The Best Handyman Insurance Companies

While building a career as a handyman can be highly rewarding, it doesn’t come without risk. Working in clients’ homes and businesses puts you in direct contact with their property and can place you in accident prone environments. Whether you plan to ultimately become a licensed contractor or remain a handyman, insurance is often a legal requirement rather than just a safety net. In many states, you must carry specific coverages—such as workers’ compensation or general liability—to maintain a license or perform work above certain dollar thresholds. Having the right policy ensures you stay compliant with local laws while keeping you covered in worst-case scenarios involving property damage, mistakes, and physical injury. This guide is meant to help you navigate the various kinds of insurance and levels of coverage available to handymen.

Company	Best For	AM Best Rating	Get Quote
ERGO NEXT Read Review	Best Overall	A+	Get Quote
Progressive Read Review	Runner-Up	A+	Get Quote Show NumberCall for Quote
biBERK Read Review	Most Affordable	A++	Get Quote

Do Handyman Businesses Need Insurance?

Considering the physical nature of the work, potential for errors and mistakes, and handling of others’ property, insurance is an important aspect of owning a handyman business. Further, one of the most popular searches for people looking for handymen online is: “handyman licensed and insured.” This indicates that not only is insurance important for protecting your business, but it’s also important for acquiring new customers. That said, determining what types of insurance policies are actually required depends on the state.

Most states don’t have a specific license for becoming a handyman, and as a result, don’t have specific insurance requirements for handyman businesses. However, certain states require handymen to obtain a general contractor license if the size and scope of their projects exceed certain criteria. In these states, handymen will be subject to the same licensing and insurance requirements as larger general contractors, which often involve securing a contractor’s bond, general liability insurance, and workers’ compensation insurance.

For example, in California, a handyman working on any project that exceeds $1,000 in value is required to be licensed as a contractor. Similarly, in Arizona, if any project exceeds $1,000 in value or if a permit is required, then a license is also required. In New York, on the other hand, there aren’t any state-level licensing requirements for handymen, but there are local-level laws that regulate handyman business activities.

While actual insurance requirements vary from state to state, anyone working as a career handyman should consider having a few different insurance policies to protect themselves and their customers should anything happen on the job. In the sections below, we will review the specifics of each of these policies.

What Is Handyman Insurance?

The term “handyman insurance” refers to a bundle of commercial insurance policies tailored specifically to handymen and handyman businesses. The most common type of policy included is general liability insurance (sometimes referred to as handyman liability insurance), but other coverages like commercial auto, workers’ compensation, commercial property, and inland marine insurance (to protect tools and equipment) are also frequently included in a standard package.

Most Important Types of Handyman Insurance Policies

If you’re starting to build a career as a handyman, getting insurance may not seem like a priority. After all, you likely have plenty of other expenses, from tools and equipment to the costs of maintaining a vehicle. However, starting off with some coverage is better than not having any at all, even if you have to stretch your budget to do so. While general liability, commercial auto, and tools and equipment (or inland marine) policies are all recommended for handymen, liability coverage is often a legal requirement for licensing and is the policy you must prioritize first, even on a tight budget.

Handyman Liability Insurance

While some companies may refer to handyman liability insurance as a type of coverage, the policy included isn’t necessarily specific to handymen or the construction industry. Rather, handyman liability insurance—which was historically called handyman public liability insurance—usually refers to a standard general liability insurance policy with coverage limits tailored to handyman businesses.

A general liability policy can protect your business by covering expenses associated with customer claims of bodily injury, personal and advertising injury, or property damage. A high percentage of small businesses will experience a general liability or property damage claim. A recent data study by The Hartford highlights that while the frequency of some claims has shifted, the costs associated with common incidents like slip-and-falls and water damage have risen significantly over the last several years. In the construction industry specifically, general liability-related claims are some of the most common claims businesses are likely to face.

Working as a professional handyman requires constant contact with customers and their property. As most work will take place in client-owned spaces, client property damage is always a risk, whether it happens as a result of a mistake or not. For example, say you or one of your employees mistakenly spills a bucket of paint on a customer’s expensive rug. Even though this was a mistake, this can be covered by your general liability policy.

On the other hand, say a customer hires you to hang a TV above their fireplace. As you are drilling into the wall where the customer wants the TV hung, your drill nicks a wire and causes damage that you cannot fix. Even though you didn’t necessarily make a mistake, your work caused damage to your client’s property, which is something that would be covered by a liability policy.

Bodily injury is another circumstance covered by a handyman general liability policy. Bodily injury includes any physical injury suffered by a third party as a result of your or your employees’ actions. For example, if you leave a stack of equipment unattended in a client’s home and they trip over it, your general liability insurance may be able to cover the medical expenses associated with the resulting injuries.

The final component of general liability insurance is personal and advertising injury, which covers non-physical harm to a third party. Privacy invasion is a common example of a personal injury you can be sued for as a handyman. If, for example, you are working on a project at a high-profile client’s home and take photos of the property and release them without permission, you can be sued for a privacy violation. Other intellectual property claims, such as copyright or trade dress infringement, are typically covered under the ‘advertising injury’ portion of the policy if they occur within your business’s marketing or advertisements. However, it is important to note that standard liability policies generally exclude broad claims of trademark infringement.

Commercial Auto

If you have a vehicle that you use to travel to customers’ homes, transport equipment, or perform any other job-related tasks, you should have commercial auto insurance on top of a general liability policy. This is because most personal car insurance policies will not cover you when using your vehicle for business purposes.

Commercial auto insurance policies provide coverage in case you are involved in an accident or your vehicle suffers damage or theft. The main components of a commercial auto policy include bodily injury (to others), property damage (of others’ property), physical damage (to your vehicle), and medical payments (to you or your passengers). Note that medical payments under these policies often exclude injuries to employees, as those are typically covered by workers’ compensation. However, there are also a number of policy extensions that are useful for those who rely on their vehicle for work. Two examples are roadside assistance, which allows the policyholder to get roadside help if their vehicle breaks down, and rental reimbursement, which reimburses the policyholder should they need to rent a car while theirs is out of commission.

It’s important to note that you typically need a commercial auto policy if your vehicle is titled to a business entity, exceeds certain weight limits, or is outfitted with permanent work-related equipment. While some personal policies allow for commuting to job sites under a ‘business use’ endorsement, they often exclude coverage for vehicles used primarily for heavy hauling or transporting specialized tools. Some policies will cover trucks and trailers alongside standard vehicles.

If your vehicle is an integral part of working as a handyman, you’ll want to secure a commercial auto insurance policy. Losing vehicle access in the middle of a project can be crippling financially, and a commercial auto policy can help you stay working in the case of unforeseen circumstances. What’s more, most states require business owners to secure their business-owned vehicles under a commercial auto insurance policy.

Tools & Equipment Coverage

As a handyman, your tools and equipment are likely the biggest investment of your career. Securing tools and equipment coverage is the best way to make sure your essentials are protected in case of damage, theft, or, in some cases, damage to equipment you have borrowed from others.

Also known as contractors tools and equipment coverage, this is often available as an add-on to a broader general liability policy. Examples of specific tools that fall under tools and equipment coverage include power tools, hand tools, safety gear, and other miscellaneous equipment that is transported from project to project. A tools and equipment insurance policy can cover not only the cost of replacing your stolen or damaged items, but also that of your employees.

Note that most tools and equipment policies will not cover the cost of damage caused by general wear and tear or rust. However, many policies—including the one from ERGO Next—standardly extend protection to rented and borrowed equipment. This ensures you are covered whether you own the tools or are using a rented piece of machinery for a specific project.

Workers’ Compensation

Workers’ compensation covers medical expenses, loss of income, and rehabilitation costs in the event of a work-related injury or illness. With the exception of Texas and South Dakota, states generally require employers to provide workers’ compensation insurance. In many states, this requirement depends on the number of employees in your workforce. However, you may still need to secure workers’ comp insurance even if you work alone. Some states require coverage for certain trades regardless of staff size, and many clients or general contractors will require proof of a policy before you can bid on or start a project.

Errors & Omissions / Professional Liability

When working in a profession that directly addresses customer requests, mistakes are bound to happen. As a handyman, you likely spend plenty of time assessing situations, providing consultation, and coming up with solutions before actually beginning a project. Errors and omissions insurance can protect your business from lawsuits should you make a mistake at any point in this process.

While errors and omissions insurance can cover anything from malpractice to negligence, contractors’ errors & omissions insurance is geared specifically towards the kind of services performed by handymen and contractors. This kind of policy can cover some types of damage resulting from a handyman’s errors. For example, if a handyman installs a cooling unit incorrectly and the unit stops working as a result, contractors’ E&O insurance would cover the cost of replacing it with a new one. However, while contractors’ E&O covers your own work and products, it does not include claims of bodily injury or damage to other third-party property. If a customer is injured as a result of a handyman’s faulty stair installation, for example, the customer’s medical expenses would instead be covered by a general liability policy.

Commercial Property Insurance

Generally speaking, commercial property insurance covers expenses related to damage to your business’s real property, such as buildings, and the damage or theft of your business personal property. In this case, property can include buildings, other structures, and equipment owned or rented by your handyman business. A commercial property insurance policy can, for example, cover damage to a warehouse or workshop and the equipment you keep inside of it. It can also cover income lost as a result of property damage or theft.

Unlike tools and equipment insurance, which is designed to cover the smaller tools and equipment regularly transported from job site to job site, commercial property coverage targets business property that remains at a fixed location.

Additional Handyman Business Insurance to Consider

Complete coverage for your handyman business can go beyond liability, auto, and the additional kinds of insurance listed above. While some additional coverages are optional, others become legal requirements as your business expands. For instance, Workers’ Compensation is mandatory in almost every state once you hire employees, and jurisdictions like New Jersey now require Surety Bonds for all registered home improvement contractors. These policies are essential for maintaining legal compliance and protecting your assets as you grow your team or take on larger projects.

Business Owners Policy

If you’re considering securing multiple kinds of coverage, you may want to combine them in the form of a BOP, or business owners policy. A BOP usually includes three or more kinds of coverage, bundled into a single policy. Usually encompassing general liability, commercial property, and business income insurance—with the ability to add other options like crime insurance—BOPs are recommended for smaller businesses because of their flexibility. Business owners can choose what insurance types to include in their BOP policy based on their individual needs, which can be especially useful for the unique aspects of handyman and contracting work. Keep in mind that commercial auto and workers’ compensation will typically not be included in your BOP and will still have to be purchased separately.

From a financial standpoint, BOPs are often more affordable than purchasing each of the component policies independently. Progressive’s general liability insurance, for example, has a median cost of $55 per month, while the company’s BOP, which includes general liability coverage, is $80 per month.

Commercial Umbrella Insurance

If you’re looking for a way to add an extra layer of protection to your business, a commercial umbrella insurance policy can provide additional limits in the case of a costly lawsuit. While separate from standard policies, umbrella insurance provides excess coverage once your primary limits—which insurers typically require to be at least $1 million—are exhausted. While an umbrella policy can be a cost-effective way to secure very high limits or cover multiple policies at once, you should first check the cost of simply increasing your primary general liability limits, as that is often more affordable for modest coverage increases. If, for example, a major accident on a job site results in catastrophic property damage that exceeds your general liability limits, umbrella coverage would be able to cover the remaining costs.

If you plan to expand your business into a licensed contracting company, you will also need to become familiar with umbrella insurance, as certain client contracts may require you to have a minimum amount of coverage that exceeds your existing limits.

Contractor License Bonds

A contractor license bond is a type of surety bond that ensures contractors operate in accordance with local laws, building codes, and licensing regulations. While performance bonds are used to guarantee that a specific project is completed under the terms of a contractual agreement, license bonds focus on broader regulatory compliance and ethical business practices. Most small handyman businesses do not hold contractor license bonds unless they transition to becoming licensed contractors—often required when projects exceed specific state-defined cost or scope thresholds—at which point obtaining a bond is typically a mandatory part of the licensing process.

Types of Handyman Insurance Summed Up

Handyman Insurance Costs & Premiums

As with all types of business insurance, there are a number of factors that affect how much you will pay to insure your handyman business. As discussed above, the term handyman insurance really refers to a collection of insurance policies designed for handyman businesses—the most common one being general liability insurance. But these groups of policies also often include commercial auto insurance, tools and equipment coverage, workers’ compensation insurance, and commercial property insurance, among others.

In the sections below, we’ll review how much you can expect these policies to cost. Your premium and deductible are the main totals you’ll want to pay attention to when reviewing insurance policies. The premium is the total cost to purchase your insurance coverage for the policy term, while the deductible is the portion of a covered loss that you are responsible for paying. For many handyman general liability policies, the deductible is $0. For policies with a deductible, the amount is typically subtracted from your total claim payout or billed to you after the insurance company settles a claim on your behalf.

How Much Does Handyman Liability Insurance Cost?

Based on data from Progressive, Hiscox, and ERGO Next, handymen can expect to pay around $55 per month, or $660 annually, in premiums for basic general liability insurance that provides $1M in coverage.

Other Handyman Insurance Costs

As mentioned above, liability insurance serves as a starting point for most businesses, with most handymen opting for additional types of coverage. The amount and breadth of necessary policies will depend on the scope of your business and how many workers (if any) you employ. While some insurers will bundle all of the necessary policies into a single package, some require you to purchase each independently. This means that each one will have its own coverage details, premium, and deductible.

The table below provides cost estimates for other common handyman insurance policies.

Factors Affecting the Cost of Handyman Insurance

A number of factors can affect the cost of handyman insurance. Keeping these things in mind can help provide you with better control over your monthly premiums.

Location

Where you work can affect the cost of your monthly premiums because certain locations present a greater risk of claims. For example, handymen in states that make it easier to bring liability suits will face higher insurance premiums. Similarly, car insurance rates vary widely by location based on the probability of accidents and vehicle theft. The same is true for commercial property policies, which vary due to differences in the risk of extreme weather, natural disasters, and property theft.

Business Size

The size of your business also affects your premiums. In general, the more revenue a business brings in, the higher the risk of a lawsuit. Higher revenue generally indicates more frequent customer interaction and larger projects—factors that increase your business’s exposure to potential claims. Because insurers use revenue and payroll as primary rating factors to measure this risk, businesses with higher annual earnings typically face higher insurance premiums.

Number of Employees

The more people you employ, the higher your premiums will be, primarily due to mandatory Workers’ Compensation requirements. Simply put, as more people become involved with the business, there is a higher statistical chance that an employee will suffer a workplace injury or that a mistake will lead to third-party property damage or liability claims.

Coverage Limit & Deductible

Handymen that are willing to take on more financial risk in the event of a claim can save money on insurance premiums. Going with a higher deductible—which means that the handyman pays more before coverage kicks in—or a lower policy limit—which means paying out more of the cost above a certain threshold—usually results in lower premiums. While a cheap handyman insurance policy might save your business money in monthly premiums, it might also not provide enough coverage in the event that something goes wrong.

Comparing Handyman Insurance

Unlike certain forms of insurance, handyman insurance is not something that is standardized across insurance providers, which makes comparing policies a bit more difficult. Some insurers offer insurance packages specifically designed for handymen, while others only provide standalone policies that can be combined and adjusted to fit the needs of handyman businesses. That said, when comparing insurance companies, it’s critical to understand exactly what coverage they provide and the underlying policy limits. Once you find a few insurers that provide the necessary coverage for your business, you can then narrow down your options based on cost and reputation. Below are the factors we considered when finding the best insurance providers for handymen.

Available Policy Types & Limits

At a minimum, handymen should make sure they have an excellent general liability insurance policy in place with a sufficient amount of coverage to adequately protect their business. Outside of general liability coverage, the most common types of coverage to add are commercial auto insurance, tools and equipment coverage, commercial property insurance, and workers’ compensation insurance (which may be required by state law or client contracts even for solo operators). Choosing an insurance company that is able to provide all the coverage options you need (either in a single policy or through multiple policies) can often save you money, though it is still worth comparing separate quotes as policies from different insurers may occasionally be more cost-effective.

Cost

Cost is likely one of the main factors you’ll be on the lookout for as you review different coverage options. Pay attention to premiums, which are the total cost of your policy, as well as deductibles, which are set amounts you agree to pay toward a covered claim. Paying your premium annually to avoid installment fees, choosing a higher deductible, and taking advantage of bundling, package policies, or multi-line discounts are all effective ways to save money on handyman insurance.

Company Reputation

Company reputation is another crucial factor to consider when comparing providers. Sources that can provide useful data on reputation and service quality include the Better Business Bureau (BBB), the National Association of Insurance Commissioners (NAIC), and JD Power. The BBB provides insight into business ratings and complaint history, while the NAIC offers a Complaint Index that compares a provider’s reported grievances against its market share. JD Power complements these sources by ranking insurers through annual customer satisfaction studies based on direct consumer feedback regarding trust, price, and claims handling.

Financial Strength

Financial strength ratings are the final factor to look at when evaluating insurance companies. They indicate, among other things, how likely a given company is to be able to cover its financial obligations in the event of a claim. AM Best, Standard & Poor’s, Moody’s, and Fitch are the top credit rating agencies that evaluate insurance companies’ financial resources. Look for scores in the A range or higher, which generally indicate a strong to excellent ability to meet financial obligations.

The Best Insurance Companies for Handyman Businesses

Based on the factors discussed above, we identified the best handyman insurance providers. Each of the providers reviewed below rated highly across the metrics considered, including policy offerings, cost, reputation, and financial strength (either of the company itself or its third-party underwriters).

ERGO Next (Best Handyman Insurance Overall)

Established in 2016, ERGO NEXT caters to small businesses in industries ranging from entertainment to legal services. When it comes to handyman insurance specifically, ERGO Next’s policy offerings take into consideration the unique risks that handymen face.

ERGO NEXT

Best Overall for Handyman Businesses

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Next offers three insurance packages for handymen, which helps interested customers narrow down their options in a clear and concise way. These packages include Basic, Pro, and Pro Plus, all of which offer some amount of general liability, commercial auto, tools and equipment, workers’ compensation, and commercial property coverage.

The Basic package is the lowest-cost option, providing per-occurrence limits of $300,000 for general liability and $3,000 for tools and equipment. The middle-tier Pro option is the most popular among Next customers, providing $1M and $5,000 policy limits respectively. For those that need extra protection, the Pro Plus package offers the most comprehensive coverage out of the three choices, at $1M and $10,000.

One thing we really like about Next is their policy and pricing transparency. Being able to view and compare the different limit options simultaneously in a single location makes plan information easier to digest, especially for first-time buyers. While these price estimates cannot replace an official quote, they can give you a good idea of what to expect before committing to a policy.

Insurance companies take various approaches to claim handling, including digital and phone-based solutions. Next’s claim submission system combines the two, resulting in an effective and easy-to-navigate claims submissions process. Claims are first submitted online via Next’s portal, and are followed by a phone call with a Next representative, which gives you the chance to ask questions, highlight details of your claim, and decide on next steps with the help of a professional.

Founded in 2016, ERGO Next is still a young company when compared to some of its competitors. Despite this, it has garnered a strong reputation among customers and, following its acquisition by ERGO Group (Munich Re) in 2025, was rated A+ (Superior) by credit rating agency AM Best. ERGO Next holds an A+ rating with the BBB with a 4.24 out of 5 star rating. The company also has an excellent Trustpilot rating of 4.5 out of 5 stars.

To summarize, the company’s emphasis on small business insurance, custom policy packages for handymen, fantastic online experience, and excellent reputation make it our top choice for best overall handyman insurance.

Progressive Insurance (Runner-Up)

Progressive

Runner-Up Best Handyman Insurance

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A household name in the insurance industry, Progressive is perhaps best known for its competitive auto and homeowner’s insurance policies. That said, Progressive also offers a wide selection of commercial insurance policies that are a good fit for handyman businesses.

While Progressive does not offer an insurance package geared specifically towards handymen, the company allows customers to select from a broad set of policy offerings, including general liability, commercial auto, commercial property, and workers’ comp. Customers that sign up for multiple policies get to take advantage of the Progressive Advantage Business Program, which offers generous package discounts.

For handymen planning to purchase a commercial auto policy from Progressive, keep in mind that the company offers a number of ways to save money, including business experience, paid-in-full, and smart haul discounts. If you own a commercial vehicle that qualifies as a truck, the company’s commercial auto coverage includes the Progressive Repair Network, which can match you with reliable repair facilities in case your truck suffers physical damage.

Progressive is also fairly transparent when it comes to pricing, helping you choose the policies that fit your budget. For each kind of insurance it offers, Progressive provides a national average monthly cost based on real customer data. The national average monthly cost for the company’s commercial auto insurance, for example, totaled $272 per month for contractor vehicles, while its average cost for workers’ compensation insurance came to $121 per month. While these totals are not as accurate as an actual quote from the company, they serve as good indicators for how much you can expect to spend.

As one of the biggest names in insurance, Progressive boasts exceptionally high financial strength ratings from top credit rating agencies across the board. As of 2026, these include a superior A+ rating from AM Best, an AA from S&P, and an Aa2 from Moody’s. Progressive holds an unaccredited A+ rating from the BBB, which is the highest score you can receive.

While Progressive does offer a broad range of insurance options to cover handyman businesses, it does not provide a stand-alone tools and equipment policy. This detail sets it apart from some of its competitors and may deter some customers. However, depending on what type of coverage you need, you can likely add it to Progressive’s BOP or general liability policy.

Considering the company’s excellent reputation, discounts, and pricing transparency, Progressive is a strong choice for anyone in the trades. With these factors in mind, Progressive is our runner-up pick for best handyman insurance.

biBERK (Cheapest Handyman Insurance)

biBERK

Most Affordable Handyman Insurance

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Established in 2015, biBERK is another new insurance company that has risen quickly and confidently in the insurance industry. Founded with the intention of catering to small business needs, biBERK is aware of the risks and challenges faced by professionals like handymen, and strives to prioritize affordability.

Advertising its rates as up to 20% lower than those of its competitors, biBERK instantly stands out as a more budget-friendly insurance option for emerging small business owners. The company’s handyman insurance recommendations include general liability, workers’ compensation, commercial auto, and umbrella insurance. biBERK also makes cyber insurance and business owners policies available as well. Similar to NEXT, biBERK does offer an instant online quote service; however, those who would prefer to talk to a company representative can also get a quote over the phone.

Though biBERK itself has been around for a short time, the company is part of the Berkshire Hathaway Insurance group and supported by subsidiaries that hold A++ (Superior) ratings from AM Best and AA+ from S&P as of 2026. It also maintains an A+ BBB rating and has been accredited since 2017, currently holding a 3.94 out of 5 star customer rating. Additionally, biBERK boasts a 4.6 out of 5 star rating with Trustpilot. Backed by the immense resources of its parent company, which holds a significant portion of the commercial insurance market, biBERK is a highly reliable choice for small business providers.

The biggest downside to biBERK is that not every policy is available in every state. This can be extremely limiting, especially if, as a handyman, you are planning to mix and match multiple policies. One policy may be available in your state, while another is, inconveniently, not offered. That said, be sure to review biBERK’s coverage map before doing more research on its policies.

Despite biBERK’s limited reach when it comes to certain policies, the company remains a great choice backed by seasoned industry professionals. Its instant quote service, financial strength, and competitive rates make biBERK our pick for Cheapest Handyman Insurance.

State Farm (Best for Bundled Insurance)

State Farm

Best Bundled Handyman Insurance Option

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Another well-known provider in the insurance industry, State Farm has been in operation since 1922. The company’s century-old reputation, paired with customizable coverage options and competitive rates, makes it a popular choice for both personal and business insurance.

State Farm does not offer policies geared specifically towards handymen, but it does offer business insurance for artisan and service contractors, an umbrella category that handyman work falls under. This unique approach to packaged insurance allows certain professionals to receive multiple kinds of coverage under a single policy. State Farm’s artisan and service contractor insurance works similarly to a business owners policy, but offers protections that are more specific to trade work.

The policy emphasizes the on-site aspect of service contract work, covering mobile equipment, claims reported after a job is completed, business personal property, and more. It also provides basic general liability and commercial property coverage, but does not offer commercial auto insurance or workers’ compensation, which would have to be purchased separately. Tailored to industry-specific risks, State Farm’s artisan and service contractor insurance bundles a number of protections into a single plan, saving you the trouble of having to purchase each independently.

State Farm’s agent-guided policy customization is another reason to consider the provider, especially if budget is a priority. Working with a local State Farm agent, customers can customize their plan to fit their budget thanks to bundling and discounts. State Farm continues to uphold its high credit ratings in 2026, maintaining an A+ (Superior) from AM Best and an AA from Standard & Poor’s. State Farm received a JD Power rating of 698 out of 1000 in the 2025 small commercial insurance study and maintained a commercial market share of approximately 1.3%.

State Farm’s website is easy to navigate, but the company does not offer full online services like some of its competitors. While many small business owners can now receive quotes online in select states, others may still need to connect with a local agent to build a customized insurance plan. The company does, however, offer a convenient mobile app that allows you to manage your policy, control payments, and file claims on the go. Though not all of State Farm’s services are accessible online yet, it’s clear that the company is investing in online access and continuing to improve in this area.

The combination of State Farm’s stellar reputation and packaged policy offerings specific to service contractors makes the company our pick for having the best bundled insurance option for handymen.

The Hartford (Best Handyman Project Insurance)

The Hartford

Best Handyman Project Insurance

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With over 200 years of underwriting experience, The Hartford is highly regarded in the insurance industry, especially when it comes to property insurance and exceptional customer service. More recently, the company began facilitating project-based business insurance for handymen to provide short-term general liability coverage.

Unlike traditional insurance policies that last for 6-12 months, short-term liability policies obtained through The Hartford can last for as little as a few hours. For example, coverage for a four-hour furniture assembly project, offering $300,000 in liability coverage, would cost less than $10. Despite being valid for only a short period of time, this project-based plan would provide the same basic coverage as many 12-month policies, without the ongoing monthly premiums.

Other examples provided on The Hartford’s website include an $18 two-day policy offering $300,000 of coverage, and a $57 three-day policy offering up to $1 million in coverage for a two-person crew. Since handyman schedules can often be unpredictable, taking advantage of project-based policies like these can reduce your insurance costs without sacrificing coverage when you need it.

While the launch of The Hartford’s project insurance is definitely an exciting development in the insurance field, it is still a relatively new offering. This means you won’t find many customer reviews. The Hartford’s project-based insurance is also not yet available in every state. However, The Hartford does carry an unaccredited rating of an A+ with the Better Business Bureau. AM Best rated The Hartford financial strength rating of an A+, while Moody’s upgraded its primary property and casualty subsidiaries to Aa3 in late 2025, following an A1 rating in 2024.

Despite being a new product in the insurance space, it is backed by one of the best known and oldest insurance providers in the United States. This combined with excellent policy terms and online experience make The Hartford our pick for offering the best handyman project insurance policies.

Thimble (Runner-Up Best Handyman Project Insurance)

Thimble

Runner-Up Best Handyman Project Insurance

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Founded in 2016 as an insurance company for drone operators, Thimble has unexpectedly grown into a full-fledged insurance provider, catering mostly to small businesses of all kinds. The company’s emphasis on emerging businesses, matched with its own story, makes it a great choice for service contractors, including handymen.

Thimble has dedicated insurance offerings for handymen that include general liability, workers’ compensation, errors and omissions, and equipment protection coverage. The equipment protection plan stands out thanks to its coverage of both owned and rented gear anywhere in the United States, though this coverage is currently only available as an add-on to Thimble’s monthly policies. The company also offers a business owners policy that includes general liability, commercial property, and business interruption insurance.

Thimble’s instant quote feature helps expedite your insurance purchase, while its full online services make it easy to navigate and manage policies with just a few clicks. If you find yourself taking on clients quickly and need to add insureds to your existing plan, Thimble allows immediate additions.

Another one of Thimble’s unique features is the company’s ability to offer per-job, monthly, and yearly coverage options. This allows you to customize your plans based on the size, scope, and timeline of the projects you take on, with the ability to upgrade your coverage as your job list grows. Unlike most of its competitors, Thimble offers flexible timelines that allow you to adjust your policies to your needs. This feature is especially valuable to small handyman businesses and sole proprietors who work by the project and often take on additional work unexpectedly.

Despite the benefits of Thimble’s online insurance experience, there are a few downsides to consider. For one, the company is somewhat lacking in customer support. To get in touch with a representative, you can initiate a live chat or submit a request via Thimble’s website. The company does not have a 24/7 phone support system, which can be frustrating if you need to resolve an issue after hours or want to clarify parts of your plan with a representative over the phone. Second, while Thimble is now more established than when it launched in 2016, it still has less experience in the industry than many of its century-old competitors. However, the company was acquired in 2023 by Arch Insurance, providing it with significant institutional backing and the resources to remain a viable fit even as your business grows in size or complexity.

Even though Thimble is a newer insurance company, it holds an A+ from the BBB and has been accredited since 2018. Thimble also maintains a 4.2 out of 5-star rating with Trustpilot.

Having expanded into a comprehensive, small business-oriented insurance company, Thimble has made a name for itself in a very short time. While it lacks the experience of competing insurance companies, Thimble has taken pioneering steps in its approach to small business insurance, which includes coverage for handymen and other service-based professionals on a per-job basis. The company’s innovative nature, flexible coverage options, and online accessibility make it our runner-up pick for handyman project insurance.

Frequently Asked Questions

References

1. NAIC (2025). Consumer. https://content.naic.org/consumer.
2. AM Best (2025). Best’s News. https://news.ambest.com/Default.aspx.
3. The Hartford (March 30, 2015). News Releases. https://newsroom.thehartford.com/newsroom-home/news-releases/news-release-details/2015/The-Hartford-Reports-More-Than-40-Percent-Of-Small-Businesses-Will-Experience-A-Claim-In-The-Next-10-Years/default.aspx.
4. The Hartford. Short-Term General Liability Insurance. https://www.thehartford.com/general-liability-insurance/short-term-liability-insurance.
5. Arizona Registrar of Contractors. License Classifications. https://roc.az.gov/license-classifications.
6. Better Business Bureau. https://www.bbb.org/.
7. BiBerk. States Served. https://www.biberk.com/where-we-insure/state-coverage-map.
8. BiBerk. Handyman Insurance. https://www.biberk.com/who-we-insure/handyman-insurance.
9. Contractors State License Board. Before Applying for the Examination. https://www.cslb.ca.gov/contractors/applicants/contractors_license/exam_application/before_applying_for_license.aspx.
10. Embroker. Why Your Personal Car Insurance May Not Cover Business Use. https://www.embroker.com/blog/does-my-personal-auto-insurance-cover-business-use/.
11. Hiscox. General Liability Insurance Cost. https://www.hiscox.com/small-business-insurance/general-liability-insurance/general-liability-insurance-cost.
12. J.D. Power. https://www.jdpower.com/business.
13. Moody’s. https://www.moodys.com/.
14. ERGO Next. Construction Insurance: The 6 Most Common Claims. https://www.nextinsurance.com/blog/common-general-contractor-insurance-claims/.
15. Crawford, M.. Handyman License Requirements By State: A Comprehensive Guide. https://www.nextinsurance.com/blog/handyman-license-requirements/.
16. ERGO Next. Handyman Insurance. https://www.nextinsurance.com/business/handyman-insurance/.
17. ERGO Next. Tools and Equipment Insurance. https://www.nextinsurance.com/tools-and-equipment-insurance/.
18. Progressive. Progressive Advantage Business Program. https://www.progressivecommercial.com/business-insurance/advantage-program/.
19. Progressive. How Much Does Business Insurance Cost? https://www.progressivecommercial.com/business-insurance/business-insurance-cost/.
20. Progressive. General Liability Insurance. https://www.progressivecommercial.com/business-insurance/general-liability-insurance/.
21. Standard and Poor’s. S&P Global Ratings. https://www.spglobal.com/ratings/en.
22. State Farm. Business Insurance for Contractors. https://www.statefarm.com/insurance/small-business/contractors-insurance.
23. The Hartford. https://www.thehartford.com/about-us.
24. The Hartford. Texas Workers’ Compensation. https://www.thehartford.com/workers-compensation/texas.
25. Thimble. Business Owners Policy. https://www.thimble.com/business-owners-policy.
26. Thimble. Handyman Insurance. https://www.thimble.com/industry/contractors-business-insurance/handyman.