Hiring a handyman is a great way to get smaller jobs done around the home, but before anyone picks up a tool on your property, it's worth asking one simple question: are you insured? A handyman without the right insurance cover could leave you financially exposed if something goes wrong — whether that's accidental damage to your home, an injury on site, or a third-party claim. Here's what to look for.
Why Insurance Matters for Handyman Work
Even straightforward jobs carry risk. A ladder could slip and damage your spouting, a power tool could nick a water pipe, or a visitor could trip over equipment left on your driveway. Without proper insurance, you — as the property owner — could end up footing the bill, or at least facing a lengthy dispute. Checking a tradesperson's insurance before work starts is simply good practice.
Public Liability Insurance — The Most Important Cover
Public liability insurance is the single most important policy a handyman should carry. It covers third-party property damage and personal injury claims that arise from their work. For example, if your handyman accidentally breaks a window, damages a neighbour's fence, or a visitor is injured because of their work, public liability insurance is what pays out.
As a guide, most professional handymen in New Zealand carry at least $1 million in public liability cover, and many carry $2 million or more. Don't be shy about asking to see a current certificate of currency (the document that proves the policy is active) before work begins.
Employer's Liability / ACC Considerations
If your handyman works alone, ACC (the Accident Compensation Corporation) will generally cover them for work-related injuries in New Zealand. However, if they bring a labourer or subcontractor onto your job, they may need employer's liability insurance as well. This covers situations where an employee suffers an injury that falls outside standard ACC cover — for example, a claim for loss of earnings beyond what ACC provides.
It's worth asking whether anyone else will be working on your property and whether they are covered.
Tools and Equipment Insurance
While this one protects the tradesperson rather than you directly, a handyman who carries tools and equipment insurance is generally more professional and less likely to cut corners. If their tools are stolen or damaged on your property, this policy means they can keep working without asking you to cover the loss.
Professional Indemnity Insurance — Is It Needed?
Professional indemnity insurance covers claims arising from advice or design errors. For most handyman tasks — painting, fixing a gate, assembling flat-pack furniture — this isn't typically required. However, if your handyman is offering any kind of design input, project management, or technical advice, it's worth asking whether they carry it.
What About Restricted Trade Work?
This is where insurance becomes only part of the picture. In New Zealand, certain types of work are legally restricted and must be carried out by a licensed professional — regardless of how handy someone is.
- Electrical work: Any work on fixed wiring must be done by a registered electrician. Check the Electrical Workers Registration Board (EWRB) to verify registration.
- Plumbing, gasfitting, and drainlaying: These are restricted trades regulated by the Plumbers, Gasfitters and Drainlayers Board (PGDB). Only licensed practitioners can carry out this work.
- Structural or weathertight work: Depending on the scope, work affecting the structure or weathertightness of your home may require a Licensed Building Practitioner (LBP). Check the LBP register to verify credentials.
A handyman who takes on restricted work — even with insurance — may not be covered by their policy if the work is outside their legal scope. Always confirm what your handyman is and isn't licensed to do.
Building Consents and Compliance
Some jobs require a building consent from your local council, even if they seem minor. Schedule 1 of the Building Act lists exemptions, but the rules can be nuanced. MBIE Building Performance has guidance on what requires consent, but always confirm with your local council before work starts. An uninsured or unlicensed person doing consent-required work without a consent can create serious problems when you sell your home.
Questions to Ask Before Hiring
Here's a quick checklist to run through before any handyman starts work on your property:
| Question | What to Look For |
|---|---|
| Do you have public liability insurance? | Yes, with a current certificate of currency |
| What is your cover limit? | At least $1 million |
| Are you bringing any workers or subcontractors? | If yes, ask about employer's liability |
| Is this work restricted trade? | Confirm they are licensed if so |
| Does this job need a building consent? | Check with your council |
When to Call a Professional
If a job involves electrical wiring, gas appliances, plumbing, drainage, or structural changes to your home, you need a licensed tradesperson — not just a handyman. Even for general handyman work, always ask for proof of insurance before anyone starts. If a handyman can't or won't provide a certificate of currency, that's a red flag.
For peace of mind, hire a qualified local handyman through tradedirectory.co.nz, where you can find tradespeople who are vetted and professional.
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