A handyman who shows up uninsured is a financial disaster waiting to happen. Whether they're installing a new deck, replacing your roof, or rewiring a bedroom, one accident could leave you liable for medical bills, property damage, or both. Learning what coverage to verify before hiring is the single most important step you can take to protect yourself.
Why Handyman Insurance Matters
Legitimate handymen carry two main types of insurance: general liability and workers' compensation. General liability covers damage to your property or injury to you during the job. Workers' compensation protects their employees if someone gets hurt on your property. Without these, you're exposed. If a handyman falls off your ladder and breaks his leg, you could be sued for his medical costs and lost wages—potentially tens of thousands of dollars. If he damages your kitchen cabinets while installing countertops, you've got no recourse unless you pursue him personally, which is expensive and often fruitless.
What to Ask For (And How to Verify It)
Don't accept a verbal "yeah, I'm insured." Request a Certificate of Insurance (COI) directly from the handyman or his agency. A real COI includes the insurance company name, policy number, coverage limits, and expiration date. It takes 48 hours or less to obtain, and any professional handyman will provide it without resistance.
Coverage limits to look for:
- General liability minimum: $300,000–$1,000,000 (depending on project scope)
- Workers' compensation: required by law if the handyman has employees; required in most states even for solo operators
- Umbrella/excess liability: optional but valuable for larger projects like roof or foundation work
Call the insurance company directly to verify the certificate is legitimate. Scammers sometimes forge or backdate certificates. Five minutes on the phone with the insurer's claims department gives you peace of mind.
What Each Coverage Actually Covers
General Liability protects you if the handyman or his team causes injury or property damage. Spilled paint on your hardwood floors, a drill bit through a water line, a worker's tool hitting your car—these are covered. It does not cover poor workmanship or incomplete jobs; that's a contract issue.
Workers' Compensation pays for medical care and lost wages if an employee is injured on the job. Most states require it by law, though some allow sole proprietors to opt out. If a handyman has even one part-time helper, he needs workers' comp. Hiring an uninsured worker exposes you to liability if they're hurt.
Contractors' Insurance is sometimes separate and covers the handyman's own tools, vehicle, and equipment damage. It's less critical for you to verify, but it indicates professionalism.
Red Flags to Watch
If a handyman refuses to provide a COI, move on. If the certificate is expired or vague on coverage limits, ask for an updated version. If he says "I'm bonded" but won't show proof of insurance, those are different things—bonding covers theft and non-performance, not liability. If the policy limit is under $300,000 for a major renovation, negotiate higher coverage or find someone else. If the certificate lists a company you've never heard of, look it up on your state's insurance commissioner website to confirm it's legitimate.
Before You Sign the Contract
Request proof of insurance before signing any agreement and make a copy for your records. Add a clause requiring the handyman to maintain coverage throughout the project. For jobs over $5,000, consider requiring a performance bond as well. If the handyman balks at these requests, that's a sign he's cutting corners elsewhere too.
Keep in mind that insurance protects you from catastrophic loss, but doesn't guarantee quality work. Also verify references, past projects, and a detailed written estimate. Services like Mercoly let you compare and find trusted handyman providers in one place, making the vetting process faster.
Frequently Asked Questions
Q: Does my homeowners insurance cover damage a handyman causes? Your homeowner's policy typically covers only your own negligence, not the contractor's. The handyman's liability insurance is your primary protection, which is why verifying it matters so much.
Q: What should I do if a handyman gets injured on my property? Report it immediately to your homeowner's insurance and to the handyman's workers' compensation carrier. Do not admit fault, and document everything with photos and written statements from witnesses.
Q: Can I hire a handyman without insurance for smaller jobs? Legally, yes—but it's unwise. Even a "simple" task like installing shelves can result in injury or damage. The few hundred dollars you might save is not worth the risk of a five-figure lawsuit.
Start your search by asking candidates for their COI right away—it'll reveal who's serious.