As a handyman, you provide a wide range of services to your customers – but working with sharp tools and dangerous machinery puts you at a high risk for injuries and property damage. That’s why it’s crucial to have the right insurance policy that can protect your business and help you recover from unexpected losses. Fortunately, you can learn everything you need to know about the many varieties of handyman insurance with a quick search online right now.
Shutterstock: Ground PictureHandyman Insurance Types
Here are some of the most common coverages available for handymen businesses:
General Liability Insurance
General liability insurance is one of the most important types of coverage for handymen businesses. 1 This policy helps cover medical expenses and property damage in the event that a customer sustains injuries or if any of your materials or tools are damaged in the course of performing a job. For example, if you accidentally break a window while installing a deck, your general liability insurance will cover the cost of repairing or replacing the window.
Tools and Equipment Insurance
Handymen rely on their tools and equipment to get the job done. Tools and equipment insurance provides protection for any lost, damaged, or stolen tools or equipment while you are on the job. This coverage is essential for handymen who own expensive equipment and cannot afford to replace it out of pocket.
Commercial Automobile Insurance
If you use your personal vehicle for business purposes, you need to consider purchasing commercial automobile insurance. This policy covers any accidents or property damage you may cause while on the job. Commercial automobile insurance can also cover any damage to your vehicle that occurs during work-related activities.
Business Owner’s Policy
A business owner’s policy (BOP) is a comprehensive insurance policy that provides liability, property, and casualty protection for your business. This policy combines general liability and property insurance into one convenient package, making it easier to manage your coverage and save money on premiums.
Workers’ Compensation Insurance
Workers’ compensation insurance is mandatory in many states and provides protection for employees who are injured on the job. This policy helps pay for medical expenses, lost wages, and death benefits. Workers’ compensation insurance is crucial for handymen who have employees, as it can help protect their workers and their business from costly lawsuits.
How to Choose the Right Policy
When choosing an insurance policy for your handyman business, it’s essential to consider the types of services you offer, the locations you work in, and the number of employees you have. You should also evaluate the property and liability risks associated with each job. This will help you understand your risks and match your needs with the right insurance policy. Additionally, you should compare multiple insurers and policies to get the best coverage for your needs. 2
Assess Your Services
As a handyman, you offer a wide range of services, from painting to electrical work. It’s important to consider the types of services you offer when choosing an insurance policy. For example, if you specialize in electrical work, you may need more coverage than someone who only does minor repairs.
Evaluate Your Risks
Every job comes with its own set of risks. Before choosing an insurance policy, evaluate the risks associated with each job. This will help you determine the types of coverage you need and the amount of coverage required.
Compare Insurers and Policies
Look for insurers that specialize in providing insurance to handymen and have a good reputation in the industry. You should also compare different policies and their coverage limits, deductibles, and premiums. Remember that the cheapest policy may not always be the best option, as it may have limited coverage or higher deductibles.
Understand Deductibles and Coverage Gaps
A deductible is the amount of money you need to pay out of pocket before your insurance coverage kicks in. Higher deductibles typically result in lower premiums, but you’ll need to pay more out of pocket if you need to file a claim. You should also be aware of any coverage gaps in your policy, which are areas where your coverage is limited or doesn’t apply.
Protect Your Business
Handymen provide valuable services to their customers, but their work also comes with risks. That’s why it’s essential to have the right insurance policy in place to protect your business and your employees. 3
By understanding your risks and evaluating the different types of coverage available, you can choose the right insurance policy for your handyman business. Remember to compare multiple insurers and policies, and don’t hesitate to seek the advice of an insurance professional if you have any questions.
