Handyman Insurance in Washington State

Handyman businesses carry a unique liability profile because of the sheer variety of work involved. In a single week, you might patch drywall, install a ceiling fan, repair a deck, fix a toilet, and assemble furniture — each task with its own risk characteristics. Insurance underwriters call this "jack-of-all-trades" exposure, and it complicates your coverage because a claim could arise from any one of a dozen different service categories. The breadth of your work is your selling point to customers, but it's also what makes your insurance needs different from a single-trade contractor.

Working inside occupied homes is the daily reality that shapes handyman liability. Unlike new construction where the building is empty, you're working around families, pets, furniture, and personal belongings. A dropped tool scratches hardwood floors. A plumbing repair goes wrong and floods the kitchen while the homeowner is at work. Paint splatter lands on a client's leather couch. These aren't hypothetical scenarios — they're the types of property damage claims handyman businesses file regularly. The intimate setting also increases bodily injury exposure; a homeowner trips over your tools in a hallway, or a child touches a power tool you left unattended for a moment.

Washington has specific rules that affect handyman businesses. Under RCW 18.27, you must register as a contractor with L&I if your work exceeds certain thresholds, but the state draws a distinction between minor maintenance and repair work versus construction contracting. The line between handyman work and licensed contractor work can blur quickly — scope creep is a real risk. A customer asks you to "just fix a few boards" on their deck, and before you know it, you're rebuilding a structural component that requires a permit. Operating beyond your scope exposes you to L&I enforcement, voided insurance coverage, and personal liability.

Property damage from completed operations is another concern that handyman businesses often underestimate. The light fixture you installed last month shorts out and causes an electrical fire. The faucet you repaired starts leaking inside the wall and causes mold growth. These claims arrive weeks or months after you've been paid and moved on, and without completed operations coverage in your general liability policy, you're paying out of pocket. For a business built on trust and referrals, one uninsured claim can destroy the reputation you've spent years building.