On average, handyman business owners pay a median of:

• $55 per month for general liability insurance
• $21 per month for tools and equipment coverage
• $173 per month for workers’ compensation

Data from Simply Business customers specializing as “handyperson” who purchased at least one or a combination of general liability, tools and equipment, or workers’ compensation policies from July 1, 2024 to December 31, 2024. Reflected price tiers may not include purchase of all available policies under handyman insurance.

Take a look at the range of costs you might expect to pay for various coverages. 

Keep in mind that the cost of coverage will depend on factors such as your annual payroll amount, your location, and your claims history.

It’s helpful to view premiums in relation to your expected revenue. In many cases, you could earn the annual cost of your insurance in a single job — yet you’re paying just a small fraction of the potential losses, which could reach tens or even hundreds of thousands of dollars.

Coverage Types and How They Work

There are different types of policies for handyman insurance, and each serves a specific purpose. Here’s how the most common types work.

General liability insurance

Imagine you’re power-washing a home and your ladder crashes through a picture window. The window needs to be replaced, and there’s damage to furnishings inside. Without insurance, the costs could easily be two or three times the amount you charged for the job. General liability insurance helps cover a large portion of that bill.

Tools and equipment coverage

A handyman stored nearly all his tools and equipment in an outbuilding a few miles from his main location. Thieves broke in, destroyed the security cameras, and stole ladders, scaffolding, and numerous expensive power tools. The replacement costs were approaching six figures, but fortunately, his tools and equipment policy (Also known as Inland Marine insurance) covered most of the loss.

Workers’ compensation insurance

Your employees have things to protect too, such as the financial well-being of a spouse or child. If they’re injured on the job, workers’ compensation helps cover medical expenses and provides income, shielding both employees and employers from financial hardship.

What Might Affect Your Premium

Several factors influence premium differences:

Location: Rural areas with less traffic and smaller populations typically carry lower risk and lower premiums than big cities.

Type of work: Riskier profiles or types of work cost more. A handyman who mostly mows lawns and trims shrubs will pay less than one who primarily works as an electrician.

Business size: A one-person operation usually has lower premiums than a handyman with several employees doing the same type of work.

Claims history: A business owner who filed multiple claims in a year saw his premium double, while a claims-free handyman usually avoids such increases.

Coverage limits and deductibles: Higher limits typically cost more. For example, $1 million in liability coverage for a municipal job is more expensive than a $500,000 limit, though a higher deductible can help offset the cost.

5 Ways to Reduce Handyman Insurance Costs

If luck is on your side and you can avoid claims, here are five additional ways to save:

1. Bundle policies: If available to you, keeping your workers’ compensation policy with the same carrier as your liability insurance, for example, may earn you a discount.
2. Pay annually: Paying your premium in full can help you avoid monthly or quarterly installment fees.
3. Raise your deductible: Higher deductibles typically lower premiums. Keeping the deductible amount in a liquid account provides extra financial security.
4. Stay claim-free: Implementing safety programs and following OSHA guidelines can help reduce the likelihood of claims.
5. Get certified: Earning certifications from industry-accredited associations may qualify you for premium discounts.

Check out the full guide on handyman insurance costs.