Find insurance for handyman contractors in Colorado
Learn about license requirements and the most common handyman insurance policies in Colorado.
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What are the most common policies for handymen in Colorado?
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.
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
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 Colorado?
General liability 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.
Workers' compensation insurance
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
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:
- $25,000 in bodily injury liability per person
- $50,000 in bodily injury liability per accident
- $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 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.
Do I need a license to be a handyman in Colorado?
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:
- You can perform “finish” (non-structural) handyman work without a Construction Certificate. This includes common handyman tasks such as painting, drywall, and flooring.
- Structural work, like altering a foundation, framing, or roofing, requires a Construction Certificate.
- Specialty trades such as plumbing, electrical, and HVAC require separate licensing if you’re disconnecting or reconnecting pipes, wires, or gas lines.
Other cities and counties in Colorado may have different requirements, so it’s important to check with your local building department before starting projects.
How much does handyman insurance cost in Colorado?
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:
- 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 Colorado handyman insurance coverage?
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:
- 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 for proof of insurance the same day.