Learn about license requirements and the most common handyman insurance policies in Colorado.
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.
Handyman contractors may need different types of insurance coverage depending on the work they do. These are the most popular insurance policies for Colorado contractors to protect against financial losses.
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).
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.
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.
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.
A type of inland marine insurance, this coverage helps pay for repair or replacement of a handyman's hammers, saws, drills, wrenches, and other tools if they are lost, stolen, or damaged.
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).
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.
Builder's risk insurance covers a structure in progress and materials at a construction site. It's sometimes called course of construction 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.
Handyman insurance requirements in Colorado don't typically include general liability insurance, however it is an essential policy for any business that works with customers.
General liability insurance protects your business from legal expenses stemming from common third-party 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 will pay for your legal defense costs if a competitor sues your business for making a false statement about them on social media.
To meet state requirements and get licensed in Colorado, handyman businesses that have employees (full-time or part-time) must provide workers’ comp insurance, which covers medical bills and disability benefits for work injuries.
Some independent contractors and sole proprietors, such as those who fall in the construction industry, must carry workers' comp in Colorado 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 provides financial protection for 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 Colorado businesses are:
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.
Licensure requirements in Colorado may 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.
In Colorado, there’s no state-level license requirement for handymen. Instead, licensing depends on the city or county where you work.
For example, in the city of Denver:
Other cities and counties in Colorado may have different requirements, so it’s important to check with your local building department before starting projects.
Colorado handyman contractors who buy policies from Insureon pay an average of:
General liability: $104 per month
Workers' compensation: $54 per month
Commercial auto: $171 per month
Several factors affect the cost of handyman insurance, including:
Hear from customers like you who purchased small business 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 Colorado and can answer your questions as you consider coverage.
To make the application go quicker, have this information ready:
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 for proof of insurance the same day.