Handyman insurance is essential, yet many are confused about handyman business insurance and struggle to find the right coverage at competitive rates. That ends here.
At ContractorNerd, we provide handyman liability and business insurance solutions through our proprietary quote platform that connects you with contractor-friendly insurers who understand your unique risks. Our tech-enabled and specialized agents support you throughout the process, combining data-driven insights with personalized guidance. We’ve analyzed quotes for over 850 handymen from leading insurance carriers across all 50 states to give you complete transparency on the coverage you need and current market quotes.
This comprehensive analysis covers essential handyman insurance topics, including:
- Core Coverage Requirements – General liability, workers’ compensation, tools & equipment, and professional liability insurance
- Industry-Specific Insights – Class code 91344 for basic residential/commercial repair work under $2,500-$5,000
- Quote Analysis by Revenue – Premium data for businesses at $150K, $500K, and $1M revenue levels
- Workers’ Compensation Data – Class code 5645 rates ranging from $5.72 to $16.73 per $100 of payroll
- State-by-State Quote Variations – Premium differences across all 50 states
- Additional Coverage Options – Tools insurance, commercial auto, E&O, and umbrella policies
- Real Market Data – Analysis showing typical premiums range from 1.2% to 3.5% of annual revenue
Let’s start with the basics:
What Insurance Do Handymen Need?
For handymen, choosing the right insurance coverage depends heavily on your business size and operational scope. First thing first — to qualify as a handyman, most carriers expect that no job is more than $2,500 or $5,000 (depending on the carrier). If you do jobs that are larger than that, check out our other trades like General Contractor and Carpenter.
Unlike specialized trades, handymen often handle a diverse range of tasks – from basic repairs to complex home improvements – making proper coverage particularly important. Here’s a guideline:
Sole Proprietors/Self-Employed Handymen:
- Handyman Liability Insurance (aka General Liability) is fundamental. While there’s no national standard, policy limits of $1,000,000 per claim and $2,000,000 aggregate are typically adequate.
- Tool & Equipment Insurance (aka Inland Marine) is critical coverage. It protects the tools and gear you rely on daily to serve your clients.
- Contractor’s E&O (aka Professional Liability and Faulty Workmanship) coverage defends against claims of poor workmanship or defective materials used in your projects.
- Business Auto coverage applies when you use a vehicle primarily for work purposes, like transporting tools or traveling to job sites.
Small Handyman Businesses (1-3 employees):
- Workers’ Compensation becomes mandatory once you have employees on payroll (but isn’t needed for subcontractors)
- Property Insurance safeguards your physical locations, including workspace, storage areas, and business offices.
- Umbrella Coverage (or increased liability limits) becomes increasingly important as your project volume and revenue expand.
Medium to Large Handyman Businesses (5+ employees):
- Umbrella Coverage (or increased liability limits) becomes increasingly important as your project volume and revenue expand.
- Employment Practices Liability Insurance guards against employment-related claims like discrimination or wrongful termination.
- Cyber Insurance is increasingly important, especially if you handle sensitive client information.
Handyman Liability Insurance – aka General Liability
If there’s one essential coverage for all handymen, this is it. As a handyman, you need this insurance because you face various risks daily – from using power tools to working with electrical systems, plumbing, and more. Here are the most common claims handymen encounter that should be covered by your Handyman Liability policy:
- Property Damage: Accidental damage to a client’s building, floors, walls, etc.
- Bodily Injury: A client, visitor or bystander getting hurt due to your work activities.
- Defective Products: Lawsuits over an installed product that turns out defective.(Add-On)
- Completed Work: Lawsuits over issues from past completed jobs. (Add-On)
Liability Limits for Handymen: Most get $1 million per occurrence and $2 million in aggregate. It’s possible to get lower limits and save, but the typical cost of increasing coverage from $500,000 to $1 million is minimal and the higher limits increase defense capabilities, so most go with $1M / $2M limits.
Liability Premium for Handymen: Generally, 1% to 2% of your annual revenue. Our summarized quote data below shows how this average premiums from leading carriers changes by State. These average premiums are specific to the handyman industry.
Factors Affecting Your GL Insurance Premium:
- Revenue: Higher revenue means more work and potential claims
- Policy Limits: Higher limits means more risk and higher premiums
- Claims History: Clean record means lower premiums
- Location: State regulations and cost of claims impacts premiums
- Services Offered: Different handyman services entail various risks, each impacting premiums in unique ways. Understanding these risks is important for accurately determining coverage costs.
- Class Codes: Class 91344 covers basic residential and commercial repair work under $2,500, including limited electrical, exterior, and below-grade work, but excludes major remodeling, specialized systems, environmental remediation, and standalone installations. If this doesn’t sound like you, please check out our other guides covering the majority of your work.
Handyman Liability Quotes Analysis
Our comprehensive analysis of over 850 general liability insurance quotes for handyman businesses reveals significant pricing variations across carriers and business profiles. This data represents quotes from major insurance providers for handymen operating across various states and specialties. The following breakdown reflects typical general liability premiums based on these key business characteristics:
- $150K Revenue: Single-operator handyman business with minimal subcontracting (under 5%), established for 3+ years with clean claims history
- $500K Revenue: Owner plus 2-4 employees, approximately 15% subcontracted work, established business with 5+ years experience
- $1M Revenue: Owner with 6-8 employees, roughly 20% subcontracted work, established operation with proven safety protocols
The cost of handyman liability insurance typically ranges from 1.2% to 3.5% of annual gross revenue, reflecting the diverse risk exposures inherent in multi-trade work. Our research indicates that handymen who actively compare quotes can reduce their premiums by 32% to 40% below market averages, translating to thousands in annual savings.
Small handyman operations earning $150,000 annually face average premiums of $3,330, though competitive shopping can reduce this to $2,010—a substantial 40% reduction. As handyman businesses expand their service offerings and revenue, insurance costs rise proportionally, with mid-tier operations at $500,000 revenue averaging $9,090 in annual premiums. Established handyman companies generating $1 million in revenue typically pay around $19,080 for general liability coverage, though favorable rates can lower this to $12,490.
| Revenue Level | National Average | Favorable Rate | Potential Savings | Low % of Revenue | High % of Revenue |
| $150,000 | $3,330 | $2,010 | 40% | 1.5% | 3.5% |
| $500,000 | $9,090 | $6,200 | 32% | 1.2% | 2.8% |
| $1,000,000 | $19,080 | $12,490 | 35% | 1.2% | 3.0% |
State-by-State Quotes
Insurance premiums for handyman businesses vary dramatically from state to state, influenced by local regulations, claim frequencies, and market competition. We’ve compiled detailed handyman insurance cost data for all 50 states to help you benchmark your current rates and discover potential savings opportunities specific to your location. Whether you operate in high-cost states like New York or California, or more affordable markets in the Midwest, our handyman insurance cost guide shows exactly what you’ll pay in your state.
Workers’ Compensation Insurance for Handymen
Workers’ Compensation Insurance is essential for handyman businesses with employees, primarily to cover job-related injuries or illnesses. Handymen predominantly fall under code 5645, and the rates typically range from $5.72 to $16.73 for every $100 of payroll. This insurance provides vital benefits such as medical care, wage replacement, and rehabilitation services for employees who suffer from work-related injuries or illnesses. Additionally, it includes death benefits in cases of fatal workplace incidents. For handyman businesses, this insurance is not just a matter of compliance; it plays a key role in risk management, safeguarding the well-being of your employees and the financial stability of your business.
WC Policy Limits for Handymen: typically, workers’ comp offers unlimited benefits, although this can vary according to state regulations.
WC Premium Rates for Handymen: typically between $5.72 and $16.73 per $100 of payroll.
Factors Affecting Workers’ Comp Premiums for Handymen:
- Experience modifier: Premium multiplier tied to claims history and experience
- Payroll: Premium = (payroll/100) × rate × experience modifier
- Rates: Local laws and costs affect rates
If you’d like to learn more and try our calculator, check our guide on Workers’ Compensation Insurance for a Handyman Business.
Additional Insurance Handymen Should Consider
As your business grows, consider these supplemental coverage options:
Tools & Equipment Insurance (Inland Marine)
Protects tools and equipment in transit and on job sites. Annual cost: $200-$2,000. Coverage limits: $5,000-$15,000+ (per-item limit typically $5,000).
Contractor’s E&O Insurance
Covers claims of faulty repairs or negligent work, including defense costs. Annual cost: $300-$1,000. Limits: $100,000-$1M+.
Commercial Auto Insurance
Essential for work vehicles—personal policies exclude business use. Annual cost: $1,500-$3,050 per vehicle. Recommended limits: $500K-$1M.
Surety Bonds
Required for licensing in many areas. Bond amounts: $5,000-$25,000. Premium cost: 1-3% of bond amount based on credit:
| Bond Amount | Excellent Credit | Good Credit | Bad Credit |
| $5,000 | $100-$150 | $150-$200 | $200-$400 |
| $10,000 | $100-$300 | $300-$500 | $500-$1,000 |
| $15,000 | $150-$400 | $400-$750 | $750-$1,500 |
| $20,000 | $180-$500 | $500-$1,000 | $1,000-$2,000 |
| $25,000 | $200-$500 | $500-$1,200 | $1,200-$2,500 |
Commercial Property Insurance
Protects workshops, offices, and equipment from damage. Annual cost: $1,000-$5,000.
Business Owner’s Policy (BOP)
Bundles general liability and property coverage at lower cost than separate policies. Ideal for handymen with physical locations.
Commercial Umbrella Insurance
Adds $1M+ coverage beyond primary policy limits. Annual cost: $500-$1,000.
Employment Practices Liability
Protects against employee claims (discrimination, wrongful termination). Annual cost: $1,000-$5,000. Limits: $100,000-$1M.
Cyber Liability Insurance
Covers data breaches and cyberattacks. Important for businesses storing client data or using digital payments. Annual cost: $300-$1,000. Limits: $100K-$1M.
Get Instant Handyman Insurance Quotes with ContractorNerd
Ready to see if you’re overpaying for handyman insurance? ContractorNerd’s quote platform instantly reveals whether you’re getting competitive rates on your coverage. No required commitments, no aggressive sales tactics, no forced phone conversations. Just receive straightforward, competitive quotes from insurers who specialize in handyman businesses, giving you the power to make informed coverage choices.
Why handymen choose ContractorNerd:
✓ Complete Insurance Solutions in One Place – General liability, workers’ comp, commercial auto, tools & equipment coverage, and contractor’s E&O – handle it all through one streamlined platform. Eliminate juggling multiple agents and carriers.
✓ On-Demand Digital Certificates – Win bids instantly with immediate digital COI delivery. When property managers or homeowners request proof of insurance, send it directly from your phone. No delays, no chasing your agent, no lost jobs.
✓ Grow Faster, Win More Jobs – While competitors wait for insurance paperwork, you’re already submitting certificates and scheduling appointments. Our data shows handymen can save 32-40% on premiums—put those savings back into growing your business.
Join thousands of handymen who’ve discovered smarter insurance shopping. Get your tailored quotes in minutes.