If you run a handyman business, you already know that every job site comes with risks. A client could trip over your toolbox and break an ankle. You could accidentally crack a tile while installing new fixtures. A drill bit could slip and damage expensive cabinetry. These aren't hypothetical scenarios—they're the everyday realities of working in people's homes and businesses. That's where general liability insurance comes in.
General liability insurance for handymen protects your business when someone gets hurt or their property gets damaged while you're working. It covers medical expenses, legal fees, and settlement costs if a client decides to sue. And here's something most handymen discover quickly: even if you're not legally required to carry it in your state, you'll have a hard time landing jobs without it.
Why Handyman Businesses Need General Liability Insurance
Your work involves drilling, cutting, installing, and handling tools in spaces filled with other people's belongings. The property damage risks alone are significant. One slip with a power tool could mean thousands of dollars in repairs—or a lawsuit.
But beyond the obvious risks, there's a practical reality: most commercial clients simply won't hire you without proof of insurance. Property management companies, general contractors, and commercial property owners routinely require certificates of insurance before allowing any work to begin. In many states, you can't even get licensed as a contractor without general liability coverage. California requires it for projects over $1,000, Florida for projects over $2,500, and New Jersey mandates a minimum of $500,000 in coverage to register as a home improvement contractor.
Even residential clients are getting savvier. Homeowners increasingly ask for proof of insurance before letting you through the door. It's a sign you're running a legitimate, professional operation—and it protects them if something goes wrong.
What General Liability Insurance Covers for Handymen
General liability insurance covers two main categories of claims: bodily injury and property damage. Here's what that looks like in practice.
Bodily injury coverage kicks in when someone gets hurt because of your work. A homeowner trips over your extension cord and sprains their wrist. A client's child touches a hot surface you were working on and gets burned. Your ladder falls and strikes a bystander. The policy covers their medical expenses and, if they sue, your legal defense costs and any settlement or judgment.
Property damage coverage handles situations where you accidentally damage someone else's property. You're installing shelving and your drill slips, punching a hole in the wall. You're replacing a faucet and water spills onto hardwood floors, causing warping. You're doing minor electrical work and accidentally damage the existing wiring. The policy pays for repairs or replacement.
General liability also covers your legal defense costs, which can add up quickly even if you win the case. Attorney fees, court costs, and settlements all come out of the policy, not your pocket.
Standard Coverage Limits and What They Mean
The industry standard for handyman general liability insurance is $1 million per occurrence and $2 million aggregate. Let's break down what those numbers actually mean.
Per occurrence means the maximum your insurance will pay for a single incident. If you accidentally cause $50,000 in water damage at a client's home, your $1 million per occurrence limit covers it completely. If multiple people are injured in one incident, the per occurrence limit applies to all claims from that single event.
Aggregate means the total amount your insurance will pay across all claims during your policy period, typically one year. Once you hit that $2 million aggregate limit, your coverage stops until your policy renews. For most handyman businesses, this limit is more than sufficient—you'd need multiple significant claims in a single year to approach it.
These limits match what virtually every commercial project owner and general contractor requires. Some policies offer lower limits—$300,000 per occurrence, for example—but these won't meet most client requirements and may not adequately protect your business assets.
How Much Does General Liability Insurance Cost for Handymen?
The average handyman business pays between $50 and $80 per month for general liability insurance, or roughly $600 to $960 annually. Most handymen fall in the $67 per month range, which comes to about $800 per year. That's a small price compared to what you'd pay out of pocket for even a minor claim.
Several factors influence your premium. Location matters significantly—handymen in Maine might pay $213 monthly while those in New York could see rates closer to $286 monthly. Your services also affect pricing. If you stick to basic repairs and installations, you'll pay less than someone who does electrical work, roofing, or other higher-risk tasks. Claims history plays a role too—a clean record keeps premiums lower.
If you have employees, expect higher premiums than a solo operator. A two-person operation might pay around $245 per month or $2,943 annually. The deductible you choose also impacts cost—a typical $1,000 deductible balances affordability with adequate protection.
Certificates of Insurance: What You Need to Know
A certificate of insurance (COI) is a one-page document proving you have coverage. It lists your policy details, coverage limits, and effective dates. You'll need to provide COIs to clients, property managers, and licensing boards regularly.
Most insurance providers let you download certificates instantly after purchasing a policy. Keep digital copies handy so you can email them to clients quickly. You should also send updated COIs to your regular clients 30 to 60 days before your policy renews to avoid any gaps in coverage verification.
Some situations require updated certificates even mid-policy. If you hire your first employee, purchase expensive new equipment, or land a contract requiring higher liability limits, request a new COI from your insurer to reflect these changes.
Getting Started with General Liability Insurance
Shopping for general liability insurance is straightforward. Start by identifying the services you offer and any higher-risk work you perform. Be honest about your revenue and claims history—underreporting can void your coverage when you need it most.
Get quotes from multiple providers and compare not just price but also coverage limits, deductibles, and what's excluded. The cheapest policy isn't always the best value if it has restrictive exclusions or inadequate limits. Look for a policy that meets the $1 million per occurrence and $2 million aggregate standard—it'll satisfy virtually all client requirements and give you solid protection.
Once you have coverage, maintain it without lapses. Even a short gap in coverage can create problems with clients and licensing boards. Set reminders to review your policy before renewal, and update your coverage as your business grows or your services change.
General liability insurance isn't just a box to check—it's fundamental protection for your handyman business. For less than $100 a month, you get coverage that protects your assets, satisfies client requirements, and lets you work with confidence knowing you're protected if something goes wrong. Whether you're just starting out or you've been in business for years, carrying adequate general liability coverage is one of the smartest investments you can make.
