According to statistics, the handyman industry has been experiencing steady growth over the last few years.

This is good news for aspiring handymen looking to get into the market.  Getting your business up and running should be relatively straightforward in this favorable period. So, you are poised for success if you are reliable, have a head for running a business, and have skill at what you do.

However, before you take your first client, there is one very important thing you need to do. That is purchase handyman liability insurance.

If you start taking on jobs without coverage, you could open yourself up to disaster. Repair and maintenance jobs can come with a high level of liability. Ignore this and you could find yourself in some deep water.

Therefore, for the sake of safely doing business, let’s take a look at why its so essential to have general handyman liability insurance.


A Lack of Insurance Could Cause You to Lose Your Business

One of the biggest reasons to take out handyman liability insurance is that it has the potential to save your business.

Whenever you are doing work on someone else’s property, there is a risk that you might inadvertently damage their property or cause injury. This is especially true when it comes to repair and maintenance jobs.

For instance, say you are fixing an old plug. The previous electrician, unfortunately, made an error in the circuit wiring, and because of this, your work triggers an electrical fire.

Unless you have the funds stashed away to completely rebuild the client’s house, you might be in serious financial trouble if they lay a claim on you.

There are so many instances like this that can happen.

You might accidentally break a valuable ornament. A ladder might fall against an expensive painting. A child might trip on one of your power cables and require dental work.

Depending on the nature of the accident, you could be found liable for millions of dollars. This kind of money is enough to sink even the most successful of businesses. If you are unfortunate enough to face a claim like this, it could cause you to go bankrupt.

On the other hand, if you have handyman liability insurance, coverage is provided for these types of accidents.


Accidents Can Happen

Accidents can happen to the best contractors. Even on the smallest of jobs. It can be tempting to think “nothing will happen to me, why do I need liability coverage?” Especially if you are highly-skilled, meticulous, or only work on small jobs

Unfortunately, accidents can happen to anyone. No matter how carefully you work, and how small the job, there is always the possibility of accidents.

Say you are called in to replace something as minor as a light bulb. While you are unscrewing the light cover, your client’s dog runs into the room, knocking against your ladder. As you rebalance yourself, you drop the screwdriver and it drives a chip into your client’s Italian marble floors.

Considering that marble tile floors can cost anywhere up to $30-$50 per square foot, this just shows that even the simplest of job could trigger a sizeable liability.


You Might Need Liability Insurance to Get Licensed

Depending on your state’s requirements, you might also need to hold some form of general handyman liability insurance in order to get licensed.

If this is the case, then you will need to submit your proof of insurance to your state’s licensing department when applying for a license.


Handyman Liability Insurance Can Help You Replace Tools and Equipment

Did you know that certain types of general handyman liability insurance can cover tool and equipment replacement?

Tools and equipment are one of the biggest investments that handymen have to make. Replacement is sometimes untimely and costly. Depending on the exact coverage package you take out, you might find that your tools are covered against breakages, theft, and/or failure.


Having Handyman Liability Insurance Instills Customer Confidence

Another top reason to get handyman liability insurance is that it instills confidence in your customers.

No homeowner wants to run the risk of having to pay for property damage they didn’t cause. Instead, they want to know that should there be any problems, your insurance will take care of it right away.

If you hold general liability insurance, this puts customers at ease and lets them know that you operate on a professional level.

What’s more, it also helps you stand out from the crowd. Although liability coverage is required by most states, nearly 44% of small businesses don’t have any form of insurance.

If you do things by the book and take out insurance, your handyman business will stand out as one which is both law-abiding and considerate of its customers.

Unfortunately, many homeowners have been the victims of costly run-ins with contractors. This means that a lot of potential clients are on the lookout for a handyman who comes with a risk-free guarantee.

Besides instilling customer confidence, having handyman liability insurance may also enable you to expand your target customer base. The reason for this is that many apartment complexes and bank-owned properties usually require proof of insurance from any potential contractors.


Do You Need Handyman Liability Insurance?

As you can see, if you are yet to get coverage, taking out handyman liability insurance is essential. Not only does it protect you from unforeseen liability expenses, but it also helps to attract new clients and broaden your customer base.

However, before you hurry to take out general handyman liability insurance—you should also make sure that you find the best deal. Take note that by best deal, we don’t mean the cheapest. Rather, a liability insurance package that gives you the most coverage for the lowest premiums.

Want to know where the best place to find one of these is? Right here with us.

This is because Farmer Brown routinely saves businesses money on their insurance premiums.

What’s more, besides being low cost, our liability coverage solutions are also fast. Meaning you can be covered and ready to operate within a minimum amount of time

If you need to get the best liability coverage for the best price, be sure to fill out our application form for a free quote today.

John Brown President Farmer Brown Insurance (888) 973 0016

John Brown – President

Have any questions? You can contact us here, or call us anytime on (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.