Running a successful handyman or contracting business in Delaware requires more than just quality workmanship and satisfied customers. Protecting your company and personnel from the inherent risks in construction and repair work is also essential. From property damage to liability claims, accidents and mishaps can happen even when taking precautions. Having proper insurance provides a financial safety net in case the unexpected occurs.

This comprehensive guide examines typical insurance costs for handymen in Delaware based on business size, revenues, and other characteristics. We’ll explore average premium ranges for policies like general liability, workers compensation, commercial auto, and more while outlining what factors impact your costs. Read on for insights you can apply when shopping insurance and evaluating quotes specific to your handyman operation.

Delaware handymen must have the proper insurance protection for handymen to operate legally in the state. This typically includes liability protection for handymen to safeguard against third-party claims and workers’ comp coverage for handymen to cover employee injuries sustained while on the job.

Key Factors Influencing Insurance Costs for Handymen in Delaware

As a handyman in Delaware, your insurance premiums are shaped by these key factors:

Business Size – Larger businesses with more employees, higher payrolls, and increased revenues need to insure greater exposures. More revenue means you’re taking on bigger ticket client projects. Additional staff equals extra risk exposure on job sites and driving. This scales up insurance coverage needs and premium costs.

Years in Business – New handyman businesses often pay higher initial rates until establishing a track record of safe operations over time. Firms with 5+ years experience who have built up a claims-free history benefit from significant long-term savings. Insurance partners reward experience and safe practices.

Location – Handymen operating in Delaware’s urban areas like Wilmington, Dover, and Newark may have slightly elevated premiums compared to rural Kent or Sussex County. More densely populated zones see increased claims frequency impacting area pricing.

Services Performed – General handyman services like drywall, tile, and cabinetry may cost less to insure than electrical, handyman, and roofing which carry greater property damage and liability risks. High-risk trades increase premiums compared to more modest handyman work.

Claims History – Your past losses directly impact pricing. Too many claims can drastically increase your costs or even threaten insurability if underwriters feel your operation is too risky. Maintaining a clean claims record keeps premiums affordable long-term.

Insurance Limits – Higher liability coverage amounts provide greater protection for your business but also increase premium costs. Boosting limits an extra $500k could raise pricing 20% or more. Balance adequate coverage with reasonable premiums.

Deductibles – Choosing higher deductibles reduces premiums but increases your out-of-pocket costs in the event of a claim. Weigh risk tolerance and cash flow when selecting deductibles. Just $500 more can save 10% or more upfront.

Client Type – Handymen dealing mostly with residential clients may benefit from lower premiums versus working extensively for commercial accounts that represent larger loss potential.

Safety Protocols – Documented safety processes like hazard material handling, equipment maintenance, job site security, driver training and accident investigation make you more insurable by demonstrating a focus on risk management. This can directly lower premiums.

Association Memberships – Joining trade groups like the National Home Improvement Association opens access to discounted group insurance programs only available to members. Take advantage of these savings opportunities.

Overview of Cost Illustration for Small, Medium, and Large Handyman Businesses in Delaware

To provide a helpful benchmark, below we show typical, low-end, and high-end premium ranges for small, medium, and large Delaware handyman businesses. This illustrates how insurance costs scale in relation to size and revenue.

These sample businesses all have 5+ years experience with clean claims histories, operating predominantly on residential projects. However, all handymen can reference these ranges when evaluating quotes to gain perspective on competitive pricing specific to their unique operation.

Small Handyman Business Premium Ranges

Typical Premiums

General Liability – $4,800
Workers Comp – $4,100

Low-End Premiums

General Liability – $2,000
Workers Comp – $3,300

High-End Premiums

General Liability – $6,600
Workers Comp – $7,200

Medium Handyman Business Premium Ranges

Typical Premiums

General Liability – $11,500
Workers Comp – $12,300

Low-End Premiums

General Liability – $6,500
Workers Comp – $9,200

High-End Premiums

General Liability – $14,300
Workers Comp – $20,300

Large Handyman Business Premium Ranges

Typical Premiums

General Liability – $24,400
Workers Comp – $20,500

Low-End Premiums

General Liability – $12,000
Workers Comp – $14,300

High-End Premiums

General Liability – $33,800
Workers Comp – $31,700

Detailed Review of Core Insurance Coverages for Delaware Handymen

Now let’s take a deeper look at recommended minimum coverages and pricing factors for the core policies handymen need.

General Liability Insurance

This coverage protects your business from third party property damage and bodily injury claims resulting from your work. It covers both active negligence and passive negligence. General liability is mandatory for handyman businesses in Delaware.

Typical policy limits: $1 million per occurrence / $2 million aggregate

Insurance experts suggest minimum $1M per occurrence limits. This provides substantially better coverage than lower limits like $500k at a minimal incremental cost.

Average Costs:

Premiums for handymen often range from 0.5% – 2% of revenue depending on risk factors. With $1M coverages, a handyman with $150k revenue may average around $4,800 annually. For $500k revenue, premiums may average approximately $11,500. And $1M in revenue could average around $24,400.

Factors impacting general liability insurance costs include:

  • Location – Urban zones cost more than rural areas
  • Services – Riskier trades like electrical increase premiums
  • Experience – New businesses pay more than well-established ones
  • Claims history – Too many claims drive up pricing
  • Limits – Higher coverages mean higher premiums

Workers Compensation

This mandatory coverage pays for employee medical care, lost wages and rehabilitation for job-related injuries and illnesses. Delaware requires all handyman businesses with even one employee to carry workers comp.

Typical policy limits: Statutory state limits

Workers comp policies are unlimited in Delaware. But required benefits and processes differ from other states.

Average Costs:

Premium calculations involve your gross payroll, class codes, and an experience modifier based on claims history. Handyman class code 5645 has an average rate of $9.06 per $100 of payroll in Delaware. Typical costs for $100k of payroll run around $9,060 annually.

Factors impacting workers comp costs include:

  • Payroll amount – More payroll increases premiums
  • Class codes – Riskier work equals higher premiums
  • Experience modifier – More claims drive this up, increasing costs
  • State rules – Each state regulates policies differently

Surety Bonds

Though not mandated for handymen in Delaware, clients may still require bonding to ensure your work. Typical amounts range from $5,000 – $25,000. The one-time bond premium may cost 1%-3% of the total bond amount based on your credit score.

Summary of Additional Handyman Insurance Coverages

Beyond general liability and workers compensation, Delaware handymen need supplemental insurance policies:

Commercial Auto Insurance – Covers vehicles used for business purposes. Protects against collisions and liability claims. Average premiums range from $1,500 – $3,000 per vehicle.

Inland Marine (Equipment Coverage) – Safeguards tools and equipment when on job sites and in transit. Average premiums range from $650 – $2,000 annually.

Commercial Property Insurance – Protects your business’ office, storage shed, workshop, and contents from theft, fire, vandalism and other causes of loss. Average premiums range from $1,000 – $5,000 annually.

Employment Practices Liability – Defends against employment-related lawsuits around discrimination, harassment, wrongful termination, etc. Average premiums range from $1,000 – $5,000 depending on staff size.

Cyber Liability – Covers costs related to data breaches, hacking and electronic theft. Average premiums range from $300 – $1,000 annually.

Umbrella Liability – Provides additional liability limits above other policies. Useful as your business grows. Average premiums range from $500 – $1,000 for $1 million in additional coverage.

Optimizing Insurance Costs for Handymen in Delaware

While insurance is compulsory for Delaware handyman businesses, there are ways to control costs and secure coverage tailored to your company’s risk profile and budget:

Compare Quotes – Always get at least 3 quotes from competing carriers to leverage bargaining power and find the best rate. Rates can vary significantly for the same coverage.

Meet Deductibles – Volunteering for higher deductibles reduces premiums. Just $500 more can save 10% or more upfront. Evaluate cash flow tolerance.

Maintain Safety – Documented safety processes show insurers you are committed to risk management and incentivize savings.

Review Limits Yearly – Adjust liability limits down or up as your business evolves to avoid overpaying. Right-size based on project values.

Ask About Discounts – Take advantage of all available savings like multi-policy discounts. Discounts make a meaningful difference.

Join Associations – Membership in trade groups often unlocks discounted group insurance rates exclusive for members.

Compare Loss Ratios – Insurers with loss ratios below 60% spend less on claims versus premiums collected, leaving room for lower pricing.

Work With Specialists – Independent agents with handyman expertise access niche insurance markets and tailor optimal packages. This ensures you get the most appropriate coverages at the best rates.


Adequately insuring your Delaware handyman or contracting business is imperative, but affordable coverage is attainable with the right insurance advisor guiding you. Use this detailed guide as a helpful reference point when evaluating your specific insurance needs and comparing options. The experts at HandymanInsure simplify securing tailored protection so you can focus on your clients and growing your business. Contact us today to discuss protecting the future of your handyman company!