Having the proper insurance coverage in place is an absolute necessity for Colorado handymen and contractors seeking to protect their business against the inherent risks involved in home repair, maintenance, installation projects, and small-scale construction jobs. Even seemingly simple handyman tasks carry hazards that can quickly lead to substantial financial losses if something goes wrong. A slipped tool can cause costly damage to a customer’s property. An errant hammer strike can shatter a window. A minor fall from a short ladder can still cause injuries requiring medical treatment and lost work time.

As a handyman operating inside your clients’ homes and businesses, accidents and mishaps can easily transpire. There are countless ways a routine handyman job can go awry due to unforeseen circumstances. And while you aim to deliver quality work and prevent problems, things do not always go precisely according to plan. There may be defects in your workmanship, unintended damage from installing a fixture, errors in your project plans, or any range of potential issues. All these scenarios demonstrate the clear need for Colorado handymen to carry proper insurance.

Suitable insurance coverage provides an indispensable safety net so your enterprise can survive unanticipated setbacks. The right insurance policies supply a buffer against company-ending financial risks that could otherwise put you out of business entirely after just one significant claim. This comprehensive guide will explore the key factors that influence insurance costs for handymen in Colorado, provide illustrative premium ranges for small, medium, and large handyman businesses based on their individual characteristics, outline typical costs for essential policies beyond general liability and workers’ compensation, and offer guidance on getting multiple quotes to secure optimal coverage.

Handymen working in Colorado need to have the appropriate insurance for handymen in place. This typically includes liability insurance for handymen to safeguard against third-party claims and workers’ comp for handymen to cover employee injuries sustained while working.

Key Factors Influencing Insurance Costs for Colorado Handymen

Insurance premiums for handyman businesses in Colorado depend upon several important factors:

Revenue Size: Handyman businesses generating higher total annual revenues naturally have greater overall risk exposures. More revenue means taking on a larger volume of handyman projects each year. This increased workload raises the chances that something could go wrong and result in an insurance claim. Therefore, as a general rule of thumb, handymen with greater annual revenues will require elevated insurance policy limits and will pay higher overall premiums.

Number of Employees: The more employees a handyman business has on staff, the higher the workers’ compensation insurance premiums. Workers’ compensation policies compensation payouts directly correlate to payroll size. Moreover, having more employees naturally increases the risk that one or more could become injured on the job and file a workers’ comp claim. Hence, handymen with larger workforces typically see much higher workers’ comp premiums.

Services Performed: Colorado handymen who focus more on specialized trade services with greater inherent hazards like electrical work, handyman, HVAC, and roofing repairs may pay higher premiums than general handyman businesses doing more routine tasks like drywall, tile, carpentry, painting, etc. Insurance carriers view the skilled trades as riskier than general handyman work.

Claims History: If a handyman business has a history of frequent insurance claims being filed for property damages or bodily injuries over the past 5 years, this will drive their premiums upward. In contrast, handymen with minimal or no claims on record can usually secure more affordable coverage.

Business Location: Handymen operating in urban regions of Colorado like Denver, Boulder, and Fort Collins will generally pay higher premiums than those in more rural areas. Cities have greater population density, more valuable real estate, higher crime rates, and other factors elevating risks.

Safety Protocols: Handymen who proactively implement strong, documented safety protocols around customer screening, employee training, equipment maintenance, workplace injury prevention, and hazard communication may be able to negotiate slightly lower premiums by demonstrating a focus on risk management.

Customer Base: Handymen who serve mostly residential homeowners typically have lower risks and insurance costs than those doing extensive work for commercial clients. Commercial projects tend to be larger in scale and have higher chances of accidents.

Business Tenure: Colorado handyman businesses with longer tenure and more years of experience often benefit from lower insurance premiums than new market entrants. Insurers reward experienced handymen with discounted premiums reflecting lower anticipated risks.

Overview of Insurance Cost Ranges for Colorado Handymen

Below we provide typical, low-end, and high-end illustrative premium ranges for small, medium, and large Colorado handyman businesses based on their revenue size, staff count, and core insurance policies like general liability and workers’ compensation.

These premium ranges are not meant to represent precise quotes, but rather provide approximate benchmark cost levels across differently sized handyman operations to offer helpful context on relative costs and how they typically scale in relation to business characteristics.

Actual insurance premiums for any individual handyman business can vary based on their unique risk attributes, chosen policy limits, risk control measures, and insurer underwriting criteria. We strongly recommend soliciting personalized quotes from multiple insurance providers to find the optimal balance of desired coverage at a competitive rate tailored to your company’s specifics.

Small Handyman Business Insurance Costs

$150K Annual Revenue, 1 Owner, 1 Employee

– Typical Premium Ranges:

General Liability: $3,300

Workers’ Compensation: $2,700

– Low-End Premium Ranges:

General Liability: $1,600

Workers’ Compensation: $2,200

– High-End Premium Ranges:

General Liability: $4,400

Workers’ Compensation: $4,800

For context, a Colorado handyman business earning approximately $150,000 in annual revenue and employing 1 worker beyond the owner would typically expect to spend between $3,300 and $4,400 for general liability coverage at recommended $1 million per occurrence limits and between $2,200 and $4,800 for workers’ compensation insurance depending on employee risk classification and other factors.

With proactive safety protocols and claims prevention measures, premiums at the lower ends of these ranges are achievable. Newer handyman businesses may fall at the higher ends until they build experience.

Medium Handyman Business Insurance Costs

$500K Annual Revenue, 1 Owner, 3 Employees

– Typical Premium Ranges:

General Liability: $8,100

Workers’ Compensation: $8,100

– Low-End Premium Ranges:

General Liability: $5,300

Workers’ Compensation: $6,100

– High-End Premium Ranges:

General Liability: $10,600

Workers’ Compensation: $13,400

Looking at a mid-sized Colorado handyman company with approximately $500K in annual revenue and a workforce of 1 owner plus 3 employees, typical premiums often fall between $8,100 and $10,600 for general liability and $6,100 to $13,400 for workers’ compensation depending on risk factors like employee classifications and claims history.

Those proactive with safety and claims prevention can potentially secure premiums toward the low ends of these ranges when partnering with the right insurance provider.

Large Handyman Business Insurance Costs

$1M Annual Revenue, 1 Owner, 5 Employees

– Typical Premium Ranges:

General Liability: $16,500

Workers’ Compensation: $13,600

– Low-End Premium Ranges:

General Liability: $9,500

Workers’ Compensation: $9,500

– High-End Premium Ranges:

General Liability: $24,300

Workers’ Compensation: $21,100

For a larger handyman company generating approximately $1 million in annual revenue and employing a team of 5 workers in addition to the owner, general liability premiums commonly fall in the range of $16,500 on average. Workers’ compensation will typically cost between $13,600 and $21,100 depending on payroll size, employee classifications, and other risk factors.

Proactive risk management and a clean claims history can potentially drop costs toward the low ends of these ranges. Less experience may push costs toward the high ends.

Overview of Additional Handyman Insurance Coverages

Beyond core general liability and workers’ compensation policies, expanding handyman businesses need to consider other supplemental insurance coverages. Here is an overview of typical annual premium ranges for other common handyman insurance policies:

Commercial Auto Insurance: $1,500 – $3,000 per vehicle

Pickup trucks, cargo vans, and other vehicles used to transport tools, materials, or workers to job sites should be protected with commercial auto coverage in case of accidents, theft, or damage. Expect premiums between approximately $1,500 and $3,000 per year per vehicle depending on factors like vehicle type, driver records, and coverage limits.

Inland Marine Insurance for Tools & Equipment: $650 – $2,000+

Inland marine policies cover expensive tools and equipment if they become lost, stolen or suffer damage either in transit or while at a client’s job site. Handymen often have thousands of dollars invested in gear vital to earning their livelihood. Premiums typically run $650 to $2,000 or more annually for adequate coverage depending on value insured and geographic risk.

Commercial Property Insurance: $1,000 – $5,000+

If operating out of any office, warehouse, or shop premises, commercial property insurance is a must to cover the physical building, contents like furnishings and inventory, and business interruptions from disasters. Expect around $1,000 to $5,000 or more per year based on factors like location, building construction, and value of contents.

Employment Practices Liability Insurance: $1,000 – $5,000+

EPLI provides protection against employment-related lawsuits alleging discrimination, harassment, wrongful termination, or other employee claims. For small to mid-sized handyman businesses, annual premiums typically run $1,000 to $5,000 or more depending on staff size, revenue, and claims history. Larger operations may pay over $10,000 annually.

Cyber Liability Insurance: $300 – $1,000+

Cyber liability insurance covers data breaches involving client information like addresses, emails, and payment details if your systems are hacked. Expect premiums ranging from around $300 up to $1,000 or more per year depending on revenue size and cyber security controls.

Commercial Umbrella Liability Insurance: $500 – $1,000+ for $1M in Extra Coverage

Umbrella insurance provides additional liability limits above policies like general liability and auto liability if their limits are exhausted. For about $500 to $1,000 annually, handymen can typically get up to $1 million in supplemental coverage. Higher revenues may warrant higher limits.

Actual costs for any of these coverages can vary substantially based on the insured’s unique risk attributes and policy limits selected. An experienced insurance broker serving handymen can guide you in structuring a well-rounded insurance portfolio matching your particular business needs and budget.

Getting Multiple Quotes For the Right Insurance

It’s highly advisable for handymen to consult with multiple insurance agencies, brokers, and carriers when seeking coverage. This allows comparison of available insurance products, policy terms, service capabilities, and pricing across various providers.

Taking time to gather multiple quotes better positions handymen to ultimately secure optimal protection at the most competitive available rate tailored to their company’s distinct requirements.

An independent insurance agent or broker that specializes in serving handymen and contractors often provides the greatest value and insurance expertise. They fully grasp the nuances of the trades and have established access to niche insurance markets catering to handymen.

Reviewing options from several knowledgeable experts allows handymen to carefully craft an insurance program aligned with their particular risks and budget constraints. Never opt for a policy without scrutinizing competing quotes first.

Why Purchase Insurance Tailored for Handymen?

Insurance policies designed specifically to meet the needs of handyman professionals deliver significant advantages compared to standard “off-the-shelf” small business insurance packages. Here are compelling benefits of partnering with an insurance provider focused on the handyman trades:

Industry Expertise – They understand trade-specific risks like using hot tools for soldering and operating heavy machinery on client property. This enables precise coverage fine-tuned for the exposures handymen face.

Access to Specialty Markets – Through established trade-focused carrier relationships, they can access niche insurance products from providers specializing in the trades. This brings added value traditional insurers can’t match.

Risk Management Guidance – They provide proven tips and best practices tailored to boosting safety and preventing claims in the handyman trades, helping keep premiums affordable.

Policy Endorsements – They can incorporate customized add-ons like tool coverage and job site liability extensions to dial-in protection for clients’ needs.

Superior Trade-Focused Service – They aim to provide elevated service levels and risk insights specific to handyman enterprises compared to generalist providers.

In short, insurance specialists catering to handymen offer critically important knowledge and access you can’t find with standard insurers. This advantage makes them an ideal partner for securing insurance that truly fits.


Proper insurance coverage is absolutely vital for Colorado handymen seeking to secure their enterprise against the inherent risks that come along with residential repair, installation and construction projects. While insurance premiums rise in correlation with factors like annual revenue, number of employees, and claims history, paying for adequate insurance still proves exponentially less costly over the long-term than paying for damages and legal expenses entirely out of pocket after self-insuring.

We strongly encourage partnering with an experienced, trade-focused handyman insurance broker to secure tailored policies at competitive rates so you can avoid spending time worrying about risks and instead stay focused on running a thriving, sustainable handyman business serving your customers.

The ideal insurance advisor will take the time to thoroughly understand your company’s unique risk attributes and then work closely with top insurance carriers to build a customized insurance portfolio providing both robust protection and premiums aligned with your budget.

Investing in proper insurance with an experienced handyman insurance partner provides invaluable peace of mind and allows you to confidently keep advancing your business without the constant fear of unexpected perils derailing your success.