Alabama Plumbing Workers Comp Rates (2026)
The published Alabama loss cost for plumbing workers comp, class 5183 (Plumbing NOC & Drivers), is $1.325 per $100 of payroll (effective March 1, 2026). Carriers multiply it by their own filed multiplier, so a typical premium is about $1.99.
A loss cost covers expected claims only. Each carrier files its own multiplier for expenses; in the states that publish the full list, the median is about 1.5, which is what the typical premium here uses. Your quote can be lower or higher. Source.
Alabama class code for plumbing
- 5183: Plumbing NOC & Drivers
- 5188 (Sprinkler Installation & Drivers)
Plumbing work involves back strain, cuts, burns from soldering and hot water, and work in crawl spaces and other confined spaces.
What comp costs per plumber in Alabama
The Bureau of Labor Statistics counts 6,950 plumbers, pipefitters, and steamfitters on payrolls in Alabama (May 2025), the 25th largest workforce among the 50 states and DC. The median wage is $28.21 an hour, 8% below the US median of $30.67.
Plumbers, pipefitters, and steamfitters make up about the same share of Alabama jobs as they do nationally (location quotient 1.10).
At a typical Alabama premium of about $1.99 per $100 of payroll (the published loss cost of $1.33 for class 5183 times a 1.5 carrier multiplier), comp on one worker at that wage costs about $0.56 for every hour worked, or $1,168 a year full time. A 2-person crew comes to roughly $2,335 a year in premium before any experience mod.
Because premium is charged on payroll, who you hire moves the bill. Alabama pay runs from $18.14 an hour at the 10th percentile to $36.87 at the 90th, so the same rate costs $0.36 an hour on a new hire and $0.73 on a senior hand.
Workers comp requirements in Alabama
- Coverage required: 5+ employees; 1 for new single-family home construction
- Owners and sole proprietors: Owners may be excluded; corporate officers count toward the 5-employee threshold
- State fund: Private market (no state fund)
- Waiting period: 3 days; retroactive if disability exceeds 21 days
- Penalty for going without: Up to $1,000 per employee per day, stop-work orders, and misdemeanor exposure
Alabama's small-employer exemption specifically does not cover new single-family homebuilders, who need coverage at one worker.
Alabama vs neighboring states
- Georgia: about $1.88 per $100 of payroll
Alabama has the highest plumbing comp rate in its region; every neighboring state charges less per $100 of payroll.
If your crews work across the line, list those states under item 3.A or 3.C of your policy before the job starts. Rates follow the state where the work is done, not where your office is.
What moves a plumbing comp bill
- Plumbing rates sit in the middle of the construction classes; the swing comes from your experience mod. Trench and excavation injuries are the costly claims, so trench-safety training pays back quickly.
- Some states split residential and commercial plumbing into different classes. If you do both, make sure the payroll for each is recorded so the cheaper work is not rated at the higher class.
- Apprentices carry the same class rate as journeymen, but their lower wages mean less premium per hour. Your payroll mix matters as much as the rate.
- Uninsured subs (excavators, drywall patchers) get added to your payroll at audit unless you collect certificates before they start.