Handyman Insurance: Multi-Trade Protection
Get tailored and hassle-free handyman insurance with ContractorNerd
CONTRACTOR-SPECIALIST INSURANCE PROVIDERS
We cover what matters on the job.
Most insurance agents don’t understand the reality of running a handyman business. We do. From leaky faucets to drywall repairs to that weird list of fixes the homeowner saved up, we know the risks that come with doing a little bit of everything.
General Liability
Covers you when a repair goes sideways or a client trips over your ladder.
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Worker’s Compensation
When your helper gets hurt lifting materials or falling off a ladder, you’re covered.
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Surety Bonds
Gives homeowners peace of mind that you’ll finish the job and stand behind your work.
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Commercial Auto
Covers your van full of tools so a fender bender doesn’t derail your day.
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Builders Risk
Protects materials and supplies on site when a small job turns into a bigger project.
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Handyman Insurance, Remodeled
Handyman insurance is essential, yet many business owners struggle to find coverage that fits the jack-of-all-trades reality. No more. At ContractorNerd, we’ve built a quote platform specifically designed for handymen who handle a little bit of everything.
Faster, Simpler, Better
As trades-only specialists, we’ve rebuilt the insurance experience for handymen who don’t have time to chase quotes between jobs.
Compare in one place
Our technology connects you with insurers who actually understand multi-trade work, while our specialized agents provide guidance throughout the process.
Solutions for Any Size
Whether you work solo or have a small crew, our platform delivers what you need without the complexity or delays of traditional insurance.
What Is Handyman Insurance?
ContractorNerd has done research to bring you a clear picture of insurance requirements and needs across the United States. Our analysis of over 850 handyman insurance quotes across all 50 states provides full transparency on what coverage you need and current market rates.
Key Takeaways
What Handyman Insurance Do You Need?
For handymen, securing the right coverage is crucial and needs change based on the size and stage of your business. Here’s a guideline:
For Solo Handymen
1-3 Employees
For Small Handyman Businesses
5+ Employees
For Established Handyman Businesses
Essential Coverage
Handyman Liability Insurance (General Liability)
Your core protection against property damage and bodily injury claims. This is what homeowners mean when they ask if you’re insured before you start work.
Ongoing Operations
Covers damage while you’re working in a client’s home or on their property
Completed Operations
Critical protection for issues discovered after you leave, like a leaky pipe repair that floods a basement
Contractor License Bonds
Required in some states for handyman registration. Pro tip: Buy in 3-year increments when possible to avoid lapses and save money (typically costs a few hundred dollars).
Recommended Additional Coverage
Tools and Equipment Coverage (Inland Marine)
Protects your tools and equipment from drills to ladders to diagnostic gear
Contractor’s Errors & Omissions
Covers claims of faulty repairs, wrong parts, or work that doesn’t hold up
Commercial Auto
Required if you use a van or truck to haul tools between jobs
Workers Compensation
Required when you hire helpers or employees (not needed for subcontractors)
Installation Floater
Protects materials in transit or stored at job sites (fixtures, hardware, replacement parts)
Commercial Property
Covers your garage, storage unit, or small shop where you keep tools and supplies
Umbrella Insurance
Extra liability protection as you take on more jobs and bigger clients
Employment Practices Liability (EPLI)
Protection against employee-related lawsuits like wrongful termination or discrimination claims
For Solo Handymen
Essential Coverage
Recommended Additional Coverage
For Small Handyman Businesses
2-3 Employees
All previous coverages, plus:
For Established Handyman Businesses
All previous coverages, plus:
Handyman General Liability Insurance Coverage
If there was a single coverage critical for all handymen, this is it. General Liability Insurance provides essential protection because your work involves many risks every day: power tools, ladders, working in occupied homes, and juggling multiple trades on every job.
Core protection includes
Bodily Injury
A client, visitor, or bystander getting hurt from your work activities, like tripping over tools or debris.
Property
Damage
Accidental damage to a client’s home, floors, walls, fixtures, or belongings while you work.
Add-On
Completed
Work
Lawsuits over issues from past jobs, such as a shelf that pulls out of the wall or a faucet repair that leaks.
Bodily Injury
A client, visitor, or bystander getting hurt from your work activities, like tripping over tools or debris.
Property
DamageAccidental damage to a client’s home, floors, walls, fixtures, or belongings while you work.
Add-On
Completed
WorkLawsuits over issues from past jobs, such as a shelf that pulls out of the wall or a faucet repair that leaks.
Liability Limits for Handymen
Typically, $1 million per occurrence and $2 million aggregate. Most handymen find this adequate for residential work. Upgrading from $500k to $1M coverage usually slightly increases premiums but provides significantly better defense.
Classification Codes
Handymen typically use class code 91344 for basic residential and commercial repair work under $2,500 to $5,000 per job
Key Factors Influencing Liability Quotes
Revenue
More jobs means more chances for something to go wrong, which leads to higher quotes.
Policy Limits
Higher limits for bigger clients or commercial work may raise quotes.
Claims History
A history of claims can result in higher quotes, similar to auto insurance.
Location
States with stricter regulations or higher claim costs may have higher quotes.
Services Offered
The mix of services you offer affects your risk profile and your quote.
How Much Does Handyman Insurance Cost?
Quote Study Findings
Quotes generally amount to 1.2% to 3.5% of annual revenue. Our analysis of over 850 General Liability insurance quotes from leading carriers reveals significant variations across different states and business sizes.
We analyzed quotes based on these business profiles
Revenue
$150K
1 owner with minimal subcontracting and 3+ years operating without claims
Revenue
$500K
1 owner and 2-4 employees with ~15% subcontracting and 5+ years operating without claims
Revenue
$1M
1 owner and 6-8 employees with ~20% subcontracting and 5+ years operating without claims
We analyzed quotes based on these business profiles
Revenue Level
National Average
Favorable Rate
Potential Savings
Low % of Revenue
High % of Revenue
$150,000
$3,330
$2,010
40%
1.5%
3.5%
$500,000
$9,090
$6,200
32%
1.2%
2.8%
$1,000,000
$19,080
$12,490
35%
1.2%
3.0%
State-by-State Pricing Insights
To help handymen better understand regional pricing variations, we’ve developed an in-depth resource examining handyman insurance premiums in every state nationwide. This state-specific analysis reveals how local factors impact your actual costs and identifies opportunities for savings in your market. Explore our comprehensive guide to handyman insurance cost by state for detailed premium breakdowns.
Handyman Workers Comp Insurance Requirements
Workers’ Compensation Insurance is essential for handyman businesses with employees, providing coverage for employee injuries or illnesses related to work. The premiums are based on job risk, classified by the National Council on Compensation Insurance (NCCI) into class codes. Handymen typically fall under class code 5645, with rates usually between $5.72 to $16.73 per $100 of employee payroll annually.
WC Policy Limits for Handymen
These are often unlimited but can vary according to state regulations.
WC Rates for Handymen
Between $5.72 and $16.73 per $100 of payroll.
Key Factors Influencing WC Premiums for Handymen
Class Codes
Group employees by job type and risk; higher risk means higher premiums. Handymen commonly use code 5645.
State Regulations
States dictate workers’ compensation laws, influencing benefits and baseline rates. Geographic differences in living and healthcare costs also affect premiums.
Experience modifier
Reflects your safety record, starting at 1.0 and adjusting based on claims history. More incidents result in higher modifiers and premiums.
Payroll Size
Calculated as (payroll / $100) * rate * experience modifier, with larger payrolls leading to higher premiums
This insurance is typically mandatory if you have employees. It covers employee medical expenses, rehabilitation, lost wages, and even death benefits in case of job-related injuries or illnesses. For employers, it also provides legal coverage and compensation in case of employee lawsuits related to occupational injuries or illnesses.
If you’d like to learn more and try our calculator, check our guide on Workers Compensation Insurance for Handymen.
Insurance For Handyman Business That Expands Into Other Trades
If you’re a handyman who’s branched out into larger remodels, specialized plumbing, or electrical work, your standard handyman insurance isn’t going to cut it. The work is different, the risks are different, and your coverage needs to reflect that.
Doing jobs over $5,000? You may need general contractor or remodeling contractor insurance instead. Once your projects exceed typical handyman limits, carriers expect you to carry a different policy that reflects the scope and risk of larger jobs.
Taking on electrical or plumbing work? If you’re doing more than minor repairs, you may need trade-specific coverage. A botched water heater install requires plumber insurance, while faulty wiring jobs demand electrician coverage that goes beyond a basic handyman policy.
Handling bigger renovations like kitchens or bathrooms? Make sure your policy covers the full scope of work. Demolition, structural changes, and fixture installations carry different risks than basic repairs.
The bottom line: If you’re doing the work, you need the insurance. Don’t assume your handyman policy covers these expanded services. A single uncovered claim from electrical, plumbing, or remodeling work can wipe out years of profit.
Talk to your insurance provider about adding trade-specific coverage, or you’re gambling every time you take on one of these jobs.
Insurance For Handyman Business That Expands Into Other Trades
Additional Handyman Insurance Coverage Options
As your handyman business expands, these additional coverage types merit careful consideration beyond your core insurance portfolio:
Tools & Equipment Coverage
(Inland Marine Policy)
Specially designed to protect your drills, saws, ladders, air compressors, and hand tools whether stored in your service van or deployed at job sites. This coverage addresses theft, accidental damage, or mysterious disappearance.
Professional Liability Insurance
Safeguards your business when clients allege mistakes or oversights in your handyman services. Whether it’s claims of improper installations, work that doesn’t hold up, or disputes over materials used, this coverage handles defense costs and damages. Protection includes negligent workmanship allegations, attorney fees, and court awards.
Commercial Auto Coverage
Essential protection for your fleet of service trucks and vans used in daily operations. Standard personal auto coverage excludes commercial handyman work, leaving dangerous gaps.
Handyman License Bonds
These financial guarantees demonstrate your commitment to quality workmanship while satisfying state licensing boards. Bond requirements commonly range $5,000 to $25,000, with annual premiums representing 1-3% of the bond amount. Your credit profile significantly influences pricing:
Quote Summary by Revenue Level
Bond Required
Top-Tier Credit
Standard Credit
Challenged Credit
$5,000
$100-$150
$150-$200
$200-$400
$10,000
$100-$300
$300-$500
$500-$1,000
$15,000
$150-$400
$400-$750
$750-$1,500
$20,000
$180-$500
$500-$1,000
$1,000-$2,000
$25,000
$200-$500
$500-$1,200
$1,200-$2,500
Regulations vary dramatically. Some states require handyman bonds while others impose no blanket requirement.
Commercial Property and Business Personal Property
Comprehensive coverage securing your workspace and materials (hardware, fixtures, paint supplies, lumber) from perils including fire, criminal activity, storm damage, and malicious mischief. Vital for operations maintaining storage sheds, workshop spaces, or small retail locations.
Handyman Contractor Business Package
Intelligently combines liability and property coverages into a streamlined policy. Perfect for established handyman operations with a physical location, addressing customer accidents, property damage, tool theft, and revenue interruptions. Often delivers cost savings versus standalone policies, though customization options become limited.
Excess Liability / Umbrella Coverage
Instead of boosting individual policy limits, this coverage stacks additional protection atop your existing liability, fleet, and workers’ compensation policies. When catastrophic claims exhaust primary coverage, this backup fund activates.
Frequently Asked Questions
What is the best insurance for a handyman?
You’ll need General Liability ($1M/$2M limits) as your foundation, plus Tools & Equipment coverage to protect your gear. If you’ve got employees, Workers’ Comp (class code 5645) is mandatory. Smart handymen also grab Contractor’s E&O for faulty workmanship claims – it’s saved my bacon twice already.
How much does insurance cost for a handyman?
Expect to pay 1.2% to 3.5% of your annual revenue for General Liability. So if you’re pulling in $150K annually, you’re looking at $2,010-$3,330. Workers’ Comp runs $5.72-$16.73 per $100 of payroll depending on your state. Yeah, it stings, but beats getting sued into bankruptcy.
What insurance do handymen typically use?
Most run with General Liability (class code 91344 for jobs under $2,500), Tools & Equipment coverage around $10K-$15K, and Workers’ Comp if they have employees. Commercial Auto if using work trucks. Bigger operations add Umbrella policies. Skip the BOP unless you have a physical shop – waste of money otherwise.
Do I need insurance as a self-employed handyman?
Technically not required in most states, but you’re playing with fire without it. One damaged hardwood floor or water leak claim will destroy you financially. Plus, zero commercial clients will hire you without a COI. Minimum GL coverage runs about $1,700-$2,000 annually – just build it into your rates.