What is handyman insurance?
Handyman insurance is a type of business insurance that protects against the risks associated with being a handyman.
It can protect your business from financial losses that arise from claims of bodily injury, property damage, and lawsuits. This type of insurance typically includes general liability insurance, as well as additional types of coverage depending on the specifics of the job.
Who needs handyman insurance?
All professional handymen should carry some form of insurance to protect their financial interests.
You need it so you don’t have to pay out of pocket for work-related accidents like property damage or bodily injury.
The following professions can benefit from having this type of coverage: painters, plumbers, electricians, carpenters, mechanics, furniture assemblers, and anyone else who delivers professional home improvement services.
Is handyman insurance required to operate a business?
Handyman insurance requirements vary by state. Some states do not require coverage for handymen that charge less than a certain amount. For example, handymen in California are not required to carry insurance — though they are strongly encouraged to do so. That said, if you have employees, all states but Texas require you to carry workers’ compensation. Furthermore, you’re only permitted to charge up to $500 per project before being required to get licensed as a general contractor.
Even if handyman insurance isn’t legally required in your state, having it can still make it easier to get jobs. Homeowners are often more willing to hire a handyman who carries general liability insurance at a minimum because it can also protect them from financial losses in case of an accident.
If you need help knowing what type of coverage you need, an insurance professional can help you understand your options and obligations.
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What does handyman insurance cover?
Handyman business insurance can be customized to meet the unique needs of your business.
There are several types of coverage, each of which protects your business from different types of risks. By combining different policies, you can cover a wide range of financial risks.
Here are some of the most common coverages included in handyman insurance policies:
Bodily injury
Handyman insurance almost always includes coverage for costs related to third-party bodily injury. If a customer or member of the public gets injured due to your work, handyman insurance can cover the costs of medical bills. It can also cover legal expenses in case you’re sued.
Property damage
Handyman insurance often protects against unforeseen property damage that could occur as a result of your work. This type of insurance will cover the costs of repairing or replacing damaged property.
For example, if you’re repairing a client’s door and accidentally damage the door frame, handyman insurance can help cover the cost of replacing it.
Personal and advertising injury
Handyman insurance can also protect your business from personal and advertising injuries, such as libel, slander, and copyright infringement. With this protection in place, your business can cover defense costs for legal representation to defend you in court in case of a lawsuit.
For example, if you’re sued for using copyrighted images on your website without permission, handyman insurance could cover the cost of defending against the claim, as well as cover any damages that you’re ordered to pay.
Damage to premises rented to you
Perhaps you rent an office to carry out your work. If something damages this rented property, handyman insurance can help cover it. For example, if you’re moving a piece of heavy equipment and it scratches or dents the floor, handyman insurance can help with the repair costs.
Medical payments
If a customer or member of the public is hurt on the worksite and needs medical care, handyman insurance can pay for the medical bills. It can cover the costs of treatments like hospitalization, medication, surgery, and rehabilitation.
This type of coverage typically only applies to third-party claims. If you or an employee get injured on the job, you’ll likely need to have workers’ compensation to cover this type of claim.
What type of insurance do you need for a handyman business?
Handyman insurance is often a combination of coverages that protect you against a wide range of claims.
These are the most common types of insurance coverage included in a handyman insurance policy:
General liability
Handyman general liability insurance typically protects your business from claims of property damage, bodily injury, and personal or advertising injury. Should a third party sue you or your business for any of these matters, this type of coverage will often cover legal fees, court costs, and settlement fees up to the policy limit.
For example, if your client trips over a cord and gets injured, general liability insurance can help with their medical bills. If they sue you, it can also cover your legal fees.
Workers’ compensation
Workers’ compensation insurance provides financial protection if employees get injured or sick while working. This type of policy covers medical bills, lost wages, and sometimes even funeral expenses related to job-related injuries or illnesses. Workers’ comp can also protect employers from lawsuits by providing specific benefits exclusively to employees. Coverage is required for all businesses with employees in all states but Texas.
Commercial auto
Commercial auto insurance covers vehicles that are used for business purposes. If you’re transporting materials and accidentally rear-end another card, commercial auto insurance would help to cover any damages to the vehicle and third-party injuries. Depending on the policy, it may also include coverage for items damaged inside the vehicle.
Inland marine insurance
Inland marine insurance covers damage to items, such as tools and equipment, that are in transit or stored in a temporary offsite location. Since handymen often transport equipment between job sites, this type of coverage can be critical for protecting property when it’s not at its primary place of business.
Commercial property
Commercial property insurance, also called business property insurance, provides protection for your business’s physical assets, such as inventory and equipment. It covers the financial losses if your property is damaged due to fire, theft, natural disasters, and other hazards.
Let’s say a fire breaks out in your work shed, and this damages your tools and equipment. Commercial property insurance would cover the cost of repairing or replacing the damaged property, including the tools, equipment, and shed.
How much does handyman insurance cost?
Handyman insurance typically costs $500 to $2,000 per year, depending on the amount and type of coverage you choose, your location, and the specifics of your business.
While it can be expensive, this type of insurance provides critical protection that you may not be able to cover on your own. It’s best to get an insurance quote from multiple providers and compare costs to find the one that best suits your needs and budget.
How much is handyman insurance in California?
Handyman insurance in California can start as low as $13 per month for basic coverage. However, most handymen pay around $100 per month for coverage. The cost of insurance in California depends on the amount and type of coverage you need, the type of work you perform, your annual revenue, your claims history, and other factors.
