Handyman Insurance in New York

In certain locations, such as New York City, handymen and contractors working on home improvement projects may be required to carry a general liability insurance policy and obtain specific bonding before taking on jobs.

General liability insurance protects your business from legal expenses stemming from common mishaps, such as customer bodily injuries and property damage. And some homeowners may request to see proof of coverage before working with your business.

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 New York, handyman businesses that have employees must provide workers’ compensation insurance, which covers medical bills and disability benefits for work injuries.

In New York City, contractors applying for a home improvement contractor license must also submit proof of workers’ comp coverage or documentation showing they're exempt. This requirement can apply to a range of businesses, including fencing contractors, landscapers, swimming pool contractors, and others who perform residential repair or improvement work.

Some independent contractors and sole proprietors in high-risk fields, such as roofers, tree service technicians, and HVAC contractors, should carry workers' comp in New York even if they do not have any employees. This is because personal health insurance typically won't cover work-related injuries.

Additionally, most workers' comp policies include employer's liability insurance, which helps pay for workplace injury lawsuits.

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 New York businesses are:

• $10,000 for property damage liability for a single accident
• $25,000 for bodily injury and $50,000 for death for a person involved in an accident
• $50,000 for bodily injury and $100,000 for death for two or more people in an 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.

Licensure requirements in New York sometimes include a surety bond, depending on the type of work you do. For example, contractors applying for a home improvement contractor license in New York City must either participate in a city-run trust fund or provide proof of a surety bond as part of the licensing process.

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.