Handyman business insurance costs vary widely across coverage types. Understanding these differences helps you budget smartly. MoneyGeek's analysis shows monthly premiums range from $54 for professional liability coverage to $363 for a business owner's policy.
How Much Does Handyman Business Insurance Cost?
Handyman business insurance starts at $54 per month, but your specific business details will determine your actual rate.
Discover cheap handyman business insurance below.
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Updated: August 21, 2025
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Key Takeaways
Handyman business insurance costs range from $54 to $363 monthly, with general liability averaging $245 and business owner policies reaching $363.
Your handyman insurance premiums depend on location, claims history, property types serviced and employee count.
Shop multiple insurers, bundle policies, increase deductibles and pay annually to find affordable handyman business insurance costs.
Average Handyman Business Insurance Cost Overall
| BOP | $363 |
| General Liability | $245 |
| Professional Liability (E&O) | $54 |
| Workers' Comp | $94 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Handyman Business Insurance Cost for General Liability Coverage by State
Your handyman business insurance cost for general liability coverage depends on where you operate. Maine offers the most savings at $213 monthly (versus the $247 national average), while New York costs $286 monthly.
| Alabama | $240 |
| Alaska | $230 |
| Arizona | $229 |
| Arkansas | $235 |
| California | $273 |
| Colorado | $243 |
| Connecticut | $267 |
| Delaware | $263 |
| Florida | $266 |
| Georgia | $249 |
| Hawaii | $269 |
| Idaho | $233 |
| Illinois | $269 |
| Indiana | $239 |
| Iowa | $234 |
| Kansas | $238 |
| Kentucky | $225 |
| Louisiana | $281 |
| Maine | $213 |
| Maryland | $234 |
| Massachusetts | $257 |
| Michigan | $232 |
| Minnesota | $230 |
| Mississippi | $246 |
| Missouri | $242 |
| Montana | $244 |
| Nebraska | $232 |
| Nevada | $274 |
| New Hampshire | $244 |
| New Jersey | $278 |
| New Mexico | $247 |
| New York | $286 |
| North Carolina | $213 |
| North Dakota | $213 |
| Ohio | $228 |
| Oklahoma | $233 |
| Oregon | $228 |
| Pennsylvania | $283 |
| Rhode Island | $270 |
| South Carolina | $253 |
| South Dakota | $229 |
| Tennessee | $239 |
| Texas | $247 |
| Utah | $230 |
| Vermont | $236 |
| Virginia | $223 |
| Washington | $279 |
| West Virginia | $257 |
| Wisconsin | $241 |
| Wyoming | $227 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Handyman Business Insurance Cost for Workers’ Compensation Coverage by State
Your handyman business's cost for workers' compensation varies by state. Maine offers the lowest rates at $81 monthly and Pennsylvania the highest at $108 monthly. Our analysis reveals how state regulations and claim histories create these differences.
| Alabama | $91 |
| Alaska | $85 |
| Arizona | $89 |
| Arkansas | $90 |
| California | $104 |
| Colorado | $93 |
| Connecticut | $101 |
| Delaware | $101 |
| Florida | $101 |
| Georgia | $96 |
| Hawaii | $98 |
| Idaho | $88 |
| Illinois | $102 |
| Indiana | $91 |
| Iowa | $89 |
| Kansas | $90 |
| Kentucky | $88 |
| Louisiana | $107 |
| Maine | $81 |
| Maryland | $89 |
| Massachusetts | $98 |
| Michigan | $88 |
| Minnesota | $88 |
| Mississippi | $94 |
| Missouri | $93 |
| Montana | $94 |
| Nebraska | $89 |
| Nevada | $107 |
| New Hampshire | $93 |
| New Jersey | $106 |
| New Mexico | $94 |
| New York | $107 |
| North Carolina | $81 |
| Oklahoma | $88 |
| Oregon | $87 |
| Pennsylvania | $108 |
| Rhode Island | $103 |
| South Carolina | $97 |
| South Dakota | $88 |
| Tennessee | $92 |
| Texas | $94 |
| Utah | $90 |
| Vermont | $90 |
| Virginia | $86 |
| West Virginia | $99 |
| Wisconsin | $92 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Workers' compensation requirements vary by state and are mandated by state regulations. Survey results reflect limited sample data and may not represent all available rates in your area.
Handyman Business Insurance Cost for Professional Liability Coverage by State
Like other insurance types, your cost for professional liability varies by state. The national average is $54 monthly. North Dakota offers the lowest rates at $46 for E&O insurance, while Pennsylvania charges the highest at $63 monthly.
| Alabama | $53 |
| Alaska | $47 |
| Arizona | $53 |
| Arkansas | $51 |
| California | $60 |
| Colorado | $54 |
| Connecticut | $58 |
| Delaware | $58 |
| Florida | $59 |
| Georgia | $56 |
| Hawaii | $57 |
| Idaho | $52 |
| Illinois | $59 |
| Indiana | $52 |
| Iowa | $52 |
| Kansas | $53 |
| Kentucky | $51 |
| Louisiana | $61 |
| Maine | $48 |
| Maryland | $52 |
| Massachusetts | $56 |
| Michigan | $50 |
| Minnesota | $51 |
| Mississippi | $55 |
| Missouri | $54 |
| Montana | $54 |
| Nebraska | $50 |
| Nevada | $62 |
| New Hampshire | $55 |
| New Jersey | $62 |
| New Mexico | $55 |
| New York | $62 |
| North Carolina | $46 |
| North Dakota | $46 |
| Ohio | $51 |
| Oklahoma | $51 |
| Oregon | $50 |
| Pennsylvania | $63 |
| Rhode Island | $60 |
| South Carolina | $56 |
| South Dakota | $51 |
| Tennessee | $54 |
| Texas | $56 |
| Utah | $53 |
| Vermont | $53 |
| Virginia | $49 |
| Washington | $62 |
| West Virginia | $57 |
| Wisconsin | $52 |
| Wyoming | $50 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Handyman Business Insurance Cost for BOP Coverage by State
Business owner's policy rates vary significantly for handyman businesses across states. Monthly premiums in Louisiana cost $423, while North Dakota businesses pay just $311 for the same coverage.
| Alabama | $355 |
| Alaska | $338 |
| Arizona | $338 |
| Arkansas | $350 |
| California | $408 |
| Colorado | $363 |
| Connecticut | $389 |
| Delaware | $383 |
| Florida | $397 |
| Georgia | $368 |
| Hawaii | $395 |
| Idaho | $340 |
| Illinois | $396 |
| Indiana | $356 |
| Iowa | $345 |
| Kansas | $354 |
| Kentucky | $330 |
| Louisiana | $423 |
| Maine | $323 |
| Maryland | $347 |
| Massachusetts | $384 |
| Michigan | $346 |
| Minnesota | $342 |
| Mississippi | $359 |
| Missouri | $361 |
| Montana | $362 |
| Nebraska | $343 |
| Nevada | $403 |
| New Hampshire | $361 |
| New Jersey | $417 |
| New Mexico | $368 |
| New York | $422 |
| North Carolina | $311 |
| North Dakota | $311 |
| Ohio | $334 |
| Oklahoma | $340 |
| Oregon | $338 |
| Pennsylvania | $416 |
| Rhode Island | $400 |
| South Carolina | $374 |
| South Dakota | $343 |
| Tennessee | $356 |
| Texas | $360 |
| Utah | $335 |
| Vermont | $355 |
| Virginia | $328 |
| Washington | $410 |
| West Virginia | $380 |
| Wisconsin | $356 |
| Wyoming | $340 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on BOP coverage. Survey results reflect limited sample data and may not represent all available rates in your area.
Factors Affecting Handyman Business Insurance Cost
Insurance companies look at several factors to determine your handyman business insurance costs. Understanding these pricing elements helps you plan your budget better. Below, we explain how different variables affect your insurance rates.
Geographic location
Your business location affects workers' compensation rates due to local regulations and claim frequencies. Operating in tornado-prone areas or high-crime neighborhoods increases your risk profile, and state differences create substantial premium variations.
Safety record and claims history
Previous claims impact future premiums, sometimes for three to five years. A single slip-and-fall lawsuit can substantially increase your general liability rates at renewal.
Types of properties serviced
Commercial properties and industrial sites carry higher liability risks than residential homes. Working in older buildings or performing repairs in specialized facilities like restaurants or retail spaces can increase your insurance costs due to greater risk exposure.
Employee count and payroll
Insurers calculate workers' comp premiums based on your total payroll and job classifications. Adding employees increases your payroll costs, directly impacting your workers' compensation premiums since insurers calculate your rates per dollar of wages paid.
Services offered
Electrical work, plumbing repairs and structural modifications carry different risk levels. A handyman offering basic home repairs faces lower premiums than one providing specialized electrical or plumbing services.
Business size and revenue
Higher annual revenue typically means higher premiums since insurers view larger operations as having greater exposure to claims. A solo handyman earning $50,000 annually pays less than a handyman business with multiple teams and $500,000 in revenue.
Coverage limits
Higher coverage limits provide better protection but cost more monthly. Choosing between different coverage amounts directly affects your premium, with higher limits increasing costs proportionally.
Equipment and tools value
More expensive tools and specialized equipment require higher coverage limits, increasing your premiums. A handyman using professional-grade power tools and specialized equipment worth thousands will pay more for coverage than one using basic hand tools.
Credit score and financial stability
In most states, insurers can consider your business credit score when setting rates. A strong credit score can reduce premiums, while poor credit often increases costs substantially.
How to Get Cheap Handyman Business Insurance
Smart shopping and safe business practices can lower your handyman insurance costs, and these proven strategies will help reduce your premiums while improving your insurance risk profile.
- 1
Choose the right coverage types for your business
Start by identifying the types of business insurance your handyman business actually needs to avoid paying for unnecessary coverage. General liability protects against customer injuries and property damage, while tools and equipment coverage safeguards your work gear. Consider workers compensation if you have employees.
- 2
Shop multiple insurance companies
Insurance rates can vary significantly between providers for the same coverage. Request quotes from at least three companies to find the best rates. Consider working with an independent agent who can handle comparison shopping for you.
- 3
Bundle your coverage types
Insurance companies offer substantial discounts when you bundle multiple policies together. Combining general liability with tools coverage and commercial auto insurance under one provider typically costs less than separate policies from different insurers.
- 4
Increase your deductibles
Choosing higher deductibles reduces your monthly premium costs. This means you'll pay more out-of-pocket for small claims, but your regular payments will be lower.
- 5
Pay annually instead of monthly
Monthly payment processing fees can add up quickly. Paying your premium annually often eliminates these extra charges and may qualify you for additional discounts.
- 6
Review and adjust your coverage annually
Your insurance needs change as your business grows. Review your policy yearly to ensure coverage matches your current operations. Remove unnecessary coverage and adjust limits based on your business size and services.
Insurance for Handyman Business Cost: Bottom Line
Handyman business insurance costs range from $54 to $363 monthly, with your location, claims history and business size driving your actual premium, but getting quotes from multiple insurers, bundling policies, choosing higher deductibles and paying annually helps you find better rates.
Handyman Business Insurance Cost: FAQ
Business owners ask many questions about handyman insurance costs, and we've gathered straightforward answers to the most common questions below.
What is the cheapest type of handyman business insurance?
Professional liability coverage costs $54 monthly, making it the most affordable option.
How much can I save by bundling my handyman business insurance policies?
Bundling business insurance policies through a BOP offers cost-effective coverage. Many insurers provide discounts when combining multiple types of protection under one policy.
What factors make my handyman business insurance more expensive?
Factors that can make handyman business insurance costly include types of properties serviced, claims history, size of business and number of employees.
Should I choose a $500 or $2,500 deductible for my handyman business insurance?
Higher deductibles lower your monthly premium costs, but require more cash when filing claims. Consider your available funds and claim likelihood when choosing between $500 and $2,500.
How much does workers' compensation cost for handyman businesses by state?
Workers' compensation rates for handyman businesses vary from $81 monthly in Maine to $108 monthly in Pennsylvania, with costs reflecting each state's unique risk factors and requirements.
Is business owner's policy (BOP) worth the extra cost for handyman companies?
Business owner's policy costs handymen $363 per month on average. It bundles general liability, commercial property and business interruption coverage, offering better value than purchasing policies separately.
How often should I shop around for handyman business insurance quotes?
Review your handyman insurance annually during renewal time. Compare at least three carriers to find better rates, particularly if your business has grown or changed services.
How We Determined Handyman Business Insurance Costs
We collected handyman business insurance quotes from companies across different states. For consistent comparisons, every quote used the same business setup:
- Two employees (three people total, including the owner)
- $150,000 annual payroll
- $300,000 annual revenue
- Already insured status
- $1 million per occurrence and $2 million total per year for all coverage except BOP, which includes the same limits plus $5,000 business property coverage
This profile represents small handyman businesses requiring comprehensive insurance coverage in most states. We chose companies offering broad national coverage and online quote capabilities, focusing on insurers that actively serve the handyman industry.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.