Summary: Being a handyman may sound like an easy job or a hobby for some people, but the truth is that being a handyman is a very complete job due to the variety of work that is performed, which means that it represents a higher liability that needs to be covered by a handyman insurance.

A “handyman” or “handyperson” specialize in fixing the things you don’t have time to do, or you don’t know how to do (or you don’t want to do).  They are unlicensed contractors who offer home maintenance, small home repairs, and simple installation services.  They may do minor carpentry, plumbing, electrical work, painting, fixing leaky toilets or changing light fixtures, but nothing requiring a license or permit. These jobs include trade skills, repair work, maintenance work and are sometimes described as “odd jobs” or “fixer-uppers.”   Specialties such as roofing or air conditioning installation do not fall into the job description of a handyman.

Although it sounds like an informal profession — or even a hobby to some — handymen (and handywomen) can make good money by working small repair jobs on houses, apartments, and commercial buildings.  After all, not everyone wants to hire a general contractor for just repairing a leaky toilet or installing a light fixture.  There are tons of home improvement jobs that can seem too small for contractors but also overwhelming for homeowners.   The handyman fills this slot. Even if you are not fully licensed, you can face the same liabilities as one that is fully licensed.  It is essential to be aware of what possible trouble handyman work can bring and how handyman business insurance can protect you. If you are helping out friends and family with small home improvement projects, you usually do not stop to think about liability.  And for the most part, you are probably right.  Good friends are unlikely to sue friends (especially, if you are doing them a favor). Even though, the tasks that a handyman can perform differ from individual-to-individual, in general, a handyman can complete the following tasks:

•    Painting, staining, and drywall (wall hole repairs)
•    Multiple small projects like window repair and how to install a fence
•    Carpentry
•    Electrical
•    Gutters
•    Small plumbing jobs and sprinklers

These are only some of the necessary know-how that a good handyman needs to know. But, there are some risks if you are being paid for your work as a handyman.   If there is a problem and you are not insured, you might end up owing a whole lot of money, and, without insurance, those expenses would come from your pocket, or worst, you may be sued.   The risk when working in other people’s homes leaves a handyman exposed to lawsuits and claims.

As you are offering your handyman services, you should be concerned about the safety and protection of your clients’ property, health, and pets.  If anything goes wrong and you damage the property you are working on, or someone gets injured, you need to be protected.

That is why (1) General Liability Insurance and (2) Commercial Auto Insurance are part of a handyman’s insurance package.   Although it is not required for a handyman a to have general liability insurance policy, it could be financially devastating.

One of the most important coverages a handyman should have is:

(1)    General Liability.   That will cover things like property damage, settlements, legal fees, judgments, damage to property, and medical expenses.  It is just a way to limit risks in case you damage a customer’s home.
Handyman liability insurance must have the rear coverage: ♣    $1,000,000 liability coverage per claim♣    $2,000,000 per year aggregate ♣    $1,000 deductible

(2)   Commercial Auto.  Most commercial vehicle insurance policies cover bodily injury and property damage liability. If you purchase collision and comprehensive coverage, then your vehicle is protected regardless of whose “fault” the accident is. Some policies also cover theft and damage to the car from vandalism, acts of nature, and related occurrences. There are additional types of Insurance you might need as your small business expands: Workers’ Compensation insurance – Cover medical costs, lost wages and other expenses for employees who suffer an injury or illness because of their work. Inland Marine – Your tools and equipment are valuable to you. Your Inland Marine policy will cover them if they are lost, stolen or damaged. Umbrella – After you exhaust your other policies, use your umbrella policy to cover any remaining liability up to the policy’s limit.

How much will a Handyman Insurance Cost? When considering the cost of handyman insurance, you may automatically go with the cheapest option available. However, one accident could financially damage your pocket if you don’t have the right general liability coverage.  It could end up costing you a lot more money than the small premium which the insurance policy would.

The price you pay for handyman insurance depends on several factors.

•    Type of work you do – Certain jobs include more significant liabilities.  For instance, your risk increases when you remodel entire homes rather than single rooms or if you take on dangerous assignments.
•    Contract requirements – You may need to purchase additional insurance if your job contract requires it.
•    Company size – Ensure your employees with Workers’ Compensation, a policy you don’t need if you have no employees.
•    Specific needs – The value of your equipment and inventory and other applicable business details affect the type and amount of insurance you need to purchase. To save some money, you can bundle several types of coverage in a Business Owner’s Policy. Business Owner’s Policy. It is a particular type of commercial insurance designed for small to medium-sized business.  Business Owner’s Policy offers a reduced premium, making them a more cost-effective option than purchasing separate policies. Your insurance agent can help you purchase the right insurance according to your needs.  Review your policy regularly to ensure you remain covered as your business changes.

Bottom Line: It is essential to have enough insurance coverage for your handyman business so that you are not crippled by one mistake on the job. Handyman insurance is there to take control of claims and accusations against you so that you can continue doing your job. Make sure you have the right coverage to protect yourself from accidents on the job.  The best alternative to find the right coverage for you is to talk to your insurance agent, it might take more than 15 minutes, but you can be sure that it will be done right!

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