Do Handyman Contractors Need Workers’ Compensation Insurance?
- Nate Jones, CPCU, ARM, CLCS, AU
- 2 hours ago
- 2 min read
Running a handyman business involves hands-on work, heavy tools, and on-site hazards, which means accidents can happen. One common question among contractors is: Do handyman contractors need workers’ compensation insurance?
The answer depends on your state and whether you have employees, but in most cases, workers’ comp is required to protect your team and your business from financial liability.
What Is Workers’ Compensation Insurance?
Workers’ compensation insurance covers:
Medical expenses if an employee is injured on the job
Lost wages during recovery
Disability benefits if the injury prevents work
Employer liability protection in case of lawsuits
Even if your business is small, this coverage shields both employees and employers from costly claims.
When Handyman Contractors Are Required to Have Workers’ Comp
Most states require businesses with employees to carry workers’ compensation insurance. Requirements include:
Number of employees: Usually, even one employee triggers mandatory coverage.
Independent contractors: Some states allow exemptions if subcontractors carry their own coverage.
State regulations: Each state sets its own rules, so requirements vary.
Failing to carry workers’ compensation when required can result in fines, license suspension, and legal liability.
Why Workers’ Comp Is Especially Important for Handyman Contractors
Handyman contractors face unique risks that make workers’ compensation essential:
Cuts, scrapes, or puncture wounds from tools
Back, shoulder, or knee injuries from lifting and carrying materials
Falls from ladders, scaffolding, or elevated surfaces
Electrical shocks or burns
Without workers’ compensation, your business could face high medical bills and potential lawsuits.
How Workers’ Comp Insurance Cost Is Determined
Several factors affect the cost of workers’ compensation for handyman contractors:
Number of employees and total payroll
Job classification codes (high-risk tasks increase premiums)
Claims history of your business
State-specific rates and regulations
Maintaining a safe workplace and a good claims history can help lower your premiums.
How Wexford Insurance Helps Handyman Contractors
Wexford Insurance specialises in contractor insurance and can help handyman businesses:
Determine if workers’ compensation is required in their state
Secure compliant coverage with proper job classifications
Compare multiple carriers for competitive pricing
Provide Certificates of Insurance for client contracts
Conclusion
Handyman contractors face high-risk work environments where injuries can occur. Workers’ compensation insurance is often legally required and provides critical protection for both employees and employers.
Partnering with Wexford Insurance ensures your handyman business receives compliant, cost-effective, and comprehensive coverage, so you can focus on delivering quality services safely.
