
As a handyman, you're no stranger to taking risks and getting your hands dirty. You're likely to face various challenges on the job, from accidents to equipment failures, and that's where business insurance comes in.
Having the right insurance coverage can provide peace of mind and financial protection for your business. For instance, a typical handyman business insurance policy can cost between $300 and $1,000 per year, depending on factors like location and the number of employees.
To ensure you're adequately covered, consider the types of risks your business faces. A general liability policy can protect you from accidents on the job, while a tools and equipment policy can cover losses or damage to your gear.
Discover more: Equipment Rental Business Insurance
Types of Business Insurance
As a handyman, you're likely no stranger to unexpected issues on the job. You need insurance that protects your business from these risks. Decide which types of insurance you need by identifying the different risks your business faces.
To get started, you should consider purchasing insurance policies that cover the risks you've identified. This will help ensure your business is protected from financial losses.
Handyman bonding insurance is a type of insurance that protects against unexpected issues on the job. It's a specific type of insurance that's designed to cover the risks associated with your business.
You may need to purchase different types of insurance policies to cover the various risks your business faces. For example, you may need to purchase a License/Permit/Other Compliance Bond, a Surety bond, a Performance Bond, a Payment Bond, or a Maintenance Bond.
Here are some popular bond types for handymen:
- License/Permit/Other Compliance Bonds
- Surety bonds
- Performance Bonds
- Payment Bonds
- Maintenance Bonds
Policy and Coverage
Business insurance for handymen typically includes a range of policies and coverages to protect against various risks. A business owner's policy, for example, can cost around $93 per month, bundling general liability coverage with commercial property insurance at a discount.
Handymen can also opt for professional liability insurance, which covers legal fees related to professional negligence, at an average cost of $74 per month. This type of insurance can be added to a general liability policy for a discount.
Some common types of handyman insurance policies include general liability insurance, business owner's policy (BOP), and professional liability insurance. Here's a breakdown of their average monthly costs:
These costs can vary depending on factors such as the insurance options chosen, the size of the business, and the value of business property.
Policy
General liability insurance is a must-have for handymen, with an average monthly cost of $67. This type of insurance can cover claims for bodily injury, property damage, and advertising injury.
Handyman businesses can also consider a business owner's policy, which bundles general liability coverage with commercial property insurance, costing an average of $93 per month. This policy is ideal for small, low-risk businesses.
Professional liability insurance, also known as errors and omissions insurance (E&O), is another important coverage for handymen. It can be added to a general liability policy for a discount, costing an average of $112 monthly.
Here's an interesting read: Insurance Cover on Business - Merchant Services
Here's a breakdown of the average monthly costs for different types of handyman insurance:
It's essential to review your handyman business insurance annually and update your coverage as needed. This will help ensure you have the right protection in place for your business.
Inland Marine
Inland marine insurance is a type of property insurance that covers items that don't stay in one place. This can include tools, equipment, and materials that are being transported, held for someone else, installed in a vehicle, or regularly moved from one location to another.
If you have a business that involves moving equipment and tools from one job site to another, you may be surprised to learn that your commercial property policy might not cover these items. Inland marine insurance can fill this gap, providing protection against theft, damage, or loss of these valuable assets.
For example, if you have a company van parked in front of a client's home and it's broken into, inland marine insurance can cover the costs to replace the stolen power tools and equipment. This can be a lifesaver for small businesses that rely on specialized equipment to get the job done.
If this caught your attention, see: Health Insurance for Small Business with One Employee Cost
Here are some examples of items that are typically covered by inland marine insurance:
- Tools and equipment being transported to a job site
- Equipment installed in a vehicle, such as a hoist on a truck
- Items being held for someone else, such as a fireplace screen being repaired
- Equipment and tools that are regularly moved from one location to another
Covering Medical Bills
Having workers' comp in place is essential for handymen because it can help cover medical bills associated with workplace accidents, rehabilitation costs, and even financial losses caused by temporary or permanent disability.
In some states, this type of insurance may even provide death benefits to family members of a handyman employee who dies as a result of a workplace accident.
Workers' comp can also cover lost wages if an employee cannot work due to injury or illness sustained while performing his/her handyman duties.
If you're a handyman, it's crucial to have workers' comp in place to protect yourself and your business in case of an accident.
Here are some key benefits of workers' comp:
- Medical bill coverage: Workers' comp can help cover medical expenses associated with workplace accidents.
- Rehabilitation costs: This type of insurance can also cover costs associated with rehabilitation and recovery.
- Lost wages: If an employee cannot work due to injury or illness, workers' comp can help cover lost wages.
- Death benefits: In some states, workers' comp can provide death benefits to family members of a handyman employee who dies as a result of a workplace accident.
Risks and Exclusions
As a handyman, you need to be aware of the risks and exclusions that can affect your business. Evaluating your risks is crucial in deciding which insurance policies are right for your needs. A handyman business with employees will likely need workers' compensation insurance to cover employee medical expenses in case of work-related injury or illness.
Common risks handyman businesses face include accidents that cause injury to someone, damage to someone's property, theft of or damage to tools and equipment, and accidents or damage to business vehicles. You'll also want to consider how factors such as your location, type of work, years of experience, business assets, and number of employees contribute to your level of risk.
Some exclusions to be aware of in your insurance policy include professional services, damage to property, contractual liability, and limited coverage for advertising injury. Professional services such as supervision, inspection, quality control, and architecture are not covered, and if something goes wrong, unfortunately, your policy will not be able to help you.
Here are some top inland marine exclusions to watch out for:
- Defective material or workmanship
- Losses resulting from the insured’s intentional acts or omissions
- Property damage due to war, hostilities, or nuclear risk
- Losses from the ownership, operation, maintenance, or use of any aircraft or watercraft
- Pollution and contamination
- Losses caused by governmental action, orders, regulations, or insurance
- Losses arising out of any dishonest acts committed by anyone associated with the insured’s business
- Losses caused by wear and tear, deterioration, atmospheric conditions, vermin, mold, insects, or animals
- Losses due to confiscation, seizure, detention, and destruction by order of a governmental authority.
Workers' Compensation
Workers' Compensation is a crucial aspect of risk management for handyman businesses. It helps protect employees from work-related injuries and illnesses, and provides financial benefits to cover medical expenses, lost wages, and other costs.
The cost of workers' compensation insurance can vary, but handymen pay an average of $138 per month, or $1,661 annually. This cost depends on factors such as the number of employees and the type of work they do.
Workers' comp covers a range of benefits, including medical expenses, ongoing care, and a portion of lost wages during the time the employee is unable to work. This means that if an employee suffers a work-related injury, such as accidentally shooting a nail through their thumb while hanging a door frame, workers' comp would cover the medical expenses and a portion of their lost income.
Some of the key benefits of workers' compensation insurance include:
- Medical expenses
- Ongoing care, including rehabilitation and physical therapy
- A portion of lost wages during the time the employee is unable to work
It's worth noting that the cost of workers' comp can be a significant expense for handyman businesses, but it's a necessary investment to protect employees and the business as a whole.
Evaluate Your Risks
Evaluating your risks is a crucial step in determining the right insurance policies for your handyman business. You'll want to consider the potential risks you face, such as accidents that cause injury to someone or damage to someone's property. Understanding these risks will help you decide which insurance policies are right for your needs.
Recommended read: Work Injury Insurance
As a handyman, you'll likely face different risks than a business with employees. For instance, a business with employees will need workers' compensation insurance to cover employee medical expenses in case of work-related injury or illness. This type of insurance is not necessary for a self-employed, sole proprietor.
Some common risks handyman businesses face include accidents that cause injury to someone, damage to someone's property, theft of or damage to tools and equipment, and accidents or damage to business vehicles. Be aware of the hazards, weather events, and accidents that may impact your business.
Here are some key factors to consider when evaluating your risks:
- Location: Your location can impact the types of risks you face. For example, if you operate in an area prone to natural disasters, you may need to consider additional insurance coverage.
- Type of work: The type of work you do can also impact the risks you face. For example, if you specialize in electrical work, you may need to consider additional insurance coverage for electrical accidents.
- Years of experience: Your years of experience can impact the risks you face. For example, if you're new to the industry, you may be more likely to make mistakes that lead to accidents.
- Business assets: The value of your business assets can impact the risks you face. For example, if you have a large fleet of vehicles, you may need to consider additional insurance coverage for vehicle accidents.
- Number of employees: If you have employees, you'll need to consider workers' compensation insurance to cover employee medical expenses in case of work-related injury or illness.
By considering these factors and evaluating your risks, you can determine which insurance policies are right for your handyman business.
Insurance Options and Costs
Insurance options for handymen can be a complex and overwhelming topic, but it's essential to understand your options to protect your business. You can get affordable handyman insurance through Insureon in just three easy steps.
Handymen can also consider bundling multiple policies into a Business Owner's Policy (BOP), which typically combines general liability insurance, commercial property insurance, and business interruption insurance. However, coverage can be customized to your needs.
The cost of handyman insurance varies based on factors such as business size, industry, location, number of employees, and claims history. You can expect to pay between $67 and $804 annually for commercial umbrella insurance, which boosts the limits of your underlying policies. The cost of getting bonded also varies, typically ranging from 1-5% of your total yearly contract volume.
Here's a breakdown of some additional handyman insurance options:
Umbrella
Umbrella insurance can be a lifesaver for handyman businesses, as it can help cover costs that exceed the limits of your underlying policies. For example, commercial umbrella insurance can activate to cover any costs over the limit of your general liability insurance.
Handyman businesses pay an average of $67 per month, or $804 annually, for commercial umbrella insurance. This coverage can be a significant investment, but it's one that can provide peace of mind and financial protection in the event of a costly claim.
The cost of commercial umbrella insurance depends primarily on the amount of coverage you purchase.
Recommended read: Umbrella Insurance Rental Property
Affordable Options

If you're looking for affordable handyman insurance options, you can start by getting a free online quote from Insureon, which can help you find the best and cheapest coverage available.
Insureon's three-step process allows you to fill out a free online application, compare custom quotes from top-rated U.S. insurance providers, and select a policy that fits your needs.
You can also consider bundling multiple handyman insurance policies into a business owner's policy, or BOP, which typically combines general liability insurance, commercial property insurance, and business interruption insurance.
Business owner's policies can be customized to your needs, and most small business owners can get insured within 24 hours of applying for quotes.
Some handyman insurance options to consider include workers' compensation insurance, commercial auto insurance, business property insurance, tools and equipment insurance, and professional liability insurance.
Here are some of the types of business insurance that may be applicable for handyman businesses:
The cost of handyman insurance will vary based on the type of insurance coverage and the risk profile of your business, with premiums rising as you increase the limits of insurance.
Frequently Asked Questions
How much is a $1 million dollar insurance policy for a business?
A $1 million liability insurance policy typically costs around $69 per month or $824 per year, but costs may vary depending on your business specifics. Contact us to get a personalized quote and learn more about our insurance options.
What business category is handyman?
Handymen fall under the business category of Other Personal and Household Goods Repair and Maintenance, specifically NAICs code 811490. This category encompasses a wide range of repair and maintenance services for various products and equipment.
How much is business insurance for a handyman?
Handyman business insurance costs between $480 to $1000 per year, or $40 to $83 per month, depending on location, services, sales, and employees
What type of insurance should a handyman carry?
To obtain a license, handymen in California must carry general liability insurance with a $1 million cumulative limit. This type of insurance protects against property damage and personal injury claims.
Sources
- https://www.insureon.com/construction-contracting-business-insurance/handyman-services/cost
- https://www.nerdwallet.com/article/small-business/handyman-business-insurance
- https://citizensgeneral.com/handymand-insurance-policies/
- https://advisorsmith.com/contractors/handyman-insurance/
- https://www.biberk.com/who-we-insure/handyman-insurance
Featured Images: pexels.com