Basic handyman insurance coverage includes commercial auto and general liability to cover legal fees if a client sues for injuries or property damage. Usually, handyman insurance for both general liability and commercial property costs anywhere from $250 to $1,500 per year.
One of the best ways to save money on handyman insurance is to compare offers from more than one carrier. A broker like CoverWallet can be a big help with that because it gets quotes from multiple insurers with one application. Most handymen can get up to $1 million in general liability insurance in less than 10 minutes.
Handyman Insurance Policies & Coverage
Because handymen aren’t saddled with insurance requirements, they must consider their overall risks to decide which policies to purchase. General liability and property—typically bundled in a BOP, along with commercial auto—are among the most common types of insurance policies for handymen.
Handyman Insurance Policies
What It Covers
Third-party claims over injuries and property damage
Repair or replacement costs business-owned property when it’s damaged, lost, or stolen
Medical bills and vehicle repairs after auto accidents
Pays medical bills and lost wages for employees’ work-related injuries and illnesses
Covers your client’s financial loss due to your work
Click on the tabs below for more information on each handyman insurance’s coverage.
Tip: Some states, such as Maryland, require a handyman to have a license to perform any services. Others, such as California and Hawaii, make handymen get licenses when jobs reach a certain dollar value. If you’re required to obtain a license, there is a good chance you’ll also need proof of a bond or insurance for the licensing board.
Handyman Insurance Costs
Your main insurance cost is the total annual premium of all handyman policies added together. For example, most handymen can get general liability insurance at $1,500 per year. Adding commercial property insurance to your list of policies may add another $250 to your total costs, depending on how valuable your business property is.
In addition to your annual premium, you may have out-of-pocket costs for deductibles or claims that are above a policy’s per occurrence limit. For example, let’s say you have a $100,000 coverage limit on your commercial auto policy, but you’re found liable for an accident that causes $150,000 of damage. You’re on the hook for that extra $50,000, plus you may have to tack on another $500 to $1,000 if your policy has a deductible.
Handyman Insurance Costs by Policy
Estimated Annual Premium Amount
$1 million per occurrence
$2 million aggregate
$250 to $1,500
Business Owner’s Policy (BOP)
$1 million per occurrence
$2 million aggregate
$2,000 to $6,500
Property deductible at $1,000
$250 to $350
$500 to $1,000
$2,000 to $4,500
$100,000 per accident
$500,000 aggregate $100,000 per employee, per injury
$5,500 to $13,000
$0 to $500
$5,000 to $10,000
1% to 10% of total bond amount
How to Balance Cost and Coverage for Handyman Insurance
Buying insurance usually means balancing the amount of coverage you need with how much it costs. For example, you have to evaluate your risks, such as the size of the jobs you do and the clients you work for. Working in multimillion-dollar mansions may mean you need higher coverage limits than you would if you worked on small tract homes because the potential claims are more costly.
You also need to consider the cost of your equipment and vehicle. Insuring every tool might not be worth the additional premium if you have access to affordable replacements. Generally, you only want to insure the things your business couldn’t function without. That way, you can keep costs down while still having enough coverage to get you back to work quickly after a major loss.
BOPs Save on Handyman Insurance Costs
Many insurance providers have a BOP for handymen. This is a hybrid policy that combines handyman liability insurance with business property and business interruption insurance for a lower premium than buying each separately. By packaging these policies, insurers make it easy for you to get fundamental small business insurance while minimizing the chance that you’ll have coverage gaps. BOPs are usually the most cost-effective way for a handyman to get covered.
Why Does a Handyman Need Insurance?
Unless you’re working as a licensed contractor, most handymen aren’t required to get insurance. However, we still recommend every handyman gets at least liability coverage. Working in people’s homes exposes you to liability lawsuits over client injury and property damage. The cost of these claims can be devastating financially.
Some may think that a handyman cannot get insurance as it isn’t a real business. As with any other business, however, handymen can and should get insurance to protect themselves and their clients. If you’re convinced you need insurance for your business, then you might want to check our list of best handyman insurance companies.
Additionally, a handyman might want insurance because it
- Helps them win clients: Some people won’t hire you unless you’re bonded and insured.
- Makes licensing easier: If you do want to work as a contractor, most states require you to carry liability insurance.
- Protects their business when employees make mistakes: General liability insurance typically covers mistakes the people who work for you make.
It’s important to have enough insurance coverage for your handyman business so that you’re not crippled by one mistake on the job. Handyman insurance takes control of claims and accusations against you so that you can continue doing your job. The right insurance company serves as a partner to ensure you have the maximum coverage at a reasonable price.
For as little as $39 per month, CoverWallet offers a fast way for you to get the required $1 million per claim general liability policy you need. It specializes in helping the handyman industry, and it can get you covered quickly. You can fill out an online application from your phone and be covered in less than 10 minutes.