Insurance for a freelance trades / handyman: what you need + typical cost.

For your business: A BOP can bundle GL + Property at a discount; useful if you have tools worth insuring alongside GL.

What it covers in general: A Business Owners Policy bundles General Liability and Commercial Property into a single, discounted policy. Often includes business interruption insurance as well.

Typical annual cost: $750–$1,800 (median $990) · Insureon, Small Business Insurance Cost

For your business: Damage to a client's property (a broken window, flooded floor) is the most common claim for handymen.

What it covers in general: Covers claims of bodily injury or property damage that your business causes to others — a customer slipping in your shop, or a contractor accidentally breaking a client's window.

Typical annual cost: $500–$1,560 (median $540) · Insureon, General Liability Cost

For your business: Not typically needed unless you provide design or advisory services beyond physical work.

What it covers in general: Covers claims that your professional advice, service, or work product caused a financial loss to a client — also called Errors & Omissions (E&O) or malpractice insurance.

Typical annual cost: $700–$1,500 (median $876) · Insureon, Professional Liability Cost

For your business: Required if you hire helpers. Sole proprietors are exempt in most states — verify your state's rules.

What it covers in general: Pays for medical expenses and lost wages if an employee is injured or becomes ill because of their job. Also protects your business from employee lawsuits over workplace injuries.

Typical annual cost: $1,200–$8,000 (median $2,500) · Insureon, Workers Compensation Cost

For your business: If you own significant tools and equipment, a tools floater protects against theft and damage at job sites.

What it covers in general: Covers your physical business assets — building (if you own it), equipment, inventory, and furniture — against fire, theft, vandalism, and certain weather events.

Typical annual cost: $970–$1,570 (median $1,270) · Insureon, Commercial Property Cost

For your business: Even small trades businesses use scheduling apps and accept digital payments — basic data exposure exists.

What it covers in general: Covers losses from data breaches, ransomware attacks, and cyber fraud — including notification costs, credit monitoring for affected customers, legal fees, and regulatory fines.

Typical annual cost: $1,440–$2,160 (median $1,800) · Insureon, Cyber Liability Cost

For your business: If your vehicle is used primarily for business (hauling tools, equipment, materials), commercial auto is required.

What it covers in general: Covers vehicles used for business purposes — work trucks, vans, cars driven to client sites — against accidents, liability, and damage. Personal auto policies specifically exclude commercial use.

Typical annual cost: $1,760–$2,940 (median $2,350) · Insureon, Commercial Auto Cost

For your business: A major job site incident could exceed standard GL limits; an umbrella is affordable additional protection.

What it covers in general: Adds an extra layer of liability coverage above your GL, Professional Liability, and/or Auto limits. Pays claims that exceed your primary policy limits.

Typical annual cost: $750–$1,500 (median $1,030) · Insureon, Umbrella Liability Cost

If I'm just doing small jobs under $500 each, do I really need insurance?

Legally, depends on your state — some require licensure and insurance for any paid work, some have a threshold ($500-$1,000) below which neither is required. Practically: any single job that goes wrong (water damage from a bad install, fire from an electrical mistake) can cost $20K-$50K to remediate. The annual GL premium ($400-$700) is dramatically cheaper than one bad week.

What's the difference between a handyman license and a contractor license?

Handyman licenses (where they exist) are typically restricted to non-structural, low-voltage, non-permitted work below a project-cost threshold. Contractor licenses cover structural, permitted, high-voltage, and unlimited-value work. The insurance carrier matches: handyman policies are cheaper because the work is lower-risk; contractor policies cover more.

Can I add my own tools to a homeowner's policy or do I need a tools floater?

Homeowner's policies almost universally exclude tools used for paid work, even when stored at your home. A commercial tools floater (typically $200-$500/year for a $5K-$15K tool inventory) is the right product. Some bundled handyman BOPs include a small tools allowance built-in.