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Handyman Insurance Explained in Simple Terms

Getting the right insurance is very important if you are a small business owner or work as a handyman. When you work as a handyman you need insurance to protect your money in case of an accident, damage to property or claims related to your job. There are different types of handyman insurance, how much they cost and how to choose the best policy for your needs. This guide breaks it all down in simple terms.

What Is Handyman Insurance?

Handyman insurance is a special kind of business insurance that protects people who work as handymen or in property maintenance from risks. Additionally, it generally comes with general liability insurance, which covers harm to other people and loss to their property. It could also cover tools and equipment, workers’ compensation, and commercial cars, depending on what your business needs.

Why Do You Need Handyman Insurance?

Working without proper protection might result in significant financial loss. Suppose a client sustains an injury because they tripped over your equipment or because you inadvertently damaged their property. In that case, you may have to pay for their medical expenses or the expense of repairing the damage. Handy person insurance may safeguard your company and personal property while also covering these charges. Handyman jobs can include a range of services like minor plumbing carpentry and even domestic electrician services, all of which carry risks that insurance can help cover.

Handyman Insurance

Types of Handyman Insurance Coverage

1. General Liability Insurance

So, let’s talk about handyman insurance and what it really means. If you happen to hurt someone or damage their property while you’re on the job, it covers your court fees, hospital bills, and any losses you might face.

2. Tools and Equipment Insurance

The tools you have are super important for your job! Your tools and equipment will be protected in case they are stolen, lost, or damaged. This way, you can easily swap them out and keep your business running without a hitch.

3. Workers’ Compensation Insurance

If you have employees, you usually need workers’ compensation insurance. If a person gets hurt on the job, it pays for their medical bills and lost wages. You can use this service even if you are self-employed. (Insureon, contractornerd.com)

4. Commercial Auto Insurance

To get to work or haul tools, you may need to drive a business car. If it gets stolen, damaged, or involved in an accident, your commercial auto insurance will cover it.

5. Professional Liability Insurance

If your clients lose money because of laziness or mistakes in your work this type of insurance which is also known as “errors and omissions insurance,” will protect you.

Cost of Handyman Insurance

The costs for handy-person insurance can vary based on several factors, including where your business is located, its size, the services you offer, and the level of coverage you select. Here’s what you can look forward to paying:

  • General Liability Insurance: Approximately $500–$1,000 per year.
  • Tools and Equipment Insurance: Between $100 and $500 a year, based on how much your tools are worth.
  • Workers’ Compensation Insurance: varies a lot; check the rules in your state.
  • Commercial Auto Insurance: Typically $1,200–$2,500 per year.

It is best to get several insurance quotes so that you can find the best prices and policies for your needs. a

Handyman Insurance

Choosing the Right Handyman Insurance Policy

These things should help you pick an insurance plan for a handyman:

  1. Assess Your Risks: Make a list of the jobs you have and the risks that come with them.
  2. Determine Required Coverage: Select the insurance types that are necessary according to your assessment.
  3. Compare Providers: Determine which insurance companies provide coverage for small businesses or handymen, and then compare those providers.
  4. Review Policy Details: It’s crucial to thoroughly read the policy’s terms, restrictions, coverage limits, and deductibles.
  5. Consult an Insurance Agent: If necessary, see an insurance representative to ensure you have enough coverage.

Legal Requirements and Licensing

Handymen in various states and cities might have different insurance requirements. To work in some places, you might need specific licenses or types of insurance. So, in California, if you’re doing work that costs over $500, you gotta have a contractor’s license and general liability insurance. It’s a good idea to chat with your local licensing board or regulatory body to ensure you’re staying on the right side of the law. 

Conclusion

In order to run a safe and prosperous handyman company. It is crucial to have insurance. This will safeguard you in the event that an unforeseen event occurs that might result in substantial financial losses. By familiarizing yourself with the various coverage options and determining your specific needs, you may choose an insurance policy that will adequately safeguard your money.

Frequently Asked Questions (FAQs)

How much is handyman insurance?

Between $500 and $2,500 a year, based on where you live and the service.

How much does handyman insurance cost?

About $500 to $1,000 a year for general risk. It might cost more for other coverages.

Does a handyman need insurance in California?

Yes, especially if the job is worth more than $500. You need a contractor’s license and general liability insurance.

What does handyman insurance cover?

It covers other people getting hurt or their property getting damaged, staff getting hurt on the job, car crashes at work, and client claims for mistakes.