Handyman Business Insurance

Handyman companies can compare business insurance policies from top providers through Insuranceopedia to find the right coverage for general liability, property damage, and employee protection.

Why Does A Handyman Need Insurance?

Working as a handyman exposes you to inherent risks associated with your job, including safety hazards, property damage, legal liabilities, and, of course, maintaining client trust.

A handyman works with a wide array of potential tasks, like plumbing and electrical, that can have an added risk of liability, like accidents and injuries to employees or contractors. Without the right insurance, a handyman company can be on the hook for significant losses if there is an accident or other damage, and might be financially responsible for any damages resulting from a lawsuit.

Then you add the risk of liability, like property damage if an accident damages a neighboring property or a customer’s property. General liability insurance can provide protection for a handyman against claims of property damage, bodily injury, or even lawsuits.

It also adds credibility—many customers and clients require proof of insurance before hiring a handyman. If you’re an independent contractor or you have a business with several contractors under your employ, having the right insurance helps you operate confidently, knowing you’re covered if something goes wrong.

What Insurance Does A Handyman Need?

Working as a handyman involves juggling many different tasks. This variety exposes you to risks like property damage, personal injury, and lawsuits. You need the right coverage to keep your business running smoothly if an accident happens. Here is a guide to the types of business insurance policies that matter most for your line of work.

Business Owner’s Policy (BOP)

A BOP is a great starting point for many handymen because it is efficient. It bundles General Liability and Commercial Property insurance into a single package. This is usually cheaper than buying the two policies separately. It covers your business location and provides liability protection at the same time.

Example: A fire starts in your workshop and damages your inventory while also injuring a delivery person. A BOP helps pay for the inventory replacement and the medical costs for the injury.

General Liability Insurance

This is the most common policy for small businesses. It protects you against claims from third parties regarding bodily injury or property damage. If a client trips over your toolbox or you accidentally break something in their home, this policy covers legal fees and repair costs.

Example: You are painting a living room and spill paint on an expensive rug. General liability pays for the cleaning or replacement of the rug, so you do not have to pay out of pocket.

Inland Marine Insurance

Your tools are your livelihood, and they move with you. Standard property insurance does not always cover items when they leave your business premises. Inland Marine insurance protects your tools and equipment while they are in transit or at a job site. It covers theft, vandalism, and damage.

Example: You leave your drill set and saw in your truck while having lunch at a job site, and someone steals them. This insurance pays to replace the stolen tools.

Commercial Auto Insurance

Personal car insurance policies rarely cover accidents that happen while you are driving for work. If you drive a van or truck to transport materials or get to client homes, you need commercial coverage. This pays for damages and medical bills if you are in an accident while on the clock.

Example: You are driving your work van to a hardware store and hit another vehicle at an intersection. Commercial auto insurance covers the damage to both vehicles.

Workers’ Compensation Insurance

If you hire help, you likely need this policy by law. It protects your employees if they get hurt or sick because of their work. It pays for medical bills, rehabilitation costs, and lost wages while they recover. It also protects your business from lawsuits related to the injury.

Example: An employee cuts their hand deeply while cutting lumber and needs stitches. Workers’ compensation pays for the emergency room visit and their wages while they heal.

Professional Liability Insurance (Errors & Omissions)

We all make mistakes, but some mistakes cost clients money. Professional liability insurance covers you if a client claims your work was negligent, late, or inaccurate. It is different from general liability because it focuses on the quality of your advice or service rather than physical accidents.

Example: You install a ceiling fan, but you use the wrong type of bracket. It falls a week later and damages the floor. The client sues you for the error. This policy helps cover your legal defense and settlement costs.

Umbrella Insurance

Sometimes a claim is so big that it goes over the limit of your primary insurance. Umbrella insurance provides extra coverage on top of your General Liability or Commercial Auto policies. It kicks in once the other policy limits are exhausted.

Example: You are sued for $1.5 million after a major accident at a job site, but your general liability limit is only $1 million. Umbrella insurance pays the remaining $500,000.

Hired And Non-Owned Auto (HNOA) Insurance

This coverage is vital if you or your staff use personal vehicles or rented trucks for business tasks. It covers liability expenses if an accident occurs in a vehicle that the business does not legally own.

Example: You ask an employee to pick up a box of screws in their own sedan. On the way, they cause a minor crash. HNOA steps in to cover the liability costs.

Commercial Property Insurance

This protects the physical assets you keep at your business address. If you own or rent a workshop, office, or storage unit, this covers the building and the contents against risks like fire, theft, or storms.

Example: A severe storm breaks a window in your workshop, and rain ruins your workbench. Commercial property insurance helps pay for the repairs.

Business Interruption Insurance

Disasters can force you to close your doors for a while. If a fire or windstorm makes it impossible to work, business interruption insurance helps replace your lost income. It helps you pay ongoing bills like rent and payroll, even when you cannot take on new jobs.

Example: A fire damages your shop, and you cannot operate for three weeks while repairs are made. This insurance provides funds to cover the income you lost during that downtime.

Business Personal Property (BPP) Insurance

This covers the movable items inside your place of business. It includes things like office furniture, computers, and inventory. It pays to repair or replace these items if they are damaged by a covered event like a burst pipe or theft.

Example: Someone breaks into your office and steals your laptop and invoicing software. BPP covers the cost of buying a new computer.

Cyber Liability Insurance

Handymen often store client data like addresses, phone numbers, and credit card details. If your computer system is hacked or data is stolen, this insurance covers the costs. It pays for legal fees, notifying customers, and credit monitoring.

Example: You unknowingly download a virus that exposes your client list and payment history. Cyber liability insurance helps you manage the legal and technical fallout.

Mixing these policies allows you to create a safety net for your handyman business. You might not need every single one, but knowing what they cover helps you decide how best to protect your hard work.

Cheapest Handyman Professional Liability Insurance

biBERK offers the most affordable rates for professional liability coverage, with an average annual cost of approximately $312.

Note: Estimates are based on 2024-2025 rate data for small business professional liability policies (often referred to as Errors & Omissions) for low-to-moderate risk handyman classifications. Actual premiums will vary based on your location, claims history, specific services offered, and coverage limits selected.

Cheapest Handyman General Liability Insurance

biBERK provides the lowest rate for general liability insurance, averaging around $338 per year.

Note: Figures are based on basic general liability policies with standard limits (typically $1 million per occurrence / $2 million aggregate) for a sole proprietor handyman. Actual premiums will vary depending on state, payroll size, and the inclusion of high-risk tasks (e.g., roofing or plumbing).

Cheapest Handyman Business Owner’s Policy

Liberty Mutual is the most cost-effective option for a Business Owner’s Policy, with an average annual premium of $675.

Note: These estimates reflect a bundled Business Owner’s Policy (BOP), which typically combines General Liability with Commercial Property coverage for tools and equipment. Actual premiums will vary significantly based on the value of the property insured, deductible choices, and business location.

How Much Does Business Insurance Cost For A Handyman?

A handyman pays an average of $66 per month for general liability insurance. Several factors influence the cost of business insurance coverage, including your business location, the number of employees, the types of services you offer, the records you keep, your claims history, and whether you transport expensive tools.

Insurers also consider the amount of coverage you choose and whether you package policies together. While it may be tempting to go with the cheapest option, it’s important to choose a plan that truly protects your business from its most likely risks.

Note: These estimates are based on national averages for small to medium-sized handyman businesses with standard risk profiles. Actual premiums will vary significantly based on your specific location, claims history, number of employees, annual revenue, and the coverage limits or deductibles you select.

How Is Your Handyman Business Insurance Cost Calculated?

Insurance providers assess several distinct details to determine the price of your policy. Their main goal is to calculate the level of risk your business presents. The specific services you offer are a primary factor. For example, a handyman who focuses on painting or furniture assembly faces different risks than one who repairs electrical wiring or plumbing.

The size of your operation also impacts the cost. Higher annual revenue typically indicates that you are completing more projects, which increases the chance of an accident occurring. Additionally, if you hire staff to help with jobs, you will likely need workers’ compensation coverage. This protects you if an employee gets injured, but it also increases your premium.

Your location is another key component. Premiums are often higher in zip codes associated with high theft rates or severe weather patterns. Local state regulations may also dictate strict minimum coverage limits you must meet.

Finally, underwriters review your business history and assets. If you have filed insurance claims in the past, providers may view you as a higher risk. They also factor in the total value of your tools and whether you use company vehicles. Even your specific business structure, such as a Limited Liability Company (LLC) or a sole proprietorship, helps determine the final rate.

Following these steps helps ensure you’re properly insured and set up to handle risks confidently and professionally.