Handyman Liability Insurance California | Budget Bonds
Handyman Liability Insurance in California: What You Need to Know
Being a handyman in California means wearing many hats—one day you might be fixing a leaky faucet, the next you’re repairing drywall, installing shelves, or doing light electrical work. With so much variety, the risk of accidents, injuries, or property damage is always present. That’s where handyman liability insurance becomes a necessity.
In this guide, we’ll break down everything you need to know about handyman insurance in California, including state requirements, coverage options, bond obligations, costs, licensing rules, and how to protect your growing business.
Do Handymen Need a License in California?
In California, the Contractors State License Board (CSLB) regulates contractor licensing. Here’s the rule of thumb:
Jobs under $500: You do not need a contractor’s license. You can operate as a handyman for smaller projects like minor repairs and basic maintenance.
Jobs $500 or more: You must have a contractor’s license, and that comes with specific insurance and bonding requirements.
👉 Learn more about licensing in our full guide on California Contractor License Bonds.
Insurance Requirements for Licensed Handymen
If you plan to bid or work on projects valued at $500+, the CSLB requires proof of the following:
1. General Liability Insurance
Coverage requirement: $1 million aggregate coverage is standard.
What it covers: Bodily injury, property damage, personal injury, and advertising injury caused to third parties.
Example: You accidentally knock over a client’s antique vase while working—liability insurance pays for the damage.
Explore more in our guide to Contractor General Liability Insurance.
2. Workers’ Compensation Insurance
When required: If you hire even one employee.
What it covers: Medical bills, lost wages, rehabilitation, and death benefits for employees injured on the job.
Example: An employee falls off a ladder while painting a ceiling. Workers’ comp covers their hospital stay and time off work.
Check out our comparison: Workers’ Compensation vs. Ghost Policy.
3. Contractor License Bond
Amount required: $25,000 (as of January 1, 2023, per Senate Bill 607).
Purpose: Acts as a financial guarantee that you’ll follow California laws, pay subcontractors and suppliers, and deliver quality work.
Example: If you abandon a project or fail to pay a supplier, a claim can be made against your bond.
Read our full breakdown of The Bonding Process for Contractors.
Optional But Recommended Insurance Policies for Handymen
Beyond the legal minimum, many handymen choose additional coverage for extra protection.
🔹 Professional Liability Insurance (Errors & Omissions)
Covers claims of negligence, mistakes, or missed deadlines.
Example: You install cabinets incorrectly, delaying a home sale—this policy covers the client’s financial loss.
🔹 Contractors’ Tools & Equipment Insurance
Protects your tools whether at a job site, in transit, or in storage.
Example: Your power drill set is stolen from your truck—this policy pays for replacements.
Learn more: Contractors’ Tools & Equipment Insurance.
🔹 Commercial Auto Insurance
Covers accidents involving work vehicles like vans and trucks.
Required if you own vehicles used for business operations.
🔹 Commercial Property Insurance
Covers business assets like office space, storage units, and equipment inside.
Often bundled with liability coverage in a Business Owners Policy (BOP).
How Much Does Handyman Insurance Cost in California?
The cost of handyman liability insurance varies based on:
Your location (ZIP code)
Business size and revenue
Services you offer (plumbing vs. painting vs. electrical)
Number of employees
Claims history
On average, California handymen pay:
General liability: $45–$80 per month
Workers’ comp: $50–$150 per month (per employee)
Tools & equipment coverage: $15–$30 per month
Contractor bond: $100–$250 annually (based on credit)
👉 Compare these numbers with our guide: California Contractor Insurance.
Handyman Licensing Requirements in California
To qualify for a contractor’s license in California, you must:
Be at least 18 years old.
Have four years of journeyman-level experience within the past 10 years.
Submit proof of insurance and bond: general liability, workers’ comp (if applicable), and a $25,000 surety bond.
Pass the CSLB exam covering trade knowledge, business, and law.
Register locally: Some cities (like Los Angeles) require a business tax certificate in addition to state licensing.
For full details, read our guide: California Contractor Insurance Guide.
Why Handyman Liability Insurance Matters
1. Protects Your Finances
One lawsuit or claim could cost tens of thousands of dollars. Insurance ensures you don’t pay out-of-pocket.
2. Builds Client Trust
Clients prefer hiring insured contractors—they know they’re protected if something goes wrong.
3. Helps You Win More Jobs
Many property owners, real estate agents, and businesses require proof of insurance before hiring.
4. Keeps You Compliant with CSLB
Operating without proper insurance and bonding can result in license suspension, fines, or legal action.
Certificate of Insurance (COI) for Handymen
Once you purchase coverage, you’ll receive a Certificate of Insurance (COI). This document:
Proves your active insurance status.
Shows policy type, limits, and expiration dates.
Is often required before starting work or signing contracts.
Learn more in our article: What Are Certificates of Insurance?.
FAQs About Handyman Insurance in California
✅ Do I need insurance if I only take jobs under $500?
No, but it’s strongly recommended. Even small jobs carry risks—liability insurance protects you from lawsuits and property damage claims.
✅ Can I operate as a handyman without a license?
Yes, but only if the total project value is under $500. Anything above requires a contractor license.
✅ What happens if I don’t carry workers’ comp for employees?
You could face fines, penalties, and even stop-work orders from the state.
✅ How fast can I get a contractor bond?
With Budget Bonds, you can typically get a quote and file your bond with CSLB in minutes.
Final Thoughts
Being a handyman in California is rewarding, but it comes with responsibilities. To legally operate and grow your business, you need to:
Carry general liability insurance
Provide workers’ comp if you hire employees
Maintain a $25,000 contractor license bond
Keep your Certificate of Insurance ready for clients and regulators
By securing the right handyman liability insurance, you protect your livelihood, win more jobs, and stay compliant with California law.
👉 Get started today by exploring your options with Budget Bonds—your trusted partner for affordable contractor bonds and insurance in California.
