MULTI-TRADE HOME REPAIR · ACE HANDYMAN FRANCHISING, INC.
ACE HANDYMAN SERVICES
FRANCHISE
INSURANCE
You renewed your policy last month. Same carrier, similar premium, a policy that reads almost exactly like last year's. One line still describes your business as "handyman services." That line has not changed since you opened.
Your work has. Your techs now run carpentry, drywall, flooring, painting, light plumbing, and light electrical — sometimes all in one week. The policy that renewed does not see the difference between hanging a shelf and re-piping a vanity. The gap between what your policy describes and what your techs actually do is where a simple repair turns into an uncovered claim.
Ace Handyman Franchising, Inc. sets the minimum insurance in your franchise agreement. Meeting it satisfies the franchisor. Whether the policy keeps pace with the trades your techs cross every day is a separate question and the one this page answers.
Ace Handyman Franchising, Inc.
JUMP TO SECTION
COMPLIANCE REQUIREMENTS
A SIMPLE REPAIR THAT CROSSED INTO LICENSED PLUMBING OR ELECTRICAL
DAMAGE TO A CUSTOMER'S BELONGINGS DURING A REPAIR
A PERMIT THAT NEVER GOT PULLED
A TECH ACCUSED OF THEFT WHILE WORKING ALONE
THE MULTI-TRADE WORKERS' COMP AUDIT
WHAT IT COSTS
FAQs
$1,000,000 per occurrence / $2,000,000 aggregate
GL MINIMUM
$25,000 minimum (FDD)
CRIME ENDORSEMENT REQUIRED
$1,000,000 per occurrence / $2,000,000 aggregate
COMMERCIAL AUTO
$1,000,000
UMBRELLA REQUIRED
A.M. Best A- or better
CARRIER RATING
ON THIS PAGE
COMPLIANCE REQUIREMENTS
A SIMPLE REPAIR THAT CROSSED INTO LICENSED PLUMBING OR ELECTRICAL
DAMAGE TO A CUSTOMER'S BELONGINGS DURING A REPAIR
A PERMIT THAT NEVER GOT PULLED
A TECH ACCUSED OF THEFT WHILE WORKING ALONE
THE MULTI-TRADE WORKERS' COMP AUDIT
WHAT IT COSTS
FAQs
WHAT A COMPLETE ACE HANDYMAN SERVICES FRANCHISE INSURANCE PROGRAM LOOKS LIKE
SUBCONTRACTOR CERTIFICATE COMPLIANCE ACROSS YOUR FRANCHISE
Ace Handyman franchisees routinely bring in 1099 trade subs — licensed plumbers and electricians for scope that crosses into licensed work, flooring or roofing specialists for overflow. When a sub cannot produce a certificate of insurance, two things happen at audit: the sub's payments are added to your exposure base, and any liability from their work may fall back on you.
A lapsed certificate is invisible until the audit finds it. Rikor's subcontractor compliance monitoring tool tracks active certificates in real time. When a certificate lapses, you know before the next job, not after the bill.
FRANCHISEE QUESTIONS
FREQUENTLY ASKED QUESTIONS
WHAT INSURANCE DOES A HANDYMAN FRANCHISE LIKE MR. HANDYMAN OR ACE HANDYMAN REQUIRE?
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The 2025 Ace Handyman Services franchise disclosure document, Item 8, requires workers' compensation with employers liability; general liability at $1,000,000 per occurrence and $2,000,000 aggregate including a crime endorsement of at least $25,000; commercial auto at $1,000,000 per occurrence and $2,000,000 aggregate including hired and non-owned vehicles; an umbrella of at least $1,000,000; and all-risk business property at 100 percent replacement cost. Ace Handyman Franchising, Inc. must be named additional insured with a waiver of subrogation on all required policies, through a carrier rated A.M. Best A- or better. Cyber at $250,000 is highly recommended; EPLI is reserved-right.
WHAT DOES THE FDD SAY ABOUT INSURANCE FOR HANDYMAN FRANCHISES?
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The Ace Handyman FDD spells out required limits in Item 8 and lists insurance among start-up costs in Item 7. The required stack is general liability, the $25,000 crime endorsement, commercial auto, umbrella, workers' compensation with employers liability, and business property. Cyber and EPLI are recommended or reserved-right, not currently mandatory. Item 7 figures are floors — the real cost depends on your state, trade mix, and payroll.
WHAT IF A TASK CROSSES FROM HANDYMAN WORK INTO LICENSED CONTRACTOR TERRITORY?
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That is the central coverage risk for a multi-trade brand. If a tech performs work that legally required a licensed trade your business did not hold, the carrier can argue the loss arose from unlicensed work and limit or deny the claim. The protection is to build licensing and insurance around your actual trade mix, use licensed 1099 subs for plumbing and electrical, and collect their certificates before the work.
DOES MY GL COVER WORK THAT REQUIRED A PERMIT AND I DIDN'T PULL ONE?
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Not reliably. Some general liability policies exclude losses arising from work performed without a required permit or in violation of building code. The damage might be accidental, but the missing permit gives the carrier a path to contest the claim. Pull the permit when the task requires one, and confirm your policy does not carry a broad permit-or-code exclusion.
DOES MY POLICY COVER DAMAGE TO A CUSTOMER'S BELONGINGS DURING A REPAIR JOB?
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General liability generally covers accidental damage to a customer's other property. Two exclusions create gaps: the "your work" exclusion removes coverage for the item you were working on, and the care, custody, and control exclusion removes coverage for property in your tech's control. Add a care, custody, and control endorsement so the policy can respond to damage to a customer's property in your care.
WHAT IF A CUSTOMER ACCUSES MY TECH OF THEFT DURING AN IN-HOME REPAIR?
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General liability excludes employee theft because it is dishonesty, not an accident. The FDD requires a crime endorsement of at least $25,000, which is a real but low limit. The stronger protection is a third-party commercial crime policy with a theft-of-customer-property endorsement at $250,000 — it pays without a conviction and does not seek the money back from you.
WHAT HAPPENS AT MY WORKERS COMP AUDIT IF MY TECHS WORK ACROSS MULTIPLE TRADE TYPES?
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Workers' compensation is priced by classification code, and trades carry different rates. At the year-end audit, the carrier reviews how your payroll actually split across codes against what you estimated. If techs spent more time in a higher-rated trade than disclosed, the premium adjusts upward. This is a billing reconciliation, not a claim denial. Disclose your real trade mix at policy start and keep payroll records by trade.
DO I NEED WORKERS' COMPENSATION FOR HANDYMAN TECHNICIANS?
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Yes. The FDD requires workers' compensation with employers liability regardless of whether your state mandates it. Workers' compensation pays medical bills and lost wages for an injured tech; employers liability responds when an injured worker sues the employer. Some states may also require you to pay workers' compensation premium for uninsured 1099 service providers you use.
DO I NEED TOOLS AND EQUIPMENT COVERAGE FOR A HANDYMAN FRANCHISE?
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Your business property and auto policies do not follow your tools to job sites. Inland marine — an equipment floater — covers tools and equipment in transit, in the vehicle, and at customer locations, usually on an actual cash value basis. For a multi-trade van carrying meaningful tooling, it is worth the line.
WHAT IS A SURETY BOND AND DO HANDYMAN FRANCHISEES NEED ONE?
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A surety bond is different from a crime policy. License and permit bonds are required by states or cities to hold a contractor license; performance bonds are required by project owners on specific jobs. Those are genuine third-party requirements you carry when an outside party demands them. The crime endorsement the FDD requires is not a surety bond — it is dishonesty coverage. Carry the license bonds your jurisdiction requires, and carry a third-party crime policy for the in-home theft exposure.
What a complete Ace Handyman Services franchise insurance program looks like
A properly built Ace Handyman program starts with compliance — the coverages the franchise agreement requires — and then closes the gaps a multi-trade operation actually creates.
The compliance requirement gives you the frame: $1,000,000 per occurrence and $2,000,000 aggregate general liability with a $25,000 crime endorsement, $1,000,000 per occurrence and $2,000,000 aggregate commercial auto, a $1,000,000 umbrella, workers' compensation with employers liability, and all-risk business property — with Ace Handyman Franchising, Inc. named additional insured and a waiver of subrogation throughout. Meeting all of that satisfies the franchisor.
The protection lives beyond it. Raise the crime endorsement to a $250,000 third-party crime policy for the in-home theft exposure. Add a care, custody, and control endorsement for damage to a customer's property. Confirm your GL has no subcontractor exclusion and extends to your 1099 trade subs. Carry the recommended cyber at $250,000, add EPLI at $250,000, and add inland marine for your tools. Build licensing and coverage around the licensed trades your techs actually drift into — and confirm your policy has no aggressive permit or code exclusion before bidding the multi-trade work that grows the business.
Here is the checklist a complete program follows: confirm the FDD-required limits and the additional insured and waiver language; raise the crime endorsement to a real third-party crime limit; close the care-custody-control and subcontractor gaps; align workers' comp classifications with your real trade mix; add the recommended cyber, EPLI, and inland marine lines; and size the umbrella to your worst realistic loss as commercial work grows.
SUBCONTRACTOR RISK
A LAPSED SUB CERTIFICATE IS INVISIBLE UNTIL YOUR CARRIER FINDS IT
Most home service franchisees use independent contractors or 1099 workers at some point. The coverage gap this creates is not obvious until a claim surfaces. When a certificate lapses, your carrier invokes the subcontractor exclusion in your general liability policy. The work was done. The damage is real. The coverage is not there.
Rikor's subcontractor compliance monitoring tool tracks subcontractor certificates in real time. When a certificate lapses, you know before the next job starts — not after the claim comes in.
WADE MILLWARD, CIC
Founder & CEO · Rikor Insurance
Wade Millward has spent 18 years specializing in franchise insurance. He holds the Certified Insurance Counselor (CIC) designation and has reviewed hundreds of franchise disclosure documents across home service, food service, and commercial franchise verticals. He has built coverage programs for Authority Brands franchisees across electrical, HVAC, plumbing, and restoration trades.