Operating a handyman business in New Hampshire comes with inherent risks from performing repair, maintenance, and small construction projects for clients. From minor mishaps like spilling paint on a customer’s carpet to major accidents involving falls that result in injuries, having proper insurance is crucial. This comprehensive overview examines key factors impacting handyman insurance costs in New Hampshire, provides detailed illustrative premium ranges for small, medium and large operations, gives guidance on additional critical coverages beyond general liability and workers’ compensation that handymen need as they grow, and offers tips on securing tailored, affordable policies.

New Hampshire handymen must have the right handyman insurance coverage to operate legally in the state. 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 New Hampshire

Insurance costs for New Hampshire handymen depend on several key variables:

Years in Business – Newly established handyman businesses generally pay higher insurance rates until they build up a solid track record of safe operations and claim-free history. Handymen who have been in business for 5+ years tend to see lower premiums compared to brand new startups, as their experience demonstrates lower risks to insurers.

Annual Revenue – A handyman’s annual revenue is a major rating factor for insurance. The more revenue a business generates each year, the greater their overall exposure. Higher revenue businesses need increased coverage limits to adequately protect their assets and handle potential claims. Thus, increased revenue typically equates to higher premiums to provide those elevated coverage levels.

Number of Employees – Handymen who staff up and bring on additional employees increase risks such as workers’ compensation claims. Each additional worker adds exposure, so more employees on payroll means higher premiums across multiple insurance lines. Sole proprietors see the lowest rates.

Types of Services Performed – Handymen who focus on specialized, inherently more hazardous tasks like electrical work, handyman, and roofing repairs may have slightly elevated premiums compared to general handyman services. Insurers classify risk levels by work type.

Claims History – Past insurance claims drive costs up. Handymen with multiple liability or worker injury claims on record tend to pay higher premiums, as they are seen as riskier to insure based on their history. Maintaining a clean claims history keeps insurance costs affordable.

Business Size and Location – Location also impacts handyman premiums. Larger operations with several employees operating in urban regions generally have higher premiums compared to self-employed handymen based in rural areas. Geographic location affects rates too.

Customer Type – Handymen who work primarily with commercial clients and contractors may have moderately higher premiums versus handymen focused on residential homeowners as their customer base. Some insurers perceive the increased foot traffic of commercial jobs as higher chance of accidents.

Economic Conditions – During robust economic times when handymen are in high demand, insurance carriers have more capacity to offer lower rates. However, in downturns where insurers sustain heavy losses industrywide, premiums often rise. The overall insurance market conditions influence costs.

Discounts – Handymen implementing safety protocols, alarm systems, jobsite monitoring, and accountability measures around equipment and tools can qualify for premium discounts from some insurers. Demonstrating loss prevention initiatives can lower costs.

Insurer Competition – When multiple insurers compete heavily for a particular sector, they may offer low introductory rates to grab market share. Periods of high competition among carriers can benefit handymen policyholders with savings.

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

The insurance premium ranges outlined below are based on a handyman business operating predominantly in residential home settings for homeowners as clients, with more than 5 years of experience in business and no recent claims history. However, all handymen can use these ranges as reference points to gauge how their own specific premiums compare, and aim to secure pricing at competitive rates at or below the “low end” premiums highlighted.

The low end of each range represents the most favorable pricing a handyman business typically can achieve by working with an experienced insurance broker who has access to specialized insurance carriers and niche programs. The high end reflects pricing from standard admitted mainstream insurance carriers. We strongly advise partnering with an independent broker who specializes in the trades and construction verticals to obtain multiple quotes from both standard and specialty insurance markets in order to achieve tailored coverage with premiums at or below the low end targets.

Insurance Premium Illustrations

Small Handyman Business – $150K Annual Revenue, 1 Owner, 1 Employee

General Liability Insurance

Typical Premium: $3,600

Low End Target: $2,000

High End: $6,600

General liability insurance protects against third party bodily injury and property damage claims. It covers legal defense costs and settlements/judgments from covered claims. Typical handyman GL premiums range from $2,000 for preferred pricing up to $6,600 for standard rates at this business size.

Workers’ Compensation Insurance

Typical Premium: $4,700

Low End Target: $3,800

High End: $8,200

Workers’ compensation insurance covers medical care and lost wages for employees injured on the job. Typical premiums range from $3,800 for preferred rates up to $8,200 for standard rates for a business with one employee at this revenue size.

Surety Bonds

Typical Premium: Not Required in New Hampshire Currently

Though many states require handymen carry surety bonds to legally operate, New Hampshire currently does not have a bonding mandate. However, some commercial clients may still request bonds.

Medium Handyman Business – $500K Annual Revenue, 1 Owner, 3 Employees

General Liability Insurance

Typical Premium: $10,000

Low End Target: $5,700

High End: $16,300

For a handyman firm with $500K in annual revenue and 3 total employees including the owner, typical GL premiums run $10,000 annually, with preferred pricing around $5,700 and high end near $16,300 depending on the insurer.

Workers’ Compensation Insurance

Typical Premium: $14,100

Low End Target: $10,600

High End: $23,200

With a payroll of 3 employees, typical workers’ compensation premiums average $14,100 annually. Preferred rates can lower costs to around $10,600, while high end is nearer to $23,200.

Surety Bonds

Not required currently in New Hampshire for handyman licensing, but optional for commercial clients.

Large Handyman Business – $1M Annual Revenue, 1 Owner, 5 Employees

General Liability Insurance

Typical Premium: $19,800

Low End Target: $12,100

High End: $31,100

For a sizable handyman company generating $1M in annual revenue with 5 total employees, typical GL premiums are around $19,800 per year. Lower end rates can reduce costs to approximately $12,100, while higher end is closer to $31,100 annually.

Workers’ Compensation Insurance

Typical Premium: $23,400

Low End Target: $16,400

High End: $36,300

With a $1M/year handyman business with 5 employees, workers’ compensation will cost in the ballpark of $23,400 annually at typical rates. Preferred pricing around $16,400 is possible, while high end rates approach $36,300 per year.

Surety Bonds

Not mandated currently but often requested for large commercial jobs.

Overview of Additional Critical Insurance Coverages

As a handyman business grows, additional insurance coverage beyond general liability and workers’ compensation becomes essential:

Commercial Auto Insurance

Covers vehicles used for business purposes. Typical premiums range from $1,500 to $3,050 per vehicle annually. Larger fleets and trucks/vans boost costs.

Inland Marine (Tools & Equipment) Insurance

Protects tools and equipment on and off job sites from damage or theft. Typical annual premiums range from $500 to $2,000 based on total value of gear. Higher value equipment raises premiums.

Commercial Property Insurance

Insures business properties like sheds, workshops, offices and contents inside from risks like fire, theft and storms. Typical premiums range from $1,000 to $5,000+ annually depending on property values.

Employment Practices Liability

Shields small businesses from employment lawsuits alleging discrimination, harassment, wrongful termination and other employee issues. Typical annual premiums range from $1,000 to $5,000+ depending on staff size and revenue.

Cyber Liability Insurance

Critical for handymen collecting customer data. Protects in the event of a data breach. Typical small business premiums range from $300 to $1,000+ annually.

Umbrella Liability Insurance

Provides extra liability coverage above general liability and other policies. Adds $1 million in protection for $500 to $1,000 per year typically. Limits often range from $1 million to $5 million.

Securing Tailored, Affordable Insurance for Handymen

Selecting the right insurance broker is key for handymen to secure tailored coverage at competitive rates. The optimal strategy is to work with an independent brokerage that specializes in the trades and construction space and has access to both standard and specialty insurance markets. This enables them to solicit quotes from multiple standard carriers plus niche programs from specialty providers.

The benefit of multiple quotes allows handymen to compare pricing and coverage options side-by-side to select the optimal insurer and program. Niche programs through specialty brokers often offer enhanced coverage and preferred rates to best-in-class accounts with clean loss history. Avoid just relying on a captive insurance agent tied to one carrier, as their restricted market access leaves potential savings untapped. An independent broker shops the whole marketplace on your behalf.

It is critical to provide the broker with detailed information about your services, clients, risk management procedures, and prior claims. This allows them to accurately convey your risk profile to prospective insurers to obtain tailored options that match your particular business needs, while securing the most favorable terms and rates by highlighting your strengths as an account. Leverage their expansive access and expertise negotiating superior coverage.


Properly insuring your New Hampshire handyman business is essential to protect against the array of risks faced when operating on customers’ properties and worksites. While insurance costs rise with growth in revenue, employees, and years in operation, partnering with the right insurance broker leverages their broad market access to secure tailored policies at competitive rates. Investing in suitable insurance demonstrates your commitment to risk management and professionalism, while safeguarding the enterprise you have built.