Why Michigan Handyman Contractors Need Specialized Coverage

Michigan draws its line at $600: LARA requires a Residential Builder or Maintenance and Alteration Contractor license for any job at or above that amount, which pulls a large share of everyday handyman work into licensed territory faster than in neighboring states. Michigan draws a hard line here, and general liability — not a license — is often the main protection a handyman business has for the smaller jobs that legally fall under Michigan’s $600 exemption.

Michigan Licensing, Compliance & Requirements for Handyman Contractors

Under MCL 339.2403, a person is exempt from Michigan's Residential Builder license requirement for a single undertaking or project when the aggregate contract price for labor, material, and all other items does not exceed $600. Above that amount, the work generally requires a Residential Builder license or a Maintenance & Alteration (M&A) Contractor License. This exemption cannot legally be worked around by splitting one larger project into multiple smaller contracts to stay under the $600 line — Michigan law expressly prohibits dividing a project to evade the licensing requirement.

The exemption also does not open the door to specialty-trade work: electrical, mechanical, and plumbing systems still require the applicable specialty license regardless of the $600 threshold, though truly peripheral tasks — such as replacing a toilet flapper or swapping a sink without altering the plumbing system — are generally treated as handyman-level work rather than licensed trade work.

• $600 aggregate per-project exemption from Michigan's Residential Builder license under MCL 339.2403 — covers labor, materials, and all other items combined
• Cannot be circumvented by splitting one larger project into multiple smaller contracts to stay under $600
• Electrical, mechanical, and plumbing system work require the applicable specialty license regardless of the $600 threshold
• Peripheral tasks that don't alter the plumbing/electrical/mechanical system (e.g., replacing a toilet flapper) are generally treated as permitted handyman work
• Above $600, work generally requires a Residential Builder license or a Maintenance & Alteration (M&A) Contractor License
• Because the $600 threshold is easy to cross on a single repair job, general liability is typically the primary protection once handyman work exceeds the exemption

Core Coverages for Michigan Handyman Contractors

Michigan handyman businesses typically build around a general liability policy sized for multi-trade generalist work, since the model depends on staying inside the $600 exemption per project or holding the appropriate M&A or Residential Builder license, while routing licensed specialty-trade work elsewhere.

• General liability for property damage and bodily injury across the range of small repair and maintenance jobs
• Completed-operations coverage for issues that surface after a repair is finished
• Commercial auto for the truck or van used to travel between jobs across Michigan and haul tools/materials
• Tools and equipment (inland marine) covering hand and power tools on the job or in transit
• Workers' compensation if you have employees — generally required once you have three or more employees in Michigan, or one or more for 35+ hours/week
• General liability scoped specifically to exclude out-of-appetite licensed-trade work (electrical, mechanical, plumbing) you don’t perform

What Drives Handyman Contractor Insurance Costs in Michigan

There is no single rate. Michigan handyman insurance premiums move with the levers below, and understanding them helps you control cost without underinsuring.

• Payroll and annual revenue, the primary exposure base for general liability and workers’ comp
• How consistently jobs stay inside Michigan’s $600 per-project exemption vs. drifting into licensed Residential Builder or M&A scope
• Range of services offered (carpentry, painting, minor repairs vs. broader scope)
• Vehicle count and radius of operation for the commercial auto line
• Claims history, particularly any prior scope-creep or property-damage claims

Why Michigan Handyman Contractors Choose The Allen Thomas Group

As an independent, family-owned agency, we place Michigan handyman businesses across more than fifteen A-rated carriers rather than pushing one company’s product. Appetite varies by carrier on multi-trade generalist work, so we match your actual service scope to the markets that price it best — and help you understand where the $600 exemption line sits before a job crosses it.

• Independent access to 15+ A-rated carriers, matched to your actual service scope and Michigan's $600 exemption line
• Family-owned guidance since 2003 with an A+ BBB rating, focused on the scope-creep gaps handyman businesses miss
• Hands-on help understanding when a job requires a licensed subcontractor instead of in-house work
• Coordinated programs across general liability, tools, and auto with no gaps
• Certificates of insurance issued fast for property managers and repeat residential clients