Handyman Insurance: What You Need To Carry

If you're a handyman, you'll likely need insurance to protect yourself and your clients in case anything goes wrong during a job. The most common type of insurance for handymen is general liability insurance, which covers third-party bodily injury, property damage, and personal and advertising injury claims. This type of insurance can protect you from financial loss if you accidentally damage a client's property or if a client is injured due to your actions. For example, if you leave your toolbelt on the floor and a client's toddler trips and falls, breaking a tooth, your insurance can cover their medical costs.

Other types of insurance that handymen may want to consider include commercial auto insurance, commercial property insurance, workers' compensation insurance, and tool insurance. The cost of handyman insurance varies depending on factors such as the types of projects you work on, your location, and the vehicles you use. It's important to shop around and compare quotes from multiple providers to find the best coverage for your needs.

General liability insurance

The cost of general liability insurance for handymen varies depending on factors such as the business's location, the number of employees, the coverage limits, and the size of the business. On average, handymen pay around $67 to $99 per month for this type of insurance. It is worth noting that general liability insurance might be required for a handyman license in certain states, and clients often ask for proof of such coverage.

Commercial auto insurance

The cost of commercial auto insurance for handymen varies depending on several factors, including the coverage options chosen, the value of the vehicle, and the business's location and number of employees. On average, businesses providing handyman services pay around $185 per month or $2,224 per year for this type of insurance. However, prices can range from $150 to over $200 per month for handymen.

When purchasing commercial auto insurance, it is essential to ensure that the coverage limits match the requirements in your state. This type of insurance can provide peace of mind and protect you from financial liabilities in the event of an accident.

Workers' compensation insurance

For self-employed handymen with no employees, workers' compensation insurance is typically optional. However, some handymen may still opt for this coverage to protect themselves financially in the event of an injury that prevents them from working temporarily.

• Employee Medical Costs: This insurance covers the medical expenses of employees who are injured while working. It ensures that employees can receive the necessary treatment and care without the business owner having to worry about the financial burden.
• Lost Wages: In the event that an employee is unable to work due to a job-related injury or illness, workers' compensation insurance provides wage replacement. This helps the employee maintain their financial stability during their recovery.
• Lawsuit Protection: Workers' compensation insurance also protects the handyman business owner from potential lawsuits filed by injured employees. It helps shield the business from legal complications and financial liabilities that could arise from workplace injuries.
• Peace of Mind: Having workers' compensation insurance provides peace of mind for both the business owner and the employees. Employees know that they will be taken care of in case of an injury, and the business owner can focus on running the business without the added worry of unexpected medical costs or lawsuits.
• Compliance with Legal Requirements: In most states, workers' compensation insurance is mandated by law for businesses with employees. By having this insurance, handyman businesses ensure they are complying with legal requirements, avoiding potential fines or penalties for non-compliance.

Tools and equipment insurance

General liability insurance does not cover tools and equipment, and neither does commercial auto or property insurance. Therefore, if you have valuable tools and equipment, it is worth considering tools and equipment insurance to protect your assets. The cost of this insurance ranges from $12 to $45 per month, depending on the value of the items being insured.

In addition to tools and equipment insurance, there are several other types of insurance that handymen may want to consider, including:

• Commercial auto insurance: This covers vehicles used for business purposes and can include coverage for accidents, theft, and vandalism.
• Commercial property insurance: This covers damage to the physical location of your business and business equipment due to fire, accidents, or natural disasters.
• Workers' compensation insurance: This covers medical expenses and lost wages for employees who are injured or become ill while on the job.
• Professional liability insurance: This covers legal fees if a handyman is sued for negligence or failure to complete a project.

Professional liability insurance

This type of insurance covers financial losses resulting from the provision of professional services, whether through action or inaction. For example, if a handyman provides incorrect advice or makes a mistake while performing a service, professional liability insurance can protect them from financial liability.

The cost of professional liability insurance for handymen will depend on various factors, including the scope of coverage, the size of the business, and the location. It is important to note that professional liability insurance does not cover damage to the handyman's equipment or property; separate insurance policies are required for those instances.

While professional liability insurance is not mandatory for handymen in most cases, it can provide valuable protection against financial loss. It is worth considering for handymen who offer specialised services or manage a team of subcontractors, as it can provide peace of mind and demonstrate professionalism to clients.

Frequently asked questions