Operating a successful handyman or contracting business in Louisiana requires having the proper insurance coverage in place to protect against the many risks inherent with repair, maintenance, installation and small construction projects. The unique hazards and liabilities that handymen face on job sites each day means carrying adequate insurance is crucial for protecting your company, employees, clients, assets and reputation.

This comprehensive overview examines the key factors that influence insurance costs for Louisiana handymen and contractors, provides illustrative premium ranges for small, medium and large businesses based on revenue and number of employees, and gives guidance on working with the right insurance advisor to get tailored coverage at a competitive price.

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

Key Factors Influencing Insurance Costs for Handymen in Louisiana

There are several important variables that impact what Louisiana handymen and contractors pay for essential policies like general liability, workers’ compensation, inland marine, and surety bonds:

Years in Business – Newer contractors typically pay higher premiums. After 5+ years claims-free, costs start to decrease as you build credibility with carriers.

Revenue – More annual revenue means greater exposure for an insurer, larger projects, and more potential risk. Therefore, higher revenue businesses pay more in premiums for adequate liability limits.

Number of Employees – More employees increase risks like workers’ comp claims. Additional staff leads to higher premiums across multiple policies.

Services Performed – Specialized, high-risk services like electrical, handyman and roofing may have elevated premiums versus general handyman work.

Location – Insurance costs differ across Louisiana based on crime rates, litigiousness of the legal environment, and cost of living. Urban areas like New Orleans are generally more expensive than rural regions.

Claims History – Frequent past claims will drive up premiums. Maintaining a clean claims history helps keep costs affordable.

Client Type – Working mainly with large commercial clients may increase premiums versus mostly residential work. Commercial work is seen as higher risk.

Safety Record – Implementing and documenting strict safety protocols like staff training, equipment maintenance, and job site supervision helps demonstrate risk management. This can lower premiums.

Credit Score – Better business credit can positively impact premiums. Insurers view high credit scores as a sign of a well-managed business.

Industry Risk – Handyman services are generally considered low to moderate risk compared to sectors like roofing and electrical work which typically pay higher premiums.

Deductible Levels – Choosing higher deductibles lowers premiums but increases out-of-pocket costs if a claim is filed. Consider risk tolerance when selecting deductibles.

Overview of Cost Illustrations for Small, Medium and Large Handyman Businesses

Below we provide typical, low-end, and high-end illustrative insurance premiums for small, medium and large handyman businesses in Louisiana to use as an approximate reference point when evaluating policies and coverage for your own company.

These premium ranges reflect a business working predominantly with homeowners on residential properties with 5+ years of experience and no major recent claims. All handyman companies should compare their own unique premiums to these illustrations to gauge if they are securing competitive pricing from their insurance advisor and carrier for tailored coverage that adequately protects their business.

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

General Liability

Typical: $7,100 annually
Low End: $3,200 annually
High End: $9,200 annually

General liability protects against third party bodily injury and property damage claims. Typical limits are $1 million per occurrence and $2 million aggregate. Higher revenue businesses may need higher limits. Louisiana’s legal environment impacts general liability costs.

Workers’ Compensation

Typical: $6,600 annually
Low End: $5,300 annually
High End: $11,500 annually

Workers’ compensation insurance covers injuries employees sustain on the job. Louisiana’s rates are on the higher side compared to other states. Payroll amount and employee risk classification are major cost factors.

Surety Bonds

Typical: $300 annually
Low End: $100 annually
High End: $500 annually

Surety bonds act as a guarantee that work will be completed satisfactorily. Louisiana requires a $25,000 commercial contractor bond to operate legally. Higher bond amounts increase the premium.

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

General Liability

Typical: $17,400 annually
Low End: $9,800 annually
High End: $27,200 annually

At $500K in revenue, this business likely needs $500K – $1 million liability limits. Higher limits mean increased premiums. A medium business has greater risk exposures.

Workers’ Compensation

Typical: $19,800 annually
Low End: $14,800 annually
High End: $32,600 annually

With 3 employees, workers’ comp costs increase significantly. Office staff have lower rates than field employees performing manual labor. Rates also rise with payroll.

Surety Bonds

Typical: $300 annually
Low End: $100 annually
High End: $500 annually

With more employees, some clients may prefer higher bond amounts above $25K for greater financial recourse. This increases the bond premium.

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

General Liability

Typical: $47,000 annually
Low End: $21,400 annually
High End: $75,400 annually

Approaching $1M in revenue likely requires liability limits above $1 million. Higher revenues warrant higher premiums to adequately protect the business.

Workers’ Compensation

Typical: $33,000 annually
Low End: $23,100 annually
High End: $51,100 annually

5 employees amplifies workers’ comp exposure. Field staff doing physical work have elevated risk class codes, increasing rates. Higher payroll also drives premiums up.

Surety Bonds

Typical: $300 annually
Low End: $100 annually
High End: $500 annually

With more employees and higher revenue, some clients may ask for larger bonds like $50K or $100K to provide greater financial security if issues arise.

Overview of Additional Common Insurance Policies

Beyond general liability, workers’ compensation, and surety bonds, here are typical annual premium ranges for other policies Louisiana handymen need:

Commercial Auto Insurance

Protects vehicles used for business purposes like work vans and trucks.

Typical: $1,800 – $3,000 per vehicle

Inland Marine (Tools & Equipment)

Covers tools, gear, machinery that’s damaged, lost or stolen off-site or in transit.

Typical: $650 – $2,000

Commercial Property Insurance

Insures business properties like workshops, sheds, offices against property damage.

Typical: $1,000 – $5,000

Employment Practices Liability

Shields against employment lawsuits like wrongful termination, discrimination, harassment.

Typical: $2,000 – $5,000

Cyber Liability Insurance

Covers costs from data breaches, hacking, electronic theft.

Typical: $500 – $1,500

Commercial Umbrella

Extra liability protection above other policy limits if claims exceed those limits.

Typical: $1,000 – $2,000 for $1 million in additional coverage

Getting Multiple Quotes and Securing the Right Insurance

The premium ranges provided above illustrate typical costs for common handyman insurance policies. However, actual prices can vary significantly based on the unique risks and specific coverage needs of a particular business.

It is crucial to work with an insurance advisor specializing in artisan contractors who has access to top regional and national insurance carriers that write these accounts. This gives handymen and contractors the ability to get multiple quotes in order to ultimately secure tailored coverage at competitive pricing.

The right insurance advisor makes getting fully protected easy and stress-free. They shop among the leading insurance companies, provide guidance on appropriate policies and limits, and negotiate to find the optimal insurance portfolio at the best available price for you.

Partnering with the right advisor ensures your handyman business gets customized coverage that adequately protects your company while staying within your budget.


Louisiana handymen and contractors must safeguard their enterprise with proper insurance tailored for their particular risks. Use the premium ranges provided as a general guideline when evaluating your own policies.

Keep premiums affordable through smart business practices like stringent safety protocols, risk reduction methods, and maintaining robust qualification procedures for subcontractors. And collaborate with an experienced, contractor-focused insurance agent to get the ideal insurance mix that adequately protects your business without overpaying.