7 Best Handyman Insurance Companies for 2022
Nancy Fernandez is a Credit Card and Insurance Expert at Fit Small Business, specializing in business credit cards and business insurance.
When it’s time to buy handyman insurance, it’s important to look for carriers that have experience with coverage most important to your line of work, such as general liability and commercial auto. They’ll also be the providers most likely to get you the appropriate coverage at the best price. We reviewed dozens of insurance companies and chose the seven best for small handyman businesses:
- Coverwallet: Best overall for fast, affordable coverage
- The Hartford: Best for providing multiple coverage options
- Hiscox: Best for home-based handymen working on small projects
- Thimble: Best for short-term handyman liability insurance
- Simply Business: Best for general liability coverage for exterior work
- State Farm: Best for providing customized customer service
- Progressive Commercial: Best for providing comprehensive commercial auto insurance discounts
CoverWallet: Best Overall Handyman Insurance Company
CoverWallet is the best choice for a handyman who needs insurance quickly but still wants to compare offers. As an online broker, CoverWallet partners with top-rated carriers and can often return more than one quote for a single application. This gives you the ability to find the best price for all the policies you need, even if you have to buy from separate carriers.
CoverWallet Strengths | CoverWallet Weaknesses |
|---|---|
Provides online quotes for most policies from multiple carriers | Claims processing and financial strength vary by carrier |
Offers professional advice via chat, email, and phone | May charge a brokers fee |
Minimum premiums listed for most policies | May not be able to get estimated costs from their partner providers |
Allows you to process all of your payments and access all policy documents through MyCoverwallet | |
Offers surety bonds |
Coverage
CoverWallet is an insurance broker, so it doesn’t write the policies it sells. Instead, it offers coverage created by the carriers it works with, including essential policies for handymen like:
- General liability
- Commercial property
- Commercial auto
- Inland marine
This gives you an opportunity to compare premiums and policy terms. In some cases, you may find carriers offer discounts for buying more than one policy, but you might also choose to get every policy you need from a different carrier if the cost and coverage fit your needs.
Costs
CoverWallet lists minimum premiums for a few handyman insurance policies on its site, including:
- $39 per month for general liability insurance
- $49 per month for a business owner’s policy (BOP)
- $239 per month for a BOP and commercial auto insurance
- Also provides customized coverages that include inland marine, surety bond, and workers’ compensation
Minimum premiums are simply the lowest amount an insurance company can charge for a policy. Many businesses can get that price, but CoverWallet may also charge fees for some policies where state law allows it. It doesn’t charge extra for certificates of insurance (COI), which may result in significant savings if you have many clients who want to see proof of coverage.
The Hartford: Best for Providing Multiple Coverage Options
The Hartford is the right insurance carrier for handyman business owners looking for an affordable and customizable set of coverage options. Not only can handymen get great general liability coverage, but they can also get additional options, such as business income coverage, commercial property insurance, equipment and tool coverage, and workers’ compensation.
The Hartford Strengths | The Hartford Weaknesses |
|---|---|
Provides personalized coverages for handymen | Need to apply to get cost information |
Online claim reporting available | No online chat assistance on website |
A+ (Superior) rating from A.M. Best | No coverage in Alaska or Hawaii |
Received 4.8/5 claims experience for workers’ compensation based on reviews left by their customers | May need to go to an agent for specific coverages |
Short-term liability insurance only available in 26 states |
Coverage
The Hartford provides many benefits within its coverages. For instance, The Hartford’s workers’ compensation includes benefits perfect for handymen, such as access to over a million providers for treating workplace injuries, pay-as-you-go billing options, and the Nurse Back to Health program.
In addition, The Hartford also offers handyman insurance for short-term projects called Putty Insurance. Putty offers affordable coverages for projects that last from two hours up to two weeks. Handymen can choose to get general liability limits from $300,000 to $1 million. It should be noted that Putty Insurance is only offered in 26 states.
Costs
Like most carriers, The Hartford doesn’t list premium information on its website because costs can vary greatly. That said, quotes for its handyman BOP ranged between $1,000 and $1,700 per year. Endorsements appear to add an additional $40 to $200 annually.
For short-term projects via Putty Insurance, the following are the average price points depending on the number of hours for each project:
- Four-hour policy with $300,000 in general liability coverage: $7
- Two-day policy with $300,000 in general liability coverage: $23
- Four-day policy with $1 million in general liability coverage: $33
Hiscox: Best for Home-based Handymen
Hiscox is a great option for independent handymen with home offices who do odd jobs for homeowners. Hiscox offers general liability policies with flexible payment plans and up to 5% off for home businesses.
Hiscox Strengths | Hiscox Weaknesses |
|---|---|
Provides multiple payment options, including monthly option (with no extra charge) | Doesn't provide specific equipment coverages for handymen |
Discounts for home-based businesses and purchasing multiple policies | Claims processing and financial strength varies by carrier for other policies |
A (Excellent) rating from A.M. Best | Coverage isn't available in Alaska |
Received 4.8/5 rating in a survey by Feefo, an independent third party | Doesn't provide online quotes for handypersons |
Coverage
For handymen, Hiscox mainly focuses on general liability insurance. This may seem like a detriment, but general liability is often sufficient coverage for a handyman who doesn’t have employees or expensive tools and who mainly works with residential clients. However, Hiscox can offer business property and equipment coverage in some states.
Costs
We’ve seen Hiscox quotes for handyman liability insurance between $1,500 and $3,000 per year. Adding business property insurance only tacked on another $100 or so annually. Moreover, Hiscox offers up to 5% off to at-home business owners and doesn’t charge extra for people who choose a monthly payment plan.
Thimble: Best for Short-term Liability Insurance
Thimble is a unique online insurance seller in that it specializes in short-term policies. You can purchase an annual handyman liability insurance policy or get coverage by the month, week, day, or hour. These options allow you to carry insurance only when you need it and, hopefully, reduce your overall costs.
Thimble Strengths | Thimble Weaknesses |
|---|---|
Offers handyman liability policies by the month or on demand | Short-term policies only available for liability coverage |
Allow you to pause monthly policies for up to 30 days | Coverage is not available in New York |
Online quotes available | Does not provide commercial auto insurance |
Has a mobile app that can be downloaded through both Google Play and App Store | |
Has an online platform to manage and automate contractor documents |
Coverage
Thimble offers general liability—arguably the most important policy for handymen—as well as professional liability and business equipment protection. Only its liability coverage is available on demand. Handymen can purchase an annual liability policy or get short-term coverage for the length of any one project.
Handymen can get their flexible insurance policies (which can be customized down to the month, day, or hour) through the Thimble app.
Costs
Our estimate for a sole-proprietorship handyman business in Illinois with two additional employees was an average of $258.83 per month or around $3,100 per year. The reason it’s an estimate is that Thimble charges a different premium depending on the location of the business and the number of employees. This cost estimate includes the following coverages:
- $1 million general liability limit and $250 general liability deductible
- $100,000 business personal property coverage and $500 business personal property deductible
- $500,000 building coverage and $500 building coverage deductible
Thimble doesn’t charge extra for additional insured endorsements of certificates of insurance.
Simply Business: Best for General Liability Coverage for Exterior Work
Simply Business is a relatively new online insurance brokerage that focuses mainly on liability policies for small companies. Because of its carrier partnerships, Simply Business can provide handyman liability insurance to individuals even when the business includes exterior services.
Simply Business Strengths | Thimble Weaknesses |
|---|---|
Works with carriers that can write policies for some risky operations | Only writes general liability and professional liability policies |
Simple, online application returns multiple quotes in minutes | Financial rating and claims process varies by carrier |
Certificates take up to 24 hours to fulfill | |
No online policy management | |
Online quotes may not be provided immediately |
Coverage
Currently, Simply Business only writes professional and general liability insurance policies, which is usually okay, as most handymen get sufficient protection from general liability. The coverage highlight for Simply Business, however, is its ability to offer policies to handymen with operations that other carriers find too risky to insure. Many carriers won’t cover exterior operations that take a handyman above two or three stories, but Simply Business has relationships with a few specialty carriers that can.
Costs
The quotes we’ve seen from Simply Business fall in the $1,000 to $2,500 range—not exactly the cheapest, but in the ballpark of what you see from most carriers. Plus, that typically includes $2 million in products-completed operations coverage and $1 million for premises rented to you.
State Farm: Best for Providing Customized Customer Service
State Farm is a viable insurance provider to consider since they sell their policies exclusively through their hand-picked local agents that work exclusively with business owners. This provides handymen with a high level of personalized service and attention.
State Farm Strengths | State Farm Weaknesses |
|---|---|
Can get a personalized service from the agent of your choice based on the location of your business | Cannot get online quotes as it is largely dependent on the chosen agent |
Provides discounts of up to 30% on your commercial auto insurance after signing up on their mobile app, OnStar | Quality of service is largely dependent on the chosen agent |
Has an online management system where you can pay your insurance policies | Not much information can be found on their website, especially about handyman insurance |
Has a mobile app that can be downloaded on both Google Play and App Store | |
One of the top insurance providers for small commercial insurance in the 2021 JD Power Small Commercial Insurance Study |
Coverage
Currently, State Farm offers a unique approach with regard to providing costs and information about handyman insurance. Instead of providing quotes, State Farm offers basic information on the agents that are located near you, thus making it easier to contact them and ask questions about their offerings.
Additional Features
State Farm has a simple and intuitive mobile application for policyowners to manage their insurance and bank accounts, get roadside assistance, file claims, and more. In addition, you can upload photos and documents that are needed to expedite the processing of your claims.
Progressive Commercial: Best for Providing Comprehensive Commercial Auto Insurance Discounts
Progressive Commercial is considered one of the largest and most experienced providers for commercial auto insurance in the country. As handymen use their vehicles for going from one location to another, Progressive Commercial is a viable insurance company to consider.
Progressive Commercial Strengths | Progressive Commercial Weaknesses |
|---|---|
One of the top auto insurance providers based on the 2021 JD Power Auto Insurance Study | Most insurance policies are underwritten by other insurance carriers |
Can provide coverages for vehicles that are also being used for personal transportation | Limited coverage options provided for the rest of the insurance policies |
Offers multiple discounts depending on profile of driver | Features of their mobile application (The Progressive App) are limited to auto-related concerns |
Provides coverage to all 50 states |
Coverage
Progressive Commercial’s auto insurance offers liability coverages and physical damage coverage for vehicles like cars, trucks, and vans. Progressive Commercial also offers 24/7 claims with an extensive truck repair network, discounts, and more. Progressive Commercial’s coverages for commercial auto are specific to the needs of business owners who use trucks and tows.
In addition to commercial auto, Progressive Commercial offers business coverages, such as general liability, professional liability, BOP, workers’ compensation, and cyber insurance.
Additional Features
For handymen that use trucks, Progressive Commercial offers rental reimbursement with downtime, which means both your truck payments and other related bills are covered, and you can acquire a rented vehicle if your vehicle is deemed inoperable due to an accident.
Progressive Commercial also offers nine different kinds of vehicle insurance discounts, depending on the kind of qualified customer and how long it’s been since their business became operational.
How Handyman Insurance Works
Handyman insurance is a group of policies that cover costs for your business when something goes wrong. Each policy covers a different kind of loss. For example, a handyman liability policy pays a customer’s bills if they claim you damaged their property or caused them physical injury. Meanwhile, commercial property insurance pays for losses that happen to you directly like someone stealing your tools.
Why Does a Handyman Need Insurance?
Working in people’s homes and businesses leaves you exposed to liability lawsuits over client injury and property damage. The cost of these claims can be financially devastating if you don’t have the proper insurance policies. Additionally, insurance can help a handyman:
- Win clients: Some people won’t hire you unless you’re bonded and insured.
- Get a license: If you do want to work as a contractor, most states require you to carry liability insurance.
- Protects against employee mistakes: General liability insurance typically covers mistakes made by the people who work for you.
How We Evaluated the Best Handyman Insurance Companies
Cost is always a concern for small businesses looking for insurance, so premiums and extra fees were important factors in our evaluation. In addition to costs, we considered the coverage options each company offers as well as any online features they have that make buying or managing policies easier. Finally, financial strength played a part because handymen need to know that the carriers that they select have the ability to cover claims should the time come.
Bottom Line
Selecting the ideal insurance company for your handyman business requires considering several things: whether the projects you’re getting are short-term or long-term, whether their services are accessible to most states, how comprehensive their coverages and features are, and if they are tailor-fit to your business needs and risks. Among the many insurance companies in the country, we have narrowed it down to the best seven.
