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Find insurance for handyman contractors in Tennessee
Learn about license requirements and the most common handyman insurance policies in Tennessee.
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What are the most common policies for handymen in Tennessee?
Handyman contractors may need different types of insurance coverage depending on the work they do. These are the most popular insurance policies for Tennessee 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).
BEST FOR
- 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.
BEST FOR
- Accidents that injure clients
- Client property damage
- Damage to your building or business equipment
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.
BEST FOR
- 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.
BEST FOR
- Auto accident lawsuits
- Physical damage and collision coverage
- State requirements for auto liability coverage
Tools and equipment insurance
As a type of inland marine insurance, it helps pay for the repair or replacement of a handyperson's hammers, saws, drills, wrenches, and other tools if they are lost, stolen, or damaged.
BEST FOR
- Tools less than five years old
- Equipment valued at less than $10,000
- Items 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).
BEST FOR
- 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.
BEST FOR
- 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.
BEST FOR
- 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.
BEST FOR
- Accidental spills
- Cleanup costs
- Pollution lawsuits
Looking for different coverage? See more policies.
Which policies are required for a handyman in Tennessee?
General liability insurance
Depending on the type of job, handyman contractors in Tennessee are required to carry general liability insurance and get licensed by the Tennessee Department of Commerce and Insurance.
- Building, electrical, mechanical, and specialty contractors must carry general liability insurance with a minimum coverage limit of $100,000.
- Home improvement contractors need general liability coverage with at least a $100,000 limit.
- Limited licensed electricians (LLEs) and limited license plumbers (LLPs) don't need general liability for licensing purposes, but is still recommended for financial protection.
Commercial general liability insurance protects your business from legal expenses stemming from common 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 Tennessee, businesses in the construction industry with one or more employees must provide workers’ compensation insurance, which covers medical bills and disability benefits for work injuries.
Some independent contractors and sole proprietors, depending on the work they do, may be required to carry workers' comp in Tennessee 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 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 Tennessee 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 Tennessee sometimes include a surety bond, depending on the type of work you do. For home improvement contractors that take on jobs of $3,000 or more, a $10,000 surety bond must be obtained and filed with the county you're working in.
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.
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Do I need a license to be a handyman in Tennessee?
There's no specific handyman license in Tennessee. Instead, your licensing requirements depend on the type of work you do and the total cost of the project.
- A home improvement license is required for residential remodeling projects that cost $3,000 to less than $25,000 (including labor and materials) in the following counties: Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford, and Shelby.
- If a project totals $25,000 or more, you’ll need a contractor’s license from the Tennessee Board for Licensing Contractors.
- Specialized trades, such as electrical, mechanical, and plumbing, may require additional licensing depending on the scope of work.
The licensing requirements will vary based on the type of license you pursue. However, you'll likely need to take an exam, have a certain amount of experience, pass a background check, and pay a fee. General contractor licensing requirements also often include insurance: general liability and workers' comp.
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 Tennessee?
Tennessee handyman contractors who buy policies from Insureon pay an average of:
General liability: $57 per month
Workers' compensation: $367 per month
Commercial auto: $262 per month
Several factors affect the cost of handyman insurance during underwriting, including:
- Handyman services you provide, such as drywall or carpentry
- Business property and equipment
- Business income and size
- Years of experience
- Policy limits and deductibles
- Claims history
- Additional coverage, such as an endorsement or additional insured
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How do I get Tennessee 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 Tennessee and can answer your questions as you consider coverage.
To make the application process 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 options that fit your business needs. Most small business owners receive a certificate of insurance for proof of insurance the same day.