Most handymen never get asked for insurance by the state, because most states don’t license handymen at all. That’s the good news. The bad news is that the states that do regulate small-job contractors tie the registration to an insurance minimum, and those minimums range from $20,000 in Connecticut to $1,000,000 in Vermont. Miss the number and you don’t get the registration; lose the policy and the registration lapses with it.
This guide covers all 50 states and DC: where the state attaches insurance or a bond to handyman-scale work, how much, at what dollar threshold it kicks in, and when workers’ comp becomes mandatory. Where the state sets nothing, we say so, because “none” is useful information too. Checked against each state’s statute, rule or agency, current as of November 2026.
Quick answer: 13 states plus DC require insurance or a bond for handyman-scale work, usually through a home improvement or contractor registration. Liability minimums run from $20,000 (Connecticut) to $1,000,000 / $2,000,000 (Vermont). 37 states set no insurance requirement for handyman work, though many require it once a job crosses the contractor-license threshold. Everywhere, workers’ comp becomes mandatory once you hire, with a few 3-to-5-employee exceptions.
On this page
How Handyman Insurance Rules Work
States don’t write “handyman insurance” laws. The requirements come from three places:
- Home improvement registrations. New Jersey ($500,000), Rhode Island ($500,000), Maryland ($50,000), Pennsylvania ($50,000 / $50,000), Connecticut ($20,000) and DC ($25,000 bond) regulate anyone doing paid residential repair or improvement work, which is exactly what a handyman does. Several have no dollar floor, so they apply from the first job.
- Contractor registrations with low or no thresholds. Washington (any paid work), Oregon (almost any paid work), Alaska (a handyman tier up to $10,000), Idaho (over $2,000), Vermont ($10,000 and up) and Utah (an insurance affirmation from $3,000) sweep handymen into contractor registration, and the registration carries an insurance floor or bond.
- Contractor licenses above a threshold. In Arizona, California, Nevada, Hawaii, Virginia and others, handyman work below the line has no insurance requirement at all. Cross the line and you’re a licensed contractor with that license’s bond and insurance rules.
Then there’s the market. Even in the 37 states with no requirement, property managers, HOAs, general contractors and most homeowner-facing platforms ask for a certificate of insurance before you start, and $1,000,000 per occurrence is the usual ask.
States With a Handyman Insurance or Bond Requirement
The 13 states plus DC where handyman-scale work comes with a state insurance minimum or bond, plus Nassau County as the strictest local example. BI is bodily injury, PD is property damage, CSL is combined single limit.
| Where | Liability Minimum | Bond / Fund | When It Applies |
|---|---|---|---|
| Vermont | $1,000,000 / $2,000,000 | — | Contracts of $10,000+ |
| New Jersey | $500,000 per occurrence | — | Any paid home improvement |
| Rhode Island | $500,000 | — | Residential work |
| Idaho | $300,000 | — | Projects over $2,000 |
| Oregon | $300,000 (res. specialty) | $15,000–$20,000 | Almost all paid work |
| Washington | $200,000 / $50,000 or $250,000 CSL | $15,000 | Any paid work |
| Utah | $100,000 / $300,000 (affirmation) | — | Jobs $3,000 to $7,000; license above |
| Maryland | $50,000 | Guaranty Fund | Any residential home improvement |
| Pennsylvania | $50,000 BI + $50,000 PD | — | $5,000+ a year |
| Alaska | $20,000 PD; $50,000 / $100,000 BI | $5,000 | Handyman tier, jobs to $10,000 |
| Connecticut | $20,000 | Guaranty Fund | Residential improvement work |
| District of Columbia | Required, no set amount | $25,000 | Contracts of $300+ |
| California | None (LLCs $1M+) | $25,000 | Jobs $1,000+ or any permit |
| Massachusetts | None | Guaranty Fund $100–$500 | Residential work over $500 |
| Nassau County, NY | $250,000 / $500,000 + $100,000 PD | — | County home improvement license |
The Dollar Thresholds That Change Everything
For handymen, the insurance question is really a threshold question. Below the line you’re exempt; above it you’re a contractor. The lines, labor plus materials:
- $300: DC (home improvement license, $25,000 bond).
- $500: Massachusetts (HIC registration, Guaranty Fund), South Carolina (specialty registration, bond over $5,000).
- $600: Michigan (residential builder or M&A license).
- $1,000: California ($25,000 bond), Arizona (ROC bond), Nevada (NSCB bond), Virginia (Class C license), Oregon (narrow exemption).
- $1,500: Hawaii.
- $2,000: Idaho ($300,000 GL), Arkansas.
- $3,000: Utah (insurance affirmation), Tennessee’s nine home improvement counties.
- $4,000: North Dakota.
- $5,000: West Virginia (residential), Pennsylvania ($5,000 a year, not per job).
- $7,000: Utah (license).
- $7,500: Louisiana.
- $10,000: Alaska (handyman tier ends), Alabama, Mississippi, Vermont ($1M / $2M).
- No threshold: New Jersey, Maryland, Washington, Rhode Island, Connecticut (over $200 by statute).
Two traps: Pennsylvania’s $5,000 is annual volume, so a handyman doing ten $600 jobs a year is over it. And in California, Arizona, Nevada and Hawaii, the exemption disappears the moment a job needs a permit, regardless of price. California also kills it if you have any employee on the job.
What a Handyman Should Carry
State minimums, where they exist, are low. A handyman business that wants to be hired by property managers and survive one bad day carries:
- General liability: $1,000,000 per occurrence / $2,000,000 aggregate. That’s the number on nearly every vendor application, and in many states it costs little more than a $300,000 policy. Make sure it covers completed operations and that water damage isn’t excluded.
- Commercial auto: Your personal policy likely excludes business use of the truck. Hired and non-owned auto covers you when a helper drives their own car.
- Tools and equipment: Inland marine coverage for what’s in the truck. GL doesn’t cover your own tools.
- Workers’ comp: From the first hire in most states (see each state block). In Texas, where it’s optional, carry it anyway if you want GC work.
- A bond where required: It protects the customer, not you, and you repay the surety for any claim it pays. Keep it current; a lapsed bond suspends the license.
Recent Changes
If you only read one section: Utah’s handyman limit is now $7,000 (with an insurance affirmation from $3,000), California’s is $1,000 with no employees and no permit, Washington’s bond more than doubled, and Vermont’s registry now covers any job of $10,000 or more.
Utah: exemption raised to $7,000, affirmation from $3,000
HB 483 (2024) raised the no-license limit from $3,000 to just under $7,000. Jobs over $3,000 require a one-time affirmation to DOPL that you carry liability insurance ($100,000 / $300,000 under the rule, with a 2026 increase reported) and workers’ comp if you have employees, reaffirmed by November 30 of odd-numbered years.
California: $1,000 exemption with conditions (2025)
AB 2622 doubled the minor-work exemption to $1,000 on January 1, 2025, but only for jobs with no permit and no employees. SB 1455 pushed universal workers’ comp for CSLB licensees to January 1, 2028.
Washington: bonds to $15,000 / $30,000 (2024)
The specialty bond went from $6,000 to $15,000 and the general bond from $12,000 to $30,000 on July 1, 2024. Any handyman guide quoting $6,000 is out of date.
Vermont: registry live, $1M / $2M insurance
Vermont’s residential contractor registration applies to contracts of $10,000 or more and requires $1,000,000 per occurrence and $2,000,000 aggregate in liability coverage. A 2026 bill (H.718) would study the registry rather than expand it.
State-by-State Breakdown
Every state and DC: whether the state sets an insurance or bond requirement for handyman-scale work, the threshold, and the workers’ comp rule. Red chips in the jump bar are states with a state-set minimum.
Jump to your state
Alabama No State Minimum
State minimum: None. There’s no statewide handyman license, so no state insurance or bond requirement comes with one. Customers, property managers and city permit offices set the number. Jobs over $10,000 fall under the Home Builders Licensure Board, which licenses without a bond.
Workers’ comp: Required at five or more employees.
Alaska $5K Bond + Statutory Insurance
Issuing Agency: Alaska Division of Corporations, Business & Professional Licensing
Handyman registration: For jobs up to $10,000 in labor and materials, Alaska’s handyman registration requires a $5,000 surety bond and liability insurance of $20,000 property damage, $50,000 bodily injury per person and $100,000 per occurrence (AS 08.18.101). Registration costs $350.
Above $10,000 a job, you register as a specialty or general contractor with a $10,000 or $25,000 bond.
Workers’ comp: Required from the first employee.
Arizona Licensed Work Only
Issuing Agency: Arizona Registrar of Contractors (ROC)
Under $1,000: Exempt handymen have no state insurance or bond requirement, but must advertise as “not a licensed contractor.”
$1,000 and up (or any permit): You need an ROC license, which requires a license bond set by annual volume (from $4,250 for residential specialty) and participation in the Residential Recovery Fund. The ROC doesn’t set a liability insurance minimum.
Workers’ comp: Required from the first employee.
Arkansas Licensed Work Only
Issuing Agency: Arkansas Contractors Licensing Board
Under $2,000: No state requirement. Over $2,000: A home improvement license, which the board issues on experience and references rather than a set insurance minimum.
Workers’ comp: Required at three or more employees.
California $25K Bond Over $1,000
Issuing Agency: Contractors State License Board (CSLB)
Under $1,000: Exempt, with no insurance or bond requirement, as long as the job needs no permit and you have no employees on it (AB 2622, 2025).
$1,000 and up: You need a CSLB license (usually B-2 Residential Remodeling or a specialty), which means a $25,000 contractor bond. General liability isn’t required by the state except for LLCs ($1,000,000+).
Workers’ comp: Required with employees, and for every licensee from January 1, 2028.
Colorado No State Minimum
State minimum: None. There’s no statewide handyman license, so no state insurance or bond requirement comes with one. Customers, property managers and city permit offices set the number. Denver and other cities require insurance to license contractors who pull permits.
Workers’ comp: Required from the first employee.
Connecticut $20K GL (HIC)
Issuing Agency: Connecticut Department of Consumer Protection (DCP)
Home improvement registration: Handymen doing residential repair and improvement work register as home improvement contractors ($220 a year) and carry at least $20,000 in general liability insurance. There’s no bond; the state runs a Guaranty Fund instead.
Workers’ comp: Required from the first employee.
Delaware Non-Residents: 6% Bond
Issuing Agency: Delaware Division of Revenue
State minimum: None for Delaware residents beyond the $75 business license. Out-of-state handymen post a bond equal to 6% of any contract over $20,000.
Workers’ comp: Required from the first employee.
District of Columbia $25K Bond + Liability
Issuing Agency: DC Department of Licensing and Consumer Protection (DLCP)
Contracts of $300 or more: The Home Improvement Contractor license requires a $25,000 surety bond and proof of liability insurance (no set amount), plus a $288.20 fee and a licensed salesperson.
Workers’ comp: Required from the first employee.
Florida Licensed Work Only
Issuing Agency: Florida DBPR, Construction Industry Licensing Board
Handyman work: Florida doesn’t license handymen, and since HB 735 (2021) cities and counties can’t either, so there’s no state insurance minimum for unlicensed-scope work.
Licensed work: If your jobs need a state contractor license (structural, roofing, permitted work), that license carries liability minimums: $100,000 / $25,000 for most specialty contractors, $300,000 / $50,000 for general and building contractors.
Workers’ comp: Construction employers need it from the first employee.
Georgia No State Minimum
State minimum: None. There’s no statewide handyman license, so no state insurance or bond requirement comes with one. Customers, property managers and city permit offices set the number. Georgia’s residential contractor license (for larger remodeling work) requires insurance, with specialty trades exempt.
Workers’ comp: Required at three or more employees.
Hawaii Licensed Work Only
Issuing Agency: Hawaii Contractors License Board
$1,500 or less: Exempt if no permit is needed, with no state insurance requirement. Above $1,500: A contractor license, with financial responsibility proven to the board case by case.
Workers’ comp: Required from the first employee.
Idaho $300K GL Over $2,000
Issuing Agency: Idaho Division of Occupational and Professional Licenses
Projects over $2,000: Contractor registration requires $300,000 in general liability insurance. Under $2,000 there’s no state requirement.
Workers’ comp: Required from the first employee.
Illinois No State Minimum
State minimum: None. There’s no statewide handyman license, so no state insurance or bond requirement comes with one. Customers, property managers and city permit offices set the number. Chicago requires insurance for its general contractor license (for permitted work).
Workers’ comp: Required from the first employee.
Indiana No State Minimum
State minimum: None. There’s no statewide handyman license, so no state insurance or bond requirement comes with one. Customers, property managers and city permit offices set the number.
Workers’ comp: Required from the first employee.
Iowa Registration ($2,000+/yr)
Issuing Agency: Iowa Department of Inspections, Appeals, and Licensing
State minimum: Handymen earning $2,000 or more a year register with the state ($50), which requires no insurance for Iowa residents. Out-of-state contractors file a $25,000 bond.
Workers’ comp: Required from the first employee.
Kansas No State Minimum
State minimum: None. There’s no statewide handyman license, so no state insurance or bond requirement comes with one. Customers, property managers and city permit offices set the number. Johnson County and Wichita require insurance for local contractor licenses.
Workers’ comp: Required once payroll exceeds $20,000 a year.
Kentucky No State Minimum
State minimum: None. There’s no statewide handyman license, so no state insurance or bond requirement comes with one. Customers, property managers and city permit offices set the number.
Workers’ comp: Required from the first employee.
Louisiana Registration $7,500+
Issuing Agency: Louisiana State Licensing Board for Contractors
Under $7,500: No state requirement. $7,500 and up: Home improvement registration, which requires proof of general liability insurance (the board doesn’t publish a flat minimum) and workers’ comp if you have employees.
Maine No State Minimum
State minimum: None. There’s no statewide handyman license, so no state insurance or bond requirement comes with one. Customers, property managers and city permit offices set the number. Residential jobs over $3,000 need a written contract.
Workers’ comp: Required from the first employee.
Maryland $50K GL (MHIC)
Issuing Agency: Maryland Home Improvement Commission (MHIC)
Any residential home improvement: Handymen need an MHIC license, which requires $50,000 in general liability insurance, two years of experience and an exam. No bond; the Guaranty Fund assessment is $100 at licensing and $175 at renewal.
Workers’ comp: Required from the first employee.
Massachusetts Guaranty Fund (HIC)
Issuing Agency: Office of Consumer Affairs and Business Regulation
Residential work over $500: HIC registration ($150) plus a Guaranty Fund payment of $100 to $500 by crew size. The state sets no liability insurance minimum for HIC registrants.
Workers’ comp: Required from the first employee.
Michigan Licensed Work Only
Issuing Agency: Michigan LARA
Jobs of $600 or more: A residential builder or maintenance and alteration license, which requires education and an exam but no state insurance minimum. Under $600 with no permit, there’s no requirement.
Workers’ comp: Required at three or more employees, or one working 35+ hours a week for 13 weeks.
Minnesota Certificate of Exemption
Issuing Agency: Minnesota Department of Labor and Industry
State minimum: One-skill handymen don’t need a license. Multi-skill handymen under $15,000 a year in residential receipts file a certificate of exemption; above that, a residential remodeler license with Contractor Recovery Fund payments. No liability minimum either way.
Workers’ comp: Required from the first employee.
Mississippi No State Minimum
State minimum: None. There’s no statewide handyman license, so no state insurance or bond requirement comes with one. Customers, property managers and city permit offices set the number. Residential remodeling over $10,000 is licensed on financial statements, not insurance.
Workers’ comp: Required at five or more employees.
Missouri No State Minimum
State minimum: None. There’s no statewide handyman license, so no state insurance or bond requirement comes with one. Customers, property managers and city permit offices set the number.
Workers’ comp: Construction employers need it from the first employee.
Montana Registration (Employers)
Issuing Agency: Montana Department of Labor & Industry
State minimum: Handymen with employees register ($70) and carry workers’ comp. Solo handymen are outside the mandate but often need an Independent Contractor Exemption Certificate to work for general contractors. No liability minimum.
Nebraska WC Certificate on File
Issuing Agency: Nebraska Department of Labor
State minimum: Every contractor registers ($40 a year). Those with employees keep a workers’ comp certificate on file or drop off the registry. No liability minimum.
Nevada Licensed Work Only
Issuing Agency: Nevada State Contractors Board
Under $1,000: The handyman exemption carries no insurance requirement, and vanishes if the job needs a permit. $1,000 and up: A license with a bond set by the board ($1,000 to $500,000) and proof of industrial insurance for employees.
New Hampshire No State Minimum
State minimum: None. There’s no statewide handyman license, so no state insurance or bond requirement comes with one. Customers, property managers and city permit offices set the number.
Workers’ comp: Required from the first employee.
New Jersey $500K GL (HIC)
Issuing Agency: New Jersey Division of Consumer Affairs
Any paid home improvement: Registration ($110, then $90 a year) with commercial general liability of at least $500,000 per occurrence. New Jersey has no dollar floor for handymen, so this applies from the first job.
Workers’ comp: Required from the first employee.
New Mexico Licensed Work Only
Issuing Agency: New Mexico Construction Industries Division
State minimum: Licensed contractors post a $10,000 bond; CID sets no liability minimum. Confirm the current handyman exemption limits with CID.
Workers’ comp: Construction employers need it from the first employee.
New York County Minimums
Issuing Agency: Nassau County Office of Consumer Affairs and other local licensing offices
State: No state license, so no state minimum.
Nassau County: Home improvement licensees carry $250,000 per person / $500,000 per occurrence bodily injury and $100,000 property damage, with no deductibles.
New York City: Home improvement contractors pay $200 into the Trust Fund or post a $20,000 bond. Yonkers: $100,000 / $300,000 liability and $25,000 property damage. Suffolk, Westchester, Rockland and Putnam set their own.
North Carolina No State Minimum
State minimum: None. There’s no statewide handyman license, so no state insurance or bond requirement comes with one. Customers, property managers and city permit offices set the number. The general contractor license ($40,000+) is based on net worth, not insurance.
Workers’ comp: Required at three or more employees.
North Dakota License Over $4,000
Issuing Agency: North Dakota Secretary of State
Jobs over $4,000: A contractor license, which requires proof of liability insurance (no published minimum) and workers’ comp. Under $4,000, no requirement.
Workers’ comp: Required from the first employee.
Ohio No State Minimum
State minimum: None. There’s no statewide handyman license, so no state insurance or bond requirement comes with one. Customers, property managers and city permit offices set the number. Many Ohio cities require a registration bond, often $5,000 to $25,000.
Workers’ comp: Required from the first employee.
Oklahoma No State Minimum
State minimum: None. There’s no statewide handyman license, so no state insurance or bond requirement comes with one. Customers, property managers and city permit offices set the number.
Workers’ comp: Required from the first employee.
Oregon CCB Bond + Insurance
Issuing Agency: Oregon Construction Contractors Board (CCB)
Almost all paid work: Handymen need a CCB license (the exemption is under $1,000 for casual work with no advertising). A residential specialty contractor posts a $20,000 bond and carries $300,000 per occurrence in liability; the limited endorsement for home services posts $15,000.
Workers’ comp: Required from the first employee.
Pennsylvania $50K / $50K (HICPA)
Issuing Agency: Pennsylvania Office of Attorney General
$5,000 or more a year: HICPA registration ($50 for two years) with $50,000 in bodily injury coverage and $50,000 in property damage coverage. Under $5,000 a year, no state requirement.
Workers’ comp: Required from the first employee.
Rhode Island $500K GL
Issuing Agency: Rhode Island Contractors’ Registration and Licensing Board
Residential work: Contractor registration requires $500,000 in liability insurance naming the board, a 5-hour course and a $150 fee.
Workers’ comp: Required from the first employee.
South Carolina Bond Over $5,000
Issuing Agency: South Carolina LLR
Residential specialty registration: Handymen register with the Residential Builders Commission for jobs over $500 (by trade), and need a surety bond once a single job tops $5,000. No liability minimum.
Workers’ comp: Required at four or more employees.
South Dakota No State Minimum
State minimum: None. There’s no statewide handyman license, so no state insurance or bond requirement comes with one. Customers, property managers and city permit offices set the number.
Workers’ comp: Not mandatory under state law, but customers and general contractors usually require it.
Tennessee Licensed Work Only
Issuing Agency: Tennessee Board for Licensing Contractors
State minimum: None for handyman work under $3,000 (or under $25,000 outside the nine home improvement counties). The home improvement license requires proof of general liability insurance.
Workers’ comp: Construction employers need it from the first employee.
Texas No State Minimum
State minimum: None. There’s no statewide handyman license, so no state insurance or bond requirement comes with one. Customers, property managers and city permit offices set the number. Electrical, plumbing and HVAC work need state trade licenses with their own insurance rules.
Workers’ comp: Optional for private employers, but most general contractors require it.
Utah $100K/$300K Over $3,000
Issuing Agency: Utah Division of Professional Licensing (DOPL)
Under $3,000: Exempt, no insurance required. $3,000 to under $7,000: Still exempt from licensing (HB 483, 2024), but you file a one-time affirmation with DOPL that you carry liability insurance of at least $100,000 per incident and $300,000 total, plus workers’ comp if you have employees. $7,000 and up: A contractor license.
DOPL’s liability minimum was reportedly raised to $1,000,000 / $2,000,000 in 2026; confirm the current figure before you file.
Vermont $1M / $2M at $10K+
Issuing Agency: Vermont Office of Professional Regulation
Residential contracts of $10,000 or more: Registration requires $1,000,000 per occurrence and $2,000,000 aggregate in liability insurance. Under $10,000, no state requirement.
Workers’ comp: Required from the first employee.
Virginia Licensed Work Only
Issuing Agency: Virginia DPOR, Board for Contractors
Over $1,000: A Class C contractor license, which sets no insurance or bond requirement. Class A and B licenses require net worth or a $50,000 bond.
Workers’ comp: Required at three or more employees.
Washington $15K Bond + $200K/$50K
Issuing Agency: Washington Department of Labor & Industries
Any paid work: Specialty contractor registration with a $15,000 bond and $200,000 public liability plus $50,000 property damage (or $250,000 combined). Handymen doing several trades register as general contractors with a $30,000 bond.
Workers’ comp: Required from the first employee.
West Virginia Licensed Work Only
Issuing Agency: West Virginia Division of Labor
Under $5,000 residential: No state requirement. Above it, a contractor license with proof of workers’ comp and unemployment compliance; the board sets no liability minimum.
Workers’ comp: Required from the first employee.
Wisconsin Permit Work Only
Issuing Agency: Wisconsin Department of Safety and Professional Services
State minimum: Only contractors who pull building permits need the Dwelling Contractor credential, which requires proof of financial responsibility (liability insurance or a bond). Paint, repair and no-permit work has no requirement.
Workers’ comp: Required at three or more employees.
Wyoming No State Minimum
State minimum: None. There’s no statewide handyman license, so no state insurance or bond requirement comes with one. Customers, property managers and city permit offices set the number.
Workers’ comp: Required from the first employee.
Checked November 2026 against the statutes, rules and agencies linked in each block. Utah’s 2026 insurance increase is reported by an insurance broker and not yet confirmed with DOPL. Local licensing bodies in no-license states set their own minimums.
Running a Handyman Business
- Licensing first: Handyman license requirements by state and what a handyman can do without a license cover the thresholds in more depth.
- Growing into remodeling? Home improvement contractor license by state covers the next tier, including deposit and contract rules.
- Bonds explained: Contractor license bond requirements by state.
- Quote faster: How to quote a job over the phone without losing it.
- Get paid on the spot: Handyman work is many small tickets, so collecting in the driveway beats invoicing. Our free invoice generator handles the rest.
Built for Handyman Businesses
VortechPro is dispatch software for trades shops — tiered routing, live GPS, in-field Stripe payments, on iOS and Android. $99/mo for 5 techs, +$20 per extra. 30-day free trial, no annual contract.
FAQ
Does a handyman need insurance by law?
In 13 states plus DC, yes, for handyman-scale work: New Jersey ($500,000), Rhode Island ($500,000), Vermont ($1,000,000 / $2,000,000 on $10,000+ contracts), Idaho ($300,000 over $2,000), Oregon, Washington, Utah ($100,000 / $300,000 affirmation on jobs over $3,000), Maryland ($50,000), Pennsylvania ($50,000 / $50,000), Alaska, Connecticut ($20,000), and DC, California and Massachusetts through bonds or guaranty funds. The other 37 states set no requirement for handyman work, but customers and property managers usually require $1,000,000.
How much liability insurance should a handyman carry?
$1,000,000 per occurrence and $2,000,000 aggregate is the standard that property managers, HOAs and general contractors ask for, and it often costs little more than a smaller policy. State minimums, where they exist, run from $20,000 (Connecticut) to $1,000,000 (Vermont).
Does a handyman need a bond?
In some states. California requires a $25,000 contractor bond once a job reaches $1,000. Washington requires a $15,000 specialty bond for any paid work. Oregon’s CCB bonds run $15,000 to $20,000 for handyman-type endorsements. Alaska’s handyman registration needs a $5,000 bond, and DC’s home improvement license a $25,000 bond. Arizona and Nevada set bonds by volume or monetary limit once you’re licensed.
Does a one-person handyman business need workers’ comp?
Not until you hire in most states. Exceptions run the other way too: Alabama and Mississippi don’t require it until five employees, and Georgia, North Carolina, Virginia, Wisconsin, Arkansas and Michigan until three. Texas lets private employers opt out. California will require it for every licensed contractor from January 1, 2028.
What is Utah’s handyman insurance affirmation?
Utah exempts jobs under $7,000 from contractor licensing, but for any job over $3,000 you must file a one-time affirmation with DOPL stating that you carry liability insurance (at least $100,000 per incident and $300,000 total under the current rule) and workers’ comp if you have employees, reaffirmed by November 30 of odd-numbered years.
Does Texas require handyman insurance?
No. Texas has no state handyman or general contractor license and sets no insurance minimum for handyman work. Workers’ comp is optional for private employers. Electrical, plumbing and HVAC work need state trade licenses with their own rules.
Bottom Line
If you work in New Jersey, Maryland, Connecticut, Pennsylvania, Rhode Island, Vermont, Washington, Oregon, Idaho, Alaska, Utah or DC, the state has set an insurance floor or bond for handyman-scale work, and your registration depends on keeping it current. California and Massachusetts use a bond or guaranty fund instead.
Everywhere else, the state is silent, and the people who pay you aren’t: carry $1,000,000 in general liability, insure the truck and the tools, add workers’ comp the day you hire, and know your state’s dollar threshold cold, because one permit or one $1,001 job can turn a handyman into an unlicensed contractor.
