A handyman is part of the residential remodeling industry, which includes a variety of contractors and construction companies that provide alterations, additions, reconstruction, maintenance, and repairs of houses and other residential buildings.
Handymen provide a wide range of services, such as drywall repair, faucet repair, carpentry work, asphalt repair, light installation, ceiling fan installation, fence repair, concrete repair, masonry work, insulation work, painting, trim work, plumbing updates, and stucco repair.
Your handyman service faces a variety of business risks, whether you’re a sole proprietor with no employees or a larger business with several work crews and more complex operations. If an accident or some type of property damage occurs during a project, the losses can be costly and disruptive to your business.
A comprehensive business insurance program designed for handyman services can help you mitigate your risks and focus on running your business. An independent insurance agent can help you get coverage that fits your needs and budget.
Why Do You Need Handyman Insurance?
Handymen face the potential for losses in the form of the following.
- Property theft, vandalism, loss, or damage
- Lost income
- Employee illness, injury, or death
- Liability claims
Handyman insurance helps you mitigate the costs related to employee injuries, tools and equipment losses or damage, motor vehicle accidents, and more. Because every handyman business is unique, your business insurance needs will be determined based on the size of your company, the number of employees you have, and the type of work that you do.
What Does Handyman Liability Insurance Cover?
While you may not typically have customers or the general public on your premises, you still need general liability insurance for occasions in which your business is negligent and causes bodily injury or property damage to a third party.
- Your commercial general liability (CGL) policy protects you in the event of third-party lawsuits, with coverage for attorney fees, court costs, settlements, and judgments up to the limits of your policy. It covers you if you cause injuries or property damage while you’re on the job in someone’s home or on their property.
Most handymen own at least one commercial vehicle or multiple trucks to transport tools, equipment, and workers to and from job sites.
- If you own trucks or other vehicles, commercial auto insurance covers your owned vehicles and drivers in the event of an accident or other vehicle damage that occurs. Commercial auto insurance provides coverage for property damage and bodily injury liability claims, vehicle damage, and medical bills, as well as any costs related to lawsuits due to auto accidents involving your vehicles.
You may want to talk to your independent insurance agent about your need for commercial umbrella insurance.
- Commercial umbrella insurance provides an extra layer of liability protection to any of several other liability policies you might have. Commercial umbrella insurance kicks in when the limits of your other applicable insurance policies have been exhausted, protecting you in the event that a claim exceeds the amount of coverage available from any other applicable policy.
What Does Handyman Property Insurance Cover?
Handymen need to protect their valuable property and equipment while it’s on the business premises.
- Commercial property insurance covers your office space, warehouse, or other buildings and their contents for losses due to fire, theft, vandalism, weather events, and more.
- Property insurance also typically includes loss of income coverage, or business interruption insurance. It reimburses you for lost income and helps pay for certain ongoing expenses if you are temporarily unable to operate due to a covered loss (fire, storm, etc.).
What’s more, you probably usually have most of your valuable property in transit and at job sites. You’ll need coverage for items that are lost, stolen, or damaged while they are not on your business premises.
- Inland marine insurance protects your expensive professional tools, ladders, equipment, and other supplies from theft, loss, or damage while they are in transit to and from worksites, such as in your work trucks. It is especially important if you store your tools and equipment in your truck or another vehicle.
- Consider adding an installation floater to your inland marine coverage, which protects materials left at a job site to be installed but are damaged before you can do it.
- A tools and equipment floater can normally be added to your inland marine coverage as well. It covers any leased or owned specialized tools and equipment while they’re stored at the job site.
Do You Need Workers’ Compensation Insurance?
If you are a sole proprietor with no employees, you aren’t required by your state to purchase workers’ compensation insurance for yourself, but you may be able to purchase it if you so desire.
If you have employees, your state likely requires you to purchase workers’ compensation insurance. Workers’ compensation insurance provides coverage when accidents happen at the workplace. It ensures that the injured worker gets medical care and income protection while unable to work.
Workers’ compensation insurance provides benefits to injured workers regardless of who is at fault for their injury. And it will provide death benefits for a worker’s dependents if there is a fatality.
An independent insurance agent can help you understand the workers’ compensation requirements in your state and how they impact your handyman business.
How Much Does Handyman Insurance Cost?
The cost of handyman insurance varies depending on the size of your operation, as well as a variety of individual risk factors including the following.
- The size of your business
- The location of your shop and any other buildings that you own or operate out of (office space, warehouse space)
- The number of employees
- The types of tools, machines, and specialized equipment that you have
- How many trucks and drivers you have (if applicable)
- The size and scope of the projects you take on
- The types of coverage and amount of coverage that you need
Ultimately the types and amounts of coverage you need to adequately cover your risks will dictate the cost of your coverage.
Benefits of an Independent Agent
Our agents simplify the search process for finding the right handyman insurance. They’ll walk you through the handpicked policy options and explain the details.
Most importantly, they’ll be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.
The Lowdown on Online Quotes
Online quotes can be tempting. They are fast and easy to get — but are they accurate? And are you getting quotes for the right coverage? For business owners, choosing speed over accuracy can cost you.
Online quotes can’t and don’t see the whole picture. They can omit important coverage that will leave you devastated if something unexpected happens. And they can leave out cost-saving opportunities that an agent can help you take advantage of.
Instead of getting an online quote, find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs.
TrustedChoice.com Article | Reviewed by Paul Martin
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