How Much Does Handyman Insurance Cost? 2025 Rates

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 business insurance 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.

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

Contractor’s Tools And Equipment

Handymen rely on drills, saws, ladders, power tools, and portable equipment, so many choose contractor’s tools and equipment coverage to protect against theft, loss, and accidental damage. The average cost for this type of insurance is about $17 per month.

This policy helps if tools are stolen from a job site, damaged during transportation, or ruined while working. Costs depend on the value of your tools and the type of projects you take on.

Average annual premiums in 10 states:

Note: Estimates are blended average annual Contractor’s Tools & Equipment Insurance premiums for handyman businesses using sample quotes from both small and large insurance agencies and reflect handyman‑specific factors in each state. Actual premiums will vary by insurer, declared values and schedules, chosen deductibles, loss history, payroll and revenue bands, and other business‑ and location‑specific underwriting factors.

Business Owner’s Policy (BOP)

A Business Owner’s Policy is a popular option among handymen because it bundles general liability with commercial property protection. The average handyman BOP costs about $90 per month.

This policy can help cover claims related to customer injuries along with damage to your shop space, stored tools, supplies, and equipment. If a workshop fire damages saws, compressors, or benches, a BOP may help replace them.

Premiums vary based on business size, customer visits, equipment value, and selected coverage options.

Average annual premiums in 10 states:

Note: Estimates are based on blended average annual Business Owner’s Policy (BOP) premiums for handyman businesses using sample quotes from both small and large insurance agencies and reflect handyman‑specific state factors. Actual premiums will vary by insurer, coverage limits and endorsements, chosen deductibles, loss history, location, and other business‑ and site‑specific underwriting factors.

General Liability Insurance

General liability insurance is one of the most common and essential policies for handymen, averaging about $64 per month.

This coverage protects you if a customer is injured or property is damaged while you’re working. If someone trips over your tool bag, or you accidentally damage flooring, this policy can help cover medical bills and legal expenses. Typical limits are $1 million per occurrence and $2 million aggregate.

Costs depend on job type, where you work, client interaction, claim history, and whether you handle higher risk tasks such as roofing or electrical.

Average annual premiums in 10 states:

Note: Estimates reflect average handyman liability rates. Actual premiums vary by job exposure, endorsements, revenue, and safety practices.

Commercial Auto Insurance

Handymen often drive work vans, pickups, or utility vehicles, making commercial auto insurance important. The average cost for handymen is about $179 per month.

This policy covers damage, theft, collisions, and liability if you are involved in an accident on the way to a job. Pricing depends on vehicle type, usage, driver records, and past claims.

Average annual premiums in 10 states:

Note: Estimates reflect average auto coverage costs for handyman use. Actual pricing varies by mileage, drivers, vehicle value, and coverage limits.

Workers’ Compensation Insurance

Workers compensation for handymen averages around $130 per month and applies if you have employees or helpers.

This insurance pays medical expenses, rehabilitation, and partial wages if someone gets injured while working. Falls, strains, and tool accidents are common job risks in handyman work. State requirements vary, but many require coverage if even one employee is on payroll.

Average annual premiums in 10 states:

Note: Estimates reflect average workers comp pricing for handyman trades. Actual rates vary by payroll, classification codes, claims history, and safety measures.

Builder’s Risk Insurance

Builder’s risk insurance applies when a handyman takes on remodeling or construction work. The average cost is about $100 per month.

This policy protects materials, structures, and ongoing work during renovation. If a project experiences theft, fire, or weather damage before completion, builder’s risk may help pay for replacement.

Average annual premiums in 10 states:

Note: Estimates reflect typical handyman project risk averages. Actual pricing varies by project value, duration, location, and materials.

Commercial Umbrella Insurance

Commercial umbrella insurance adds extra liability protection above existing policy limits. The average cost for a handyman is about $62 per month.

This coverage comes into play if a major claim exceeds your general liability or auto limits, offering an additional financial buffer. Cost depends primarily on the amount of added coverage selected.

Average annual premiums in 10 states:

Note: Estimates reflect umbrella averages for handyman businesses. Actual rates vary by coverage limits, claims history, and business operations.

Handyman Business Insurance Costs By Provider

Handyman business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: These estimates are based on average annual premiums for handyman businesses from both small and large agencies and reflect common coverages such as general liability, tools/equipment coverage, commercial auto, professional liability where applicable, and workers’ compensation; actual premiums will vary by location, revenue, number of employees, services offered, claims history, and chosen coverage limits.

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.