Find insurance for handyman contractors in Arizona
Learn about license requirements and the most common handyman insurance policies in Arizona.
Get the right coverage
Insureon helps handyman contractors compare insurance quotes from top-rated U.S. providers.
Get free expert advice and peace of mind knowing you have the right coverage for your unique risks.
What are the most common policies for handymen in Arizona?
Handyman contractors may need different types of insurance coverage depending on the work they do. These are the most popular insurance policies for Arizona contractors to protect against financial losses.
General liability insurance
A general liability policy covers basic risks, such as accidental damage to a client's sink. Bundle with commercial property insurance for savings in a business owner’s policy (BOP).
- Customer bodily injuries
- Customer property damage
- Advertising injuries
Business owner's policy
A BOP bundles general liability coverage and commercial property insurance at a discount. It's often the most cost-effective type of insurance for handyman businesses.
- Accidents that injure clients
- Client property damage
- Damage to your building or its contents
Workers’ compensation insurance
Most states require workers’ comp for handyman businesses that have employees. It also protects sole proprietors from job-related medical costs that health insurance might deny.
- Employee medical expenses
- Disability benefits
- Lawsuits from work-related injuries
Commercial auto insurance
A commercial auto policy covers third-party bodily injuries and property damage in accidents involving work vehicles. It can also cover vehicle theft and vandalism.
- Auto accident lawsuits
- Physical damage and collision coverage
- State requirements for auto liability coverage
Contractor’s tools and equipment insurance
This policy covers a handyperson's hammers, saws, drills, wrenches, and other tools if they're lost, stolen, or damaged. It's also called inland marine insurance.
- Hand tools and power tools
- Ladders and scissor lifts
- Other tools brought to jobsites
Professional liability insurance
Professional liability insurance covers legal fees when a handyman is sued for a mistake or oversight. It's also called errors and omissions insurance (E&O).
- Accusations of negligence
- Failure to finish a project on time
- Undelivered services
Surety bonds
A surety bond is an agreement between a handyman contractor, a client, and an insurance company. It guarantees the insurer will reimburse the client if the contractor fails to fulfill their contract.
- Project delays
- Loss of key staff
- Failure to obtain materials
Builder's risk insurance
Builder's risk insurance covers a structure in progress and materials at a construction site. It's sometimes called course of construction insurance.
- Fires
- Storms
- Theft of materials
Contractors pollution liability insurance
Pollution liability insurance can help pay for legal defense costs related to particulates or other pollution that came from your worksite. It's sometimes called environmental insurance.
- Accidental spills
- Cleanup costs
- Pollution lawsuits
Which policies are required for a handyman in Arizona?
General liability insurance
Handyman insurance requirements in Arizona don't typically include general liability insurance. However, it's an essential policy for any business that works with customers. In some cases, you may be required to carry it to take on large-scale jobs.
A general liability insurance policy protects your business from legal expenses stemming from common mishaps, such as customer bodily injuries and property damage.
Most commercial leases require businesses to carry this coverage. Adding commercial umbrella insurance can boost your coverage on general liability insurance and other types of liability insurance.
Contractor general liability insurance can also help protect against advertising injuries, such as libel, slander, and copyright infringement. For example, it'll pay for your legal defense costs if a competitor sues your business for making a false statement about them on social media.
Workers' compensation insurance
To meet state requirements, get licensed in Arizona, or secure large contracts, handyman businesses with one or more employees must provide workers’ compensation insurance, which covers medical bills and disability benefits for work injuries.
Some independent contractors and sole proprietors may have to carry workers' comp in Arizona to meet client contract requirements, even if they do not have any employees. Most policies include employer's liability insurance, which helps pay for workplace injury lawsuits.
Commercial auto insurance
Commercial auto insurance covers property damage and medical bills resulting from an accident involving your handyman business's vehicle. Depending on the coverage options you choose, it can also pay for vehicle theft, weather damage, and vandalism.
Minimum auto liability requirements for Arizona businesses are:
- $25,000 in bodily injury liability per person
- $50,000 in bodily injury liability per accident
- $15,000 in property damage liability per accident
For vehicles that are used by the business but are leased, rented, or otherwise not owned by the company, you'll need a separate policy called hired and non-owned auto insurance (HNOA). This policy provides liability insurance, but it doesn't cover damage to the insured vehicle.
Personal auto insurance will typically not cover any driving for business purposes, which is why you may need supplemental coverage.
Surety bonds
Licensure requirements in Arizona may sometimes include a surety bond, depending on the type of work you do and the size of the job.
A surety bond guarantees reimbursement for the client if a handyman fails to fulfill the terms of a contract or adhere to regulations. Common types of surety bonds include bid bonds, performance bonds, and payment bonds.
Do I need a license to be a handyman in Arizona?
There’s no specific handyman license in Arizona. However, you may need a contractor’s license depending on the type of work you perform and the value of the project.
In general, if the total cost of labor and materials is $1,000 or more, or if the work requires a building permit, then you’ll need to be licensed through the Arizona Registrar of Contractors (ROC). The ROC offers many license classifications, such as:
- General residential contractor
- Plumbing contractor
- Electrical contractor
- Carpentry contractor
- Painting and wall covering contractor
- Roofing contractor
To qualify, you’ll likely need to pass an exam, demonstrate work experience, undergo a background check, and pay application and licensing fees. You’ll also need to meet the ROC’s insurance requirements, which typically include general liability coverage, workers’ compensation (if you have employees), and a contractor’s surety bond ranging from $2,500 to $100,000 depending on the license type.
How much you’ll pay for fees and insurance depends on your business structure, the classification you apply for, and whether or not you have employees.
How much does handyman insurance cost in Arizona?
Arizona handyman contractors who buy policies from Insureon pay an average of:
General liability: $72 per month
Workers' compensation: $54 per month
Commercial auto: $230 per month
Several factors affect handyman insurance premiums, including:
- Handyman services you provide
- Business property and equipment
- Business income and size
- Years of experience
- Policy limits, deductibles, and exclusions
- Claims history
Verified business insurance reviews
Hear from customers like you who purchased small business insurance.
How do I get Arizona handyman insurance?
Insureon helps you save time and money shopping for handyman liability insurance by comparing quotes from top U.S. insurance companies.
Our insurance agents are licensed in Arizona and can answer your questions as you consider coverage.
To make the application go quicker, have this information ready:
- Workforce details, such as the number of employees and subcontractors
- Current and projected revenue
- Business partnerships
- Desired coverage limits
- Claims history
- Commercial lease insurance requirements
Apply for free insurance quotes today to find cheap handyman insurance that fits your business needs. Most small business owners receive a certificate of insurance (COI) for proof of insurance the same day.