Find insurance for handyman contractors in New York
Learn about license requirements and the most common handyman insurance policies in New York.
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What are the most common policies for handymen in New York?
Handyman contractors may need different types of insurance coverage depending on the work they do. These are the most popular insurance policies for New York 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 New York?
Whether you're in New York City, Buffalo, Syracuse, Rochester, or elsewhere in New York, you may need the following types of handyman business insurance to comply with local laws:
General liability insurance
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.
Workers' compensation insurance
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
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.
Surety bonds
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.
Do I need a license to be a handyman in New York?
There’s no state-wide handyman license in New York. However, some cities and counties require a home improvement contractor license, depending on where you plan to work.
For example, New York City requires a home improvement contractor license for jobs involving the repair, remodeling, or improvement of residential property. Other local jurisdictions may have similar rules, so it’s important to check with your local licensing authority before starting work.
To get licensed, you’ll typically need to complete an application, provide proof of experience, pass a background check, and pay a licensing fee. New York City also requires contractors to carry general liability insurance and a surety bond.
How much you’ll pay for the license depends on the jurisdiction and the size of your business. Your insurance premiums vary based on the type of work you do, whether you have employees, and other factors.
How much does handyman insurance cost in New York?
New York handyman contractors who buy policies from Insureon pay an average of:
General liability: $199 per month
Workers' compensation: $417 per month
Commercial auto: $543 per month
Several factors affect the cost of handyman insurance, including:
- Handyman services you provide, such as painting, carpentry, and drywall
- 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 New York 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 New York 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.