How Much Does It Cost to Start a Plumbing Business?
- Nate Jones, CPCU, ARM, CLCS, AU
- Oct 13, 2025
- 2 min read
Starting a plumbing business can be a profitable venture, but it requires upfront investment in tools, licensing, marketing, and insurance. Whether you're launching a solo operation or building a full-service plumbing company, understanding the startup costs helps you plan effectively and avoid surprises.
At Wexford Insurance, we specialize in helping plumbing contractors protect their businesses with tailored Plumbing Contractor Insurance. In this guide, we’ll break down the typical costs of starting a plumbing business—and what insurance coverage you’ll need to operate legally and safely.
Estimated Startup Costs for a Plumbing Business
Here’s a breakdown of the major expenses you can expect:
1. Licensing and Certification
State plumbing license: $200–$500
Exam fees and training (if needed): $500–$1,500
2. Business Registration and Legal Setup
LLC or corporation setup: $100–$800
EIN registration: Free via IRS
Local permits: $50–$300
3. Tools and Equipment
Basic plumbing tools: $2,000–$5,000
Inspection cameras, drain machines, leak detectors: $3,000–$10,000
Safety gear and uniforms: $500–$1,000
4. Vehicle and Transportation
Work van or truck: $15,000–$35,000 (new or used)
Branding and decals: $500–$1,500
5. Marketing and Branding
Website and logo design: $500–$2,000
Google Business Profile setup: Free
Local SEO and advertising: $300–$1,000/month
Market Your Plumbing Business with Contractor Back Office
Contractor Back Office helps plumbing contractors build a strong brand and attract more clients through expert digital solutions and back-office support.
Our Services Include:
6. Office or Storage Space (Optional)
Rent or lease: $500–$2,000/month
Utilities and furnishings: $1,000–$3,000
Insurance Costs for a Plumbing Business
Insurance is a critical part of your startup budget. Here’s what you’ll need and what it typically costs:
Protects against property damage and injury claims.
Estimated Cost: $500–$1,500/year
Required if you have employees. Covers medical expenses and lost wages.
Estimated Cost: $1,000–$3,000/year per employee
Covers your work vehicle and liability in case of accidents.
Estimated Cost: $1,200–$2,500/year per vehicle
Protects your office, tools, and inventory.
Estimated Cost: $500–$2,000/year
Covers repair or replacement of essential plumbing tools.
Estimated Cost: $300–$800/year
Covers claims of faulty workmanship or negligence.
Estimated Cost: $500–$1,500/year
Provides extra liability coverage beyond your base policies.
Estimated Cost: $400–$1,000/year
Total Estimated Startup Cost
Depending on your location and business size, the total cost to start a plumbing business typically ranges from:
$10,000 to $50,000+
This includes tools, licensing, insurance, marketing, and vehicle expenses. Starting small and scaling gradually is a smart approach for many new contractors.
Final Thoughts
Starting a plumbing business requires upfront investment—but with steady demand and smart planning, it can be a highly profitable venture. Don’t overlook insurance—it’s not just a legal requirement, it’s your safety net.
At Wexford Insurance, we help plumbing contractors get the coverage they need to launch and grow with confidence.
👉 Contact us today to get started.
