The policies a handyman business carries
A handyman does a little of everything, so the risk is a little of everything: a shelf that falls, a leak after a faucet swap, damage while moving furniture. Know where your state's license line sits, because work above it may also sit outside your policy.
| Policy | Average a month |
|---|---|
| General liability | $81 |
| Tools and equipment | $42 |
| Commercial auto | $188 |
| Workers' compensation | $108 |
| Surety or license bond | $9 |
| Business owner's policy | $105 |
| Professional liability | $67 |
| Commercial umbrella | $93 |
| Builder's risk | $136 |
Averages are what Insureon's customers who are handyman businesses pay, from Insureon's cost page; most of its customers have fewer than five employees. Across all its small business customers, general liability runs $265 to $3,030 a year.
Claims handymen plan for
- A TV mount pulls out of the wall
- A faucet swap leaks into the cabinet and floor
- A shelf falls and breaks what was on it
- Furniture moved for a repair scratches a floor
Ask your agent, in these words:
- Would my policy pay if a TV mount pulls out of the wall?
- Would my policy pay if a faucet swap leaks into the cabinet and floor?
- Would my policy pay if a shelf falls and breaks what was on it?
- Would my policy pay if furniture moved for a repair scratches a floor?
Name the work you sell
A policy covers the work you describe on the application. From the handyman services list, name each of these and ask whether any is excluded: tv mount; shelves and pictures; curtain rods and blinds; drywall patch, small hole; drywall patch, large hole; door adjustment and hardware; caulking tubs and sinks; toilet repair; gutter cleaning, one story; dryer vent cleaning; fence and gate repair; holiday lighting install.
Most handymen carry a full truck of tools, which is exactly what tools and equipment coverage is for. On the tools list, the items to list on the policy are miter saw; tile tools; plumbing basics: basin wrench, auger and pex tools; air compressor and brad nailer; work trailer or van shelving, and from the starter kit, cordless drill, impact driver and batteries; circular saw and oscillating multi-tool; hand tools: hammer, screwdrivers, pliers, wrenches and a utility knife; level, tape measure, stud finder and a square; non-contact voltage tester.
State rules in the license
These are the insurance and bond lines in each state's handyman license rules, from our handyman license guide, which reads each state board's own pages. 33 of the 47 states we cover set an insurance or bond rule in the license itself. Click a state for the full license steps.
| State | Insurance in the license rules | Bond |
|---|---|---|
| Alabama | Not required by the Home Builders law, but you must tell the homeowner in writing before starting whether you carry liability insurance. | Roofers license needs a $10,000 license or permit bond naming the board. Limited and unlimited applicants send a credit report instead. |
| Alaska | Public liability and property damage insurance of at least $20,000 property, $50,000 injury to one person and $100,000 injury to more than one person, plus workers comp as required by state law. The liability insurance rule does not apply if every project is $2,500 or less. | $5,000 surety bond. |
| Arizona | For a license: you must attest that you follow the state workers' compensation rules. Check with the board for liability insurance. | For a license: residential general (such as B-3) is $9,000 under $750,000 in yearly volume, or $15,000 above. Residential specialty (R) is $4,250 under $375,000, or $7,500 above. |
| Arkansas | Unlimited license: proof of workers comp coverage if you have one or more employees. Check with the board for the limited license. | Not set in the license rules we checked |
| California | With a license: workers' comp unless you qualify for the exemption. | With a license: $25,000 contractor bond. |
| Connecticut | General liability insurance of at least $20,000. | Not set in the license rules we checked |
| Delaware | You need Delaware workers compensation coverage. The registration application asks for your policy, and the Division of Revenue license needs a workers compensation certificate, or proof you are an approved self-insurer, plus a Department of Labor notice certificate. | Not set in the license rules we checked |
| District of Columbia | A certificate of liability insurance is required. | $25,000 home improvement surety bond. |
| Idaho | Once registered: general liability of at least $300,000 single limit, and workers' compensation or a statement of why it is not required. | Not set in the license rules we checked |
| Illinois | If you do home repair or remodeling: liability of $100,000 per person and $300,000 per occurrence for bodily injury, plus $50,000 per occurrence for property damage, and $10,000 per occurrence for work that does not meet code, unless net worth is at least $1,000,000. | No state license, so check with your city. |
| Indiana | Set by each city or county. | Set by each city or county. |
| Iowa | An Iowa unemployment insurance number is required. Workers' compensation if you have employees. | Most contractors based outside Iowa must file a $25,000 bond. |
| Kansas | Set by each city or county. | Set by each city or county. |
| Louisiana | At least $100,000 general liability and proof of workers comp. The board says there are no exceptions to the workers comp rule. | Not set in the license rules we checked |
| Maryland | At least $500,000 general liability insurance, required since June 1, 2024. | Only if you do not meet financial solvency guidelines. Then an indemnitor or a $30,000 or $100,000 surety bond. |
| Minnesota | Liability insurance of at least $100,000 per occurrence and $300,000 aggregate, plus $25,000 property damage. | No bond for a new license. |
| Mississippi | Proof of general liability insurance is required for every license and renewal, with no set minimum for residential licenses. Send proof of workers comp if you have 5 or more employees. | Not set in the license rules we checked |
| Montana | The license application must include proof that you comply with Montana workers comp laws. | Not set in the license rules we checked |
| Nebraska | Contractors with one or more employees must file a current workers comp certificate of insurance (ACORD 25) naming the Department of Labor as certificate holder. A contractor not required to carry workers comp signs a statement saying so. | Not set in the license rules we checked |
| Nevada | Proof of workers comp coverage is required to get, keep and renew a license, unless you are exempt and sign an exemption affidavit. | A license bond set by the board at approval, from $1,000 to $500,000, based on license type, monetary limit, finances, experience and character. |
| New Jersey | Commercial general liability insurance of at least $500,000 per occurrence, kept on file with the Division. A copy of the policy goes to the customer with the contract. | Not set in the license rules we checked |
| North Dakota | For a licensed contractor: a liability insurance certificate naming the Secretary of State, plus workers compensation proof from WSI. | No state contractor bond. The bond section of the contractor law was repealed in 1995. |
| Oregon | Residential Limited: $100,000 per occurrence general liability. Workers comp if you have non exempt employees. | Residential Limited: $15,000 residential bond. |
| Pennsylvania | General liability with at least $50,000 personal injury and $50,000 property damage coverage. | Not set in the license rules we checked |
| Rhode Island | General liability insurance of at least $500,000 naming RICRLB as the certificate holder, plus workers' comp if you have employees. A missing insurance certificate can bring a $250 fine, then $500 for each later offense. | Not set in the license rules we checked |
| South Carolina | Not set in the license rules we checked | $5,000 surety bond if you do jobs over $5,000 in total labor and materials. |
| Tennessee | General liability and workers comp (or an exemption) are required for a home improvement license. The board's minimum general liability for home improvement is $100,000. | A $10,000 surety bond, or another accepted form of financial responsibility such as an irrevocable letter of credit. |
| Utah | General liability of at least $1,000,000 per incident and $2,000,000 aggregate, with DOPL listed as certificate holder. Workers comp if you have employees, or a Labor Commission waiver if you do not. | Not set in the license rules we checked |
| Vermont | Registered contractors carry at least $1,000,000 per occurrence and $2,000,000 aggregate liability coverage. | Not set in the license rules we checked |
| Virginia | Not set in the license rules we checked | No net worth or bond step for Class C. The board requires the financial statement only from Class A and B applicants. |
| Washington | General liability of $200,000 public liability and $50,000 property damage, or $250,000 combined single limit. | $15,000 surety bond as a specialty contractor, or $30,000 as a general contractor. |
| West Virginia | For a contractor license: workers' compensation and unemployment coverage for all employees working in West Virginia. | A wage bond status affidavit is filed with every contractor license application. |
| Wisconsin | General liability of at least $250,000 per occurrence, or a $25,000 bond instead. | A $25,000 surety bond can stand in for the liability policy. |
States not listed either leave insurance to cities and counties or set no rule in the license. Your city, your customers and your contracts can still ask for more.
Workers' comp and bonds
The SBA says every business with employees must carry workers' compensation, unemployment and disability insurance. Insureon's average for handyman businesses is $108 a month, priced per $100 of payroll. A bond protects the state or the customer, not you; Insureon puts its yearly cost at a share of the bond amount:
| Bond amount | Estimated yearly cost |
|---|---|
| $5,000 | $25 to $500 |
| $10,000 | $50 to $1,000 |
| $50,000 | $250 to $5,000 |
Certificates of insurance
Property managers and real estate agents usually ask for a certificate before you start. Keep a PDF on your phone so you can send it the day they ask.
Sources
- Insureon: Insurance cost for handyman businesses, checked October 9, 2026
- Insureon: General liability insurance cost, checked October 9, 2026
- Insureon: Workers' compensation insurance cost, checked October 9, 2026
- Insureon: Surety bond cost, checked October 9, 2026
- SBA: Get business insurance, checked October 9, 2026
- Koira: Handyman license requirements by state (each row lists its board sources), checked October 9, 2026
Last checked October 9, 2026. This page is general information, not legal or tax advice. Rules change and differ by state and city, so confirm with the agency named before you act.