Handyman Insurance refers to the liability and property coverage that a tradesperson, often unlicensed must have. At the very least, it relates to general liability insurance coverage, workers’ compensation, and equipment coverage that all handyman business owners should maintain for their business.
However, the type of work that the handyman performs on the job site will determine what types and amounts of insurance they will need in the end. Overall, the kind of work that handyman businesses do perform is generally at a higher risk class than other types of jobs already. That’s why finding the right type of insurance coverage for handymen can be complicated.
Common Types of Handyman Insurance
Since there are no real requirements set by the government for what insurance a handyman has, it’s up to the business owner to consider their risks and what they need. Recommended handyman insurance coverages are general liability insurance, workers’ compensation, commercial auto insurance, equipment protection, builder’s risk or inland marine, and finally liability insurance.
General Liability Insurance Coverage
When working, the safety of your client’s property, health, and pets should be a top concern. If anything goes wrong and you cause property damage or worse, you want to be sure you’ll be protected. General liability insurance will generally cover damage to the home or job sites you work on, work completed by subcontractors, incomplete work, medical payments from accidents, and advertising injury.
Workers’ Compensation Insurance
This type of insurance coverage is for covering the medical bills of employees of your company should they have an accident on the work site. Workers’ Compensation should generally cover your small business when there is hospital visits, prescriptions, special treatment, or rehab to help the employee that is hurt.
Work vehicles need to be protected from damage, theft, and accidents when going around town and to jobs. If you are a single person team, then you might not need a business owner’s policy but rather a personal insurance policy with “for business pursuits” marked. However, bigger companies will need an insurance quote to see what they can afford when covering a fleet of trucks.
Just as your car and the job site need to be protected, so does the equipment going around. If you have $20,000 worth of tools on your hands and they get stolen by someone, you need to be able to get them, or their money, back. Normal wear and tear will be excluded from this policy; however, be sure you know what your tools are work so you can get the right coverage.
This form of inland marine insurance will cover the equipment and materials that are being transported or stored from theft, vandalism, and weather loss. Without builder’s risk, you will have to pay for the new materials and tools yourself. To best use this, most small businesses will get supplies as needed for the job rather than bulk for the future.
Umbrella Liability Insurance
This type of handyman liability insurance will extend coverage that your general liability policies will cover by another million dollars per claim. At this size, umbrella insurance is generally for the bigger players rather than small businesses.