Best Handyman Business Insurance

Running a handyman business means you need insurance that protects your tools, liability and income without breaking the bank. The Hartford tops our rankings with a MoneyGeek score of 4.75 out of 5, earning first place for its competitive rates, quality customer service and comprehensive coverage options for home repair businesses. Compare quotes from biBerk and Simply Business to find the best rates for your handyman service.

Note: We based all scores on a handyman business with two employees across professional liability, general liability, workers' comp and BOP policies.

For handyman businesses looking to minimize insurance costs, biBerk offers the most affordable rates at $139 monthly or $1,666 annually. biBerk ranks first for general liability ($175 monthly) and business owner's policies ($226 monthly), making it the best choice for handyman coverage. For workers' compensation and professional liability, The Hartford ($45 monthly for workers' comp, $48 monthly for professional liability) and NEXT Insurance ($44 monthly for workers' comp) offer better rates for home repair businesses with employees.

biBerk offers the cheapest general liability insurance for handyman businesses at $175 monthly or $2,097 annually, $70 less per month than the $245 average. Professional handymen save $840 yearly on coverage protecting against damaged customer property and job site injuries. The Hartford ($182 monthly) and Thimble ($201 monthly) also provide competitive rates for home repair services.

NEXT Insurance provides the cheapest workers' comp insurance for handyman services at $88 monthly or $1,061 annually. That's $6 less per month than the $94 average. Home repair businesses with employees save $64 yearly on coverage for work-related injuries and medical expenses. The Hartford ($89 monthly), Thimble ($89 monthly) and Progressive Commercial ($90 monthly) offer comparable low rates for professional handymen.

Protecting your handyman business from claims of faulty work or unfinished repairs costs less with The Hartford, which offers the cheapest professional liability insurance at $48 monthly or $578 annually. That's $72 in annual savings compared to the $54 monthly average. NEXT Insurance ($50 monthly), Progressive Commercial ($52 monthly) and Thimble ($54 monthly) provide home repair services other solid options for errors and omissions coverage.

Handyman services needing bundled coverage for tools, equipment and liability get the cheapest business owners' policy through biBerk at $226 monthly or $2,710 annually. Professional handymen save $137 monthly compared to the $363 average. That totals to $1,643 yearly. The Hartford ($250 monthly) and Thimble ($311 monthly) rank as the next most affordable BOP options for home repair businesses.

In general, business insurance costs for handyman contractor services are the following for the four most popular coverage types:

• General Liability: $245 on average per month, ranging from $175 to $416, depending on the state
• Workers' Comp: $94 on average per month, ranging from $88 to $103, depending on the state
• Professional Liability (E&O): $54 on average per month, ranging from $48 to $63, depending on the state
• BOP Insurance: $363 on average per month, ranging from $226 to $636, depending on the state

The required coverage for handyman businesses varies by state, but you'll need workers' compensation if you hire helpers and commercial auto insurance when driving your work truck to job sites. Most clients also demand proof of general liability before you start fixing their cabinets or repairing their plumbing, while professional liability protects you when customers claim your work caused them financial harm.

• Workers' Compensation Insurance: Required in most states if you have employees. Covers medical bills and lost wages when your helper falls off a ladder installing ceiling fans or injures their back carrying drywall sheets. Coverage limits typically match your state's requirements, which vary based on your payroll and number of employees. Protects your handyman business from devastating lawsuits while ensuring employees get care after workplace accidents.
• Commercial Auto Insurance: Mandated in all states for business vehicles. Most handyman contractors carry at least $100,000 per person and $300,000 per accident in bodily injury liability, plus $100,000 in property damage coverage. Covers accidents when you're hauling lumber to repair a deck or your van loaded with power tools rear-ends another car at a stoplight. Your personal auto policy excludes coverage the moment you use your vehicle for handyman work.
• General Liability Insurance: Protects against customer property damage and injuries from your repair work. Covers you when your ladder scratches hardwood floors, a leaky pipe repair floods a basement or a homeowner's child trips over your extension cords and breaks an arm. Most apartment complexes and property managers won't let you start work without showing a certificate of insurance. Most handyman service providers carry $1 million per occurrence with a $2 million aggregate limit, which costs roughly $500 to $1,200 annually for small operations.
• Professional Liability Insurance (Errors & Omissions): Covers claims that your repair work was faulty or incomplete. Protects you when a client says you installed the wrong-sized water heater, your deck staining peeled after two months or faulty electrical work caused their appliances to malfunction. Coverage typically ranges from $500,000 to $1 million per claim, costing $800 to $2,000 per year depending on your annual revenue. Critical for handyman businesses when customers claim your mistakes led to additional repair costs or lost rental income.
• Business Owner's Policy (BOP): Bundles general liability with property coverage for your tools, equipment and workspace. A typical BOP includes $1 million in liability coverage plus $25,000 to $50,000 in business property protection, covering stolen drills and saws from your truck overnight, smoke damage to your garage workshop from a neighbor's fire or lost income when storm damage prevents you from reaching job sites. Costs less than buying general liability and property insurance separately, usually running $800 to $1,500 annually.
• Tools and Equipment Insurance: Protects your drills, circular saws, nail guns and specialty equipment from theft or damage. Most handyman contractors insure $10,000 to $25,000 worth of equipment, which covers replacement costs when someone breaks into your van at a job site, your toolbox falls off your truck bed or equipment gets damaged while moving between homes. Essential since professional handymen carry $5,000 to $15,000 worth of tools daily, with premiums typically around $300 to $600 per year.
• Commercial Umbrella Insurance: Provides extra liability coverage above your standard policy limits. Most handyman business owners who carry umbrella policies add $1 million to $2 million in additional protection for roughly $300 to $500 annually. Kicks in when a major incident like a client's house fire allegedly caused by your electrical repair exceeds your $1 million general liability limit. Important as your handyman service takes on bathroom remodels, deck builds and other higher-value projects.

Finding the best and cheapest business insurance for your handyman company starts with getting business insurance quotes from at least three carriers and comparing coverage limits alongside premiums.

Handyman businesses need several coverage types, such as general liability, professional liability, workers' compensation and commercial auto coverage, to cover client property damage and injury claims. The Hartford offers the best small business insurance for handyman services, balancing affordable rates with strong customer service.

We answer frequently asked questions about handyman business insurance:

We selected the best business insurer for handyman companies based on the following criteria:

• Affordability (50% of score): The lower a company's costs compared to the competition based on our base profile for four core coverage types, the better the company performs.
• Customer service (30% of score): We scored providers on overall customer satisfaction using industry studies, customer review forum ratings and public forum sentiment analysis from sites like Reddit.
• Coverage (15% of score): We scored business insurance providers for this category based on the flexibility, payment and actual coverage options.
• Financial stability (5% of score): Using financial stability industry ratings from companies like AM Best and Moody's, we created an overall rating to judge how likely companies are to pay out claims compared to the competition.

All pricing in this article is based on the following base profile to represent the vast majority of small businesses in all states:

• Three-person business with two employees
• Coverage: $1 million per occurrence and $2 million total per year for all but BOP, which includes the same coverage plus $5,000 of business property coverage
• $150,000 in payroll
• $300,000 annual revenue