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Working as a handyman or contractor presents some significant liability concerns, as these professionals spend much of their workday in homes, private businesses, or work sites where the slightest mistake could cost a lot of money to fix. For instance, a handyman may accidentally damage a water pipe or electrical wire while replacing drywall for a customer. Even an experienced professional providing the best handyman services could run into liability issues while on the job, and that’s before accounting for other potential insurance concerns such as working with subcontractors, employing crews to handle day-to-day work, and operating dangerous equipment. As such, handyman contractors often find that they need professional liability insurance to protect their businesses. Given the stakes, one of the best tools for a handyman may be a handyman insurance policy.
The best handyman insurance can provide that protection against liability claims for a contractor while on the job. If a client tripped over a worker’s extension cord and knocked over a vase, for example, handyman insurance would help cover the cost to replace the broken vase as well as help pay for medical bills related to any injuries the client sustained during the fall. Depending on the coverage terms, policies may also insure tools, equipment, vehicles, and property used by the business.
Coverage needs can vary significantly depending on the nature of the handyman or contractor business. Some professionals in this industry may only require the most basic general liability coverage, while others will want to insure themselves, their employees, their vehicle fleets, and their equipment. As such, there’s a lot for business owners to consider when searching for the best handyman insurance, but it’s worth them taking the time to sort through every provider’s capabilities to find the right fit. The insurance providers listed here provide a good place for business owners to start.
- BEST OVERALL: NEXT Insurance
- MOST FLEXIBLE TERMS: Thimble
- BEST EXTENDED POLICIES: CoverWallet
- BEST ONLINE EXPERIENCE: Hiscox
- BEST DISCOUNTS: Progressive Commercial
- ALSO CONSIDER: The Hartford
What to Consider When Choosing One of the Best Handyman Insurance Companies
The best handyman insurance companies will have a lot of different options, and not all providers will be the best fit for every situation. When searching for the right handyman insurance, business owners will want to consider what they absolutely need from a provider and a policy before agreeing to terms. There are some key areas to consider, including coverage, cost, and overall experience. Some of these factors may be a higher priority than others depending on the exact needs and circumstances of each individual.
Coverage Area
One of the first pieces of information that insurance companies will often ask for when providing a quote is the customer’s address or ZIP code. It’s not hard to see why: If the company doesn’t provide service to the customer’s location, it won’t be able to offer them an insurance policy. Because handyman insurance, general liability insurance, and other forms of commercial insurance are, for the most part, not impacted by geographic constraints, they may be widely available across the country, but that won’t always be the case. Even the best handyman insurance company won’t be of much help if a handyman’s business is located outside of its service area, so it’s always a good idea for potential customers to inquire about coverage area from the outset, allowing them to check any unsuitable options off their list.
Coverage Amount
Coverage amounts indicate how much the insurance company will pay out on behalf of the policyholder if a claim is filed. Handyman insurance providers may offer a range of coverage amounts to choose from, or they may set the same limit on every policy. When searching for the best handyman insurance providers, it’s important for business owners to determine whether coverage amounts are based on occurrence or aggregate limits. An occurrence limit is the amount the insurance provider will pay per claim, while an aggregate limit is the total coverage provided across the policy term—usually a year, but that’s not always the case.
Choosing the right coverage amount can be tricky if handyman contractors forgo taking stock of their business assets and potential liability risks. Operating commercial vehicles, employing subcontractors, and using expensive equipment could all raise one’s liability risk. The more variables there are to account for, the more coverage may be needed. Coverage amounts will also impact the overall handyman insurance cost, so business owners will want to keep that in mind as well.
Business Type
Handyman insurance can benefit a wide variety of businesses, running the gamut from sole proprietorships to larger construction businesses. One of the perks of the best handyman insurance is that customers are often able to expand their coverage and customize it to fit a range of business conditions. By purchasing endorsements and policy add-ons, business owners can insure vehicles used for transporting materials and equipment, any offices they maintain, and expensive equipment used on the job. Contractors may also be able to buy workers’ compensation insurance or extended liability coverage in the event an employee or subcontractor is injured on a work site. The degree to which these policy add-ons are available will vary from provider to provider, so handyman contractors will want to account for all of their business-specific insurance needs when vetting insurance companies to make sure those needs are met.
Quote Process
When purchasing any kind of insurance, it’s always recommended that customers shop around and get quotes from multiple providers before making a decision. Quote processes are far from uniform in the insurance industry, however, and customers are likely to find that some companies offer a more streamlined quote process than others. Quotes can sometimes be done online, over the phone, or through an agent, but insurance companies may not always support all of these options. When looking for the best handyman websites for insurance, customers may want to prioritize quick and seamless online quotes. Business owners who would rather speak directly to a representative or agent for answers to questions and help finding the right policy terms may not need that capability.
Claims Process
Handyman contractors—especially sole proprietors—can’t afford to wait for an extended period of time for an insurance payout if equipment that’s used every day is damaged or an angry customer wants money to repair property damage that occurred during a job. With that in mind, a speedy claims process can be a necessity for people in this line of work because they can file a claim and receive approval as quickly as possible. Approval times on handyman insurance claims can vary across different providers, so it’s a good idea for business owners to see if the approval windows are suitable for their needs.
Insurance companies may also approach the claims process in different ways, allowing customers to file a claim online, over the phone, or with an agent, depending on the provider. Policyholders may even be able to file a claim using one of the best apps for handyman business operations, but not all providers offer that support. Business owners may prefer one approach over others, and they will want to check that their insurance company supports whatever claims process they would like to use.
Deductible
Running a contractor business comes with a number of handyman costs, and so professionals in this space may look for ways to keep expenses down any way they can, including with their insurance. Deductibles can impact the overall cost of handyman insurance. The policy’s deductible is the portion of a claim the policyholder is responsible for paying before the insurance provider begins to cover any repair, replacement, or liability costs. If the cost to repair a damaged water pipe was $1,500, for example, and a handyman had a $1,000 deductible, they would need to pay $1,000, and the insurance company would pay the remaining $500.
Handyman insurance is somewhat of an outlier in that $0 deductible options appear to be more common than with other types of insurance. With a $0 deductible, a handyman wouldn’t need to pay out of pocket when filing a claim, but they would likely have higher insurance premiums to offset the increased cost taken on by the insurance provider.
Additional Policies
The most basic handyman insurance policy may only provide general liability coverage for property damage, injuries caused to others while on the job, or claims of subpar work. But the best handyman insurance companies often offer add-on options to policies and endorsements to build out coverage as needed. In some cases, providers package together multiple forms of insurance—liability, property, and commercial auto, among others—into a single policy suitable for small business insurance needs.
Given the nature of the work, tools and equipment coverage is a common add-on purchase, as the best handyman tools may not be covered by a more basic policy. Contractors may also be able to purchase endorsements to protect against losses from business interruptions, equipment failure, and workers’ compensation claims. Some insurance companies may even offer disability insurance in the event a handyman is seriously injured on the job and can’t work for an extended period of time. Because handyman and contractor businesses can vary so much in scale, business owners will always want to check that their insurance company can provide the right type and amount of coverage to meet their needs.
AM Best Rating
An insurance company’s ability to pay out claims without delay is always a top concern no matter what type of insurance a customer is considering. Companies with healthy finances are less likely to run into any issues that may prevent them from meeting their obligations as insurance providers. Contractors know that the best handyman services often have a sterling reputation, and that holds true for insurance companies, too. AM Best has a tried-and-true formula to determine which companies are positioned for long-term success and which may have murkier futures.
This credit rating agency focuses specifically on the insurance industry, and it reviews various aspects of a company’s financial circumstances and creditworthiness to assign it a rating. The highest rating—A+—indicates that the company has a “superior” ability to continue providing insurance to its customers and paying out claims. While customers don’t necessarily need to use an insurance company with the highest AM Best insurance rating possible, it’s generally advisable that they approach low-rated providers with some degree of caution.
Our Top Picks
When considering the best handyman insurance available, business owners will need to weigh the strengths and weaknesses of each company and then determine which provider offers the best overall experience and services for their unique needs.
Best Overall
NEXT Insurance
Why It Made the Cut: NEXT Insurance has a strong focus on handyman insurance, providing a seamless digital customer experience, helpful customer support, and various bundling options to potentially ease the cost of coverage.
NEXT Insurance provides business insurance for many different types of professions, but it is especially attuned to the needs of handyman contractors. The NEXT mobile app allows business owners to file claims, update policies, and share a certificate of insurance at any time and from any location, even while on the job. NEXT offers a speedy claims process, returning claim decisions within 48 hours in most cases, so policyholders won’t need to wait very long to find out if their claim has been approved.
The company has a very strong digital presence in general, allowing customers to buy a policy directly from its website and enroll immediately without needing to speak to an agent or representative beforehand. Although quotes can only be done online, customers will likely find that the process itself is very quick and easy to complete. The online quote process is also quite detailed, allowing customers to choose from numerous policy terms, coverage options, and information about their business so they can customize their quote to suit their exact needs. NEXT’s customer support is a core strength as well, with virtual agents standing by to help customers using the website’s online chat feature. While the AM Best rating of A- is somewhat low for this space, it’s still considered an excellent rating overall, and customers can feel confident that coverage will continue uninterrupted and claims will be paid out in full. Customers who are interested in saving money on their insurance may be able to take advantage of extra discounts when bundling their general liability insurance with workers’ compensation or property insurance coverage.
Specs
- Coverage area: 50 states and Washington, D.C.
- Coverage amount: $300,000 to $1 million
- Quote process: Online
- Claims process: Online, phone, app
- Deductible: $0
- AM Best rating: A-
Pros
- Quick 48-hour claim decisions
- User-friendly and specifics-driven quote process
- Quick and streamlined online enrollment
- Convenient policy management via mobile app
- Competitive discount bundles for workers’ compensation and property insurance policies
- Responsive online chat staffed by live agents
Cons
- AM Best rating of A-
- Quotes cannot be completed over the phone
Most Flexible Terms
Thimble
Why It Made the Cut: With numerous ways to adjust policy terms, Thimble offers a high degree of flexibility that can help handyman contractors who may need to quickly change their coverage for different jobs.
Thimble is among the most digital-focused handyman insurance providers in the market, allowing customers to get a quote and buy coverage entirely online, which can be very convenient for business owners who don’t have time to sit down with an agent. That digital focus also extends to its customer support, which is exclusively managed online through the company’s website. Thimble customers can use the company’s dedicated mobile app to manage their policies at any time, adding endorsements, changing coverage terms, or retrieving certificates of insurance to present to prospective clients.
One of the most standout features that Thimble provides is the ability to adjust policy terms on the fly, including pausing or canceling coverage whenever necessary. This capability can be very helpful for contractors who need to increase coverage when taking on larger jobs and bringing in more subcontractors or roll back coverage when available jobs are not so demanding. Customers can also purchase coverage for specific durations—a year, a month, a day, or even a few hours. Handyman contractors who may take on last-minute jobs or projects that vary significantly in scope can get the right amount of insurance to suit their working conditions without overpaying for more coverage than they need through the rest of the policy term.
Specs
- Coverage area: 50 states and Washington, D.C.
- Coverage amount: $1 million or $2 million
- Quote process: Online
- Claims process: Online
- Deductible: $0
- AM Best rating: A
Pros
- Flexible range of policy durations
- Policies can be modified, paused, or canceled at any time
- Convenient policy management via mobile app
- Quick and streamlined online enrollment
Cons
- Limited customer support options
Best Extended Policies
CoverWallet
Why It Made the Cut: CoverWallet is a top choice for business owners who want to expand their coverage by adding different types of endorsements and add-ons to their policy.
CoverWallet brings a lot to the table, but what really makes this provider stand out is the wide variety of coverage options that can be added to a handyman insurance policy. Customers can build out their policy to protect their businesses and themselves from costly operational interruptions, injuries that prevent them or their employees from working, and equipment failure, among many other insurance options. Regardless of the size or scope of a handyman or contractor business, CoverWallet can likely provide the coverage needed to suit the situation. Because there are so many options to choose from, CoverWallet has created a quick online assessment tool to help customers determine what type of policy would best meet their business needs. Policyholders can also contact customer support through a variety of channels, and while online agents may take up to 24 hours to respond to requests, CoverWallet offers 24/7 support over the phone, so representatives are always available in some capacity. For business owners looking for a more personal touch, CoverWallet assigns a dedicated representative to each customer the moment a new quote is started. With a single point of contact, policyholders can more easily receive updates about policies, claims, and other information because that agent should already be familiar with their account.
Specs
- Coverage area: 50 states and Washington, D.C.
- Coverage amount: $1 million
- Quote process: Online, phone
- Claims process: Online, phone
- Deductible: $0
- AM Best rating: A
Pros
- Extremely wide selection of add-on policies available
- Ideal policy choice determined by individual assessment report
- Dedicated agent assigned to each quote
- 24/7 customer support over the phone
Cons
- Relatively long 24-hour online chat response time
Best Online Experience
Hiscox
Why It Made the Cut: With streamlined online quote and enrollment options, as well as virtual customer support capabilities, Hiscox is a great choice for handyman professionals who want an insurance provider with a superior digital experience.
Hiscox maintains a strong online and digital presence, allowing new customers to sign up for a policy directly through the company website. In fact, customers can both get a quote and purchase coverage entirely online without ever needing to speak to an insurance agent, which may be very convenient for busy handyman contractors who don’t have a lot of time to discuss insurance with a representative. Although the company may require 10 to 20 days to approve or deny insurance claims, customers can easily reach out to agents for updates through the site’s virtual chat service. In addition to providing claim statuses, live agents can answer any questions customers have about their policies, giving policyholders more options to choose from when they need to contact customer support. Handyman insurance coverage may vary depending on a business’s location, but eligible handyman contractors will find that they can choose from a wide range of coverage limits—$300,000 to $2 million—so they should be able to get the right amount of coverage without paying for more than they need. In addition, the Hiscox site provides several online tools to help handyman professionals of all experience levels better manage their businesses. These tools include invoice templates, project management templates, and a profit calculator—all of which can streamline business operations for busy contractors who would rather spend their time focused on the work site than sorting out business logistics.
Specs
- Coverage area: Varies by state
- Coverage amount: $300,000 to $2 million
- Quote process: Online, phone
- Claims process: Online, phone, mail
- Deductible: $0
- AM Best rating: A
Pros
- Relatively wide coverage amount range of $300,000 to $2 million
- Quick and streamlined online enrollment
- Responsive online chat staffed by live agents
- Helpful handyman business tools and resources
Cons
- Handyman insurance availability varies by state
- Relatively long 10- to 20-day claim decision window
Best Discounts
Progressive Commercial
Why It Made the Cut: Progressive offers relatively low insurance rates as well as potential discounts for customers who choose to bundle their handyman insurance with auto insurance policies.
Business owners looking for opportunities to reduce their handyman insurance costs may find Progressive’s bundling options very appealing. The company allows customers to bundle handyman insurance with either personal auto or commercial auto policies at a discounted rate. Depending on the selected policy terms, Progressive may also offer relatively low insurance premiums, potentially reducing the cost of coverage for contractors. Although prospective customers may not be able to get an online quote for all policy terms—and tools and equipment coverage is unavailable altogether—Progressive’s helpful mobile app lets customers view and manage their policies at any time. Policyholders can retrieve documents such as certificates of insurance directly from their smartphone while at the work site or on the road. Progressive also holds an A+ rating from AM Best, indicating that the company’s finances are strong and that it should be able to continue meeting its obligations and responsibilities to insurance customers for years to come.
Specs
- Coverage area: 50 states and Washington, D.C.
- Coverage amount: $1 million
- Quote process: Online, phone, agent
- Claims process: Online, phone, agent
- Deductible: $0 to $1,000
- AM Best rating: A+
Pros
- Rates may be relatively low
- Competitive discount bundles for personal auto and commercial auto insurance policies
- Convenient policy management via mobile app
- AM Best rating of A+
Cons
- Online quotes may not be available for all policy terms
- Tools and equipment coverage not available
Also Consider
The Hartford
Why It Made the Cut: With its superior AM Best rating and responsive customer support, The Hartford is a great option for business owners looking for a reliable and accessible handyman insurance provider.
The Hartford strives to build every customer relationship on solid ground by first assessing the insurance needs of prospective customers to find the right type of coverage and policy to suit their business. New customers can easily narrow down their policy options right from the outset, saving them time and potentially money by avoiding purchasing coverage they don’t really need. While the online quote process may not always be the easiest to navigate, agent support is only a phone call away with the company’s 24/7 customer support line. Handyman insurance policies may be limited in terms of equipment coverage and monthly payment options, but The Hartford offers a wide range of coverage limits to meet the needs of handyman businesses both large and small. In addition, the company’s financials stand on solid ground, as indicated by The Hartford’s AM Best rating of A+. Customers can feel confident that the insurance provider will continue to pay out claims without interruption for the foreseeable future.
Specs
- Coverage area: 50 states and Washington, D.C.
- Coverage amount: $500,000 to $2 million
- Quote process: Online, phone, agent
- Claims process: Online, phone, agent
- Deductible: $500 to $5,000
- AM Best rating: A+
Pros
- Relatively wide coverage amount range of $500,000 to $2 million
- Ideal policy choice determined by individual assessment report
- 24/7 claim support over the phone
- AM Best rating of A+
Cons
- Somewhat user-unfriendly online quote process
- Monthly payment option may not be available for all policy terms
- Tools and equipment coverage not available
Our Verdict
NEXT Insurance was named Best Overall due to its focus on handyman insurance as a core competency, offering quick quote and claims processes, mobile app support, and potential bundle discounts. We gave Thimble the award of Most Flexible Terms because policyholders can adjust their insurance coverage at any time and, thanks to the company’s dedicated mobile app, from anywhere.
How We Chose the Best Handyman Insurance Companies
Handyman insurance is not a one-size-fits-all solution; business owners will likely have vastly different priorities for choosing an insurance provider depending on the size, scale, and complexity of their operations. With that in mind, we looked at companies offering both basic and extended coverage to suit a wide variety of handyman and contractor businesses. In the same vein, coverage limits were an important factor to consider, as handyman contractors may have different coverage needs depending on their circumstances. We also considered the financial standing and outlook for each company to ascertain their long-term stability. Factors relating to the customer experience, such as quote and claims processes, were also weighed when determining the best handyman insurance companies.
Before You Opt for One of the Best Handyman Insurance Companies
Handyman business owners don’t always need dedicated handyman insurance—at least not legally. Although some states may require handyman contractors to hold specific certifications to work on certain types of jobs—like electrical work, for example—handyman insurance isn’t legally required at any level. That being said, business owners will likely want to obtain general liability handyman insurance at the very least to protect themselves in the event that they cause damage to a client’s property while working on the job. This liability coverage can also protect handyman professionals from liability claims if a client is injured as a result of their work—for instance, if a client trips on a piece of equipment and falls down the stairs, requiring medical attention.
Contractors will also want to consider the type and scope of coverage they need to fully insure their business against possible perils. The larger a handyman business becomes, the more complicated its insurance needs will likely be. Business owners may find that they need more than basic general liability coverage to protect themselves, their employees, and their business assets.
Cost of Opting for One of the Best Handyman Insurance Companies
Handyman insurance costs are dependent on a few major factors. First and foremost, the type and amount of coverage purchased will heavily influence insurance rates, as every endorsement and add-on will raise a policyholder’s premiums. Larger operations may require expanded coverage—such as commercial vehicle, marine inland, or business interruption insurance—to adequately protect them from financial risk, and it may be worth the extra expense to get a greater sense of security and peace of mind.
Handyman insurance companies may also charge higher rates for businesses that take on projects that present greater risks to workers, clients, and property. Handyman professionals may be more likely to file a claim if they take on risky jobs like roofing, plumbing, and electrical work where injury or property damage could easily occur. As such, contractors who routinely do this kind of work may pay higher premiums on their handyman insurance, while those who only work on lower-risk projects may pay less.
The Advantages of Taking Out a Policy With One of the Best Handyman Insurance Companies
Risk management is always top of mind when running a handyman business. Due to the nature of the work and the potential for costly errors, there are always liability concerns for business owners to consider. Whether a handyman is a sole proprietor who focuses on odd jobs or a professional contractor with large work crews, mistakes are going to happen. In addition, business owners may want to be financially protected in case equipment is damaged, employees are injured on the job, or subcontractors accidentally damage a client’s property.
Depending on the policy terms, the best handyman insurance companies can provide enough coverage to sufficiently protect every phase of the business:
- General liability coverage protects business owners in the event they cause property damage during a job or if their work inadvertently results in a client’s injury.
- Tools and equipment coverage insures the often-expensive equipment used by handyman professionals in case they are stolen or damaged.
- Workers’ compensation coverage can reimburse medical expenses and lost wages for employees who are injured on the job and are unable to work for an extended period of time.
FAQs
Handyman contractors have a lot of options to consider when it comes to choosing a handyman insurance policy. But all of those options can make it difficult to know exactly what to look for in a provider or what kind of coverage is needed for a particular handyman business. The following answers to some of the most common questions contractors have about this type of insurance can help them find the right coverage and policy to suit their business requirements.
Handyman insurance can often be customized for sole proprietors or contractors with more complicated business needs. In many cases, contractors can build out their policy and add the right coverage to fit their business. It’s advised that business owners shop around for quotes from various providers to find the appropriate coverage for them at the right price.
Although handyman contractors are not legally required to be insured, it’s generally a good idea for contractors to get general liability insurance—at minimum—to protect against liability claims. Extra coverage may be warranted to insure tools and equipment, vehicles, and workers.
The most basic form of handyman insurance includes general liability coverage, which protects handyman contractors from liability claims if an accident occurs while on the job. Policyholders can often purchase expanded coverage to insure tools, vehicles, offices, subcontractors, and full-time employees as well.
A standard general liability handyman insurance policy usually only covers the proprietor against liability claims. In many cases, however, contractors can insure their subcontractors by buying additional coverage from their insurance provider.
Basic handyman insurance often excludes tools and equipment from its coverage. That being said, insurance companies typically offer equipment coverage as an additional endorsement.
Handyman insurance costs can vary significantly depending on numerous factors, including coverage limits, the size of the contractor business, the types of handyman services provided, and any extra endorsements that are added to the policy. A contractor who does electrical, roofing, or plumbing work will likely pay higher rates than a handyman who mostly installs drywall. For a more customized cost estimate, business owners can get quotes from several providers to compare prices and coverage options.
An ACORD 25 certificate—more commonly known as a certificate of insurance—is a document verifying that the holder possesses liability insurance for their business. Prospective clients may ask to see this document before enlisting the services of a handyman or contractor.
After developing the skills needed to excel as a handyman, newcomers to this field will want to consider getting a handyman license or certification. Some state governments may require this kind of certification to work as a handyman. Clients may also prefer to work with a certified handyman—especially if a handyman is just starting out and lacks long-term experience.
Handyman or contractor licenses may limit the types of jobs that handyman professionals can legally tackle without certification. These restrictions often vary by state, so it’s a good idea for contractors to know how handyman work is regulated in a particular area before agreeing to take on a new job.
Handyman professionals are often considered to be jacks of all trades, tackling a wide variety of home repair jobs for their clients. Depending on their qualifications, experience, and certifications, a handyman can help with anything from drywall and power washing to roof repair and electrical work.
A handyman business can be very profitable if business owners manage their finances well. Sound financial management in this industry includes setting rates that are commensurate with one’s experience and skills, as well as factoring in the complexity of the job when giving quotes.
When starting out, the best way for a contractor to get work may be through word of mouth. References are a common way for contractors to get new clients, but maintaining an online presence through websites and social media, as well as creating a dedicated marketing strategy so the business name pops up when someone searches “best handyman service near me,” can help contractors reach more prospective customers.
