Insurance coverage is necessary for virtually every type of business, including handyman businesses. In fact, handymen have a higher than average need for insurance: they are regularly in homes or businesses, have regular contact with the public, and any mistakes they make can cause incredible problems for the customer down the road.
What Type Of Insurance Handymen Need
The typical insurance policy package for handymen includes a few specific coverage options to ensure that you are fully protected. Some of the essentials you are likely to see include:
- General Liability
- Tools Coverage
- Auto Insurance
These are the most important types of insurance for a handyman to have, but other insurance coverage options may also be helpful. These depend on what type of work you tend to do. Building insurance and cyber liability are the most common add-on insurance policies.
Handyman Liability Insurance
As a handyman, general liability is probably the most critical type of coverage to have. This coverage is designed to protect your small business from events such as damage to your customers property, injuries to your customers due to your job, or customers being injured at your place of business. So if you accidentally damage your customer's home, or a customer gets hurt because of piece of your equipment in the home, general liability might help to pay for medical bills or additional repairs.
General liability also protects you against legal fees. Remember that if your business is sued, even if the suit is baseless, you’ll need to pay for a lawyer to defend yourself. This can help if your company is sued to do an advertising statement, for example. Your general liability insurance may also help pay for damage to any office space you rent.
Handyman Tools Coverage
You can’t do work as a handyman without your tools. If they break, are lost, or are stolen, you will be unable to work until they are replaced. High quality tools are also expensive. Items like generators and forklifts, for example, are particularly expensive – which makes them targets of thieves.
Tools can also be damaged, which can also halt your work until they are repaired. Some policies may have Tools coverage that can help you repair or replace your tools, letting you get back to work as quickly as possible. This can keep your business solvent, since you won’t have big delays on finishing projects, or big gaps in income.
Handyman Auto Insurance
Most handymen spend a good chunk of their time on the road, driving from one worksite to another. Your personal auto insurance policy, however, probably wonтАЩt cover an accident that occurs when you are using your vehicle for business purposes. This is why you need to include commercial auto insurance in your handyman policy. Then, you will be protected against vehicle or medical damaged caused during a car accident while you’re driving for business.
When you are looking for work as a handyman, many customers will ask if you have a surety bond. While these bonds are not strictly necessary for all work, they can help you get the best jobs; many businesses will require you to have one before you can work with them.
A surety bond guarantees your customers that you will complete the services for which they are paying; no one wants to end up with a half-finished renovation or repair in their home. Handyman insurance makes it easy to get surety bonds as part of your insurance package. These are a few of the surety bonds that may help you get the best customers possible:
- Handyman Contractor’s License Bond
- Contract Bond
- Performance Bond
- Janitorial Bond
- Dishonesty Bond
- Bid Bond
Handyman Insurance FAQ
We’re big believers in keeping things simple, so ask us anything and we’ll answer honestly and without the jargon.
How To Get Handyman Insurance
For many of our customers, they know they need insurance, but aren’t sure how to get it. Our goal is to make it simple for you to get the insurance you need to run a safe and solid business. Contact us with your business information to get an accurate price. We are happy to help you find the right policies to protect your business.
How Much Is Handyman Insurance ?
Handyman insurance policy prices vary depending on where you live and what coverage you need. Your business’s history of work may also affect the prices. As you’re building a business plan, you can start with these numbers for budgeting purposes:
- General Liability Insurance for a handyman could start from around $500 per year.
- Tools coverage for a handyman starts at $200 per year to cover $10,000 of tools.
- Auto Liability Insurance for a handyman could start from about $900 per year for a pickup truck.
Since the actual cost of insurance for handyman businesses varies so much, the best way to determine your cost is to call us and get a direct quote.
Why Do Handymen Need Insurance?
Handymen need insurance for various reasons, both to protect themselves and their clients. Here are some key reasons why insurance is necessary:
Protection Against Liability: One of the greatest dangers faced by any professional working on someone else's property is the risk of causing damage or harm, which general liability insurance can cover in case an incident does arise as a result of their work.
Professional Credibility: Being insured gives clients peace of mind when something unexpected goes wrong - making a handyman more attractive to potential clients and distinguishing themselves from competitors who don't provide coverage.
Insurance Coverage for Equipment: Handymen utilize various tools and equipment, which could become very costly to replace in case of loss, theft, or damage. Insurance can help them protect against this possible loss by providing protection from loss, theft or damage coverage on these assets that would otherwise become costly replacement options.
Vehicle Protection: Handymen using their vehicle for business purposes such as transporting tools and materials should consider purchasing commercial auto insurance to safeguard against accidents or damages that might arise while using it for their trade.
Injury to Self: Should a handyman become injured on the job, they could find themselves out for extended periods. Workers' compensation insurance provides financial support in such instances.
Contractual Requirements: Some clients or employers might require handymen working on larger contracts or commercial jobs to have certain forms of insurance as a condition for working. This is increasingly prevalent today.
Legal Defense: Even when handymen perform services with integrity, they could still face being sued. Insurance policies can cover legal fees associated with defending against such claims.
Peace of Mind: Being secure allows handymen to focus their work without continually worrying about potential financial risks.
Business Stability: Without insurance, in the event of a major claim or lawsuit, handymen would need to cover its costs out-of-pocket - potentially jeopardizing both their livelihood and existence as businesses.
With so many tasks a handyman is exposed to, risks are numerous and insurance can help mitigate them and ensure both them and their clients are secure.