General Contractor vs Handyman: What’s the Difference?

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What Is a General Contractor?

A general contractor is the primary point of contact for the customer, responsible for overseeing the entire project. That includes hiring and managing subcontractors, as well as ensuring that the work is completed on time and within the budget agreed upon with the customer.

In most cases, general contractors are legally required to be licensed and insured, particularly for major undertakings such as structural modifications, electrical work, plumbing, or any projects that require municipal permits.

What Is a Handyman or Handyperson?

A handyman or handyperson is a renovation and repair expert. They may call themselves odd-jobbers, tinkerers, or a jack (or jill) of all trades.

They are typically not required to have specialized licenses unless they perform work that involves a regulated trade, such as electrical or plumbing work.

For the most part, handymen perform minor repair and maintenance jobs on properties, fixtures (such as sink faucets), or help assemble or repair furniture.

Contractor vs. Handyman: Different Types of Jobs

Here are examples of different types of jobs general contractors and handymen tackle:

• General Contractor: Remodelling kitchens, building an add-on room to an existing building or home, and building or replacing backyard decks and patios. 

• Handyman: Fixing leaking sink faucets, assembling or repairing damaged furniture, internal and external painting jobs, replacing door locks, and drywall repairs.

What Business Insurance Do General Contractors Need?

General contractor insurance includes a broad range of coverages to address the many liability risks they face, including:

• General liability insurance protects against third-party injury or property damage claims. For instance, if someone is hurt on-site or you accidentally damage a client’s property, this policy covers medical and repair costs.

• Professional liability insurance (also known as errors and omissions insurance) protects your business from claims of negligence, faulty advice, or failure to deliver services as promised.

• Tools and equipment insurance covers the repair or replacement costs if your portable tools or machinery are damaged, lost, or stolen due to events such as fire, flooding, vandalism, or theft.

• Pollution liability insurance safeguards against claims of environmental damage or health issues caused by pollution resulting from your work or job site activities.

• Builder’s risk insurance, or course of construction insurance, protects buildings under construction, along with materials and equipment on-site, from losses or damages during the project.

• Commercial auto insurance covers vehicles used for business purposes, such as those used for hauling tools, materials, or workers, against damage or liability. It’s distinct from personal auto insurance and is required for all business-use vehicles.

• Installation floater insurance covers materials and property being transported, stored, or installed at a job site until the installation is complete.

• Leased, rented, or borrowed equipment insurance covers equipment you temporarily use on a project if it’s damaged, lost, or stolen while under your responsibility.

What Business Insurance Do Handymen or Handypersons Need?

A handyman insurance policy features several types of coverage to provide you with financial support for different aspects of your business, including:

• General liability insurance covers third-party bodily injury and property damage claims. It may also cover claims for faulty work.

• Commercial property insurance covers your office or business property and its contents from fire, water damage, theft, and vandalism.

• Tools and equipment insurance pays to repair or replace your tools and equipment if damaged by fire, flood, theft, or vandalism.

• Commercial auto insurance covers your pickup, van, car, or SUV if you’re in an auto accident.

• Pollution liability insurance to cover sudden or gradual environmental damages or that exposes others to pollution and may cause injuries or illnesses.

• Cyber liability insurance to help them recover from a data breach or cyber-attack that compromises their and their customers’ confidential data.

How to Get Comprehensive Business Insurance for Skilled Trades Pros

Zensurance is Canada’s leading online small business insurance brokerage, helping hundreds of thousands of small business owners, self-employed professionals, and skilled trades professionals get the comprehensive, low-cost protection they need.

Complete our simple, online application for a free quote in less than five minutes.

Our team of licensed insurance brokers will find the right coverage to suit your operations and budget, customize it as per your needs, and issue the policy documents and a certificate of insurance in 48 hours or less.