The $1,000 license limit
California requires a contractor license for any job where labor, materials and other costs total $1,000 or more (it was $500 before 2025). The exemption is for small, casual jobs, not a way to run a repair business.
- The $1,000 counts the whole job. You cannot split one project into several small invoices to stay under it
- Work that requires a building permit needs a license no matter how small the job is
- You cannot advertise as a licensed contractor, and the limit does not give you a trade classification
- Working above the limit without a license is unlicensed contracting, and an unlicensed contractor generally cannot sue to collect payment
Insurance a handyman should have
| Coverage | What it does | Who needs it |
|---|---|---|
| General liability | Pays for customer injury or property damage you cause, including damage that shows up after the job is done | Every handyman. Many customers, property managers and HOAs ask for proof |
| Workers' compensation | Pays medical bills and lost wages for employees hurt on the job | Anyone with employees, even part-time. From 1/1/2028 every active contractor license needs it, with limited exceptions |
| Tools and equipment | Replaces tools that are stolen or damaged. General liability does not cover your own tools | Anyone whose tools are a main business asset |
| Commercial auto | Covers the work truck or van when it is used for the business | Anyone driving to jobs with tools and materials. A personal auto policy may not respond to business use |
Common handyman claims
- A leak or water damage after a plumbing fixture or appliance hookup
- A fall from a ladder by a customer or helper
- Damage to floors, walls or fixtures while moving materials or tools
- A small electrical or repair mistake that later causes a fire or damage
- Stolen tools from a locked truck or van
Get a handyman quote
Tell us what jobs you do, whether you have helpers, and your yearly revenue and we will tell you which carriers write handymen and what they require. Call (858) 925-9555 or request a review online — only your name, phone and email are required; we collect project details by phone. Asena Capital Insurance Services, CA License #6008596.
Frequently asked questions
Do I need insurance to work as a handyman in California?
California does not require general liability for an unlicensed handyman, but customers and property managers often do, and you are personally liable for damage you cause. Workers' comp is required if you have employees.
How much can a handyman charge without a license in California?
Less than $1,000 per job, counting labor and materials, and only for work that does not require a building permit.
Does handyman insurance cover my tools?
Not general liability. Tools need a separate tools and equipment (inland marine) policy.
Can I get insurance if I do not have a contractor license?
Yes. Some carriers write handyman general liability for unlicensed work under the exemption. The coverage is only as good as the work you are allowed to do, so jobs over $1,000 will still be unlicensed.