If you take jobs fixing things up for neighbors or other people in your town, you might not always consider handyman insurance. After all, handyman jobs often feel like a casual side venture, not something you’d go out of your way to insure.
However, say you fixed a roof for someone, and despite your best work, the roof still leaked. That leak led to mold damage that cost the homeowner thousands of dollars to remedy. That homeowner could then hold you liable for the damages. So below we’ll look at what handyman insurance is, how much it costs, and where you can find it.
The 6 Best Providers of Handyman Insurance
To make it easy to find handyman insurance, we’ve listed some of the top options below.
- CoverWallet: Best for Comparing Online Quotes
- Next Insurance: Ease of digital quote process
- Progressive Commercial: Auto insurance
- Hiscox: Small business insurance
- Bolt Insurance: Variety of coverage types
- Contractors Insurance: Works only with contractors
CoverWallet: Best for Comparing Online Quotes
CoverWallet is a digital broker, specializing in small business insurance. They work with several leading business insurance companies. Once you provide your personal and business information, they will be able to provide you with several quotes of the companies that they work with such as Hiscox, Progressive, Liberty Mutual, Nationwide, just to name a few. Their quote form is relatively simple and straightforward. Within minutes, you will be able to compare several quotes in one place conveniently.
If you are new to buying handyman insurance, you can have a chat with their agents, who are very knowledgeable. They will be able to explain to you throughly so that you can make your informed decision.
Next Insurance: Best for Ease of Digital Quote Process
This company specializes in finding small business insurance with ease online. If you want a no-fuss process that’s 100 percent digital, check into this company. It has a page detailing handyman insurance.
When we selected to get a quote for handyman insurance, the system automatically recommended general liability insurance at $37.50 per month and commercial auto for $25 per month. This was for a Wisconsin location. You can save up to 10 percent when you bundle. The site was fast and responsive, showing rates on the second page.
Progressive Commercial: Best for Commercial Auto Insurance
This company sources its small business insurance from third party insurers. However, the company offers commercial auto insurance directly. Since auto insurance in a larger part of what a handyman often needs to insure, this is a good place to start for auto insurance rates. In order to get a quote, you have to enter in very detailed information about your vehicle.
Hiscox: Best for Small Business Insurance
Hiscox in a big name in the small business insurance world. So it makes sense that the company offers handyman insurance. However, it lists that it only offers general liability insurance for handymen.
When we tried to get a quote, the system asked detailed questions about the business, like the types of services provided. Then it told us to call an 800 number so an agent could verify some details.
Bolt Insurance: Best for Variety of Coverage Types
Bolt is an insurance agency and it offers a wide variety of coverage types for handymen. It also has some uncommon types of insurance available for handymen, like employee dishonesty, electronic data and surety bond coverage, as a few examples.
To get an idea of the quote process, we selected a general liability policy for a carpenter. However, on the contact information page, it wants you to agree to telemarketing calls, so we did not complete the process.
Contractors Insurance: Best for Contractors
If you’re looking for a company that specializes in working with contractors only, this is a business to look into. The company offers coverage for property, business liability, advertising injury, commercial auto, bodily injuries and complete products. The company wants you to fill out a contact form online or call an 800 number to obtain a quote.
What is Handyman Insurance?
Handyman insurance simply covers the types of insurance you should consider having as a professional handyman. Below are the types of handyman insurance you might want to consider include:
- General Liability Insurance: If you are found legally liable for an accident that causes damages to someone else, this type of insurance covers you.
- Commercial Auto Insurance: This type of insurance covers vehicles that you drive for work-related purposes, like a van full of tools you may take to sites.
- Business Owners Policy (BOP): These combine general liability and property insurance.
- Worker’s Compensation Insurance: If you have employees, this type of insurance covers them if they are injured or ill because of work. Many states require that you have this type of insurance.
You might also want to consider contractor’s tools and equipment coverage, which can cover you if your work tools are damaged, lost or stolen. This is a type of inland marine insurance.
How Much Does Handyman Insurance Cost?
Costs for handyman insurance can vary. Some factors that affect costs include:
- If you need to insure employees and how many.
- The scale of your business, such as if you have multiple work vehicles on the road.
- Details of your business can affect rates, such as the size of a work building, how many years you have been in business and whether you operate in a more densely populated area. All of these are factors that many insurance companies consider to increase your risk and expense of a claim, which may affect premiums.
- Which types of insurance you choose to carry and the benefits you select for them, like limits and deductibles.
For an idea of ballpark rates, Insureon outlined some of the most common rates based on the types of insurance that a handyman tends to carry:
- General liability: $65 per month / $800 per year
- Worker’s compensation insurance: $315 per month / $3,790 per year
- Commercial auto: $150 per month / $1,825 per year
- Contractor’s tools and equipment insurance (inland marine): $15 per month / $170 per year
As you can see, insurance for a handyman can range from being quite affordable to something you’ll significantly have to budget for in your monthly earnings.
Finding a Handyman Insurance Quote Through a Comparison Site
To get an idea of what handyman insurance quotes look like on a comparison site, we chose CoverWallet because of the ease of the process. We selected general liability for a 3-year-old handyman sole proprietorship business in Wisconsin with $45,000 in annual revenue. We got two quotes:
As you can see, the two rates vary significantly in monthly premiums by over $200 per month. This goes to show how important it is to shop around. This is especially true if you plan on carrying multiple insurance types, and you need the best rates to keep costs down.
- Handyman insurance simply means the types of insurance a handyman should consider carrying. These most commonly include general liability, commercial auto, business owners policy, worker’s compensation and contractor’s tools and equipment coverage (inland marine).
- Costs can vary significantly based on many different factors. The most direct factor is which types of insurance you choose to carry as a handyman.
- You can find handyman insurance both from companies that specialize in general small business insurance or companies that only work with contractors.
FAQs about Handyman Insurance
Does handyman need general liability insurance and how much does it cost?
Yes. If you choose only one handyman insurance policy, it must be general liability insurance policy. This policy will protect you if you or your work causes injuries to someone who is not your employee or damages to property which is not yours. It will pay for medical expenses, property damages, legal fees and judgments, and business equipment that is lost or stolen.
General liability insurance for handyman isn’t too expensive. On average, it only costs $60 a month or $720 a year.
In some states, you might be required to have general liability insurance to apply for a handyman license.
How to get the cheapest handyman insurance?
To get the cheapest handyman insurance, you can try to get the cheapest general liability insurance for handyman. The best way to get the cheapest general liability insurance is to compare quotes of a few providers. The good news is that general liability insurance is the most common business insurance type, so is offered by almost all business insurance companies. You can also work with digital commercial insurance brokers like CoverWallet or Simply Business or Commercialinsurance.net to compare quotes more conveniently. They are able to provide quotes of several leading companies after you submit your information in one place.
Does homeowners insurance cover handyman?
If you are a homeowner and you hire a handyman to do some work in your own. The damages you may cause to your property might not be covered by your homeowners insurance. You homeowners insurance provides you with personal coverage and may not include contractor coverage. In order to be 100% certain, you need to check with your homeowner insurance provider to see if there is any coverage for contractors in your policy.
The best way to protect your property is to hire handyman who has a proper handyman insurance policy or a general liability insurance policy for handyman.
Where can I get handyman insurance for one-day?
If you are a part-time handyman and you just get a project for one-day, but the person who hires you requires you to have handyman insurance before he allows you to do the work in his home. In such case, you should get a general liability insurance policy for handyman with a coverage of just one day. Your best option is Thimble. They provide general liability insurance or other types of business insurance for short period as little as just a day.
What are the requirements of handyman insurance in Florida?
If you are a handyman in Florida and you want to get a license for a general contractor in Florida, you are required to have a general liability insurance policy of minimum $300,000 coverage for bodily injuries and $50,000 for property damages.
You should shop around with 3-5 providers to find the best general liability insurance quotes for you. Working with a digital broker like CoverWallet or commercialinsurance.net is a good option to compare several quotes in one place conveniently.
On average, a general liability insurance policy for handymen costs around $60 a month only.
What are the requirements of handyman insurance in New Jersey?
In order for you to start working as handyman in New Jersey, you need to obtain a home improvement contractor license. To apply for this license, you need to have general liability insurance.
Most business insurance companies offer general liability insurance, so it should be easy to find one. Make sure you shop around to find the best price for the coverage you are looking for. All companies we recommend above sells general liability insurance nationwide. Working with a digital broker like CoverWallet is another option. It is convenient to be able to compare several quotes in one place.