Do I Need Handyman Insurance?
A handyman is an unlicensed or licensed contractor who provides home maintenance services, home repairs and home installations. If you are a handyman, you will be exposed to many risks on the job. Handyman insurance is basically a general liability policy that covers you from any costs related to injuries at work.
What Is the Cost of Handyman Insurance?
Like other insurances, there are many factors that influence the cost for handyman insurance such as the type of work being done, contractual requirements and how many employees are contacted. A handyman who performs much riskier duties is expected to have higher insurance premiums.
Another factor that increases the premium rate is the size of the job and types of homes your business services. For example, a handyman who works in expensive homes will need higher coverage than someone who works in a run-down tenement apartment building.
If you have tools and vehicles used in your business as a handyman then you will want to insure them. Consider a commercial auto policy, because your standard one may not cover you if you’re in an accident while on the job.Looking for Handyman Insurance?
Although not every tool is worth insuring, you should insure the things your business values the most and cannot function without. This way you will have enough to cover your essential items without driving your insurance premiums up too high. It is estimated the average handyman liability insurance cost around $750 and $1,500 per year. The best way to make sure that you are getting the best quote is to compare different quotes from different insurance companies.
How Handyman Insurance Works
Many insurers issue insurance policies that cover the cost of accidents that happen to your type of business. There are different policies that can be issued and cover different kinds of accidents. The handyman insurance policy helps pay for any damages done to the customer’s property. Here are some of what’s covered in handyman insurance policies:
General Liability covers third party claims when there is an accident. For example when someone is hurt or there is damage done to a client’s property because of the handyman’s actions, the policyholder is covered.
This type of insurance covers damages to the properties where the handyman works. It also covers situations in which the handyman fails to complete the work as promised. Under this policy, medical costs and repairs your operations cause are also covered. Lastly, lawsuits and cases of defamation are covered.
Commercial property insurance covers your business owned property including a workshop and tools. Often, handymen transport their tools for work so many commercial property insurance policies include inland marine coverage to protect their property while in transit.
Commercial Auto Insurance covers vehicles that are used for business when there is an accident or incidents of theft.
Workers’ compensation insurance covers medical and lost wages for employees who are hurt in an accident at work. Even if you are the sole employee, consider getting this type of insurance policy in case you are in an accident. Protecting yourself means that your medical bills and wages will be paid by insurance.
A business owner’s policy(BOP) bundles general liability, commercial property and business income in one single policy for savings. These insurance policies are the most cost-effective because it covers the essentials of a small business and minimizes coverage gaps.
Handyman Bond(surety bond) is a contract between you and your client that acts like a guarantee for your work. How this works is that if the client claims that there was some financial loss then they can file a claim to recover from the loss. This also serves as an indicator to the customer that the job will be done correctly and professionally.
Who Needs Handyman Insurance?
Although handymen are not required to have insurance in some states, it is recommended that every handyman gets general liability coverage at the very least. Handymen are at risk of injuries and damages that can be costly so it is advised to have some form of coverage just in case an accident happens.
Handymen often work on customer’s property which means that they are at risk of lawsuits over client injury and property damage. If a handyman has no insurance they run a high risk of paying lots of money for losses out of pocket.
Sometimes clients won't hire a handyman unless they are bonded or insured. In some states, handymen must have liability insurance. Handymen who hire people to work for them may be required to purchase additional insurance to cover employees. Check with your state to find out what you’re required to carry.
Tips on Buying Handyman insurance
Finding the right insurance policy for an independent contractor can be stressful and costly. Here are some tips to ensure that you get enough coverage for the cheapest prices available anywhere.
Have an inventory of your equipment and tools to get an idea of how much it would cost to replace them. You will also need to do inventory of the actual value of your business property. With this information one can get an idea of whether it will be too expensive to cover everything. If that’s the case, consider covering only the most necessary equipment.
Consider what type of clients you work with. If we are dealing with highly valuable homes then consider getting a liability that covers higher cost for a potential losses or even lawsuits.
Check your state's licensing requirements because you may be required to have some form of insurance.
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