Find insurance for handyman contractors in California
Learn about license requirements and the most common handyman insurance policies in California.
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What are the most common policies for handymen in California?
Handyman contractors may need different types of insurance coverage depending on the work they do. These are the most popular insurance policies for California 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
California requires workers' comp for handyman businesses that have employees. It helps pay for 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
Inland marine 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 tools and equipment 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 California?
Whether you're in San Francisco, Los Angeles, San Jose, San Diego, or elsewhere in California, you may need the following types of handyman business insurance to comply with local laws and the terms of contracts:
General liability insurance
General liability insurance protects your business from legal expenses stemming from common accidents, such as customer bodily injuries and property damage. It provides crucial protection for handyman contractors who work in clients' homes and businesses, which exposes them to liability.
Most commercial leases and many client contracts 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 will 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
Every business that has California employees needs to provide workers' comp coverage, even if its headquarters are in a different state.
As of January 2028, every licensed contractor needs to have workers’ compensation insurance, even if they do not have any employees, to comply with Senate Bill 216. Handyman contractors only need a license to take on projects valued at more than $1,000, or projects that require permits or employees.
Workers' comp covers medical bills and disability benefits for work-related injuries. Most policies include employer's liability insurance, which helps pay for lawsuits from injured employees.
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 California businesses are:
- $30,000 in bodily injury liability or death liability per person
- $60,000 in bodily injury liability or death liability to more than one person
- $15,000 in property damage 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 does not 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 California sometimes include a surety bond, depending on the type of work you do.
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 California?
There's no specific handyman license in California. However, you might need a contractor's license depending on the type of work you do and how much you are paid.
In general, contractors who take on construction projects worth $1,000 or more must get a license from the Contractors State License Board. There are many licensing classifications, such as:
You'll likely need to take an exam, have a certain amount of experience, pass a background check, and pay a fee. You'll also need to show proof of insurance and have a surety bond in the amount of $25,000.
How much you'll pay for the fee depends on whether or not you are the sole owner of the business. Your insurance premiums vary depending on the type of work you do, whether you have employees, and other factors.
How much does handyman insurance cost in California?
California handyman contractors who buy policies from Insureon pay an average of:
General liability: $113 per month
Workers' compensation: $119 per month
Commercial auto: $134 per month
Several factors affect the cost of handyman insurance, including:
- Handyman services you provide, such as painting or carpentry
- Business property and equipment
- Business income and size
- Years of experience
- Policy limits and deductibles
- Claims history
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How do I get California 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 California 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.