What You Need To Know Before Getting Handyman Insurance
Thanks to the booming housing market, the handyman industry is growing.
According to research, capital expenditure on our homes is expected to rise 3.5% annually until 2026.
As the owner of a handyman business, you are always a problem solver. You’re someone who’s been able to turn a hobby into a job, and the sky’s the limit.
But what if your business runs into problems? That’s why you may need handyman insurance. Which coverage is right for you? How high are the costs?
Read on to learn everything you need to know.
Being a professional handyman is not an easy business. Clients are short-tempered and expect the impossible. All it takes is one ticked off the customer, and you may need to close shop and pursue that associate’s degree in business.
How could things go wrong? Some examples include:
- A handyman in Columbia, MD, was sued for not finishing his projects. Handyman insurance could help him pay back his clients.
- A handyman in DC has a lawsuit pending about a shoddy repair job he did. Handyman insurance could help pay for the lawsuit.
Typical Insurance Risks of the Handyman Trade
- Personal injury – You must protect yourself if you injure a bystander. Handyman insurance will help pay the medical bills.
- Property damage – You may accidentally knock over an expensive vase. Handyman insurance will help pay for the broken vase.
- Crime or theft – You must protect your tools, truck, and supplies if stolen. Handyman insurance will help pay the cost of the stolen items.
- Commercial vehicle policy – Vehicle damage to your truck or another vehicle. Handyman insurance will help pay for a new truck.
What Type of Handyman Insurance Should I Get?
Every business is different and needs specialized coverage.
Your business is different than the business down the street. However, most insurance agents would recommend a BOP (business owners policy) for a handyman business since most are small businesses, run as independent contractors, with fewer than 100 employees, and have a revenue of less than $5 million a year.
Having a BOP will protect the most likely issues that could happen to your business and is usually recommended. If you have employees who work for you, you’ll likely need workers’ compensation insurance which is required by law in almost every state. This could help cover the medical costs and a portion of lost wages for an employee who gets injured during work.
Additional Types of Handyman Insurance:
- Business property: Protects you if your building or personal property gets damaged. Handyman insurance will help pay for the damage to the building.
- Business interruption: Protects you if you are unable to work. Handyman insurance will help pay you while you can’t work.
- General liability: Protects you in case a non-employee gets injured. Handyman insurance will help pay the medical bills of the injured person.
- Inland marine coverage: Protects your owned or rented tools and equipment in case they get damaged. Handyman insurance will help pay for new tools.
- Crime or theft: Protects your tools, equipment, and vehicle in storage if stolen. Handyman insurance will help pay for new tools or equipment.
- Commercial auto insurance: If you have a business-owned vehicle, you will need this coverage because your personal auto insurance doesn’t cover cars that are used for business purposes.
- Workers’ compensation insurance: If you have employees, this type of policy is required in most states.
What Doesn’t Handyman Insurance Cover?
Different types of handyman business insurance have certain exclusions from their coverage. Here are some things that aren’t covered:
- Commercial property insurance doesn’t cover tools and equipment while you are driving around
- General liability insurance for handymen doesn’t cover tools and equipment if they are stolen or prematurely damaged
Is Handyman Insurance Required to Operate a Business?
Handyman liability insurance is usually not required to provide handyman services unless you’re a contractor with a license or on your way to earning yours. However, insurance for a handyman is a good idea to limit your exposure in case your team damages a customer’s belongings or home.
Do handymen need a license? Many states don’t require a handyman license, but check your state for the requirements.
How Much Does Handyman Insurance Cost?
Typically, a handyman insurance quote ranges between $360 to $1000 annually for general liability insurance. Business property insurance will cost you from $250 to $350 per year, while you can expect to pay between $2,000 and $4,000 for commercial auto insurance.
The price of a handyman insurance policy depends on several factors, including:
- Your location
- Your services
- Sales volume
- Number of employees
Can I Just Have Handyman Liability Insurance?
Many handymen believe that since they don’t have to show proof of insurance when doing a job, they can cut costs by being uninsured, thinking, “I’ll be careful” or “I’ll just work on small jobs.” In reality, the value of being insured is far greater than the risk of being uninsured.
For one, an insured handyman can charge more; in most cases, the homeowner will gladly pay more for the peace of mind that their home and family are protected. In addition, the cost of insurance is a small price to pay to know that your business is safe should anything happen.
What Insurance Does a Handyman Need?
As a handyman, you are exposed to various risks every day. Therefore, you need an insurance policy that works better than personal insurance. You should also get dedicated handyman insurance coverage from the market. As you know, a handyman is exposed to several risks such as personal injury, commercial vehicle risks, crime/theft, and property damage.
Considering this nature, you need a comprehensive handyman insurance package. Getting a business owner’s policy for a handyman will include business property coverage, business interruption insurance, inland marine coverage, and protection from crime and theft. It is not good to choose simple liability insurance because even the slightest mistakes would cost a lot when you are in the field.
You’d also need farmer’s insurance if you work on a farm.
Is This Policy Good if I Contract for Multiple Projects?
Typically, you can choose to take out a policy for an annual period instead of a project-based policy. Also, an annual policy can be a more cost-effective and efficient option for handypersons with multiple projects scheduled over the coming months.
How Does Business Insurance Protect Handymen and Handywomen?
Handyman insurance is a customized policy designed to protect handymen and handywomen against financial damages, losses, and injuries. Mistakes and unfortunate events can happen to anyone, and handyman general liability insurance can support you financially in case of an accident or an event that results in injury or property damage.
Handyman, Electrician, General Contractor: What Policy Do You Need?
Handyman, general contractors, and electricians have one thing in common: they help customers repair, remodel, and maintain their homes. Their services help people create a better living space, but at the same time, their mistakes can damage their clients’ property in case of an accident. That’s why they need insurance for a handyman business to cover them.
Are you still confused about handyman insurance, or do you need some help getting a quote for your business? Contact us today and get all the information you need fast and for free!
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