Handyman Insurance in Utah

Handyman contractors in Utah who take on projects valued at less than $3,000 can apply for a handyman exemption through the Division of Professional Licensing (DOPL).

While this exemption allows small projects without a contractor license, you may still need to show proof of general liability insurance to homeowners before they'll sign a contract with you.

If you take on projects worth more than $3,000, you’ll need to obtain a contractor license—either as a general or specialty contractor—and carry general liability insurance as part of that licensing requirement.

This coverage protects your business from the financial fallout of common third-party risks like 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.

Plumbers, electricians, and other specialty trades in Utah may have additional licensing and insurance requirements.

To meet state requirements and get licensed in Utah, handyman businesses that have employees must provide workers’ compensation insurance, which covers medical bills and disability benefits for work injuries.

Some independent contractors and sole proprietors in high-risk professions, such as roofers, tree service technicians, and HVAC contractors, may be required to carry workers' comp in Utah 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 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 Utah businesses are:

• Bodily injury liability: $25,000 per person / $65,000 per accident
• Property damage liability: $15,000 per accident
• Personal injury protection (PIP): $3,000 per person

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 (HNOA) insurance. 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 Utah 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.