Operating a successful handyman business in Maryland involves much more than just being skilled at minor repairs and home improvement projects. An often overlooked but absolutely critical component is having proper insurance tailored to your company’s specific risks and evolving needs.

This comprehensive overview examines key factors influencing handyman insurance costs in Maryland, provides illustrative premium ranges based on business size and stage, summarizes typical rates for essential policies as well as additional coverages, and offers guidance on obtaining quotes and securing optimal protection.

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

Key Factors Influencing Insurance Costs for Handymen in Maryland

Your insurance premiums as a Maryland handyman depend on several key variables:

Location – Maryland’s legal and regulatory environment, construction codes, cost of living, and other geographic factors directly impact handyman insurance rates. Premiums tend to be moderately high compared to national averages due to the state’s laws and robust economy.

Services Performed – Projects involving greater property damage risks like extensive handyman, electrical, roofing, or structural work may have slightly elevated premiums compared to more general handyman services. The specific exposures of your services must be reflected in policy pricing.

Business Size – Larger annual revenues, higher payrolls, more employees, and overall greater operational scale mean increased handyman insurance costs in Maryland. More exposure inherently means greater likelihood of claims occurring, driving up premiums.

Years in Business – New handyman businesses with limited operating history pay higher initial insurance rates. Long tenure and an established claims-free history receive significant discounts from insurers. 5+ years claims-free represents the best case scenario that yields the lowest premiums.

Claims History – Frequent past claims raise handyman insurance costs due to increased perceived risk. A clean history with limited claims helps secure reduced pricing. Prior losses can impact pricing for up to 5 years.

Policy Limits & Deductibles – Higher liability limits, lower deductibles, expanded policy coverage, and more endorsement/riders raise handyman insurance costs. Carefully evaluate these trade-offs when purchasing policies to avoid overpaying.

Client Type – Largely serving commercial clients increases risks due to their higher frequency of claims. Mostly residential work represents lower risks and premiums. A mix of clients yields middle ground rates.

Safety Record – Documented commitment to safety through protocols like equipment maintenance logs, job site audits, accident investigation processes, and training programs can help reduce premiums.

Credit Score – Better personal credit often translates to marginally lower commercial insurance rates. Insurers view high credit scores as representing responsibility.

Insurance History – Frequent past changes between insurers often leads to slightly higher costs. Long-term continuous coverage with limited provider changes maximizes savings.

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

Below we provide typical, low-end, and high-end insurance premium ranges for small, medium, and large handyman businesses in Maryland based on their size. Use these figures as reasonable benchmarks when evaluating your costs, but work with an insurance expert to determine pricing customized to your particular risks.

Small Handyman Business

  • Revenues: $150,000
  • Employees: 1 owner, 1 additional employee

Typical Premium

  • General Liability – $2,100
  • Workers Comp – $3,800
  • Bonds – $600

Low End

  • General Liability – $1,100
  • Workers Comp – $3,000
  • Bonds – $200

High End

  • General Liability – $3,100
  • Workers Comp – $6,600
  • Bonds – $1,000

Medium Handyman Business

  • Revenues: $500,000
  • Employees: 1 owner, 3 additional employees

Typical Premium

  • General Liability – $5,600
  • Workers Comp – $11,300
  • Bonds – $600

Low End

  • General Liability – $3,000
  • Workers Comp – $8,500
  • Bonds – $200

High End

  • General Liability – $8,000
  • Workers Comp – $18,700
  • Bonds – $1,000

Large Handyman Business

  • Revenues: $1,000,000
  • Employees: 1 owner, 5 additional employees

Typical Premium

  • General Liability – $11,700
  • Workers Comp – $18,900
  • Bonds – $600

Low End

  • General Liability – $6,600
  • Workers Comp – $13,200
  • Bonds – $200

High End

  • General Liability – $16,800
  • Workers Comp – $29,300
  • Bonds – $1,000

Detailed Overview of Key Handyman Insurance Coverages in Maryland

Beyond just general liability, workers compensation, and bonds, handyman businesses need various additional insurance policies based on their size, services, legal environment, and other risk factors. Here is an expanded look at typical coverages needed and their associated premium costs:

Commercial General Liability Insurance

General liability insurance is absolutely vital for Maryland handymen, protecting against third party claims of bodily injury or property damage arising from normal business operations. Typical policy limits are $1 million per occurrence and $2 million aggregate.

Typical premiums often range from 1% to 2% of annual handyman revenues. For those new to insurance, that equates to about $1,500 to $3,000 annually per $100,000 of handyman revenue generated. Higher revenues warrant higher liability limits to adequately cover potential losses.

Workers Compensation Insurance

Legally mandated for handymen with employees, this covers medical care and lost wages for job-related injuries and illnesses. Maryland’s rates average $7.23 per $100 of payroll. Policies have unlimited benefits but the insurer’s payouts depend on the severity of the claim. Costs rise for more hazardous work like roofing and electrical.

A claims-free history helps minimize premiums. Effective safety protocols also demonstrate risk reduction efforts to insurance carriers. Payroll amounts directly impact premiums, so monitoring this exposure is key.

Surety Bonds

While not actual insurance, surety bonds provide financial assurance that the handyman will fulfill contractual obligations. Maryland does not mandate bonds but many clients require them pre-project. Typical amounts range from $10,000 to $20,000 with 2% of the bond value paid as an annual premium.

Higher bond amounts demonstrate greater financial commitment and capacity. Strong credit scores help obtain lower bond premiums.

Commercial Auto Insurance

Legally required for any handyman vehicles, this covers liability and damage associated with vehicles used for business purposes. Typical policies have $500,000 combined single liability limits. Average premiums range from $1,500 to $2,500 per vehicle depending on factors like location, driver history, vehicle type, and policy limits.

Inland Marine (Contractors Equipment) Insurance

This specialized coverage protects hand tools, power tools, and machinery used on job sites or in transit. Average premiums range from $750 to $2,500 based on total equipment value, crime rates, storage practices, and deductible levels. Optimal policies feature blanket coverage with high per-item limits.

Commercial Property Insurance

For handymen with workshops, storage sheds, offices or other owned/leased structures, property insurance covers the physical buildings and contents against losses from causes like fire, storms, theft and vandalism. Premiums vary based on property value, location, and construction type, averaging $2,000 to $5,000 annually.

Employment Practices Liability Insurance

Handymen with multiple employees face increased exposure to wrongful termination, discrimination, sexual harassment and other employment-related allegations. Typical policies have $100k to $500k in coverage with premiums ranging from $1,500 to $5,000 based on staff size, revenues, and claims history.

Cyber/Data Breach Insurance

Handymen collecting customer data need this coverage for costs stemming from hacked systems, stolen data, and liability claims from privacy breaches. For small businesses, premiums normally range from $500 to $2,000 based on revenues and data holdings. Higher revenues and more third-party data warrant higher limits.

Commercial Umbrella Insurance

This supplemental coverage provides additional liability limits above policy maximums if a catastrophic loss occurs. Typical additional limits are $1 million to $5 million with annual premiums starting around $1,000 per million. Larger handyman businesses commonly secure at least $2 million in extra coverage.

Importance of Getting Multiple Quotes for Handyman Insurance in Maryland

Because handyman insurance costs can vary significantly based on the unique characteristics of your business, getting multiple quotes is highly recommended so you can make an informed decision on the best value coverage. Here are some tips as you shop policies:

Work With a Specialist – Partner with an independent agent or broker that specializes in handyman insurance across multiple carriers. Their expertise saves you time researching policies and navigating this complex area.

Compare Multiple Options – Be wary of agents that only secure a single quote. Quality brokers tap into their diverse carrier contacts to access multiple quotes for your review. The competition forces insurers to offer optimal pricing.

Customize Coverage – The most competitively priced policy is worthless if it does not adequately cover your specific risks. Quality agents customize coverage and recommend optimal limits and endorsements based on your operations.

Re-Shop Annually – As your business evolves, so do insurance needs and pricing options. Do not get complacent with policy renewals. Re-shop quotes annually to capture savings and confirm appropriate coverage.

Consider Group Programs – Industry associations like the Handyman Network of America offer group insurance programs that provide discounted pricing by aggregating handyman businesses. Explore these money-saving options.


Properly insuring your Maryland handyman business against the inherent risks of property repairs, renovations and remodeling work is absolutely vital, but costs can vary based on your particular characteristics and insurance history. Use this comprehensive guide as a helpful benchmarking reference point as you evaluate your protection needs and premium options, but always consult a trusted independent insurance advisor to determine rates tailored to your specific operations and risk exposures.

Prioritize securing adequate general liability, workers compensation, and bonding policy limits to start. Then augment with supplemental coverages like commercial auto, inland marine, cyber and umbrella insurance as your handyman business grows. Taking a proactive, customized approach to your insurance portfolio makes managing risk smooth and cost-effective so you can focus on delighting customers.