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Plumbing professionals in Michigan must comply with state licensing and insurance regulations to operate legally. The Michigan Department of Licensing and Regulatory Affairs (LARA) oversees the issuance of licenses for Master Plumbers and Plumbing Contractors, requiring proof of work experience, insurance coverage, and bonding (if applicable). Whether you are a self-employed plumber or a plumbing contractor, having the proper insurance for plumbers in Michigan protects you against liability claims, property damage, workplace accidents, and legal issues.
Under the Michigan Skilled Trades Regulation Act (MCL 339.6111 & MCL 339.6113), the following plumbing licenses are required:
Michigan plumbers must carry specific insurance to comply with state laws and municipal regulations. The Michigan Department of Licensing and Regulatory Affairs (LARA) and local municipalities require various coverage types to protect plumbers, clients, and businesses.
All plumbing contractors must have at least $100,000 per incident in liability coverage. Some cities, such as Detroit and Grand Rapids, require up to $1 million for large permits or contracts.
Coverage includes:
Plumbing businesses with one or more employees must have workers’ compensation insurance to cover:
Self-Employed Plumbers: It is not mandatory, but it is recommended, especially for contract work.
Any plumbing truck used for work needs commercial auto insurance because personal plans do not cover work-related accidents.
Coverage includes:
Tip: Research the specific rules of each city before providing job estimates. Make sure to comply with the state and local requirements.
Some cities require plumbing contractors to obtain a surety bond in order to receive a license or permit.
Examples:
Plumbers in Michigan must carry insurance coverage to comply with state laws, local building regulations, and contractor requirements. The cost of plumber insurance depends on business size, location, claims history, and coverage limits.
In 2024, insurance rates for Michigan plumbers have fluctuated due to inflation, increasing construction costs, and claims trends. This guide provides a real-world breakdown of current plumbers’ insurance costs and tips to reduce premiums.
Benefit Type
Insurance costs are higher in major Michigan cities due to greater risk exposure, more claims, and stricter permit requirements.
Cities with high insurance costs:
Lower cost cities and rural areas:
Example:
The following are common questions about Plumber Insurance.
Yes, Michigan requires general liability insurance for licensed plumbers. Workers’ compensation is mandatory for businesses with employees, and commercial auto insurance is required for work vehicles. Some cities also require bonds.
General liability insurance costs between $600 and $1,500 per year. Workers’ compensation ranges from $2,500 to $7,000, while commercial auto insurance runs between $1,200 and $3,000. Bonds, if required, cost between $100 and $500.
No, but some contractors and clients may require it. Having coverage provides financial protection in case of work-related injuries.
Michigan adopted the 2021 Plumbing Code, effective as of March 12, 2024, with updates to sanitary system installation, hot water piping, and permit exemptions. Licensed plumbers must complete a code update course by March 12, 2025.
Not at the state level, but some cities require one. Detroit requires a bond of $5,000–$20,000, Grand Rapids requires $10,000, and other cities may have project-based bond requirements.
Also known as Errors and Omissions (E&O) insurance, it protects against claims of negligence or defective work. Although not mandatory, it is recommended for plumbers handling large projects.
