For handymen and contractors in Hawaii, having the proper insurance coverage is crucial to protecting your business from the risks inherent in home repair, maintenance, installation, and small construction projects. Even routine handyman tasks carry hazards that can lead to substantial losses if something goes wrong. As a handyman operating in clients’ homes and properties in Hawaii, there is significant exposure that makes insurance vital.

This guide will provide an in-depth overview of typical insurance costs for handymen in Hawaii based on business size, highlight key factors that influence premiums, and illustrate estimated rates for essential policies like general liability, workers compensation, bonds, and more. Understanding potential insurance expenses will help handymen budget appropriately and secure adequate, affordable protection.

Hawaii handymen must have the right handyman insurance policies to operate legally in the state. This usually includes general liability protection for handymen to protect against third-party claims and workers’ compensation coverage for handymen to cover employee injuries on the job.

Key Factors Influencing Insurance Costs for Handymen in Hawaii

Insurance premiums for Hawaii handymen depend on several key factors:

Business Size – In terms of both revenue and number of employees, larger operations generally have higher insurance costs. More staff means greater exposure for workers comp claims. Higher revenues mean higher liability limits are needed to adequately cover potential losses from claims.

Services Performed – Doing more hazardous work like electrical, handyman, and roofing may result in somewhat higher premiums as these tasks involve elevated risks. General handyman services often have moderately lower premiums compared to those specialties.

Experience – The number of years in business a handyman has helps lower costs. Longer experience signals strong capabilities to operate safely and avoid claims. New businesses usually pay higher initial insurance rates.

Location – Handymen based in Hawaii’s urban Honolulu area may pay moderately higher premiums than those operating in rural Hawaii Island regions. Population density is a factor that influences costs.

Claims History – Past claims drive premiums upward. Handymen with clean histories generally see savings. This holds true across all policies – general liability, commercial auto, workers comp, etc.

State Regulations – Hawaii has stringent contractor licensing and insurance requirements. Complying with evolving state laws may increase oversight and push up premiums marginally.

Customer Mix – Handymen serving higher net worth residential clients may opt for higher liability limits, increasing general liability costs. But commercial clients often mandate lower limits.

Risk Management – Implementing robust safety protocols, equipment maintenance, customer screening, and other risk mitigation strategies can help lower premiums.

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

To provide handymen with an idea of typical insurance costs, here is an overview of estimated premium ranges based on business size. This uses a handyman company with 5+ years experience and no claims history as a baseline. Actual premiums vary based on unique risks. Use this as a reference point, and consult an insurance advisor to get quotes tailored to your specific business.

Small Handyman Business ($150K Revenues, 1 Owner, 1 Employee)

For a handyman company with $150,000 in annual revenues, one owner, and one part-time employee, here are typical premium costs in Hawaii:

General Liability

  • Typical Premium: $2,600
  • Low End: $1,700
  • High End: $3,200

General liability protects against third party bodily injury and property damage claims. Typical limits are $1 million per occurrence and $2 million aggregate. Premiums range from 1.5% to 2% of revenue. Experience, services, location, claims history, and other factors impact costs.

Workers Compensation

  • Typical Premium: $5,800
  • Low End: $4,700
  • High End: $10,200

Workers compensation covers medical expenses and lost wages for employees injured on the job. Hawaii’s class code 5645 has rates ranging from $7.52 to $14.54 per $100 of payroll. Payroll amount, experience modifier, and other variables affect premiums.

Surety Bonds

  • Typical Premium: $600
  • Low End: $200
  • High End: $1,000

Bonds act as a financial guarantee of fulfilling contractual obligations. Hawaii requires handymen carry a $25,000 contractor bond. Premiums range from 1% to 2% of bond amount based on credit.

Medium Handyman Business ($500K Revenues, 1 Owner, 3 Employees)

For a handyman company with $500,000 in annual revenues, one owner, and three employees, here are typical premium expenses in Hawaii:

General Liability

  • Typical Premium: $7,300
  • Low End: $4,100
  • High End: $10,600

At $500,000 in revenue, handymen in Hawaii typically spend around 1.5% on general liability insurance. Limits often increase to $2 million per occurrence for larger projects. Experience, location, and other variables move premiums within the range.

Workers Compensation

  • Typical Premium: $17,500
  • Low End: $13,100
  • High End: $28,900

With a larger payroll and more employees, workers compensation represents a significant cost. Safety protocols and employee risk mitigation practices can help control premiums.

Surety Bonds

  • Typical Premium: $600
  • Low End: $200
  • High End: $1,000

Larger handyman businesses may opt for bonds above Hawaii’s $25,000 minimum based on client contracts. The premium costs remain affordable relative to other coverages.

Large Handyman Business ($1M Revenues, 1 Owner, 5 Employees)

For a larger handyman company with $1,000,000 in annual revenues, one owner, and five employees, here are typical premium costs in Hawaii:

General Liability

  • Typical Premium: $15,400
  • Low End: $9,700
  • High End: $21,100

Approaching $1 million in revenue, Hawaii handyman businesses often spend around 1.5% to 2% on robust general liability policies. Limits can increase further to $3 million or more depending on client contracts.

Workers Compensation

  • Typical Premium: $29,200
  • Low End: $20,400
  • High End: $45,300

Safety training, protective equipment, and well-defined procedures help control workers compensation costs for larger handyman businesses. Stressing risk management practices mitigates claims.

Surety Bonds

  • Typical Premium: $600
  • Low End: $200
  • High End: $1,000

Bonding still represents a small fraction of total insurance costs at this business size. Maintaining compliance with Hawaii’s regulations remains important.

Overview of Additional Insurance Coverages and Premiums

Beyond the core general liability, workers compensation, and surety bond policies, here is an overview of other common insurance coverages and typical premium ranges for handymen in Hawaii:

Commercial Auto Insurance

  • $1,500 to $3,050 per vehicle

Covers liability and damage to vehicles used for business purposes. More vehicles and poor driving records increase costs.

Inland Marine (Tools & Equipment)

  • $650 to $2,000 per year

Protects tools and equipment when on job sites or in transit. Higher value tools and frequent off-site work raise premiums.

Commercial Property Insurance

  • $1,000 to $5,000 per year

Covers business properties like workshops, warehouses, and offices against damage risks like fire, theft, and storms. The physical building characteristics and location influence premiums.

Employment Practices Liability

  • $1,000 to $5,000 per year

Protects against employment-related lawsuits alleging discrimination, harassment, wrongful termination, etc. More personnel increase risks.

Cyber Liability Insurance

  • $300 to $1,000 per year

Covers data breaches, hacking, electronic theft and other digital risks. More consumer data raises costs.

Umbrella Liability Insurance

  • $500 to $1,000 for $1 million in additional coverage

Provides extra liability limits above other policies. Larger businesses tend to opt for more umbrella coverage.

Getting Multiple Quotes and Securing the Right Insurance

It’s important to work with an insurance broker specializing in contractors when looking to insure your handyman business. They have access to top carriers and can get multiple quotes to find tailored coverage at competitive pricing.

An expert considers your unique risks beyond just revenue and employees. They match your business with the right blend of coverage, limits and deductibles. With an experienced broker, handymen can secure adequate insurance aligned with their budget and risks.


Understanding potential insurance costs based on business characteristics helps Hawaii handymen plan appropriately. Use this guide as a reference point when budgeting for essential policies like general liability and workers compensation. With proper insurance, Hawaii contractors gain peace of mind knowing they are protected against the many hazards in their line of work. Evaluate risks annually and work with a specialist to optimize your insurance program.