For handymen and contractors in Iowa, having proper insurance coverage is crucial to protecting your business from the inherent risks of maintenance, repair, 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 businesses, mishaps and accidents can easily occur.

Carrying adequate insurance provides a safety net so your business can survive unforeseen mishaps. The right policies shield you from potentially company-ending risks. This comprehensive overview explores insurance costs for handymen in Iowa based on business size and common policies.

We’ll examine typical premium ranges, key factors impacting costs, illustrate sample insurance expenses for small to large handyman operations, and overview major coverages to consider. Use this as a guide when evaluating policies and securing protection tailored to your business’s unique needs and evolving risks.

Handymen working in Iowa need to have the right handyman insurance policies in place. This usually includes general liability insurance for handymen to protect against third-party claims and workers’ compensation for handymen to cover employee injuries on the job.

Key Factors Influencing Insurance Costs for Handymen in Iowa

Insurance premiums for Iowa handymen depend on several key factors:

  • Years in Business – Being longer established often leads to lower premiums because it shows a track record of safe operations and avoiding claims. New businesses frequently have higher initial insurance rates.

  • Revenue – More annual revenue equates to a larger volume of work. This increased exposure raises the likelihood of claims and losses, resulting in higher premiums.

  • Number of Employees – More workers means greater exposure for workers compensation claims. It also increases risks of general liability incidents.

  • Services Performed – Certain specialized, high-risk services like electrical, handyman, and roofing may have elevated premiums compared to general handyman services.

  • Claims History – Past claims drive premiums upward, while a clean history keeps costs affordable. Frequent claims translate to higher insurance expenses.

  • Business Location – Being based in major Iowa metros like Des Moines or Cedar Rapids may mean slightly higher premiums than rural areas due to increased risks.

  • Safety Protocols – Strong safety processes like equipment maintenance and job site precautions can lower premiums by reducing risks.

  • Client Type – Working extensively with commercial clients may increase premiums versus serving mostly homeowners.

  • Policy Limits – Higher liability limits or coverage amounts lead to higher premiums but more protection.

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

Below we illustrate typical insurance costs for small, medium, and large handyman businesses in Iowa. Costs are based on companies with 5+ years experience, working mainly with homeowners on residential projects, and no recent claims. Actual premiums vary based on unique factors like services, safety record, and location. Use these examples as a reference point for evaluating policies and coverage for your handyman operation.

With the help of an insurance expert, you can obtain quotes across multiple carriers and ultimately secure tailored coverage at competitive rates. Our goal is providing Iowa handymen affordable, quality protection.

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

General Liability

Typical Premium: $2,200

Low End: $1,900

High End: $3,300

For handyman businesses with approximately $150,000 in annual revenue and 1 employee, general liability insurance premiums often range from $1,900 to $3,300 in Iowa, with a typical cost of around $2,200. This covers third party bodily injury and property damage claims.

Workers Compensation

Typical Premium: $4,400

Low End: $3,500

High End: $7,700

Workers compensation premiums typically fall between $3,500 and $7,700 for Iowa handyman businesses of this size, with an average cost of about $4,400 per year. This compensates employees for workplace injuries.


Not required by the state of Iowa

Iowa does not have a statewide bonding requirement for handyman businesses. But certain local municipalities may have bond mandates handymen must comply with.

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

General Liability

Typical Premium: $6,600

Low End: $6,000

High End: $9,000

For handymen with approximately $500,000 in revenue and 3 employees, general liability insurance will commonly run from $6,000 to $9,000 annually, with an average premium around $6,600. Higher revenue and staff size lead to increased premiums.

Workers Compensation

Typical Premium: $13,200

Low End: $9,900

High End: $21,700

With 3 employees, workers compensation premiums often fall between $9,900 and $21,700 for this size Iowa handyman business, with typical costs around $13,200 per year. More employees substantially increase workers comp costs.


Not required by the state of Iowa

Bonding is not mandated by Iowa state law, but some local jurisdictions may impose bond requirements that handymen must comply with.

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

General Liability

Typical Premium: $13,400

Low End: $11,000

High End: $16,400

For larger handyman companies generating around $1 million in revenue and having about 5 employees, general liability premiums generally range from $11,000 to $16,400 annually, with typical costs of approximately $13,400 per year.

Workers Compensation

Typical Premium: $22,000

Low End: $15,400

High End: $34,000

With a staff of 5 and high revenue, workers compensation typically costs between $15,400 and $34,000 annually for Iowa handyman businesses of this scale, with average premiums of about $22,000 per year.


Not required by the state of Iowa

Iowa does not mandate bonding for handymen statewide, but local jurisdictions may impose their own requirements.

Overview of Additional Insurance Coverages and Typical Premiums

Beyond general liability and workers compensation, here are typical annual premium ranges for important supplemental handyman insurance policies:

Commercial Auto Insurance:

$1,500 to $3,000 per vehicle

Handymen relying on vehicles to transport tools and supplies need commercial auto insurance. Premiums normally range from $1,500 to $3,000 per vehicle annually in Iowa.

Inland Marine (Tools & Equipment):

$500 to $2,000+

Inland marine covers tools and equipment on the job site or in transit. For Iowa handymen, annual premiums commonly run $500 to $2,000 or more depending on value insured.

Commercial Property Insurance:

$1,000 to $5,000+

If operating any workshops or offices, commercial property insurance is vital and usually costs $1,000 to $5,000 or more per year in Iowa.

Employment Practices Liability:

$1,000 to $5,000+

EPLI protects against employment lawsuits and costs approximately $1,000 to $5,000+ annually for small to mid-sized Iowa handyman businesses.

Cyber Liability Insurance:

$300 to $1,000+

Cyber insurance covers data breaches and hacks, typically running $300 to $1,000 or more per year for handymen.

Umbrella Liability Insurance:

$500 to $1,000+ per $1 million in additional coverage

Umbrella provides extra liability limits above your other policies, usually for around $500 to $1,000+ per $1 million in added protection.

Getting Multiple Quotes and Securing the Right Insurance

Working with an insurance broker who specializes in handymen and contractors is highly recommended. They have access to top insurance carriers and can get quotes from multiple companies to find the optimal combination of desired coverage at competitive rates.

An expert broker understands the unique risks handymen face and can build an insurance portfolio specifically protecting your business. They handle shopping policies so you can focus on operating your business smoothly.

Key benefits of using a specialty handyman insurance agent include:

  • Access to leading insurance carriers familiar with contractor risks
  • Ability to obtain multiple quotes for comparison
  • Packaging various policies together often results in a multi-policy discount
  • Ensuring proper coverage as your business and risks evolve
  • Less time spent handling insurance administration
  • Experienced advocate on your side for claims support

Partnering with the right broker who knows the handyman trade can make securing coverage much simpler for your Iowa business.


Proper insurance is crucial for handymen in Iowa seeking to safeguard their business. Use this guide as a starting point when evaluating policies with the help of a specialist. They can secure tailored solutions guarding against the pitfalls inherent in your services. With the right protection, you can run your handyman operation confidently.