The demand for your handyman services won’t be diminishing any time soon. With disruptions to the building industry, many new projects are temporarily on hold. Others may have been cancelled. As a result, many property owners are repairing rather than building.

But the busier you get, the more likely you are to face property damage or liability claim.

To tell the truth, the handyman business sector was thriving even before the coronavirus. Pegged at $126 billion, it employs nearly 20,000 people across the US. The industry comprises both large national franchisees and small businesses operating locally.

Can you do the job?

There is another source of opportunities for the handyman business. We have an increasingly aging population in the US. They find it difficult to maintain their homes. You’re the one they’ll call when there are minor repairs, replacements or installations for their home.

However, as with all businesses, there are a number of risks involved. It’s important to analyse these. This is the first step to protecting yourself against a property damage claim or a liability claim.

Is a handyman a contractor?

Yes, a handyman is a contractor. What does this mean for you?

Even though you are a contractor, no license or permit is required for handymen in most states. However, if the job exceeds a certain monetary value or it is part of a larger project, the handyman may be considered to be a contractor. In this case, licenses may be required.  Above all, if you want to stay in business, local regulations should always be taken into account.

If your state requires you to have a Handyman License, you will most likely also be required to have liability insurance. Many apartments, condos and banks or government institutions require proof of insurance. Of course, this makes sense. They must protect themselves from financial loss should something go wrong as a result of your work. On the other hand, so should you.

You must be prepared to protect yourself and your business from liability claims.

Every business needs protection. Even your handyman business 

General Liability Insurance is essential whether you operate a small business or manage a large franchise. Accidents happen no matter how large your workforce. Of course, your coverage limits, exclusions and rate will differ depending on the size of the business. Another factor is the value of your projects.

Here’s a list of some of the coverage you get with this policy. You get protection for financial loss that may arise from:

  • property damage,
  • settlements,
  • legal fees,
  • certain medical expenses.
  • bodily injury,
  • libel or slander.

But, it won’t happen to me!

  • You may accidentally damage a client’s property. That’s a third-party property damage claim right there. This is a scenario for your General Liability insurance.
  • You may have vehicles to transport yourself and your employees. Don’t make the mistake of thinking your personal insurance gives coverage for this. You will need to invest in commercial auto insurance.
  • Auto accidents can prove to be expensive. Not only is your vehicle damaged, it can upset your schedule and cause delays.  Do you have business interruption insurance? Be aware that this is not typically covered by General Liability insurance.

So what is the point of handyman Insurance?

Many handyman business owners think that insurance is a waste of money. You have many business priorities. Insurance isn’t one of them. Sadly, this attitude could result in an even bigger waste of money. In fact, liability claims can stretch into the millions. Could your business survive one?

Never settle for less

The job of insurance is to pass the financial risk onto another party. In your case, you can protect your company from the risk of property damage liability claims. Your handyman business insurance will pass this risk onto your insurer.

But, don’t settle for the first insurance you find. Consult with a small business insurance specialist. We can help. Farmer Brown has been providing sound advice and affordable policies for over 20 years. Give us a call at (888) 973-0016.

Written by: John Brown
John has more than 25 years of experience in the insurance industry. He grew from a star insurance producer to owning one of the largest agencies in the country; he's a reference regarding contractor's insurance, commercial insurance, and builders' risk insurance.