For handymen and contractors in Utah, having proper insurance coverage is crucial to protect your business from the risks inherent in home repair, maintenance, installation, and small construction projects. Even routine handyman tasks carry hazards that can lead to substantial financial losses if something goes wrong. As a handyman operating in clients’ homes and businesses, mishaps and accidents can easily occur. Insurance provides the vital financial protection when those inevitable risks materialize.

This comprehensive guide will thoroughly explore the key factors influencing insurance costs for Utah handymen, provide detailed illustrative premium ranges for small, medium and large handyman businesses, and outline typical costs for essential policies like general liability, workers compensation, commercial auto, tools & equipment, and more. We’ll also cover the importance of getting multiple quotes to find the right insurance at a competitive price.

Utah handymen must have the proper handyman insurance policies to operate legally in the state. This typically includes liability insurance for handymen to safeguard against third-party claims and workers’ comp for handymen to cover employee injuries sustained while on the job.

Key Factors Influencing Insurance Costs for Handymen in Utah

Insurance premiums for Utah handymen depend on several key factors:

  • Years in Business – The longer a handyman has been operating, the more likely they are to pay lower premiums overall because an established history demonstrates capability to work safely and avoid claims year after year. New businesses with no track record frequently pay higher initial insurance rates across the board until they build up some history.
  • Revenue – Higher annual revenue equates to taking on larger project values and increased overall risk exposure. This results in insurance carriers charging higher premiums to adequately cover the greater potential losses and liabilities associated with bigger handyman jobs. Essentially, more revenue means more exposure, which warrants increased premiums.
  • Number of Employees – Having more employees directly increases the chance of workers compensation claims. Additional staff also raise general liability exposures simply by having more people on job sites. Both these factors mean more employees will lead to higher insurance premiums for handymen.
  • Location – Insurance regulations, legal environments, and risk levels often differ significantly based on geographic region even within the same state. Urban areas like Salt Lake City warrant moderately higher premiums compared to more rural parts of Utah simply due to higher costs of living and doing business. Population density also plays a role.
  • Services Performed – Specialized, skilled trades like electrical, handyman and HVAC are rightfully perceived by underwriters as higher inherent risk services compared to more general handyman services. This results in noticeably increased insurance premiums for handymen focused on these trades versus those offering more broad, lower risk handyman services. The specific tasks and trades impact costs.
  • Claims History – If a handyman has past insurance claims on record, this will drive their premiums up across the board. Multiple past claims can greatly increase costs. In contrast, a clean history with no claims generally keeps rates affordable. The claims loss run is a big factor.
  • Deductible – Choosing a higher deductible is one way handymen can reduce their premiums, but it also increases potential out-of-pocket costs in the event a claim does occur. Evaluating and setting the right deductible level based on risk tolerance is an important consideration when shopping for policies. Higher is cheaper.

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

To provide handymen with an idea of typical insurance costs in Utah’s environment, we’re outlining premium ranges for small, medium and large operations. For the purposes of this cost illustration, assume these businesses all have 5+ years experience, work predominantly with homeowners on residential projects, and have no claims history. In reality, every handyman’s rates will vary based on their unique risks and business characteristics. But this table illustrates likely costs based on common coverage limits for different sized contractors:

Small Handyman Business

  • $150K Annual Revenue
  • 1 Owner
  • 1 Employee

Medium Handyman Business

  • $500K Annual Revenue
  • 1 Owner
  • 3 Employees

Large Handyman Business

  • $1M Annual Revenue
  • 1 Owner
  • 5 Employees

Small Handyman Business Insurance Costs

Looking at a handyman just starting out or with a solo operation generating around $150,000 in annual revenue, here are typical premium ranges they could expect for key insurance policies:

General Liability

  • Typical Premium: $2,700
  • Low End: $1,800
  • High End: $3,500

For a small handyman business in Utah, general liability premiums often fall between $1,800 and $3,500 depending on specific factors impacting that particular operation. Assuming typical risks and coverage limits, the normal cost range is around $2,700 annually. Boosting GL coverage above $1 million per occurrence and $2 million aggregate would increase costs.

Workers Compensation

  • Typical Premium: $4,000
  • Low End: $3,200
  • High End: $6,900

With just one employee beyond the owner, workers compensation premiums normally range from about $3,200 up to $6,900 for a small handyman depending on that employee’s risk classification and the projected annual payroll amount. The typical cost a Utah handyman of this size could expect to pay is around $4,000 annually for workers compensation insurance.


  • Utah does not require contractor bonds for handyman services

Utah differs from some states in that it does not currently have a statewide bonding requirement for handyman contractors. However, some county or city jurisdictions may impose local bond mandates.

Medium Handyman Business Insurance Costs

Looking at a more established handyman generating around $500,000 in annual revenue and having 1 owner plus 3 employees, here are the typical premiums:

General Liability

  • Typical Premium: $7,800
  • Low End: $5,800
  • High End: $8,800

Due to increased projects and risks from larger revenues, a medium revenue handyman in Utah would likely face GL premiums between $5,800 and $8,800 annually. Assuming standard coverage levels, the normal premium cost would be around $7,800 for a handyman business of this size.

Workers Compensation

  • Typical Premium: $11,900
  • Low End: $8,900
  • High End: $19,600

With a larger staff of 3 employees, workers comp premiums normally fall in the range of $8,900 to $19,600 based on employee risk classifications and projected payroll. A typical premium cost for a handyman business at this stage is approximately $11,900 annually for workers compensation coverage.


  • Utah does not require contractor bonds for handyman services

Similar to small handymen, bond requirements don’t apply to medium sized contractors focused on handyman services in Utah. Verify local rules though.

Large Handyman Business Insurance Costs

Examining a well established handyman operation generating $1,000,000 or more in annual revenue and employing 1 owner plus 5 staff, typical premiums are:

General Liability

  • Typical Premium: $16,200
  • Low End: $10,500
  • High End: $20,100

For general liability coverage, increased projects, risks and exposures for a large Utah handyman business result in typical premiums ranging from about $10,500 up to $20,100 annually. Assuming common coverage limits, the standard GL premium for a large contractor of this size often falls around $16,200.

Workers Compensation

  • Typical Premium: $19,800
  • Low End: $13,900
  • High End: $30,800

Employing 5 workers in addition to the owner leads to typical workers comp premiums ranging from approximately $13,900 to $30,800 per year. The normal cost for a handyman business of this scale is around $19,800 annually for workers compensation coverage based on classifications and payroll amounts.


  • Utah does not require contractor bonds for handyman services

Handyman contractors focused on residential repair and installation work do not face state mandated bond requirements currently in Utah, but always verify local rules.

Overview of Additional Insurance Coverages and Typical Premiums

Beyond general liability and workers compensation as the core policies, here are typical premium ranges for other important insurance coverages Utah handymen need to protect their business:

Commercial Auto Insurance

  • $1,500 to $3,050 per vehicle

Insuring business vehicles like vans, trucks and trailers commonly costs $1,500 to $3,050 annually per vehicle depending on factors like vehicle type, driver history, liability limits, etc. This covers damages and liabilities arising from use of vehicles to commute to job sites.

Inland Marine (Tools & Equipment)

  • $650 to $2,000 total policy

Protecting tools, equipment, machinery, and materials off job sites and in transit via this specialized coverage usually runs between $650 and $2,000 total per policy. Limits and value of gear impact costs.

Commercial Property Insurance

  • $1,000 to $5,000+ per year

Insuring business properties like workshops, warehouses, offices and showrooms typically ranges from $1,000 up to $5,000+ annually depending on factors like location, building construction, security measures and value of contents.

Employment Practices Liability

  • $2,000 to $5,000+ per year

Protecting against employment lawsuits often costs between $2,000 to $5,000+ annually depending on number of employees. Helpful for businesses with multiple staff members.

Cyber Liability Insurance

  • $500 to $1,500 per year

Safeguarding against data breaches, hacking and electronic theft normally runs $500 to $1,500 per year based on revenues and IT infrastructure. Essential for digitally managing any customer data.

Umbrella Liability Insurance

  • $750 to $1,500+ for $1M in additional coverage

Extra liability limits above existing policies typically start around $750 to $1,500+ annually to add $1 million in additional protection. Higher business risks warrant more coverage.

Getting Multiple Quotes and Securing the Right Insurance

The best way for handymen in Utah to find affordable, tailored insurance is to work with an independent insurance agent or broker that specializes in contractor insurance. An experienced specialist understands the unique risks handymen face and stays on top of variances in rates between different insurers. Leveraging their expertise enables collecting multiple quotes to find the optimal blend of desired coverage at the most competitive price.

A qualified agent also provides invaluable guidance in structuring policies and coverage limits that adequately protect your specific business without overspending. They handle shopping policies on your behalf so you can focus your time on serving customers rather than insurance. Take advantage of their specialized insight and carrier relationships to secure the right insurance at the best available price.


Obtaining proper insurance coverage is vital for Utah handymen seeking to fully safeguard their business, people, assets, and livelihood. Keep premiums affordable by maintaining rigorous safety protocols, cultivating a clean claims history, partnering with an insurance specialist, and securing multiple quotes. This ensures your handyman enterprise is protected by the right policies at reasonable rates. Contact a reputable agent today to discuss insurance tailored for Utah contractors.