Handyman Insurance: Cost, Liability & Quotes From $5

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Handyman and small repair businesses keep our shops, apartments, homes, and essential equipment operating smoothly. From minor plumbing repairs to replacing electrical components, swapping light fixtures, replacing our locks, fixing the garbage disposal, and everything in between, your small handyman business is vital to people's lives and to the economy as a whole!

Whether you just started out and want to insure your handyman business and compare quotes online, just think of starting one and want to explore handyman insurance costs and coverage options, or you’re just trying to understand how handyman business insurance works, you’ve come to the right place!

Below, we’ll discuss all of the basics that you need to know about purchasing handyman insurance coverage, how to get quotes from the best handyman insurance companies on the market, how to get cheap handyman insurance costs and quotes by doing an online comparison and more.

Let’s get our hands busy, shall we?

Also read:Carpenter Insurance & Joiners Insurance: Cost & Quotes From $11

Do Handymen Need Insurance?

Whether you need self-employed handyman insurance or you run a slightly larger business with a few employees and helpers, having a basic handyman insurance policy is essential. A small handyman business insurance policy can protect your business from damage or injury claims that you would otherwise be held personally liable for.

Your handyman insurance serves as a protective barrier between you and claims that could financially destroy your business. So, that being said, yes - handymen do need insurance and will be smart to have it!

Purchasing small handyman business insurance is relatively simple and easy. It’s fairly easier than getting commercial construction insurance and even insurance for roofers . Generally speaking, running a small repair service is a relatively low-risk field of work, so purchasing insurance for handyman work is neither complicated nor overly expensive.

Handyman Liability Insurance

Liability insurance pertains to different insurance policies that protect a handyman from the cost of claims. These are:

• General liability

• Professional liability

• Employer’s liability

Handyman General Liability Insurance

General liability insurance for handyman business is the most common type of insurance coverage you’ll need.General liability insurance policy covers most of the tiny mishaps that can happen in your day-to-day business operations, such as bodily injury claims or property damage. It will cover any legal fees resulting from lawsuits filed against your business by customers, employees, business owners, suppliers, and more.

For example, suppose a client trips over your extension cord and twists their ankle, or you accidentally break their refrigerator. In that case, your handyman liability insurance policy will cover lawyer fees, other legal costs, and settlements if a claim is filed.

Decide to add products and completed operations coverage to your general liability insurance. Understand that basic general liability insurance won’t cover claims filed after you’ve completed a project. Products and completed operations will be very helpful if clients accuse you of not finishing the project well, which resulted in personal injuries and property damage.

Handyman Professional Liability Insurance

Aside from personal injuries and property damage, third parties might accuse you of causing economic or financial loss by being negligent. Clients might demand payment after you’ve failed to meet a deadline. General liability won’t cover these things.

So what policies do you need to get for added protection? Consider adding professional liability insurance. Professional liability insurance covers accusations of:

• Negligence - You left for a break without keeping your tools away from the project site. The client came in to check on the progress and tripped on the tools. Minor injuries were incurred. Because of this, the client then filed a claim to get reimbursement for what he spent for emergency treatment

• Violation of good faith - A client hired you to finish a particular project for his daughter’s debut. However, something happened and made work slow. As a result, you didn’t finish the project on time. For this, the client demand you pay for missing the deadline

• Inaccurate advice - You suggested to the client to add a particular structure to the house to make it more sturdy. However, it turned out that your advice did more harm than good. The client then filed a claim to get reimbursement for what they spent on the finished structure

Professional liability insurance and general liability insurance work hand-in-hand to provide the best protection against third-party claims. With that said, don’t decide to get one without the other.

Handyman Employer’s Liability Insurance

Do you work with assistants? If so, recognize that, if ever they get injured at work, such employees might blame you for negligence and demand for compensation.

Employer’s liability insurance can help in such a situation. With this policy, you can pay for lawyer fees, other legal costs, and settlements to aggrieved employees.

Note that employer’s liability insurance doesn’t cover claims filed because of sexual harassment, discrimination, delayed wages, and wrongful termination. These perils are covered by employment practices liability insurance, which also provides money so that you can pay for lawyer fees, other legal costs, and settlements.

How Much Insurance Money Can You Get from General Liability, Employer’s Liability, and Professional Liability Insurance?

General liability, employer’s liability, and professional liability insurance offer a $1 million minimum limit. However, it’s best to assess the risk that you face to know how much you need to have in coverage.

Also read: Tradesman Insurance: Quotes, Cost & More

Handyman Commercial Auto Insurance

If you have an official work truck that’s registered under your company name, then you may want to consider purchasing a commercial auto insurance policy. If you’re going to be towing around a trailer or truck bed full of tools and various materials, things can sometimes fall out and may cause damage to other vehicles on the road. Additionally, if you drive your commercial vehicle without load or trailer, you may need bobtail insurance coverage as well.

Your commercial auto policy will provide coverage for these types of accidents and will also cover you in the event of a larger accident. You may also be able to save money by bundling your commercial auto policy with your handyman liability insurance.

Are There Other Insurance Handymen Need to Get?

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:

• Commercial property insurance

• Tools and equipment coverage

• Loss of income coverage

• Business interruption insurance

• Employee dishonesty insurance

Commercial Property Insurance

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 damaged by fire, theft, vandalism, extreme weather, and other covered perils.

The equipment inside the building needs to get insured too. And to do this, you need to add business tools and equipment coverage. Business tools and equipment coverage provides money if employee’s tools and equipment inside the building got damaged or lost because of theft, fire, and other named perils.

Business Interruption Insurance

Your handyman business might have to relocate or experience issues. Sometimes, these things force you to stop business operations for an indefinite period of time. And so, consider getting an insurance policy that will minimize the impact of losing some revenues.

The insurance policy that perfectly does the job is business interruption insurance. In case of temporary closure, business interruption insurance covers operational costs such as employee wages, taxes, and loans on your behalf.

So how does business interruption insurance work in practice? Business interruption insurance provides money equal to a portion of or the full amount of your handyman business’s average revenue. In simple terms, it aims to replace or supplement the income your business would have earned.

Tools and Equipment Coverage

If you’re just a small-time handyman working on small projects, then there’s no need to get commercial property insurance. To insure work tools, just look for a carrier that offers stand-alone tools and equipment coverage. Alternatively, you can also search for an insurance company that allows you to add tools and equipment coverage to general liability insurance.

Loss of Income Coverage

Business interruption insurance is only for startups and big handyman service businesses. If you're working solo, what’s available for you is loss of income coverage. In the event you get injured and can’t work, loss of income coverage will provide an allowance that will supplement your lost income.

Employee Dishonesty Insurance

Your employee might steal from you. And so, decide to get employee dishonesty insurance. Employee dishonesty insurance covers your losses if an employee steals work tools or money, commits social engineering, and other actions constituting fraud or theft.

Handyman Insurance Requirements

Some states require handymen to get a license before starting a project. And if you’re working in such states, then it’s important to know the insurance requirements for licensing.

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.

What if you’re in a state where no license is required for you to perform a handyman service? We suggest you still purchase general liability insurance. Why? It’s because clients might ask if you’re covered with this policy. If not, they might give the project to someone else.

Handyman Insurance Cost

How much does handyman insurance cost? Purchasing insurance for handyman work is usually quite affordable. The factors that can affect the price of your monthly and annual premiums include:

• The type of repair work you specialize in.

• The city you work in.

• Whether or not you have employees.

• Your gross receipts or annual income.

• Whether or not you’ve made previous business insurance claims.

• How much your coverage limit is.

The average handyman business insurance cost is $81 per month or $972 per year for a business owner's policy.

Additionally, some handyman businesses need commercial auto insurance as well. The average handyman commercial auto insurance cost in America is $145 per month or $1,720 per year.

Handyman Liability Insurance Cost

If you’re looking to purchase liability insurance for handyman business, then you’re probably wondering what are its average rates some of the best handyman insurance companies provide. The average handyman liability insurance cost is $57 a month or $684 annually for a $1 million general liability coverage. Rates may vary depending on different risk factors. However, we put together a list below of the average handyman liability insurance cost charged by the top handyman insurance companies to give you a good idea of what to expect.

Best Handyman Insurance Companies

If you’re looking for the best insurance for handyman business, then look no further! We’ve reviewed the top providers of insurance for handyman company such as yours! We’ve included a brief background on each insurer, pros, cons, and pricing for a $1 million general liability coverage.

CoverWallet Handyman Insurance

Pros

• Get insured online

• Compare handyman insurance quotes for free

Cons

• Not an insurance company but a broker selling the quotes of its partners

CoverWallet is an insurance broker with an online quote generator you can use to compare the pricing and offers of its partners. You have four insurance options from this company. You can choose to only get general liability insurance having a $1 million limit. In case you want to extend your coverage a little more, CoverWallet offers general liability with commercial property insurance.

Now, if comprehensive protection is what you’re looking for, then the company offers a business owner’s policy with commercial auto. If a business owner’s policy isn’t enough, CoverWallet can insure you through a customized insurance plan where you’re free to choose and add the insurance policies needed.

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Best for: Online handyman insurance quotes comparison

Average cost: $36

Our rating: 10/10

Thimble Handyman Insurance

Pros

• Has an online insurance calculator to estimate rates

• Offers short-term handyman insurance

• Get covered online

Cons

• Not very comprehensive

Thimble’s handyman insurance only includes general liability insurance with products and completed operations coverage - not very comprehensive but this is fine. Why? If you decide to get insured with Thimble, you’ll get instant proof of insurance. The best thing is you can choose to get covered for only hours, days, weeks, or months. Thimble’s general liability insurance for handymen offers $1 million - $2 million in coverage.

Best for: Short-term handyman insurance

Average cost: $44

Our rating: 9/10

Next Handyman Insurance

Pros

• Affordable small business insurance for handyman services

• Piece together a policy that works for you

• Fast and easy claims process

• Good customer service

Cons

• Relatively young company

• No physical offices mean that getting in touch with an actual agent can take a while

Unlike the other insurers we’ve reviewed so far, Next is new to the insurance scene and was just recently founded in 2016. In the few short years, they’ve been in business, though, they’ve 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 onto its policyholders.

Best for: Self-employed handymen

Average cost: $48 per month

Our rating: 8/10

Hiscox Handyman Insurance

Pros

• Generous limits

• Provides free risk management resources

Cons

• Has a lot of customer complaints

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, etc. based on what kind of handyman 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.

Best for: Handyman insurance with generous limits

Average cost: $47 per month

Our rating: 7/10

USAA Handyman Insurance

Pros

• Outstanding customer service

• Build a policy from the ground up

• Incredible deals for small business insurance

• Bundle your policies together

Cons

• Only available to active duty or retired military members and families

If USAA accepts you, then they have the best small business insurance rates on the market! They’re able to provide such affordable rates because they cater specifically to active and retired members of the US armed forces and their immediate families.

From commercial auto to general liability, workers’ comp, and more, USAA lets policyholders build a policy from the ground-up that suits their specific needs. Once you’re a member, you don’t have to worry about sudden increases in your premium. USAA also has outstanding customer service ratings when it comes to handling claims.

Best for: Military veteran or reserve handyman business owners

Average cost: $49.31 per month

Our rating: 6/10

State Farm Handyman Insurance

Pros

• Stellar customer service reputation

• Handling claims is easier than other insurers

• Nationwide offices make it easy to reach an agent

• State Farm has a long history of providing small business insurance

Cons

• Pricing may vary heavily from one state to another

Before State Farm ever started offering auto insurance, they 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. Also, if you ever have to make an insurance claim, you want the process to be simple and easy. With State Farm, you’ll be treated with respect by your agent and get a fair deal on liability insurance for a handyman service.

Best for: Mid-sized handyman companies with less than 10 employees

Average cost: $61 per month

Our rating: 5/10

Allstate Handyman Insurance

Pros

• Insurance packages designed specifically for small handyman services

• Deals on bundling liability, commercial auto, and workers’ comp

• Get great deals on payroll by working with Allstate’s partner network

Cons

• Online claims filing isn’t very intuitive

Although Allstate has built a reputation for being a bit more expensive than other small business insurance providers, you’ll get what you pay for. They have a long list of industries that they specifically cater to (including handyman services), which means that you’ll never have to question whether or not you have the coverage you need.

Allstate also has several “preferred partners” they work with to provide discounted rates on important small business services such as payroll. Lastly, they offer great deals on bundling, which means that you could bundle a general liability, commercial auto, and even workers’ comp into a single umbrella policy and save a good bit of money.

Best for: Mid to large-sized handyman businesses that need to bundle policies and run a payroll

Average cost: $63 per month

Our rating: $4/10

Handyman Insurance Geico

Pros

• Offices nationwide for easy access

• Competitive pricing and deals

• Handle claims and billing through the Geico smartphone app

Cons

• Some complaints about how insurance claims are handled

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, and they offer a number of deals that you won’t get from some of the smaller specialty insurers. Additionally, 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.

Best for: Small self-employed handyman businesses

Average cost: $67 per month

Our rating: 3/10

How to Get Cheap Handyman Insurance?

If you’re trying to get a cheap handyman insurance quote, then the best thing you can do is to compare handyman insurance quotes online. Depending on where you live, you may be able to take advantage of specific deals offered by insurers in your area. Generally speaking, getting cheap general liability insurance for handyman is quite easy as this type of policy is quite a cheap business insurance policy anyway.

While performing a quick Google search for “ handyman insurance near me ” may provide you with some results, the easiest way to compare quotes is to use our handyman insurance quote generator. Simply press the ‘ Get Quotes ’ button below, enter some basic information on your business, and you’ll be presented with competitive quotes from numerous local and nationwide insurers that operate in your area!

Once you decide on the insurance provider that you want to do business with, there are several other steps that you can take to ensure that you get the best deals on handyman insurance policies.

The easiest way to get a good deal is to offer to pay a higher deductible. This means that you’ll pay a larger sum out of pocket if you do make a claim. However, the flip side is that you’ll pay lower monthly premiums.

Another great way to keep your insurance costs low is to bundle your policies together. For example, suppose you plan on purchasing multiple policies such as general liability, commercial auto, and workers’ comp. In that case, it’s a better idea to bundle them all through the same company and sometimes on a BOP instead of going through multiple different insurers for different policies.

By bundling your policy, you’re effectively dividing your risk across multiple policies, decreasing your overall risk as a policyholder, and reducing your premiums costs.