As a handyman in Michigan, having proper insurance coverage is crucial for protecting your business, meeting state requirements, and securing contracts. This comprehensive guide breaks down the essential insurance coverages Michigan handymen need, including costs based on our analysis of actual quotes from leading carriers.
Learn what handyman insurance requirements entail by reviewing common guidelines and rules.
General Liability Insurance for Michigan Handymen
Here are typical insurance costs for Michigan handymen based on our analysis of quotes from leading carriers:
| Revenue | Average Premium | % of Revenue | Favorable Rate | Potential Savings |
|---|---|---|---|---|
| $150K | $2,840 | 1.9% | $1,890 | 33% |
| $500K | $7,320 | 1.5% | $6,040 | 17% |
| $1M | $14,830 | 1.5% | $11,030 | 26% |
These rates assume:
- Clean claims history (5+ years)
- Standard $1M/$2M limits
- 10% subcontractor costs
- For $150K: 1 owner
- For $500K: 1 owner, 3 employees
- For $1M: 1 owner, 5 employees
Worker’s Compensation Insurance for Michigan Handymen
Worker’s compensation is required for Michigan handymen with employees. Key figures:
- Average cost per employee: $4,351 annually
- Cost per $100K payroll: $10,270
Main factors affecting premiums:
- Job classification codes
- Annual payroll
- Claims history
- Safety programs
- Experience rating
Additional Business Insurance for Handymen in Michigan
1. Commercial Auto Insurance
- Annual cost: $1,500-$3,050 per vehicle
- Standard limits: $100K/$300K/$100K
- Higher limits recommended: $500K-$1M
2. Tools & Equipment Coverage
- Annual premiums: $200-$2,000
- Policy limits: $5,000-$15,000+
- Per-item limit typically $5,000
3. Contractor’s E&O Insurance
- Annual cost: $300-$1,000
- Coverage limits: $100K-$1M+
- Covers faulty work claims
4. Commercial Property Insurance
- Annual cost: $1,000-$5,000
- Protects business property
- Coverage based on value, location
5. Surety Bonds
- Premium: 1-3% of bond amount
- Costs vary by credit score
- Common amounts: $5,000-$25,000
Get Michigan Handyman Liability with ContractorNerd
ContractorNerd specializes in handyman insurance solutions:
- Data-driven quotes from leading carriers
- Michigan-specific expertise
- Streamlined application process
- Policy management support
- Claims advocacy
- Bundled coverage options
Contact us for customized quotes tailored to your Michigan handyman business needs.