential |
| Maryland | $300,000 GL + $100,000 PD | — | No umbrella policies |
| Washington | $200,000 / $50,000 or $250,000 CSL | $15,000 | Bond raised July 2024 |
| Illinois | $100,000 / $300,000 + $50,000 PD | $20,000 | WC with $500,000 employer’s liability |
| Florida | $100,000 liability + $25,000 PD | — | GC/building: $300,000 / $50,000 |
| Georgia | $100,000 / $25,000 (reported) | Local | Confirm with the Division |
| Minnesota | $50,000 / $100,000 + $10,000 PD | $25,000 | License fee $188 |
| Oklahoma | $50,000 CGL | $5,000 | CIB as certificate holder |
| Alaska | $20,000 PD; $50,000 / $100,000 BI | $10,000 | Statutory (AS 08.18.101) |
| Utah | $100,000 / $300,000 (2026 change reported) | — | Confirm with DOPL |
| Oregon | By CCB endorsement (res. specialty $300,000) | $20,000+ | Plus BCD Plumbing Business license |
| Rhode Island | $500,000 (contractor registration) | — | — |
| Massachusetts | Required, no set amount | — | Needed to pull permits |
| California | None (LLCs: $1M+) | $25,000 | +$100,000 LLC worker bond |
| New Jersey | None set | $3,000 | HIC registration: $500,000 |
| New Mexico | None set | $10,000 | — |
| Idaho | None set | $2,000 | — |
| Arizona | None set | $4,250–$50,000 | Set by annual volume; + Recovery Fund |
| Nevada | None set | $1,000–$500,000 | Set by monetary limit |
| South Carolina | None set | $7,000–$300,000 | By license group (reported) |
| New York City | $1,000,000 per occurrence | — | Plus WC and disability certificates |
Workers’ Comp Thresholds
In most states, your first hire triggers workers’ comp. These are the exceptions, and note that several of them drop to one employee for construction work:
| State | Workers’ Comp Kicks In At | Notes |
|---|---|---|
| Alabama | 5 employees | Applies to construction too |
| Mississippi | 5 employees | Applies to construction too |
| Missouri | 5 (construction: 1) | — |
| Tennessee | 5 (construction: 1) | — |
| Florida | 4 (construction: 1) | — |
| South Carolina | 4 employees | — |
| Arkansas | 3 employees | — |
| Georgia | 3 employees | — |
| Michigan | 3 (or 1 at 35+ hrs/wk for 13 weeks) | — |
| New Mexico | 3 (construction: 1) | — |
| North Carolina | 3 employees | — |
| Virginia | 3 employees | — |
| Wisconsin | 3 (or $500 payroll in a quarter) | — |
| Kansas | Payroll over $20,000 a year | — |
| Texas | Optional for private employers | Most GCs require it anyway |
| South Dakota | Not mandatory | Customers and GCs usually require it |
Texas is the outlier. Private employers can be “non-subscribers,” but a non-subscriber loses common-law defenses if an employee sues, and nearly every general contractor and commercial customer requires coverage anyway. California will require workers’ comp for every CSLB licensee, employees or not, from January 1, 2028.
The Coverage Plumbers Actually Need
State minimums are floors, and for plumbing they’re low floors. Water does more damage than most trades’ mistakes: a failed supply line fitting can flood three floors overnight. What a well-run plumbing shop carries:
- General liability: $1,000,000 per occurrence / $2,000,000 aggregate is the working standard, whatever the state says. Make sure it includes completed operations (Massachusetts requires it by name) and water damage isn’t excluded.
- Commercial auto: Required by law for every van, and a personal policy won’t cover a work vehicle. Hired and non-owned auto matters if techs ever drive their own cars.
- Workers’ comp: See above. Even in Texas, carry it.
- Tools and equipment (inland marine): Covers cameras, locators and jetters in the van, which general liability doesn’t.
- Pollution liability: Sewer backups and fuel-oil work can trigger pollution exclusions in a standard GL policy.
- Umbrella: Cheap extra limits for big commercial contracts. Just remember Maryland won’t count it toward the license minimum.
Recent Changes
If you only read one section: Louisiana’s minimum went from $100,000 to $500,000, Washington’s bond more than doubled, Utah’s minimum may have jumped to $1,000,000, and California’s workers’ comp mandate for every licensee arrives in 2028.
Louisiana: $100,000 to $500,000
Acts 2022, No. 460 and Acts 2023, No. 152 rewrote R.S. 37:1380. The comprehensive general liability minimum for the business employing a master plumber is now a $500,000 aggregate, and the old $50,000 small-parish carve-out is gone.
Washington: plumbing contractor bond to $15,000
Washington’s specialty contractor bond went from $6,000 to $15,000 on July 1, 2024, and plumbing contractors register as specialty contractors. Older plumbing-license bulletins still quote $6,000.
Utah: liability minimum reportedly to $1,000,000 / $2,000,000
An insurance broker reports a 2026 DOPL rule change raising the contractor liability minimum from $100,000 / $300,000 to $1,000,000 / $2,000,000, with further amendments voted on in April 2026. We couldn’t confirm the final text on DOPL’s site, so check before you renew an S210 license.
California: workers’ comp for every licensee (2028)
SB 1455 pushed the universal workers’ comp requirement for CSLB licensees from 2026 to January 1, 2028. C-36 licensees without employees can still certify exempt until then.
State-by-State Breakdown
Every state and DC: the plumbing licensing agency, the insurance and bond rules tied to the license, and the workers’ comp threshold. Red chips in the jump bar are states with a license-linked insurance or bond requirement.
Jump to your state
Alabama No State Minimum
Issuing Agency: Alabama Plumbers and Gas Fitters Examining Board
Liability: The licensing board doesn’t publish a liability insurance minimum for the plumbing license itself, so customers, general contractors and permit offices set the number.
Workers’ comp: Alabama is one of the few states where the requirement starts at five employees, construction included.
Alaska $20K / $50K / $100K
Issuing Agency: Alaska Division of Corporations, Business & Professional Licensing
Liability: Every registered contractor, plumbing included, carries at least $20,000 for property damage and $50,000 per person / $100,000 per occurrence for bodily injury (AS 08.18.101).
Bond: $10,000 for a specialty contractor, $25,000 for a general contractor.
Workers’ comp: Required once you have employees.
Arizona Bond, No GL Minimum
Issuing Agency: Arizona Registrar of Contractors (ROC)
Liability: The ROC requires a license bond, not liability insurance, so there’s no state GL minimum for C-37 / R-37 plumbing licensees.
Bond: Set by annual volume, from $4,250 (residential specialty under $375,000 a year) to $50,000 (commercial specialty), plus the Residential Recovery Fund for residential licensees.
Workers’ comp: Required from the first employee.
Arkansas No State Minimum
Issuing Agency: Arkansas Department of Health (Plumbing and Natural Gas)
Liability: The state’s plumbing licensing rules don’t set an insurance or bond requirement for master plumbers.
Workers’ comp: Required at three or more employees.
California $25K Bond (+ LLC Rules)
Issuing Agency: Contractors State License Board (CSLB)
Liability: No general liability minimum for a C-36 plumbing license held by a sole proprietor, partnership or corporation. LLC licensees are the exception: $1,000,000 in liability coverage for up to five personnel of record, plus $100,000 for each additional person, capped at $5,000,000, and a separate $100,000 worker bond.
Bond: $25,000 contractor bond for every license.
Workers’ comp: Required with employees now, and for every CSLB licensee from January 1, 2028 (SB 1455).
Colorado No State Minimum
Issuing Agency: Colorado State Plumbing Board
Liability: Plumbing contractors register with the state board, but the licensing board doesn’t publish a liability insurance minimum for the plumbing license itself, so customers, general contractors and permit offices set the number.
Workers’ comp: Required from the first employee.
Connecticut No State Minimum
Issuing Agency: Connecticut Department of Consumer Protection (DCP)
Liability: DCP doesn’t list a liability or bond requirement for the P-1 plumbing contractor license. Residential work that falls under home improvement registration needs $20,000 in general liability.
Workers’ comp: Required from the first employee.
Delaware No State Minimum
Issuing Agency: Delaware Board of Plumbing, HVACR Examiners
Liability: The licensing board doesn’t publish a liability insurance minimum for the plumbing license itself, so customers, general contractors and permit offices set the number.
Workers’ comp: Required from the first employee.
District of Columbia Per Contract
Issuing Agency: DC Department of Licensing and Consumer Protection (DLCP)
Liability: No published minimum for the master plumber license. Residential contracts of $300 or more fall under the Home Improvement Contractor license, which requires liability insurance and a $25,000 bond.
Workers’ comp: Required from the first employee.
Florida $100K / $25K
Issuing Agency: Florida DBPR, Construction Industry Licensing Board
Liability: Certified and registered plumbing contractors carry at least $100,000 in public liability and $25,000 in property damage coverage (Rule 61G4-15.003). General and building contractors carry $300,000 / $50,000.
Workers’ comp: Construction employers need it from the first employee. Florida’s four-employee threshold applies only to non-construction businesses.
Georgia $100K / $25K (Reported)
Issuing Agency: Georgia Division of Master Plumbers and Journeyman Plumbers (SOS)
Liability: Industry guides report a state minimum of $100,000 bodily injury per person and $25,000 property damage for licensed plumbing contractors. We couldn’t confirm the figure on the Division’s own site, so verify it before you bind coverage.
Bond: Many Georgia counties and cities require master plumbers to file a bond, often $5,000 to $25,000, to pull permits.
Workers’ comp: Required at three or more employees.
Hawaii No Flat Minimum
Issuing Agency: Hawaii Contractors License Board
Liability: C-37 plumbing licensees prove financial responsibility to the board, which can require insurance or a bond case by case, but there’s no flat statewide minimum.
Workers’ comp: Required from the first employee.
Idaho $2,000 Bond
Issuing Agency: Idaho Division of Occupational and Professional Licenses
Bond: Plumbing contractors post a $2,000 surety bond after passing the exam. The license fee is $147.
Liability: The plumbing contractor application doesn’t set a liability amount; Idaho’s general contractor registration ($300,000) applies only if you register under it too.
Workers’ comp: Required from the first employee.
Illinois $100K/$300K + $20K Bond
Issuing Agency: Illinois Department of Public Health (plumbing contractor registration)
Liability: Registered plumbing contractors carry general liability of $100,000 per occurrence and $300,000 aggregate for bodily injury, plus $50,000 property damage (or a $300,000 combined single limit), and workers’ comp with $500,000 employer’s liability (225 ILCS 320/13.1).
Bond: A $20,000 indemnification bond or letter of credit.
Registration can’t be issued without the insurance certificate, and it lapses if the coverage does.
Indiana No State Minimum
Issuing Agency: Indiana Plumbing Commission
Liability: The licensing board doesn’t publish a liability insurance minimum for the plumbing license itself, so customers, general contractors and permit offices set the number.
Workers’ comp: Required from the first employee.
Iowa $500K + $5K Bond
Issuing Agency: Iowa Plumbing and Mechanical Systems Board (DIAL)
Liability: Plumbing and mechanical contractors carry at least $500,000 in public liability insurance from an Iowa-licensed insurer.
Bond: A $5,000 surety bond, plus a separate $25,000 bond if your home office is outside Iowa.
Workers’ comp: Required once you have employees.
Kansas No State License
There’s no statewide plumbing contractor license, so there’s no state insurance minimum either. Local licensing bodies set their own requirements. Johnson County, Wichita and other local boards license plumbers and often require liability coverage.
Workers’ comp: Required once payroll exceeds $20,000 a year.
Kentucky No State Minimum
Issuing Agency: Kentucky Division of Plumbing (HBC)
Liability: The licensing board doesn’t publish a liability insurance minimum for the plumbing license itself, so customers, general contractors and permit offices set the number.
Workers’ comp: Required from the first employee.
Louisiana $500K Aggregate
Issuing Agency: Louisiana State Plumbing Board (R.S. 37:1380)
Liability: The business employing a master plumber carries comprehensive general liability and property damage coverage with a minimum aggregate of $500,000, raised from $100,000 by Acts 2022 and 2023. Auto liability and workers’ comp are required too.
Inactive master plumber licenses are exempt.
Maine No State Minimum
Issuing Agency: Maine Plumbers’ Examining Board
Liability: The licensing board doesn’t publish a liability insurance minimum for the plumbing license itself, so customers, general contractors and permit offices set the number.
Workers’ comp: Required from the first employee.
Maryland $300K + $100K
Issuing Agency: Maryland State Board of Plumbing
Liability: Master plumbers carry at least $300,000 in general liability and $100,000 in property damage coverage, $400,000 combined, from an insurer approved by the Maryland Insurance Administration. Umbrella policies don’t count, and the board must get 10 days’ notice of cancellation.
Workers’ comp: Required from the first employee.
Massachusetts Proof Required (No Amount)
Issuing Agency: Massachusetts Board of State Examiners of Plumbers and Gas Fitters (G.L. c. 142 § 21A)
Liability: No plumbing or gas permit is issued to a self-employed plumber without a current liability policy including completed operations coverage, or an equivalent indemnity or bond. The statute sets no dollar amount, so insurers and towns decide.
Workers’ comp: Required from the first employee.
Michigan No State Minimum
Issuing Agency: Michigan LARA, Plumbing Division
Liability: The licensing board doesn’t publish a liability insurance minimum for the plumbing license itself, so customers, general contractors and permit offices set the number.
Workers’ comp: Required at three or more employees, or one employee working 35+ hours a week for 13 weeks.
Minnesota $25K Bond + $50K/$100K/$10K
Issuing Agency: Minnesota Department of Labor and Industry
Bond: A $25,000 surety bond on DLI’s form.
Liability: At least $50,000 per person and $100,000 per occurrence in liability coverage, plus $10,000 for property damage. The license fee is $188.
Workers’ comp: Required once you have employees.
Mississippi No State Minimum
Issuing Agency: Mississippi State Board of Contractors
Liability: Mississippi licenses plumbing through the Board of Contractors on larger jobs (commercial $50,000+), on financial statements rather than an insurance minimum.
Workers’ comp: Required at five or more employees.
Missouri No State License
There’s no statewide plumbing contractor license, so there’s no state insurance minimum either. Local licensing bodies set their own requirements. St. Louis, Kansas City and county boards license plumbers locally.
Workers’ comp: Construction employers need it from the first employee (five for other businesses).
Montana No State Minimum
Issuing Agency: Montana Board of Plumbers
Liability: The licensing board doesn’t publish a liability insurance minimum for the plumbing license itself, so customers, general contractors and permit offices set the number. Contractors with employees also register with the Department of Labor & Industry.
Workers’ comp: Required from the first employee.
Nebraska No State License
There’s no statewide plumbing contractor license, so there’s no state insurance minimum either. Local licensing bodies set their own requirements. Omaha, Lincoln and other cities license plumbers. Every contractor registers with the Department of Labor and must keep a workers’ comp certificate on file if it has employees.
Nevada Bond, No GL Minimum
Issuing Agency: Nevada State Contractors Board
Liability: The board requires a license bond ($1,000 to $500,000, set from your monetary limit) rather than a liability minimum for C-1 plumbing licensees.
Workers’ comp: Nevada industrial insurance is required from the first employee, and the board checks it at licensing.
New Hampshire No State Minimum
Issuing Agency: New Hampshire OPLC (Mechanical Safety and Licensing Board)
Liability: The licensing board doesn’t publish a liability insurance minimum for the plumbing license itself, so customers, general contractors and permit offices set the number.
Workers’ comp: Required from the first employee.
New Jersey $3,000 Bond
Issuing Agency: New Jersey State Board of Examiners of Master Plumbers
Bond: A $3,000 surety bond in favor of the State before a licensed master plumber contracts for work (N.J.S.A. 45:14C-26).
Liability: The master plumber rules don’t set a general liability minimum. Home improvement registration, if your work falls under it, requires $500,000 per occurrence.
Workers’ comp: Required from the first employee.
New Mexico $10K Bond
Issuing Agency: New Mexico Construction Industries Division
Bond: A $10,000 bond to get or renew any CID contractor license, plumbing (MM-98) included.
Liability: No state GL minimum.
Workers’ comp: Construction employers need it from the first employee.
New York NYC: $1M
Issuing Agency: NYC Department of Buildings and local boards
State: New York has no state plumbing license, so licensing and insurance happen locally.
New York City: Licensed master plumbers file general liability of at least $1,000,000 per occurrence, plus workers’ comp and disability certificates, with the Department of Buildings. Each certificate must show the license number and exactly match DOB’s records.
Other cities and counties: Nassau, Suffolk, Westchester, Buffalo, Rochester and others set their own minimums, commonly $500,000 to $1,000,000.
North Carolina No State Minimum
Issuing Agency: NC State Board of Examiners of Plumbing, Heating and Fire Sprinkler Contractors
Liability: The board’s licensing rules don’t set a liability or bond requirement.
Workers’ comp: Required at three or more employees.
North Dakota Contractor Rules Apply
Issuing Agency: North Dakota State Plumbing Board
Liability: The plumbing board doesn’t set a minimum, but the state contractor license (jobs over $4,000) requires proof of liability insurance.
Workers’ comp: Required from the first employee.
Ohio $500K (Commercial)
Issuing Agency: Ohio Construction Industry Licensing Board (OCILB)
Liability: OCILB-licensed commercial plumbing contractors carry at least $500,000 in contractor liability coverage.
Local: Residential plumbing is licensed by cities and counties, and some add bonds (Cuyahoga County requires a $25,000 registration bond).
Workers’ comp: Required from the first employee, through the state fund.
Oklahoma $50K + $5K Bond
Issuing Agency: Oklahoma Construction Industries Board (CIB)
Liability: Active plumbing contractors carry at least $50,000 in commercial general liability, with the CIB named as certificate holder.
Bond: A $5,000 corporate surety bond payable to the CIB.
Workers’ comp: Required from the first employee.
Oregon CCB Bond + Insurance
Issuing Agency: Oregon CCB and Building Codes Division (Plumbing Business license)
Two licenses: A plumbing business needs a CCB contractor license plus a Building Codes Division Plumbing Business license ($150, renewed every three years) with a full-time signing supervisor.
Bond and liability: Set by the CCB endorsement: a residential specialty contractor posts a $20,000 bond and carries $300,000 per occurrence in liability; commercial specialty contractors post $55,000 (Level 1) with higher insurance.
Workers’ comp: Required once you have employees.
Pennsylvania No State License
There’s no statewide plumbing contractor license, so there’s no state insurance minimum either. Local licensing bodies set their own requirements. Philadelphia, Allegheny County and other local boards license plumbers and set insurance. Residential work under HICPA needs $50,000 / $50,000 coverage.
Workers’ comp: Required from the first employee.
Rhode Island $500K (Registration)
Issuing Agency: Rhode Island Department of Labor and Training and Contractors’ Registration and Licensing Board
Liability: Plumbing contractors who also register with the Contractors’ Registration Board carry $500,000 in liability insurance. The plumbing license itself doesn’t set a separate figure.
Workers’ comp: Required from the first employee.
South Carolina Bond by License Group
Issuing Agency: South Carolina LLR, Contractor’s Licensing Board
Bond: Mechanical (plumbing) contractor licenses carry a bond by license group, reported from $7,000 (Group 1) to $300,000 (Group 5), or financial statements in place of it.
Liability: No state GL minimum.
Workers’ comp: Required at four or more employees.
South Dakota No State Minimum
Issuing Agency: South Dakota State Plumbing Commission
Liability: The licensing board doesn’t publish a liability insurance minimum for the plumbing license itself, so customers, general contractors and permit offices set the number.
Workers’ comp: Not mandatory under state law, but general contractors and customers routinely require it.
Tennessee No State Minimum
Issuing Agency: Tennessee Board for Licensing Contractors
Liability: Plumbing contractors (CMC-A and limited licenses) qualify on financial statements and exams; the board sets no GL minimum.
Workers’ comp: Construction employers need it from the first employee (five for other businesses).
Texas $300K
Issuing Agency: Texas State Board of Plumbing Examiners (TSBPE)
Liability: Every Responsible Master Plumber keeps a certificate of commercial general liability insurance on file with the board, covering at least $300,000 for all claims in a one-year period (Occupations Code 1301.552). Cities verify it through the board before issuing permits.
Workers’ comp: Optional for private employers in Texas, but most general contractors and commercial customers require it.
Utah $100K/$300K (Changing)
Issuing Agency: Utah Division of Professional Licensing (DOPL)
Liability: S210 plumbing contractors carry DOPL’s general liability minimum, long set at $100,000 per incident and $300,000 aggregate. An insurance broker reports a 2026 rule change raising it to $1,000,000 / $2,000,000; confirm with DOPL before you renew.
Workers’ comp: Required from the first employee.
Vermont No State Minimum
Issuing Agency: Vermont Division of Fire Safety (plumbing licensing)
Liability: The plumbing license sets no minimum. Residential contracts of $10,000 or more need contractor registration with $1,000,000 / $2,000,000 in liability coverage.
Workers’ comp: Required from the first employee.
Virginia No GL Minimum
Issuing Agency: Virginia DPOR, Board for Contractors
Liability: DPOR doesn’t set a general liability minimum. Class A and B contractor licenses require net worth ($45,000 and $15,000) or a $50,000 bond instead.
Workers’ comp: Required at three or more employees.
Washington $200K/$50K + $15K Bond
Issuing Agency: Washington Department of Labor & Industries
Liability: Plumbing contractors register with L&I and carry $200,000 public liability plus $50,000 property damage, or a $250,000 combined single limit.
Bond: A $15,000 specialty contractor bond (raised from $6,000 on July 1, 2024).
Workers’ comp: Required from the first employee, through L&I.
West Virginia No State Minimum
Issuing Agency: West Virginia Division of Labor
Liability: The licensing board doesn’t publish a liability insurance minimum for the plumbing license itself, so customers, general contractors and permit offices set the number.
Workers’ comp: Required from the first employee.
Wisconsin No State Minimum
Issuing Agency: Wisconsin Department of Safety and Professional Services
Liability: The licensing board doesn’t publish a liability insurance minimum for the plumbing license itself, so customers, general contractors and permit offices set the number.
Workers’ comp: Required at three or more employees, or sooner once payroll passes $500 in a quarter.
Wyoming No State License
There’s no statewide plumbing contractor license, so there’s no state insurance minimum either. Local licensing bodies set their own requirements. Cheyenne, Casper and other cities license plumbers.
Workers’ comp: Required from the first employee.
Checked November 2026 against the statutes, rules and licensing boards linked in each block. Georgia’s liability figure, South Carolina’s bond groups and Utah’s 2026 change come from secondary sources and are marked as such. Local licensing bodies in no-state-license states set their own minimums.
Running a Plumbing Business
- Licensing first: Plumber license requirements by state covers the licenses these insurance rules attach to.
- Bonds explained: Contractor license bond requirements by state covers how license bonds work and what a claim costs you.
- Comp costs: Workers’ comp rate changes by state shows where premiums are headed.
- Lead service lines: Lead service line replacement for plumbers covers the federal program driving replacement work.
- Get paid on the spot: Service plumbing is high-volume, so collecting in the driveway beats chasing invoices.
Built for Plumbing Companies
VortechPro is dispatch software for trades shops — tiered routing, live GPS, in-field Stripe payments, on iOS and Android. $99/mo for 5 techs, +$20 per extra. 30-day free trial, no annual contract.
FAQ
How much liability insurance does a plumber need?
Legally, it depends on the state: $300,000 in Texas, $500,000 aggregate in Louisiana and Iowa, $300,000 plus $100,000 property damage in Maryland, $100,000 per occurrence and $300,000 aggregate in Illinois, $100,000 plus $25,000 in Florida, and $50,000 in Oklahoma. Most states set no minimum. In practice, general contractors and commercial customers expect $1,000,000 per occurrence and $2,000,000 aggregate.
Which states require insurance to get a plumbing license?
Texas, Louisiana, Iowa, Maryland, Florida, Illinois, Minnesota, Oklahoma, Washington, Alaska, Utah and Ohio (commercial) write a liability minimum into the plumbing licensing rules, Massachusetts requires proof of liability coverage to pull permits without setting an amount, and New York City requires $1,000,000. California, Arizona, Nevada, New Jersey, New Mexico, Idaho, Illinois, Minnesota, Oklahoma, Iowa, Washington and South Carolina require a license bond.
Does a plumber need a surety bond?
In some states, yes: $25,000 in California and Minnesota, $20,000 in Illinois, $15,000 in Washington, $10,000 in New Mexico, $5,000 in Oklahoma and Iowa, $3,000 in New Jersey and $2,000 in Idaho. Arizona and Nevada set the bond from your volume or monetary limit, and South Carolina by license group. Many cities require their own permit bonds on top.
Do I need workers’ comp as a one-person plumbing company?
Not usually until you hire, except in California from January 1, 2028, when every CSLB licensee must carry it. Most states require it from the first employee. Alabama and Mississippi start at five, and Florida, Missouri, New Mexico and Tennessee drop to one employee for construction work. Texas lets private employers opt out.
What does Texas require for plumber insurance?
Every Responsible Master Plumber keeps a certificate of commercial general liability insurance on file with the Texas State Board of Plumbing Examiners covering at least $300,000 for all claims in a one-year period. Cities confirm it through the board before issuing plumbing permits. Workers’ comp is optional for Texas private employers, though most general contractors require it.
Does an umbrella policy count toward the state minimum?
Not in Maryland, which says umbrella coverage is not acceptable for the $300,000 / $100,000 requirement. Other states rarely address it, so ask the board before relying on an umbrella to meet a license minimum.
Bottom Line
If you hold a plumbing license in Texas, Louisiana, Iowa, Maryland, Florida, Illinois, Minnesota, Oklahoma, Washington, Alaska, Utah or Ohio, the state has already set your insurance floor, and your license depends on keeping the certificate current. In California, Arizona, Nevada, New Jersey, New Mexico, Idaho and South Carolina, it’s a bond. In New York City, it’s $1,000,000.
Everywhere else, the state leaves it to the market, and the market says $1,000,000. Carry that, add workers’ comp the day you hire (and in Texas, before anyone asks), and treat the state minimum as what it is: the least you can legally carry, not the amount that keeps a flooded basement from ending your business.
