How Much Does Handyman Insurance Cost? 2025 Rates

In 2025, a U.S. handyman can expect to pay between $480 and $1,000 annually for comprehensive business insurance, averaging $40 to $83 per month. The primary cost drivers are your location, coverage limits, number of employees, claims history, type of services offered, tools & equipment value, and the type of policy you choose.

How Much Does Handyman Insurance Cost?

The average handyman insurance in the U.S. costs between $480 and $1,000 per year for a full business insurance package. That breaks down to roughly $40 to $83 per month. However, this is just a ballpark range and actual costs can vary widely depending on your specific situation.

For example, a part-time handyman who works alone and only does small repair jobs will likely pay less than a full-time contractor who handles big projects and has a team of workers.

The type of work you do, the tools and equipment you use, where you work, and whether you have employees can all affect your insurance premium.

If you work in areas with higher theft or accident rates, your liability insurance might cost more. Also, if you use expensive tools or heavy equipment, your property insurance could be higher compared to someone who only uses basic hand tools.

Here are some of the biggest cost drivers:

• Number of employees (affects workers’ comp and liability)
• Property size and value (affects commercial property coverage)
• Past claims history (insurers charge more if you’ve filed claims)
• Type of services offered (riskier jobs like electrical or roofing can lead to higher premiums)
• Tools and equipment value (more expensive tools may increase property coverage costs)
• Location of business (working in high-crime or high-accident areas can raise premiums)
• Years of experience (more experienced handymen may qualify for lower rates)
• Business vehicle use (commercial auto insurance costs depend on vehicle type and usage)

Understanding these variables can help you better estimate your insurance needs and prepare for the real costs of protecting your handyman business.

Average Handyman Insurance Costs For Coverage Types

When it comes to a handyman insurance policy, different types of insurance cover different risks. Understanding the average cost, coverage details, and what influences pricing for each policy type can help you build a more effective insurance plan. Here’s a closer look at the major coverages most handyman businesses need.

• General liability insurance: $64 per month
• Business owner’s policy: $90 per month
• Workers’ compensation insurance: $130 per month
• Commercial auto insurance: $179 per month
• Contractor’s tools and equipment: $17 per month
• Builder’s risk insurance: $100 per month
• Commercial umbrella insurance: $62 per month

General Liability Insurance

The average cost of general liability insurance for a handyman is about $64 per month.

General liability covers third-party bodily injury, property damage, and advertising injuries. For example, if a customer trips over your toolbox at a job site and gets hurt, general liability insurance can help cover their medical bills and your legal costs if they sue.

Typical policy limits are $1 million per occurrence and $2 million aggregate.

Several things can affect how much this insurance costs, including the size of your business, where you work, how often you interact with customers, your history of past claims, and whether you do high-risk work like roofing or electrical repairs.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $90 per month for a handyman.

A business owner’s policy (BOP) includes general liability insurance, which helps cover common legal claims, and commercial property insurance, which protects your business items if they’re stolen or damaged. For example, if a fire breaks out in your workshop and damages your power tools and workbench, the BOP would help pay for the repairs and equipment replacement.

Typical policy limits are $1 million per occurrence and $2 million aggregate for liability, with separate property coverage limits based on the value insured.

The cost of a BOP depends on things like the coverage you pick, how big your business is, how many people visit your location, and how much your business property is worth.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a handyman insurance is around $130 per month.

Workers’ comp covers medical bills, rehabilitation, and lost wages for employees injured on the job. For example, if a handyman falls off a ladder while fixing a roof and injures his back, workers’ compensation would help cover his medical bills and a portion of his lost income while he recovers and can’t work.

Policy limits are regulated by each state, but typically include medical costs and a percentage of lost wages without a set cap.

Premiums are influenced by the size of your payroll, the type of work employees perform, your claims history, and any implemented safety programs.

Commercial Auto Insurance

The average cost of commercial auto insurance for a handyman services is about $179 per month.

Commercial auto insurance covers vehicles owned or used by the business for accidents, theft, vandalism, or damage. For example, if a handyman gets into an accident while driving to a client’s home in his work van, commercial auto insurance would help cover the repair costs for the van and any damages or injuries caused to others.

The price of a commercial auto policy depends on things like the type of coverage you pick, how much your vehicle is worth, and your past insurance claims.

Contractor’s Tools And Equipment

The average cost of commercial auto insurance for a handyman is about  $17 per month.

Contractor’s tools and equipment insurance is a type of coverage that protects a contractor’s tools, machinery, and equipment from damage, loss, or theft, whether on the job site, or in storage. For example, if a handyman’s toolbox is stolen from a job site or a power saw is damaged while being transported, this insurance would help pay for repair or replacement.

The price of contractor’s tools and equipment insurance depends on how much your tools are worth and the kind of jobs you handle.

Builder’s Risk Insurance

The average cost of builder’s risk insurance for a handyman is about  $100 per month.

Builder’s risk insurance is a special type of property insurance that covers buildings and structures while they are under construction or renovation. For example, during a home renovation project, if a fire breaks out at the job site and damages the framing and materials., builder’s risk insurance can cover the costs to replace the damaged materials.

The cost of builder’s risk insurance is based on how much the project is worth, including the price of materials and the cost of labor.

Commercial Umbrella Insurance

The average cost of commercial umbrella insurance for a handyman is about  $62 per month.

Commercial umbrella insurance kicks in when your main insurance policy hits its limit, helping to cover extra costs up to the limit of the umbrella policy.

How much it costs mostly depends on how much extra coverage you choose.

What Factors Impact Your Handyman Insurance Costs?

Handyman insurance premiums are carefully calculated by underwriters based on your business’s risk profile. There are several factors that influence what you’ll pay for coverage.

Number Of Employees

More staff means more potential for injuries or mistakes, which can increase your liability and workers’ comp premiums. Coverage needs grow with your team size.

Services Offered

Jobs involving electrical, roofing, or plumbing work are seen as higher risk and may lead to higher insurance costs compared to basic repairs or installations.

Location Of Business

If your business is in an area with high crime rates or frequent natural disasters, your premiums may be higher due to increased risk.

Year Of Experience

Insurers may offer lower rates to an experienced handyman with a proven track record, as they’re considered less likely to make costly errors.

Business Vehicles Used

Regularly using a vehicle for jobs, especially one carrying tools or materials, can increase your commercial auto insurance cost, especially if you drive long distances or to multiple job sites daily.

How To Lower Your Handyman Insurance Costs

Running a handyman business costs money, but your insurance doesn’t have to be too expensive. You still need good coverage, but there are smart ways to save money without losing protection. Here are some simple tips to help lower your handyman insurance costs:

1. Bundle Your Policies

One of the easiest ways to save is by bundling multiple policies. Most insurers offer a Business Owner’s Policy (BOP) that combines general liability and property insurance at a lower rate than if you bought them separately. If you also need workers’ compensation, bundling all three through the same provider can lead to additional discounts. Not only does this simplify your paperwork, but it also makes your coverage more cost-efficient.

2. Ask About Discounts

Insurance companies often give discounts to handyman businesses that stay with them for the long term. Ask if you can get a better rate by signing a two or three year policy instead of renewing every year. You may also save money by paying your full premium upfront instead of making monthly payments.

3. Implement Safety Measures

Accidents can be costly for your handyman business and your insurance company. By making your work sites safer, you may lower your chances of filing a claim, and possibly get lower insurance rates over time. Simple steps like keeping your tools organized, cleaning up debris, using safety gear, and checking ladders and equipment regularly can help reduce the risk of injuries or property damage.

4. Create A Safe Working Environment

Having a strong safety plan can help lower your workers’ compensation insurance costs. Train your crew on how to lift heavy items safely, use tools the right way, and follow safety steps when working with electricity, ladders, or sharp equipment.

By taking these steps, you not only save money but also make your business safer, and more resilient.