Having the proper insurance coverage in place is crucial for handymen and contractors in Missouri looking to fully protect their business. This comprehensive overview will provide Missouri handymen with extensive insights on key factors that influence insurance costs, illustrate detailed cost ranges for small, medium and large handyman businesses across common policies, and summarize typical premiums for additional coverages beyond just general liability and workers’ compensation.

Understanding typical insurance costs allows Missouri handymen to thoroughly evaluate if their current premiums are truly competitive or if they are overpaying. While each handyman’s specific risks and needs are unique, the premium ranges and cost drivers detailed below serve as an extremely useful benchmark when closely reviewing your own insurance policies.

For handymen in Missouri, having the right handyman insurance coverage is essential. 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 Missouri

Several important variables determine a Missouri handyman’s insurance rates:

  • Years in Business – Newer handyman operations typically pay higher premiums until they have established a solid record of experience, usually at least 5+ years in business. Having this extensive experience operating safely often results in insurance discounts.

  • Annual Revenue – More total annual revenue equates to a larger volume of contracted work. This increased exposure raises premiums for core policies like general liability insurance and others tied to revenues.

  • Number of Employees – More employees means greater exposure for workers’ compensation claims. Rates steadily increase alongside larger staff sizes. Some insurers even apply minimum premium charges per worker.

  • Location – Insurance regulations and risk levels differ significantly across Missouri. Urban areas like Kansas City and St. Louis tend to have notably higher premiums than rural outstate regions given larger populations and more expensive insurance claims.

  • Deductible Levels – Choosing higher deductibles is a common way to lower premiums, but this also increases your out-of-pocket costs in the event a claim occurs. Evaluate this option carefully based on your risk tolerance.

  • Claims History – Frequent past claims will drive premiums upward. Maintaining a clean claims history without incidents keeps insurance rates affordable long-term.

  • Employee Class Codes – Workers’ compensation insurance groups employees based on their job type and the risk level of injuries within the industry. More hazardous trade roles equal higher premium factors.

  • Discounts – Insurers offer discounts for things like safety protocols, association memberships, multiple policies with one carrier, higher deductibles, and advanced training and certifications.

  • Policy Limits – Higher coverage limits mean greater potential payouts for insurers, increasing premiums. Consider passing on some limit increases to clients via your rates.

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

Below we provide typical insurance costs for small, medium and large handyman businesses in Missouri based on their size and unique exposures. Key assumptions are 5+ years experience, no claims history, and working predominantly on residential projects. Costs are shown for general liability and workers’ compensation only.

Actual premiums depend on individual risk characteristics like location and services. Use these ranges as a guide to evaluate if your current costs seem competitive or if you may be overpaying. Partnering with an insurance expert can help Missouri handymen access tailored coverage at attractive pricing.

Small Handyman Business in Missouri

  • $150,000 in Annual Revenue
  • Sole Proprietor
  • 1 Full-Time Helper/Employee

General Liability Insurance

Typical Premium: $2,700

Low End Premium: $2,300

High End Premium: $4,100

Workers’ Compensation Insurance

Typical Premium: $5,800

Low End Premium: $4,600

High End Premium: $10,100

Medium Handyman Business in Missouri

  • $500,000 in Annual Revenue
  • Sole Proprietor
  • 3 Full-Time Employees

General Liability Insurance

Typical Premium: $7,400

Low End Premium: $6,500

High End Premium: $9,700

Workers’ Compensation Insurance

Typical Premium: $17,400

Low End Premium: $13,000

High End Premium: $28,700

Large Handyman Business in Missouri

  • $1,000,000 in Annual Revenue
  • Sole Proprietor
  • 5 Full-Time Employees

General Liability Insurance

Typical Premium: $15,000

Low End Premium: $8,700

High End Premium: $18,700

Workers’ Compensation Insurance

Typical Premium: $28,900

Low End Premium: $20,300

High End Premium: $44,900

Overview of Additional Insurance Coverages and Typical Premiums

Beyond general liability and workers’ compensation policies, here are typical annual premium ranges for other common insurance coverages purchased by Missouri handyman businesses:

Commercial Auto Insurance

Covers vehicles used for business purposes. Protects against liability claims and damage to your owned vehicles.

Typical Premium: $1,800 – $3,000 per vehicle

Inland Marine (Tools & Equipment) Insurance

Protects tools, equipment, and machinery while on client job sites and in transit. Often called contractors equipment coverage.

Typical Premium: $650 – $2,000 per year

Commercial Property Insurance

Covers physical buildings, sheds, workshops, and offices owned or rented by your business. Protects against perils like fire, theft, and storms.

Typical Premium: $1,000 – $5,000 per year

Employment Practices Liability Insurance

Protects against employment lawsuits alleging discrimination, harassment, wrongful termination, and other employee claims.

Typical Premium: $1,000 – $5,000 per year

Cyber Liability Insurance

Covers costs related to data breaches, hacking, and electronic theft incidents. Protects customer and business data.

Typical Premium: $300 – $1,000 per year

Umbrella Liability Insurance

Extra liability coverage above policies like general liability and auto. Added protection if claims exceed other limits.

Typical Premium: $500 – $1,000 per year

Getting Multiple Quotes and Securing the Right Insurance

It’s vital to work with an experienced insurance agent or broker when buying coverage. They can access top insurance carriers and leverage insider expertise to build a tailored and comprehensive handyman insurance program at competitive pricing.

By obtaining quotes from multiple insurers via a broker, Missouri handymen gain choice in finding an ideal blend of desired coverage types and affordable premiums. Avoid just automatically renewing your current policies with the same insurer at each renewal without ever shopping your coverage options.

Key benefits an independent insurance advisor provides:

  • Access to niche markets with handyman expertise

  • Ability to optimize coverage and avoid gaps

  • Risk insights based on working with similar clients

  • Policy review to guarantee you have adequate limits

  • Cost savings through carrier negotiations

Evaluating Your Current Premiums

Being armed with typical handyman insurance premium ranges allows Missouri businesses to determine if their current costs are competitive or if they may be overpaying. While each operation is uniquely different, use the price levels detailed as a guide.

Tracking your premiums over time and watching for major increases is also recommended. Sometimes gradual premium creep can occur over successive renewals. Bringing in an independent broker for a second opinion helps identify potential savings opportunities.


Understanding typical insurance costs empowers Missouri handymen to pay appropriate premiums and avoid overpaying for coverage. Handyman insurance needs frequently change over time. Continually evaluating your policies ensures your business stays properly protected as you grow without spending too much. Partner with a specialist to access coverage tailored for your services at the best available rates.