5 Best Handyman Insurance Companies in Texas for 2023

Thang Truong
Thang Truong
Updated on:

Handyman insurance, also known as contractor insurance, is a type of insurance that protects handymen and other tradespeople from financial loss in the event of accidents, injuries, or damage to property while on the job. This type of insurance is important for handymen in Texas because it not only protects their business but also their clients’ property and assets.

When looking for handyman insurance in Texas, it’s important to consider the different types of coverage that are available, as well as the cost of the insurance. Here are four of the best handyman insurance companies in Texas,, each with their own pros and cons:

4 best handyman insurance companies in Texas

Many companies offer insurance for handymen in Texas. It can be overwhelming and even confusing trying to find the best one for your business. We have done intensive research and recommend the 4 best providers with their pros and cons for your consideration: 

  • Simply Business: Best for finding cheap coverage
  • CoverWallet: Best for comparing several quotes from top carriers
  • NEXT: Best for handyman liability insurance in Texas
  • Smart Financial: Best brokerage firm if you prefer working with an experienced agent

Simply Business: Best for finding cheap coverage

Simply Business is an online insurance brokerage firm that allows handymen to compare quotes from multiple insurance carriers. They offer a variety of coverage options including general liability, workers’ compensation, commercial auto or commercial truck, and property damage. One of the best things about Simply Business is that they offer some of the most affordable rates on the market. 

Simply Business partners with 30+ carriers, some of which may not be as well-known as others . However, they all have excellent financial strength ratings and tend to be able to offer more affordable rates. If you are looking to get cheap coverage, you may want to start with Simply Business: 

Pros 

  • Offers one of the most affordable rates in the market 
  • Easy to get and compare several quotes for several coverages that handymen may need 
  • Good consumer satisfaction rating on trustpilot 

Cons

  • If you prefer a particular carrier that Simply Business doesn’t work with, you may want to look elsewhere 
  • You need to file a claim directly with the carrier. Simply Business doesn’t handle claims 

CoverWallet: Best for comparing several quotes from top carriers

CoverWallet is an online insurance broker that provides quotes from several top insurance carriers. They have a variety of coverage options including general liability, workers’ compensation, and property damage. The benefits of using CoverWallet is that it allows handymen to compare quotes from different insurance companies and find the best coverage at the best price. 

Pros: 

  • Easy to get and compare several quotes online 
  • Quotes are from top-tier carriers
  • Easy to manage the policy on their digital dashboard 

Cons: 

  • Rates may not be as competitive as in other platforms 
  • Sometimes multiple quotes are not available online. In such cases, you have to call CoverWallet to compare quotes 

NEXT: Best for handyman liability insurance in Texas

NEXT is an insurance company that specializes in providing liability insurance for handymen in Texas. They offer general liability coverage, as well as additional coverage options such as workers’ compensation, commercial auto insurance, and property damage. One of the benefits of using NEXT is that their coverage is specifically tailored to the needs of handymen in Texas. 

Pros: 

  • Offers an excellent digital experience: you can get quotes, buy a policy, and manage your policy entirely online 
  • Handyman liability insurance coverage is very affordable
  • Backed by Munich Re, one of the best reinsurance companies in the world, and several top-tier venture capital firms 

Cons: 

  • A relatively newer insurance company without a robust historical record yet 
  • Other coverages that handymen in Texas need may not be available 

Smart Financial: Best brokerage firm if you prefer working with an experienced agent

Smart Financial is an insurance agency that provides coverage for handymen in Texas. They have a team of experienced insurance agents who can help handymen find the best coverage for their needs. They offer general liability, workers’ compensation, commercial auto, and property damage coverage. One of the benefits of working with Smart Financial is that their agents can provide personalized service and help handymen find the best coverage at the best price. 

Pros: 

  • An extensive network of agents who are experienced and knowledgeable in helping handymen and other contractors to find the right coverage at a reasonable price 
  • Partners with 50+ carriers, many of whom usually offer low-cost coverage 

Cons: 

  • Very limited digital capabilities 
  • You have to work with an agent on the phone 

What is handyman insurance? 

Handyman insurance is a type of insurance that provides financial protection for handymen, or individuals who provide a variety of repair and maintenance services to residential and commercial properties. It typically includes coverage for liability, property damage, and injuries that may occur while on the job. This can include things like accidental damage to a customer’s property or injuries sustained by a customer or employee. It may also include coverage for lost or stolen tools and equipment. The specific coverage options and limits will vary by policy and by insurer.

What insurance coverage do handymen in Texas need? 

Handymen in Texas may need several insurance coverages depending on their work nature. Below are the most important insurance coverages they may need: 

General liability insurance

Handymen in Texas, like in other states, may need general liability insurance to protect their business from financial losses due to third-party claims of property damage or bodily injury. It is not legally required for handymen in Texas to have general liability insurance, but it is a smart business decision as it can protect the handyman from the potential financial burden of a lawsuit.

General liability insurance, or also called handyman liability insurance, can cover a variety of scenarios, such as if a customer is injured on a handyman’s property, if a handyman damages a customer’s property while working on it, or if a customer makes a claim of negligence against the handyman. The policy can cover legal defense costs, court judgments and settlements. It can also protect handymen from claims of false advertising or libel.

Also, some customers may require handymen to have insurance before they can work on their property. For example, landlords may require handymen to have insurance as a condition of working in their rental properties. Additionally, some large commercial clients may require handymen to have insurance before they can work on their properties.

Workers’ compensation insurance

Workers’ compensation insurance, also known as “workers’ comp,” is a type of insurance that provides benefits to employees who are injured or become ill as a result of their job. In Texas, it is not legally required for self-employed handymen to have workers’ comp insurance, unless they have a certain number of employees. However, if a handyman has employees, they are required by law to have workers’ comp insurance.

Workers’ comp insurance can cover a variety of expenses related to an employee’s injury or illness, such as medical expenses, lost wages, and death benefits. It also provides coverage for any legal fees that may arise from an employee’s claim. It can also protect the handyman from being sued by the employee for the injuries or illnesses.

It’s important to note that even if handymen are not legally required to have workers’ comp insurance, it is still a good idea to have it, as it can protect them from financial losses in case one of their employees is injured on the job. Without workers’ comp insurance, the handyman may be responsible for paying for all of the employee’s medical expenses and lost wages, which can be a significant financial burden.

Commercial property insurance 

Commercial property insurance is a type of insurance that provides financial protection for a business’s property and assets, such as equipment, tools, and inventory. It is not legally required for handymen in Texas to have commercial property insurance, but it is a smart business decision as it can protect their business from financial losses due to damage or loss of property.

Commercial property insurance can cover a variety of scenarios, such as if a handyman’s equipment or tools are stolen, if a fire or natural disaster damages their property or inventory, or if a third party causes damage to the handyman’s property. The policy can also cover the costs of business interruption, meaning, if the handyman’s business is temporarily shut down due to damage to the property, the policy can cover the lost income.

Commercial auto insurance

Commercial auto insurance is a type of insurance that provides financial protection for a business’s vehicles, such as trucks, vans or cars. In Texas, like in other states, it is legally required for handymen to have commercial auto insurance if they use their vehicles for business purposes. This includes driving to job sites, transporting equipment or materials, or making deliveries.

Commercial auto insurance can cover a variety of scenarios, such as if a handyman is involved in an accident while driving their vehicle for business purposes, if their vehicle is damaged or stolen, or if a third party makes a claim against the handyman for property damage or bodily injury. The policy can also cover the costs of business interruption, meaning, if the handyman’s business is temporarily shut down due to damage to the vehicle, the policy can cover the lost income.

The specifics of the coverage will vary depending on the policy and the insurer, but generally, commercial auto insurance will cover liability, collision, and comprehensive coverage. Liability coverage will cover damages and injuries that you cause to others while operating your vehicle. Collision coverage will cover damages to your vehicle in case of an accident regardless of who is at fault. Comprehensive coverage will cover damages to your vehicle from non-collision events, such as theft, vandalism, or natural disasters.

Are handymen in Texas required to be bonded? And what does bonding cover? 

In Texas, handymen are not legally required to be bonded, but some customers may require them to be bonded as a condition of working on their property. Bonding is a way for customers to have additional protection in case a handyman fails to complete a job or causes damage to the property.

A bond is a type of insurance that protects the customer against financial loss caused by the handyman’s failure to complete a job or by any damages caused by the handyman while working on the property. The bond is usually purchased by the handyman and is backed by an insurance company. The bond acts as a guarantee that the handyman will fulfill their contract and will pay for any damages caused by their work.

There are different types of bonds that handymen in Texas can get, such as a contract bond, payment bond, and performance bond.

  • A contract bond is a guarantee that the handyman will complete the job according to the contract.
  • A payment bond is a guarantee that the handyman will pay for any materials or labor used in the job.
  • A performance bond is a guarantee that the handyman will complete the job according to the contract and to the satisfaction of the customer.

It’s important to note that bonding is not the same as insurance. Insurance covers losses caused by unforeseen events, whereas bonding covers losses caused by a handyman’s failure to fulfill their contract. The bond only covers the cost of the customer’s loss, not the handyman’s expenses.

In summary, handymen in Texas are not legally required to be bonded, but some customers may require it as a condition of working on their property. Bonding is a type of insurance that can provide additional protection to customers in case a handyman fails to complete a job or causes damage to the property, and it can vary based on the type of bond (contract, payment or performance) that the handyman gets.

Which insurance coverage is required for handymen in Texas? 

As we learn above, the only coverage that is required by laws in Texas is commercial auto insurance if handymen use a car, a van, or a truck for their work purposes. Workers comp insurance is required if handymen hire employees. 

While general liability insurance and bonding are not required by laws, they may be required by the handymen’s clients and customers. 

It is a smart idea to get bonded and general liability insurance to protect your business. 

How much does handyman insurance cost in Texas? 

The cost of Texas handyman insurance varies depending on the type of coverage, the amount of coverage,the insurance carrier, and other factors that we are discussing below. The average cost of handyman insurance in Texas is $62 per month, or $744 per year. This is only for a general liability insurance policy, which is the most common policy that almost all handymen have. If you add more coverages, you will pay more. Below are the average costs of different coverages for handyman in Texas:

Handyman insurance coveragesAverage costs in Texas
General liability insurance$62 a month
Commercial auto insurance$143 a month
Workers comp insurance$284 a month
Contractor tools and equipment insurance$12 a month

Keep in mind that these are just the averages. Your final rates will be different. Be sure to shop around with a few companies or work with a broker like Simply Business or CoverWallet to get and compare several quotes to find the cheapest one for your handyman business. 

What affects the handyman insurance costs in Texas? 

The cost of insurance for handymen in Texas can vary based on a number of factors. These factors include:

Type of coverage

The type of coverage needed will affect the cost of insurance. For example, a handyman who only needs liability insurance will pay less than a handyman who needs liability, workers’ compensation, and commercial auto insurance. The more coverage a handyman needs, the more expensive their insurance will be.

The handyman’s business size

The size of a handyman’s business will also affect the cost of insurance. A handyman who is a sole proprietor and only has a few employees will pay less than a handyman who has a larger business with more employees. This is because larger businesses are more likely to have more claims and therefore, they are considered a higher risk by insurance companies.

The handyman’s Industry

The handyman’s industry will also affect the cost of insurance. For example, a handyman who specializes in electrical work will pay more for insurance than a handyman who specializes in painting. This is because electrical work is considered to be more dangerous than painting and therefore, it is considered a higher risk by insurance companies.

The handyman’s location

The location of a handyman’s business will also affect the cost of insurance. For example, a handyman who operates in a high-crime area will pay more for insurance than a handyman who operates in a low-crime area. This is because a handyman who operates in a high-crime area is more likely to have their equipment or tools stolen and therefore, they are considered a higher risk by insurance companies.

The handyman’s claims history

The handyman’s claims history will also affect the cost of insurance. A handyman who has a history of making claims will pay more for insurance than a handyman who has a clean claims history. This is because insurance companies consider handymen with a history of making claims to be a higher risk and therefore, they charge them more for insurance.

In summary, the cost of insurance for handymen in Texas can vary based on the type of coverage needed, the handyman’s business size, industry

How to find cheap handyman insurance in Texas? 

Finding cheap handyman insurance in Texas can be a bit challenging, but there are a few ways to help lower the cost of insurance. These include:

Shop around

One of the best ways to find cheap handyman insurance in Texas is to shop around. Compare prices from different insurance companies to find the best deal. Be sure to compare the same type and amount of coverage to ensure you are getting a fair comparison.

Bundle your insurance

Another way to find cheap handyman insurance in Texas is to bundle your insurance. Many insurance companies offer discounts for bundling multiple types of insurance together, such as combining your commercial auto insurance with your general liability insurance. This can help to lower the cost of your insurance.

Raise your deductible

Raising your deductible is another way to find cheap handyman insurance in Texas. The higher the deductible, the lower the premium will be. However, it’s important to consider that if you have to file a claim, you will have to pay more out-of-pocket before your coverage kicks in. So, make sure you have enough savings to cover the deductible before raising it.

Look for discounts

Many insurance companies offer discounts for things like safety equipment, safety training, or a clean claims history. Be sure to ask about discounts and see if you qualify for any. For example, some insurance companies offer discounts for handymen who have taken safety training courses or for handymen who use certain types of safety equipment. Additionally, some insurance companies may offer discounts for handymen who have a clean claims history or for being a member of a trade organization.

Maintain a good credit score

Having a good credit score can also help to lower the cost of your insurance. Insurance companies often use credit scores as a factor in determining insurance rates. Handymen with a good credit score are considered to be a lower risk and therefore, they pay less for insurance.

Review your coverage annually

It’s also important to review your coverage annually and adjust it as needed. As your business grows or changes, your insurance needs may change as well. Reviewing your coverage and making adjustments can help to ensure that you are not paying for coverage that you no longer need, or that you’re not underinsured.

What do handymen in Texas need to keep in mind when buying insurance? 

When buying insurance, handymen in Texas should keep the following things in mind:

Understand your coverage needs

It’s important for handymen to understand their coverage needs. They should evaluate their business operations, the types of services they offer, and the risks they may face. This will help them determine what types of coverage they need, such as general liability, workers’ compensation, commercial property, and commercial auto insurance.

Check for licensing and certification requirements

Handymen should also check for any licensing and certification requirements in their state or local area. Some states may require handymen to carry certain types of insurance or to be bonded in order to operate legally.

Compare quotes from different insurers

Handymen should get quotes from multiple insurance companies. They should compare the coverage and cost of each policy and choose the one that best fits their needs. It’s also important to read the policy carefully and make sure you understand the coverage and exclusions.

Understand the coverage limits and deductibles

It’s important for handymen to understand the coverage limits and deductibles of their policy. They should know the maximum amount their insurance will pay out in the event of a claim, as well as the amount they will have to pay out of pocket. This will help them budget for potential claims and make sure they have adequate coverage for their needs.

Read the policy carefully

Handymen should read the policy carefully and make sure they understand the terms and conditions. They should be familiar with what is covered and what is excluded, as well as any limits or restrictions on their coverage. This will help them make informed decisions about their insurance and ensure they have the protection they need.

Check the reputation of the insurance carrier

Before buying insurance, handymen should research the reputation of the insurance carrier. They should check the company’s financial stability and track record of paying claims. This will help them choose a carrier that is reliable and will be able to pay out claims in the event of a loss.

Should Texas handymen get quotes and buy insurance from a carrier or a brokerage firm?  

Handymen in Texas have the option to buy insurance from a carrier or a brokerage firm. Both have their own advantages and disadvantages.

Buying from a carrier

Buying insurance directly from a carrier (insurance company) has the advantage of potentially getting a lower rate. Carriers may offer their own discounts or promotions, and they may have special programs for certain types of businesses. Additionally, buying directly from a carrier may make the process of purchasing and managing the policy simpler, as the handyman will be dealing directly with the carrier.

Buying from a brokerage firm

On the other hand, buying insurance from a brokerage firm can have several benefits. Brokers have access to a wide range of insurance products from multiple carriers, which allows them to compare policies and prices and help the handyman find the best coverage for their business at a competitive price. Brokers also have more expertise in the insurance field, and they can help the handyman understand the complex aspects of the policy and guide them through the process of purchasing and managing the policy. Brokers also can help the handyman with claims and other issues, acting as a liaison between the handyman and the carrier, which can save time and effort for the handyman.

Final thoughts

In summary, handyman insurance is an important type of insurance for tradespeople in Texas, as it protects them from financial loss in the event of accidents, injuries, or damage to property while on the job. When looking for handyman insurance in Texas, it’s important to consider the different types of coverage that are available, as well as the cost of the insurance. The four best handyman insurance companies in Texas are Simply Business, CoverWallet, NEXT, and Smart Financial, each with their own pros and cons. When buying insurance, handymen should keep in mind the different types of coverage, the coverage limits and deductibles, and the reputation of the insurance carrier.

Thang Truong

Thang Truong covers small business insurance and small business success at BravoPolicy. He is a licensed P&C insurance agent. Previously, he held product leadership positions at realtor.com, Capital One, NerdWallet, and Mulberry Technology. He holds a MBA degree from UC Berkeley - Haas School of Business.

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