Does a Handyman Need Insurance? Everything You Need to Know

Jayant Upadhyay
Jul 18
5 min read

Introduction
What Is a Handyman?
Why Insurance Matters for Handymen
Types of Insurance Handymen May Need
- General Liability Insurance
- Workers’ Compensation Insurance
- Commercial Auto Insurance
- Tools and Equipment Coverage
- Bonding Insurance
- Professional Liability Insurance
- Business Owner’s Policy (BOP)
State-by-State Insurance Requirements
What Happens Without Insurance?
How Much Does Handyman Insurance Cost?
How to Choose the Right Policy
Where to Buy Handyman Insurance
How to Reduce Insurance Costs
Frequently Asked Questions
Final Thoughts

1. Introduction

As a handyman, your work is all about fixing, building, and solving problems around homes and businesses. But what happens when something goes wrong on the job? Whether it’s a minor injury, property damage, or a legal issue, the consequences can be costly.

That’s why insurance is not just a good idea—it’s essential. In this comprehensive guide, we explore why insurance is crucial for handymen, what types you need, how much it costs, and how to get it.

2. What Is a Handyman?

A handyman is a skilled worker who performs a wide range of repair, maintenance, and installation tasks. These can include:

Fixing leaky faucets
Installing light fixtures
Repairing drywall
Painting walls
Basic carpentry
Assembling furniture

Most handymen are self-employed or operate as small businesses. Unlike licensed contractors, they often don’t require formal trade licenses for all types of work (depending on the state). This makes them flexible but also potentially more exposed to risks.

3. Why Insurance Matters for Handymen

Even small jobs come with big risks. Here’s why insurance is vital:

3.1. Accidents Happen

If you accidentally damage a customer’s property or a client trips over your tools, you could be held liable.

3.2. Injuries Are Costly

Even if you’re careful, injuries can occur on the job. Without coverage, you could face hefty medical bills or lawsuits.

3.3. Professionalism and Trust

Clients often prefer to hire insured professionals. Insurance signals responsibility and increases credibility.

3.4. Legal Requirements

Many states, cities, or clients require certain types of insurance before allowing handymen to work.

4. Types of Insurance Handymen May Need

4.1. General Liability Insurance

This is the most essential type of coverage. It protects you if:

You damage a client’s property
Someone gets injured due to your work
You're sued for advertising or reputational harm

Example: You accidentally knock over a $2,000 TV while installing a shelf. General liability would cover the replacement.

Estimated Cost: $400–$1,200/year.

4.2. Workers’ Compensation Insurance

If you have employees, most states require this. It covers:

Medical expenses
Lost wages
Rehabilitation for injured workers

Even if you’re a solo handyman, it’s wise to consider this if you work in hazardous environments.

4.3. Commercial Auto Insurance

If you drive a personal vehicle for work, your standard car insurance may not cover accidents that happen while on the job.

This policy covers:

Work-related accidents
Vehicle damage
Liability in case of injury to others

4.4. Tools and Equipment Coverage

Your tools are your livelihood. This policy covers:

Theft from your van or job site
Vandalism
Damage from fire or flood

Some insurers bundle this with a general liability plan.

4.5. Bonding Insurance

Surety bonds aren't technically insurance but are often required when bidding on larger jobs. They guarantee you'll complete the work as agreed or the client is compensated.

Common bond types:

License and permit bonds
Bid bonds
Performance bonds

4.6. Professional Liability Insurance

Also known as Errors & Omissions (E&O), this protects you against claims of negligence or unsatisfactory work. It’s especially useful if you offer consulting or more technical services.

4.7. Business Owner’s Policy (BOP)

This is a bundled policy that includes:

General liability
Commercial property insurance
Business interruption insurance

It’s a cost-effective way to get broad coverage.

5. State-by-State Insurance Requirements

Insurance requirements for handymen vary by state. Here are a few examples:

California: General liability is not mandatory but strongly recommended. Workers’ comp is required if you hire employees.
Florida: A handyman cannot perform plumbing or electrical work without a license and must carry general liability and workers’ comp.
Texas: There are fewer licensing requirements, but insurance is essential to compete professionally.

Tip: Check with your state’s contractor licensing board or small business administration.

6. What Happens Without Insurance?

Operating without insurance can lead to:

Lawsuits: One accident could bankrupt your business.
Lost Clients: Many customers and commercial clients demand proof of insurance.
Penalties and Fines: You might face fines or be banned from job sites.
Out-of-pocket Repairs: Damage to property or tools could cost thousands.

Real Scenario: A handyman in Oregon faced a $10,000 lawsuit after accidentally causing water damage in a client’s kitchen. Without insurance, he paid out of pocket.

7. How Much Does Handyman Insurance Cost?

Insurance costs vary depending on:

State laws
Business size
Services offered
Claims history

Average Costs:

Insurance Type	Annual Premium Range
General Liability	$400 – $1,200
Workers' Comp	$1,000 – $3,000
Commercial Auto	$800 – $2,500
Tools & Equipment Coverage	$100 – $500
BOP (Bundled Policy)	$600 – $2,000

Tip: Bundling policies with the same provider often reduces costs.

8. How to Choose the Right Policy

8.1. Assess Your Risks

Do you work on high-value properties? Use heavy tools? Employ workers? These factors matter.

8.2. Compare Quotes

Use online insurance brokers like:

Next Insurance
Thimble
Hiscox
The Hartford

8.3. Check the Fine Print

Make sure your policy includes:

Completed operations coverage
Products liability
Medical payments coverage

9. Where to Buy Handyman Insurance

Several platforms specialize in contractor and handyman insurance:

Next Insurance – Tailored policies for small tradespeople
Thimble – On-demand insurance (ideal for part-time handymen)
Hiscox – Custom plans for small businesses
Nationwide – Offers comprehensive BOP packages
CoverWallet – Compares multiple quotes

Always choose a provider with a strong reputation and easy claims process.

10. How to Reduce Insurance Costs

Bundle Policies: Choose a BOP to save more.
Raise Deductibles: A higher deductible means lower premiums.
Maintain a Clean Record: Fewer claims = lower rates.
Use Safety Protocols: Wearing protective gear and training employees lowers risk.
Shop Around: Don't renew automatically—compare every year.

11. Frequently Asked Questions

Q1. Is handyman insurance legally required?

A: Not always, but it’s often required by clients or local governments, especially if you have employees or work on commercial properties.

Q2. Can I get insurance if I work part-time?

A: Yes. Many providers offer flexible or short-term coverage for part-time or weekend handymen.

Q3. What’s the difference between a bond and insurance?

A: Insurance protects you from claims; bonds protect the client from unfinished or poor work.

Q4. How quickly can I get covered?

A: Many online providers issue certificates of insurance (COIs) the same day you apply.

12. Final Thoughts

Insurance might seem like an extra expense for a solo handyman, but it’s an investment in your business’s survival and reputation. One accident, lawsuit, or tool theft can set you back thousands of dollars or even put you out of business.

Whether you're working part-time or running a team, having the right insurance policies ensures peace of mind, trust from clients, and compliance with local laws.