So you're running a handyman business in Florida—or thinking about starting one. Maybe you're fixing faucets, patching drywall, or hanging ceiling fans for neighbors and local clients. Here's what catches most handymen off guard: Florida's insurance requirements aren't straightforward. The rules change dramatically based on what you're doing, how much you're charging, and whether your work becomes part of the building's structure. Let's break down exactly what you need to know to stay legal and protected.
Do You Need a License to Work as a Handyman in Florida?
Here's the short answer: Florida doesn't have a specific handyman license. But that doesn't mean you can do whatever you want. The moment your work crosses into territory that changes the structure of a building—think electrical, plumbing, HVAC, or major remodeling—you need a general contractor license from the Florida Department of Business and Professional Regulation (DBPR).
The threshold that matters most is $500. If your work becomes a permanent part of the structure and the project totals more than $500, you're legally required to have a contractor license. Other sources point to different limits—some say $1,000, others say $2,500—but the safest approach is to assume the lower threshold applies to avoid trouble.
What can you do without a license? Basic repairs, painting, minor maintenance, furniture assembly—stuff that doesn't alter the building itself. Once you're installing outlets, running new plumbing lines, or cutting into walls, you've crossed the line into licensed contractor territory.
And here's the kicker: local rules can be stricter than state rules. Some Florida counties require handyman registration even for small jobs. Lee County, for example, requires a license for painting and drywall work that wouldn't trigger state requirements. Since House Bill 735 took effect in July 2023, cities can't create separate licensing for work already regulated by the state, but they can still require local business tax receipts and permits. Always check with your county or city before taking on new types of work.
General Liability Insurance: What Florida Requires
If you need a general contractor license in Florida, you also need general liability insurance. The DBPR won't issue your license without proof of coverage. For general and building contractors, the minimums are $300,000 in public liability coverage and $50,000 in property damage coverage. If you're a residential or specialty contractor, the requirements drop to $100,000 in bodily injury coverage and $25,000 in property damage.
But here's what most handymen don't realize: even if you're not required to have insurance by law, you absolutely should carry it anyway. General liability protects you if a client gets hurt on the job or if you accidentally damage their property. Let's say you're installing shelves and you accidentally drill through a water pipe. Without insurance, you're paying for that flood damage out of pocket. With a general liability policy, your insurer handles it.
Many larger clients and property management companies won't hire you without a certificate of insurance, regardless of whether the state requires it. If you want to work with commercial clients or do jobs for HOAs, you'll need to show proof of coverage before they'll even consider your bid.
Workers' Compensation: The Construction Industry Trap
Workers' compensation is where things get tricky for handymen in Florida. The rules depend entirely on whether your work is classified as "construction." If it is, you need workers' comp insurance with just one employee—and that includes you if you're a corporate officer or LLC member. If your handyman work doesn't fall under construction, you only need workers' comp once you have four or more employees.
So how do you know if you're in construction? Generally, if your work involves structural changes, remodeling, electrical, plumbing, or HVAC—the same stuff that requires a contractor license—it's considered construction. Basic repairs and maintenance usually aren't. But this is a gray area, and the Florida Division of Workers' Compensation has the final say. If you're not sure, call them or consult with an insurance agent who specializes in contractor coverage.
Good news: workers' comp rates in Florida dropped by 1% in 2025, continuing a long-term trend of decreasing costs. If you've been putting off getting coverage, now's a better time than ever. And if you're a business owner, you might be able to exempt yourself from coverage if you own at least 10% of the corporate stock, though you'll need to file for that exemption formally.
Even if you qualify for an exemption, think carefully before skipping coverage. Workers' comp covers medical bills, lost wages, and disability benefits if you get hurt on the job. A fall from a ladder or a power tool accident could wipe out your business savings if you're not insured.
Other Insurance You Should Consider
Beyond general liability and workers' comp, there are a few other types of insurance that make sense for handymen in Florida. Tools and equipment insurance protects your gear if it's stolen from your truck or damaged on a job site. If you've invested thousands in power tools, saws, and ladders, losing them all in one break-in could put you out of business.
Commercial auto insurance is another must-have. Your personal auto policy won't cover you if you're using your truck for business purposes. Florida requires a minimum of $10,000 in personal injury protection (PIP) and $10,000 in property damage liability for all vehicles. But if you're hauling materials and tools daily, you'll want higher limits—and you'll need a commercial policy to get proper coverage.
Some handymen also carry professional liability insurance (sometimes called errors and omissions insurance), especially if they offer consulting or design advice. This covers you if a client claims your advice or workmanship caused them financial loss.
How to Get the Right Coverage
Start by figuring out exactly what kind of work you're doing. Are you sticking to small repairs and basic maintenance, or are you taking on projects that involve structural changes? That answer determines whether you need a contractor license and what insurance thresholds apply to you.
Next, check with your local county or city to see if they have additional registration or permit requirements. Don't assume the state rules are all you need to follow—local regulations can be much stricter.
When you're ready to buy insurance, talk to an agent who specializes in contractor and small business coverage. They'll help you navigate the difference between construction and non-construction work for workers' comp purposes, and they can recommend appropriate liability limits based on the types of jobs you're doing. Many insurers offer bundled policies that combine general liability, tools coverage, and commercial auto into one package, which can save you money compared to buying each policy separately.
Finally, keep your certificates of insurance updated and accessible. Clients will ask for them, and you want to be able to send proof of coverage immediately. It's a simple thing that makes you look professional and trustworthy—two qualities that lead to more referrals and repeat business.
Running a handyman business in Florida means understanding where the legal lines are drawn and making sure you're properly insured. The rules aren't always clear-cut, but getting the right coverage protects your business, your clients, and your livelihood. Don't wait until after something goes wrong—set yourself up the right way from the start.
