How Much Is Insurance for a Handyman Business?

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What risks do I have operating a handyman business?
What type of insurance should I consider for my handyman business?
How much will insurance cost for my handyman business
Will I always need insurance for my handyman business
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What risks do I have operating a handyman business?

I'm thinking of starting a handyman business. I'm not sure whether I'll have any employees as of yet, but I'm considering what my insurance costs could potentially be. What kinds of risks should I be most concerned with when it comes to insurance?

From my perspective, there are two primary types of exposure in the handyman business:

  1. Poor work
  2. Accidents

Don't get me wrong, there are plenty of other things that could go wrong. However, when you're thinking about the scope of coverage and how most lawsuits arise, these are the two primary categories you should keep in mind.

What type of insurance should I consider for my handyman business?

If I want to purchase insurance for my handyman business, what type of coverage do you recommend?

The answer to this question depends a lot on your specific business and circumstances. Whether or not you have a storefront could change property coverage. If you have employees, you would be legally required to purchase workers' compensation if you operate in any state other than Texas.

The most common types of insurance coverage for a handyman business are:

  1. General liability, to cover accidents
  2. Property, for tools and a storefront (if you rent or own commercial property)

Your TrustedChoice.com independent agent can discuss more details with you specific to your business. However, these are the most common types of coverage you'll want to keep at the forefront of your mind.

How much will insurance cost for my handyman business?

The answer to this question is not as cut-and-dried as most people might think. After all, the cost of coverage is largely dependent on the scope of the risks of what you're doing. This means that if you're a one-person business and you're doing small jobs that don't require tools that are all that dangerous, you could get away with less coverage. Once you start adding in employees, you're adding in potential risk.

If I had to generalize, I would say that the costs to insure most handyman businesses are moderate. In fact, most cost just $1,000 to $2,000 per year if you don't have any employees. I'll reiterate that for a more accurate estimate, your independent agent at TrustedChoice.com is the best person to talk to.

Will I always need insurance for my handyman business?

If I purchase insurance now, will I always need it? I know a lot of professionals in my business who haven't had an accident in 20 years. Is coverage still worth the cost for them?

This is a personal question more than anything. After all, there are quite a few handymen in the business who run their own shop, have no employees, and haven't had an accident in decades. It doesn't surprise me that after 20 years of paying a premium without needing insurance, they reconsider whether they want it at all.

My advice is this: if you want to gamble on there being no accidents in the coming years because there historically haven't been any accidents, by all means that is your decision. If the stakes are small and a lawsuit won't make you bankrupt, it could be worth the risk to save some money. But if you're in a position where a lawsuit could compromise your well-being, you should keep paying the little bit it costs to stay covered.

If you aren't sure whether the benefits outweigh the costs, your TrustedChoice.com agent is a great resource for these kinds of questions, too.

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