Handyman insurance is essential, yet many are confused about handyman business insurance and struggle to find the right coverage at fair rates. That ends here.
At ContractorNerd, we make handyman liability and business insurance tailored, easy, and data-driven. 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, what you should pay, and how to get the best quotes. 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. If you do jobs that are greater 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 Insurance Cost – ContractorNerd’s Quotes Study
We crunched the numbers with over 850 General Liability insurance quotes from leading carriers for carpenters across different states and business sizes. While precise rates are highly individualized, average annual premiums for carpenters typically range from:
- Small Handyman ($150K Revenue, 1 employee) – $200 to $3,00
- Medium Handyman Business ($500K Revenue, 3 employees) – $5,500 to $8,200
- Large Handyman Business ($1M Revenue, 5 employees) – $10,800 to $17,000
New handyman ventures starting without history may pay 25%+ more initially, as insurers need time to evaluate the risk. After successfully operating for several years without incidents, premiums often decrease, reflecting a more favorable risk assessment.
Below is a table summarizing typical general liability insurance premiums for handymen based on a sample of states. Each scenario assumes the following for each revenue size:
- $150K Revenue: Assumes 1 owner with ~10% subcontracting costs and 5+ years of operating without claims.
- $500K Revenue: Assumes 1 owner and 3 employees with ~10% subcontracting costs and 5+ years of operating without claims.
- $1M Revenue: Assumes 1 owner and 5 employees with ~10% subcontracting costs and 5+ years of operating without claims.
| State | $150K Revenue | $500K Revenue | $1M Revenue | |||
| Avg. Premiums | % of Revenue | Avg. Premiums | % of Revenue | Avg. Premiums | % of Revenue | |
| California | $4,300 | 2.9% | $8,790 | 1.8% | $18,700 | 1.9% |
| Texas | $2,840 | 1.9% | $7,780 | 1.6% | $15,890 | 1.6% |
| Florida | $3,430 | 2.3% | $8,720 | 1.7% | $18,190 | 1.8% |
| Massachusetts | $3,250 | 2.2% | $8,960 | 1.8% | $18,410 | 1.8% |
| Pennsylvania | $6,420 | 4.3% | $16,600 | 3.3% | $36,180 | 3.6% |
| Illinois | $5,680 | 3.8% | $15,000 | 3.0% | $30,570 | 3.1% |
| Ohio | $2,400 | 1.6% | $7,250 | 1.5% | $14,440 | 1.4% |
| Georgia | $2,490 | 1.7% | $6,870 | 1.4% | $14,260 | 1.4% |
| North Carolina | $2,090 | 1.4% | $5,590 | 1.1% | $11,520 | 1.2% |
| Michigan | $2,840 | 1.9% | $7,320 | 1.5% | $14,830 | 1.5% |
To make this even more helpful, we’ve written state-specific guides for all 50 states. These resources are designed to give handymen a tailored understanding for handyman liability and business insurance in your state.
Take a look at the different kinds of handymen that should carry insurance.
Potential Savings on Handyman General Liability Insurance
Partnering with an independent insurance agent who focuses on Handyman Liability can lead to significant discounts and improved coverage options. Here are actual savings achieved by handymen at different revenue levels – identical operations, different insurance carriers. If you’re paying premiums closer to the averages we showed above, we recommend you get quotes to potentially secure equivalent or enhanced coverage at a better rate.
| State | $150K Revenue | $500K Revenue | $1M Revenue | |||
| Favorable Rate | Potential Savings | Favorable Rate | Potential Savings | Favorable Rate | Potential Savings | |
| California | $2,240 | 48% | $6,150 | 30% | $13,600 | 27% |
| Texas | $2,110 | 26% | $5,110 | 34% | $10,710 | 33% |
| Florida | $2,590 | 25% | $5,250 | 40% | $11,240 | 38% |
| Massachusetts | $1,390 | 57% | $4,380 | 51% | $7,960 | 57% |
| Pennsylvania | $3,370 | 48% | $10,460 | 37% | $22,960 | 37% |
| Illinois | $2,480 | 56% | $8,190 | 45% | $14,860 | 51% |
| Ohio | $1,670 | 30% | $5,800 | 20% | $10,440 | 28% |
| Georgia | $1,340 | 46% | $3,850 | 44% | $8,800 | 38% |
| North Carolina | $880 | 58% | $2,700 | 52% | $5,630 | 51% |
| Michigan | $1,890 | 33% | $6,040 | 17% | $11,030 | 26% |
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
- State: Local laws and costs affect rates
Most and least expensive states for Handyman Workers Compensation Insurance:
| State | Premium per $100K Payroll |
| Georgia | $28,470 |
| Illinois | $19,230 |
| Louisiana | $17,760 |
| Connecticut | $17,170 |
| New Jersey | $17,090 |
| State | Premium per $100K Payroll |
| North Dakota | $3,510 |
| Wyoming | $4,310 |
| Texas | $4,390 |
| Ohio | $4,590 |
| Indiana | $5,560 |
Additional Insurance Handymen Should Consider
Beyond the essential policies detailed above, here are additional insurance types handymen may need as their business grows:
Tools & Equipment Insurance (Inland Marine)
Inland Marine Insurance safeguards your tools and equipment both in transit and at job sites from loss, theft, or damage. Annual premiums range from $200-$2,000, with policy limits of $5,000-$15,000+. Most policies have per-item limits (typically $5,000).
Contractor’s E&O Insurance
Protects against claims of faulty repairs or negligent work. Covers costs if clients claim inadequate repairs, improper installations, or substandard service. Includes defense costs and settlements. Annual premiums range from $300-$1,000, with policy limits of $100,000-$1M+.
Commercial Auto Insurance for Handymen
Covers work vehicles and liability from accidents during business operations. Personal auto policies won’t cover business use. Premiums range from $1,500-$3,050 per vehicle annually. Standard limits are $100K per person, $300K per accident, and $100K property damage, with higher limits ($500K-$1M) recommended for better protection.
Bonds for Handymen
Surety bonds guarantee work quality and meet licensing requirements. Typical bond amounts range $5,000-$25,000, with handymen paying 1-3% as premium. Premium costs vary by credit score:
| 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 for Handymen
Protects your business property and contents (tools, equipment, inventory) against fire, theft, vandalism, and weather damage. Essential for handymen with workshops, storage facilities, or offices. Annual premiums range $1,000-$5,000, based on property value, location risks (disasters, crime), and building type.
Business Owner’s Policy (BOP) for Handymen
Combines general liability and commercial property insurance. Ideal for handymen with physical locations, covering customer injuries, property damage, business assets, and business interruption. Usually offers lower premiums than separate policies but less customization. Premiums vary based on business size, location, claims history, and added coverages.
Commercial Umbrella Insurance for Handymen
Provides extra liability protection beyond your standard policies’ limits. Kicks in when a major claim exceeds your primary policy limits, offering additional financial security. Typically adds $1M coverage (up to $2M+ available). Annual premiums: $500-$1,000.
Employment Practices Liability Insurance for Handymen
Covers employee claims of discrimination, harassment, wrongful termination, and other workplace issues. Annual premiums: $1,000-$5,000. Policy limits: $100,000-$1M.
Cyber Liability Insurance for Handymen
Protects against data breaches and cyberattacks, covering investigation, customer notification, credit monitoring, PR, and legal costs. Increasingly important for handymen who store client information or use digital payment systems. Policy limits: $100K-$1M. Annual premiums: $300-$1,000.
Why Choose ContractorNerd for Your Handyman Business Insurance?
ContractorNerd connects handymen with specialized insurance experts who understand your unique business risks. Our network of leading carriers helps you find comprehensive, cost-effective coverage that meets state requirements. We’ve simplified the quote process and offer flexible payment options to fit your budget.
Our analysis shows potential savings of 20-50% on liability premiums through our network, with customized solutions based on your business size:
- Small ($150K Revenue): 30-50% savings
- Mid ($500K Revenue): 25-40% savings
- Large ($1M+ Revenue): 20-35% savings
Get quotes today to see how much you could save while ensuring your handyman business is properly protected.