Handyman Insurance: Cost & Coverage 2023
Nathan Weller is an Insurance Expert focusing on insurance for small business. He has 15 years experience in insurance operations, FNOL, and claims handling.
Handyman insurance is a combination of policies, the most common ones being commercial property and general liability. These coverages provide protection for your business against property loss and legal fees if you’re sued for injuries, have to pay for property damage, or replace your property. General liability and commercial property handyman insurance costs anywhere from $575 to $2,300 per year.
Insurance can be a large expense for a business, and one of the best ways to save money on insurance is to compare quotes from more than one carrier. An online broker like Simply Business can provide quotes from multiple insurers with only one application. After reviewing the options, you can purchase a policy online.
Handyman Insurance Policies & Coverage
The policy right for your business depends in large part on the type of work you do and the size of your company. Below are the most common types of coverages for handyperson businesses.
Handyman Insurance Policies | What It Covers |
|---|---|
General Liability | Third-party claims for injury and property damage |
Commercial Property | Repair or replacement cost for business-owned property |
Commercial Auto | Liability and first-party coverage for vehicles |
Workers’ Compensation | Medical bills and lost wages for employees’ work-related injuries and illnesses |
This is probably the most common and important coverage for your business. General liability insurance covers third-party claims where a person is hurt or has property damaged because of your negligence. For example, you’re installing a new ceiling fan for a client and put the fan on the floor by the entryway. The homeowner trips on the fan and is injured and breaks a fan blade. General liability would handle the cost of the damage and their medical bills.
This policy covers a wide range of claims for handypersons, including:
- Damage to the properties where you work
- Personal and advertising injury
- Medical bills and repair for accidents your operations cause
As a handyperson, you’ll have tools and want to make sure they’re protected. Commercial property covers your business-owned property, whether that’s a workshop or the tools you store in it. Property policies usually provide coverage on a listed location basis, so if you have tools, you may want to get inland marine. Inland marine insurance provides coverage for items wherever they are located.
If you have a dedicated work vehicle or drive your vehicle as part of the specific job you are hired to do, then you should purchase commercial auto. This insurance has multiple coverages, including liability for injuries and property damage when you are at fault, and also collision and comprehensive for your own vehicle.
Many handypersons will not need commercial auto insurance. Review your personal policy with your agent to make sure the current coverage meets your needs before buying an additional policy.
Workers’ compensation insurance covers medical bills and lost wages for employees who suffer accidents at work. Depending on the state where you work, you may need it even if you’re the only employee. Really, sole proprietors should consider workers’ compensation for financial protection in case they cannot work due to an injury by helping with medical bills, lost wages, and even rehabilitation.
Handyman Insurance Costs
When surveying the cost of handyman insurance, keep in mind the total cost is all the policies you purchase added together. For example, you can purchase a general liability policy for $275 annually but, if you need coverage for your tools, that may be an additional $300. If you have a dedicated work van, that could cost you another $2,200. So, the total cost for handyman insurance in this example would be $2,750 annually. This is a low-end estimation.
Handyman Insurance Costs by Policy
Insurance Policy | Limits | Estimated Annual Premium | Deductible |
|---|---|---|---|
General Liability | $1 million per occurrence $2 million aggregate | $275 to $2,000 | $0 |
Commercial Property | $10,000 | $300 to $500 | $1,000 |
Commercial Auto | $500,000 combined single limit | $2,200 to $5,000 | $0 |
Workers’ Comp | $100,000 per accident $500,000 aggregate $100,000 per employee | $5,500 to $13,000 | $0 to $5500 |
When providers calculate a premium, they consider multiple factors.
- Type of work: Are you a handyperson who does small jobs residentially, or do you work in large, commercial buildings?
- Claims history: Have you filed a claim in the past three to five years?
- Revenue: What are last year’s revenue and the anticipated revenue for this year?
- Location: What state you work in, or if you work in multiple states, can impact your premium.
- Tools: The value of the equipment you want to insure can impact the premium.
- Employees: Are you a sole proprietor, or do you have employees working for you?
How To Get Handyman Insurance
There are multiple ways to get handyman insurance. You can reach out to a local agent or broker who can help you find the coverage you need. Or, you can go directly to a provider like Next Insurance. There are also online brokerages such as Simply Business, which can help you find coverage from different providers. You can learn about those two providers and more in our guide to the best handyman insurance companies.
Frequently Asked Questions (FAQs)
If you’re a licensed contractor, depending on the state, you may be required to carry either general liability, a surety bond, or both. Working in someone’s home exposes you to liability lawsuits, and the cost of these claims can be financially devastating. An insurance policy offers protection against this loss, so while it may not be required for a handyman, it’s certainly a wise investment.
General liability can range from $275 to $2,000, and a property policy can range from $300 to $500. Many providers offer one policy for general liability and property called a business owner’s policy (BOP). When this is available, the provider usually offers it for less than if you were to purchase the policies separately.
Handyman insurance refers to a policy, or collection of policies, you purchase to protect your business from financial loss. This can be a single general liability policy or a BOP to cover liability and your property.
Bottom Line
It’s important to ensure your business is covered so that you’re not crippled by a mistake or negligence on the job. Handyman insurance protects your business from claims of negligence or first-party losses to your equipment.
Simply Business offers a fast way for you to get the policy you need. It specializes in microbusinesses in the handyperson industry and can provide multiple quotes and the option to purchase insurance online in just minutes. Fill out an application today and be quickly covered.
