How to Get Your Handyman Insurance in 2025 in the U.S.?
As a handyman, you’ve probably seen it all: leaky faucets, broken cabinets, wobbly decks, and everything in between. You’re the go-to person for solving problems, big or small.
But what happens when you run into a problem? Imagine accidentally damaging a client’s property or facing a liability claim because someone tripped over your tools. Without insurance, you’d be left covering the costs out of pocket—a potentially devastating hit to your finances and reputation.
Handyman insurance isn’t just another expense; it’s your safety net. It gives you financial protection, builds credibility with clients, and allows you to focus on what you do best without worrying about the “what-ifs.”
In this guide, we’ll cover everything you need to know about handyman insurance in 2025: costs, coverage options, real-life examples, and practical steps to get insured. Whether you’re new to the business or an experienced pro, this guide is your roadmap to protecting what you’ve built.
Jump to the Steps to Get Your Handyman Insurance
Why Should You Have Small Business Insurance?
Running a handyman business comes with risks—no matter how careful or experienced you are. Small business insurance acts as your financial safety net, protecting you when the unexpected happens. Here’s what it can cover:
- Property Damage: For instance, you’re installing cabinets, and a heavy tool slips, cracking a client’s marble countertop.
- Liability Claims: A client trips over your extension cord, injures themselves, and sues for medical expenses.
- Business Interruptions: Imagine a storm damages your tools, forcing you to pause operations until you can replace them.
But it’s not just about protection—it’s also about winning trust. Many clients, especially larger ones like property management companies or commercial businesses, require proof of insurance before hiring you. Having coverage makes you look professional, responsible, and serious about your work.
To boost client trust even more, use an Invoice Generator to send polished, professional invoices. It’s a small touch that makes a big difference in how clients perceive your business.
Handyman Insurance Requirements
Not all states legally require handymen to have insurance, but there are plenty of scenarios where it’s necessary:
- State Requirements: Some states mandate insurance for licensed contractors.
- Client Expectations: Larger jobs often require proof of insurance to protect their interests.
- High-Risk Jobs: Handyman services like roofing, plumbing, or electrical types of work typically demand specific coverage because of higher risks.
Even if insurance isn’t legally required in your state, it’s still a smart investment. Without it, you risk losing your business—and potentially your personal assets—if something goes wrong.
For example, imagine you’re repairing a roof, and a strong gust of wind topples your ladder onto the client’s car, leaving a massive dent. Without insurance, you’d be paying for the repairs out of pocket. With the right policy, you’re covered.
Types of Insurance Every Handyman Should Consider
Not all insurance is created equal. The type of coverage you need depends on the services you offer, the size of your business, and your specific risks. Let’s break it down:
1. General Liability Insurance: $480–$1,000 per year
This is the must-have of handyman insurance. It protects against:
- Bodily injuries: For instance, a client trips over your tools and gets hurt.
- Property damage: Maybe you accidentally break a window during a repair.
For example, you’re working in a client’s bathroom, and water spills onto the floor. The client slips, injures their wrist, and sues. General liability insurance covers their medical bills and your legal fees.
2. Tools and Equipment Insurance: $12–$45 per month
Your tools are your lifeline. This coverage ensures you’re protected if they’re stolen or damaged.
Here’s a typical example.You leave your toolbox in your truck overnight, only to find it missing the next morning. Without insurance, replacing those tools could cost thousands.
Use a Receipt Scanner to keep track of purchases for your tools and equipment. Having digital records can simplify claims if something goes missing or gets damaged.
3. Commercial Auto Insurance: $150–$200 per month.
Your personal auto insurance won’t cover accidents during work-related trips. This policy fills that gap.
For example, let’s say you’re a handyman driving to a client’s home with a truck full of tools. On your way, you rear-end another car. While the damage is minor, the other driver decides to file a claim.
- If you only have personal auto insurance, the insurer could deny the claim because you were using your vehicle for work. That leaves you on the hook for repair costs, legal fees, and even medical bills if the other driver is injured.
- If you have commercial auto insurance, the policy covers the costs, including repairs to the other vehicle, your legal fees, and any medical expenses.
Pair your insurance with Time Tracking Software to log travel time and mileage for jobs. It’s an easy way to stay efficient and maximize productivity.
4. Workers’ Compensation Insurance:
Cost varies based on the number of employees and their roles.
If you have employees, most states require this insurance. It covers medical expenses and lost wages if an employee gets hurt on the job site.
For example, an employee falls off a ladder while painting and breaks their leg. Workers’ compensation covers their medical bills and replaces lost wages while they recover.
5. Business Owner’s Policy (BOP): $93 per month on average.
BOP is a bundle of general liability and commercial property insurance—great for saving money while getting comprehensive coverage.
6. Professional Liability Insurance: Cost varies based on services offered.
Also known as Errors & Omissions insurance, this policy protects against claims of negligence or substandard work.
For example, you install a ceiling fan, but it malfunctions and causes damage to the client’s home. The client claims it’s due to your poor workmanship. Professional liability insurance can cover the repair costs and legal fees.
What Does Handyman Insurance NOT Cover?
Even the best insurance policies have their limits. Common exclusions include:
- Intentional Acts: Damage caused deliberately isn’t covered.
- Employee Disputes: Claims like wrongful termination require a different type of insurance.
- Natural Disasters: Standard policies often exclude floods and earthquakes.
- Routine Wear and Tear: Maintenance for your tools and equipment isn’t included.
If you’re in an area prone to natural disasters, ask your insurer about additional coverage options.
How Much Does Handyman Insurance Cost?
The cost of insurance depends on factors like your location, services, and the size of your business. Here’s a rough estimate:
- General Liability Insurance: $480–$1,000 per year.
- Tools and Equipment Insurance: $12–$45 per month.
- Commercial Auto Insurance: $150–$200 per month.
- Workers’ Compensation: Costs depend on the number of employees and additional insured.
- BOP: $93 per month on average. Remember, bundling policies can help you save on overall costs.
Tips To Get The Best Deal
- Bundle Policies: Combining general liability, property, and auto insurance can save you money.
- Consult an Agent: Specialists in handyman insurance can help you find the right coverage.
- Shop Around: Compare quotes from at least three insurance companies to ensure competitive pricing.
- Opt for Higher Deductibles: This lowers premiums but requires you to pay more upfront for claims.
- Leverage Online Tools: Platforms make it easy to get quotes and purchase policies online and get insured in minutes.
Steps to Get Handyman Insurance
Getting insured might sound intimidating, but it’s simpler than you think.
Follow these steps:
1. Assess Your Needs
Start by identifying the specific risks your business faces. Do you work with high-risk services like electrical repairs? Do you have employees? How valuable are your tools?
2. Research Providers
Look for companies that specialize in small business or contractor insurance. Providers like Hiscox and Next Insurance cater to handymen and contractors.
3. Get Multiple Quotes
Don’t settle for the first offer. Use online comparison tools or contact insurers directly to compare coverage options and pricing.
4. Review Policy Details
Read the fine print to understand coverage limits, exclusions, and deductibles. Make sure the policy aligns with your business needs.
5. Purchase Your Policy
Once you’ve found the right fit, complete the purchase online or through an agent. Keep both digital and physical copies of your insurance certificate—you’ll need them for clients and contractors.
6. Stay Client-Ready
Always have proof of insurance on hand. Some clients might request it before work begins, especially for larger jobs.
7. Review Annually
Your business will grow and evolve, so reassess your coverage each year to ensure it still meets your needs.
Real-Life Example: Why Handyman Insurance Matters
Meet Tom, a handyman in Ohio.
Tom was installing cabinets in a client’s home when his ladder slipped, gouging a hole in the wall. The client demanded immediate repairs, which cost $1,200. Luckily, Tom had general liability insurance, so his policy covered the cost, and he didn’t have to pay out of pocket.
Now imagine if Tom didn’t have insurance. That $1,200 would have come straight out of his earnings, potentially wiping out his profit from several jobs.
Final Thoughts
Getting handyman insurance in 2025 is more than a smart move—it’s a must. From protecting your business and finances to building client trust, the right coverage sets your business up for success.
And don’t forget, just like insurance, tools like Handyman Software from InvoiceFly go a long way to simplify your operations and boost your professionalism.
Download Handyman Software now, for free!
