What You Need to Know before Getting Handyman Insurance
Handyman insurance is a necessity for any handyman. The handyman industry is a growing one thanks to the growing housing market. As the owner of a Handyman Service, you really think of yourself as a problem solver. Someone who’s been able to turn a hobby into a job that does things that no one else can do.
No job is too small to tackle, but that doesn’t mean you can’t handle the big ones as well. From correcting the jury-rigged work of some other “handyman” or some gung-ho husband to fabricating the perfect Cabinets, Furniture, and wiring for an old house.
You enjoy what you do – getting down and fixing what needs to be fixed, you’re not some guy in a suit, you actually DO things. But, it’s 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 associates degree in business. Such as:
- The handyman in Columbia, MD who was sued for not finishing his projects. Handyman insurance could help him pay back his clients.
- The handyman in DC who 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 need to protect yourself in case 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 need to protect your tools, truck, and supplies in case they’re 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 a 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, ran as independent contractors and have less than 100 employees and a revenue of less than $5 million a year.
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A Handyman BOP will typically include:
- Business property: Protects you in case your building or personal property gets damaged. Handyman insurance will help pay for the damage of 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 person who got hurt.
- 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.
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 to get workers compensation insurance which is required by law in almost every state. This which could help cover the medical costs and a portion of lost wages for an employee who gets injured during work.
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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 that “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 and in most cases, the homeowner will gladly pay more for the piece 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. It is also why you should get dedicated handyman insurance 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 broad and comprehensive handyman insurance package. If you are getting a business owner’s policy for a handyman, it 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.
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