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Handyman and small repair businesses keep shops, apartments, homes, and essential equipment operating smoothly.
From minor plumbing repairs to replacing electrical components, cabinet installation, swapping fixtures, replacing our locks,your small handyman business is vital to people’s lives and to the economy as a whole.
Having insurance is important for every handyman. Below, we’ll discuss all of the basics needed to purchase handyman insurance coverage, as well as understanding the cost.
Handyman Insurance Requirements
General liability insurance is the first requirement you have to consider. In most states, handymen are required to get $1 million coverage before a license is issued.
Considering getting a surety bond too. A surety bond ensures that the client gets some money if you can’t hold your end of the deal. The minimum surety bond required from handymen is $20,000 – $50,000.
Handyman Liability Insurance
It is a collective term for insurance policies that protect handymen against lawsuits filed by employees, competitors, clients, or the general public. The most common types are general liability, professional liability, and cyber liability insurance.
A common component in all handyman insurance packages is a general liability policy. General liability insurance for handyman business grants protection when customers or the available public file a lawsuit for bodily injuries, property damage, copyright infringement, and reputational harm.
You will enjoy a $1 million-$2 million per occurrence and aggregate limit from your handyman general liability policy.
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 | $1,000,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 | $1,000,000/$2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Hired/non-owned auto liability coverage included? | Yes | No | Excluded | Excluded | Can be included |
| Equipment breakdown floater included? | No | Yes | Yes | Excluded | Can be included |
| Deductible | $0 | $0 | $0 | $0 | $0 |
| CoverWallet (Best) | NEXT | Thimble | Hiscox | The Hartford | |
| Per occurrence limit | $1,000,000 | $10,000/$25,000 | $1,000,000/$2,000,000 | $250,000/$2,000,000 | $1,000,000 |
| Aggregate limit | $2,000,000 | $20,000/$50,000 | $1,000,000/$2,000,000 | $250,000/$2,000,000 | $2,000,000 |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Waiver of subrogation included? | Yes | No | No | No | No |
You are making money through your services. The problem is clients may ask for compensation or even hold you legally accountable for mistakes. Professional liability insurance covers accusations of:
Professional liability insurance has a $1 million-$2 million per occurrence and aggregate limit. Some insurance companies might only offer a $500,000-$1 million professional liability coverage to businesses.
Protection doesn’t end with liability insurance policies and commercial auto insurance. There are other insurance you can get for full-blown protection. These are:
Get commercial property insurance if you’re running a handyman service business. Commercial property insurance will cover your commercial building. The function of this policy is to give money if you need to reconstruct or repair the building or its structures. Only consider this policy if you have a home office, a rented office, or a commercial building.
Commercial property insurance can get you back on track when these perils happen, resulting in the damage or destruction of your business property:
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
| Building coverage limit (minimum) | $50,000 | $110,000 | $25,000/$500,000 | $15,000 | $60,000 |
| Contents coverage limit (minimum) | $50,000 | $15,000 | $25,000/$500,000 | $15,000 | $60,000 |
| Outdoor signs | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Accounts receivable | Excluded | Excluded | $5,000/10,000 | Included | Excluded |
| Money and securities | Excluded | $2,500 | $1,000 | Included | Excluded |
| Lock and keys | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Business interruption floater | Excluded | Included | Included | Included | Excluded |
| Equipment breakdown floater | Excluded | Included | Excluded | Excluded | Excluded |
| Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 | Included | Excluded |
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Tools and equipment insurance covers expenses if your drills, saws, hammer, and other tools for work get damaged or lost due to fire, theft, vandalism, and other covered perils.
This policy can be a floater to commercial auto, general liability, and commercial property insurance. Tools and equipment insurance for handyman business provides $2,500-$5,000 worth of coverage.
| NEXT | Thimble | Hiscox | The Hartford | |
| Aggregate limit | $3,000/$10,000 | $2,500/$5,000 | $15,000/$25,000 | $5,000-$10,000 |
| Covers hired and borrowed equipment? | $3,000/$10,000 | $2,500/$5,000 | No | Yes |
| Miscellaneous equipment also covered? | $5,000/$10,000 | No | Yes | Yes |
| Offered as an endorsement to general liability insurance? | Yes | Yes | Yes | Yes |
| Deductible | $500 | $500 | $0 | $0 |
Commercial auto insurance grants protection against the cost of auto accidents, uninsured drivers, and vehicle breakdowns. This offers coverage options for the load and attached equipment to your commercial vehicle.
Commercial auto insurance offers the following coverages:
The maximum coverage is $1 million-$2 million combined single limit.
Workers compensation insurance covers the medication, hospitalization, lost wages, and other benefits an employee must receive after a work-related injury.
The law mandates you purchase this policy if you have employees. An exemption might apply if you are working alone.
Workers compensation insurance can help if these perils happen to an employee:
One Day Handyman Insurance
The general liability policy for this type of short-term coverage offers a $1 million-$2 million per occurrence and aggregate limit. An equipment floater may be added and this offers up to $2,500-$5,000 worth of coverage for repairs.
| Cost per Month | Cost per Year | Deductible | |
| General liability insurance | $57 | $540 | $0-$500 |
| Professional liability insurance | $65 | $1,080 | $500-$1,000 |
| Commercial property insurance | $82 | $1,608 | $1,000-$2,000 |
| Business owner’s policy | $100 | $2,040 | $1,500 |
| Tools and equipment insurance | $60 | $660 | $500-$1,000 |
| Workers compensation insurance | $82 | $660 | $2,000-$5,000 |
Handyman liability insurance cost $57 per month or $684 per year for a $1 million general liability policy. Factors that affect the average handyman insurance cost are claims history, business history, policy limits, deductibles, add-ons, and more.
NEXT
NEXT have developed a great reputation for providing low-cost small business insurance, an easy claims process, and above-average customer service.
What allows NEXT to keep their insurance rates so affordable is that they use artificial intelligence to handle most of the claims process. This cuts down on agents and payroll, allowing the company to pass the savings on to its policyholders.
Average cost: $22 per month
CoverWallet is an insurance broker with an online quote generator you can use to compare the pricing and offers of its partners. CoverWallet offers general liability with commercial property insurance.
CoverWallet can insure you through a customized insurance plan where you’re free to choose and add the insurance policies needed.
Average cost: $36 per month
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Tivly® allows you to compare quotes. However, unlike CoverWallet, this company allows you to do quote comparison over the phone with the help of a representative. Tivly® will help you find the best insurance company that offers the most comprehensive coverage at the right price.
Average cost: $39 per month
Our rating: 10/10
Thimble’s handyman insurance only includes general liability insurance with products and completed operations coverage. If you decide to get insured with Thimble, you’ll get instant proof of insurance.
Thimble’s general liability insurance for handymen offers $1 million – $2 million in coverage.
Average cost: $48 per month
Hiscox primarily offers general liability and professional liability insurance. But note that this company allows you to endorse policies such as loss of income coverage, business interruption, commercial property.
based on what kind of services you provide and the nature of your work. With Hiscox, you can get more than $2 million in coverage.
Furthermore, you’ll get access to risk management resources.
Average cost: $47 per month
Before State Farm offered small business insurance for farmers in the American Midwest. This means they have a long history when it comes to providing insurance for handyman services. They also have great rates on workers’ comp policies if you have employees.
One of the best reasons to choose State Farm is that they have excellent ratings as far as customer service and satisfaction go.
Average cost: $61 per month
GEICO is one of the biggest insurance agencies in the United States, and they provide a wide range of small business insurance policies designed to protect you from any claim that could come your way.
Geico has received very good reviews as far as their pricing goes.
Geico also has an incredibly easy-to-use mobile app that allows you to keep track of your billing, claims or pull up instant proof of insurance if a client asks for it.
Average cost: $67 per month
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