Whether an individual or corporation, handyman insurance is a way to add a financial safety net in the event that something happens at a job site or during hours of operation and be spared a sometimes crippling payout to the affected parties. We’ve evaluated the best business insurance providers based on coverage, financial stability, customer satisfaction, and overall quality.
Coverwallet began its journey in New York City in 2015 operating under the
Aon Insurance banner. At Coverwallet, you can access everything you need to
keep your company well-protected at an unbeatable price.
With a 100-year history of insuring businesses, Hiscox is well-known across
America and globally. With more than 500,000 small business customers,
Hiscox is fully aware and trained in the unique risks a business can face.
Thimble provides business insurance that can be tailored to your business by
the year, month, day, or even the job. At Thimble, the process to getting
the right business insurance is simple, scalable, and flexible.
Handyman insurance is also known as general liability insurance that covers bodily injury, property damage, or personal injury claims that may arise from day to day operations of a handyman’s business.
Who needs handyman insurance?
Even though handyman projects tend to be smaller and have less of a chance of large amounts of damage, a single lawsuit can put a handyman in financial distress with court fees, and residual effects of the claim. Any handyman actively working on projects should consider insurance.
What insurance do handymen need?
You have a variety of options to choose from with regards to how many layers of protection you want from claims that may arise. Even if you work on small projects, having that financial buffer can give a peace of mind when working on projects. Here are the common types of insurance offered to handymen:
General liability insurance
A broad insurance policy that covers any third party claims that fall under the following categories:
Bodily injury: A third party is injured as a result of your negligence or the negligence of your workers. For example, you finished working for the day and left materials outside of the work area in the hallway. The homeowner goes to get some water in the kitchen at night and trips on the equipment, breaking their collarbone. A claim is filed against you for bodily injury.
Property damage: Damage to the property of a third party is caused by you or your employee. For example, leaving a project site for lunch, your employee puts their vehicle in reverse instead of drive, and reverses through the homeowner’s garage door. The homeowner files a claim against you for property damage.
Personal injury: A third party suffers harm other than bodily injury due to you or your employee. For example, your employee talks with the homeowner and tells them their other subcontractor is doing a bad job and the homeowner fires the subcontractor. The subcontractor files a claim against your business for personal injury.
Commercial auto insurance
If you use vehicles to transport equipment, materials, and tools to and from the workplace, or simply to travel for business operations. Here is a general list of vehicles covered by a commercial auto policy:
Light vehicles: Sedans, small trucks, vans, SUVs, and other smaller vehicles.
Heavy vehicles: Equipment trucks, dump trucks, etc.
Trailers: Utility trailers, container trailers, etc.
Commercial property insurance
This type of insurance can protect your business’s headquarters, assets, equipment, and other valuable items from weather conditions, theft, vandalism, and more depending on the details of your policy.
Workers compensation insurance
This type of insurance protects the owners and the business from claims arising from injuries in the workplace. It also helps the injured party recover, rehabilitate, and still earn a portion of their lost wages while on medical leave.
Commercial umbrella insurance
An add on policy to an existing general liability policy. Commercial umbrella policies are purchased if a business owner thinks that the risk of claims will surpass the current general liability policy.
Contractors tool insurance
This insurance covers tools, products, equipment, and materials when being transported or stored temporarily at a third party location such as a jobsite.
Professional liability insurance
If a project is carried out poorly and the defect causes bodily injury or property damage, the normal general liability policy will usually not cover the costs. For these occurrences, you will need professional liability insurance.
What are the limits of handyman insurance?
A typical limit for handyman insurance is a $1M per occurrence and $2M in aggregate. The higher limit policies are typically $2M per occurrence and $4M in aggregate.
How much does handyman insurance cost?
Handyman insurance premiums are affected by several factors. The most common factors that can affect the cost insurance:
Policy limits: A higher limit means the insurance provider is taking a higher risk by insuring you. The premium will be higher to compensate for the risk.
Business risks: Are you a handyman operating without a license? Are you just starting out and do not have a track record of successful projects without incident? These are all risks that the insurance provider will look at and assess whether to raise the base premium to insure you.
Location: If you operate within areas that have higher crime rates or older buildings, it will increase the risk that something will happen, whether it be theft, an accident, etc. A safer area of operation will have a lower premium.
Number of employees: With more employees out in the field on projects, the likelihood of accidents happening increases, so companies with more employees pay higher premiums.
Handyman general liability insurance can cost between $360-$1,000 annually (depending on the above variables).
How to choose the best handyman insurance
With a wide variety of projects, handymen need to prepare for the worst case scenario and decide what the best plan and coverage will be for their needs. Here are some things to look for when selecting the best policy for your business:
Responsiveness: How fast does the company respond to you overall? This can be customer service, claim resolution, claim representative, adjuster, etc.
Contract coverage: Does the policy you are quoted for cover all of the standard and common insurance requirements for your business?
Professionalism: Does the insurance company have knowledgeable agents who are able to answer your questions in an informative and professional manner? Do their answers address your concerns and satisfy your questions?
Customizability: Is the provider able to tailor an insurance policy to your specific needs and to the risks in your field?
Payment flexibility: What forms of payment does the insurance company accept? How flexible are they with payments?
Geographical coverage: Does the insurance company provide coverage in your area?
