As a handyman in New Jersey, 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 New Jersey handymen need, including costs based on our analysis of actual quotes from leading carriers.
Learn about key features of expert insurance handyman options that suit your needs.
General Liability Insurance for New Jersey Handymen
Based on our analysis of over 850 quotes from leading carriers, here are the typical costs for handyman general liability insurance:
| Revenue | Average Premium | % of Revenue | Favorable Rate | Potential Savings |
|---|---|---|---|---|
| $150K | $5,700 | 3.8% | $4,400 | 23% |
| $500K | $16,200 | 3.2% | $13,400 | 17% |
| $1M | $33,900 | 3.4% | $29,400 | 13% |
These premiums assume:
- Clean claims history (5+ years without incidents)
- Standard $1M/$2M coverage limits
- No jobs over $2,500 in value
- Approximately 10% subcontractor costs
Worker’s Compensation Insurance for New Jersey Handymen
Worker’s compensation is required in New Jersey for handyman businesses with employees. Based on our analysis:
- Average cost per employee: $8,441 annually
- Cost per $100K of payroll: $17,090
New Jersey has some of the highest workers’ compensation rates nationally, ranking in the top 5 most expensive states for handyman coverage.
Key premium factors:
- Employee classification codes (primarily 5645)
- Annual payroll
- Claims history
- Safety programs
- Experience modifier rating (EMR)
Additional Business Insurance for Handymen in New Jersey
1. Tools & Equipment Coverage
- Annual premiums: $200-$2,000
- Coverage limits: $5,000-$15,000+
- Per-item limit typically $5,000
2. Commercial Auto Insurance
- Cost: $1,500-$3,050 per vehicle annually
- Standard limits: $100K/$300K bodily injury, $100K property damage
- Higher limits recommended ($500K-$1M)
3. Contractor’s E&O Insurance
- Annual premiums: $300-$1,000
- Coverage limits: $100,000-$1M+
- Covers faulty workmanship claims
4. Surety Bonds
| Bond Amount | Excellent Credit | Good Credit | Bad Credit |
|---|---|---|---|
| $5,000 | $100-$150 | $150-$200 | $200-$400 |
| $10,000 | $100-$300 | $300-$500 | $500-$1,000 |
| $25,000 | $200-$500 | $500-$1,200 | $1,200-$2,500 |
Get New Jersey Handyman Liability with ContractorNerd
ContractorNerd connects handymen with specialized insurance experts who understand your unique business risks. Our platform offers:
- Digital quote comparison from leading carriers
- Streamlined application process
- Expert guidance on coverage options
- Ongoing policy management support
- Claims advocacy when needed
Our data shows potential premium savings of:
- Small operations ($150K revenue): 30-50%
- Mid-size operations ($500K revenue): 25-40%
- Large operations ($1M+ revenue): 20-35%
Contact ContractorNerd today for tailored quotes and expert guidance on your handyman insurance needs.