Handyman Insurance: Coverage, Cost & Best Options

There are a lot of things that can go wrong while you’re working as a handyman, whether you’ve been hired to put plasterboard in a client’s home, replace kitchen fittings, or perform general repairs on a fixer-upper. For instance, your client’s antique furniture could be ruined if you knocked over a can of paint. A job-related car accident is another possibility. Because of their versatility, handymen might benefit from a small business insurance policy that can be tailored to meet their specific requirements. In this article, we will discuss the best cheap handyman insurance, cost, coverage, and the best companies in Florida.

What is Handyman Insurance?

Handyman insurance, also known as general liability insurance for handyman businesses, is a type of insurance coverage that helps protect handymen and handywomen from financial risks associated with their work. It typically provides coverage for third-party bodily injury, property damage, and advertising injury claims.

For example, if a handyman accidentally damages a client’s property while working on a project, the handyman’s insurance can cover the costs of repairs or replacements. Similarly, if a client or a visitor is injured on the handyman’s work site, the insurance can cover medical expenses, legal fees, and other related costs.

Having handyman insurance is essential because it provides financial protection and peace of mind, allowing handymen to focus on their work without worrying about potential legal or financial consequences in the event of accidents or injuries.

How Does Handyman Insurance Work?

Handyman insurance, like other types of liability insurance, works by providing financial protection in case of certain events or accidents. Here’s how it typically works:

#1. Policy Purchase

A handyman or a handyman business owner purchases a handyman insurance policy from an insurance provider. The policy outlines the terms, coverage limits, and the premium (cost) that the insured party needs to pay, usually on a monthly or annual basis.

#2. Coverage Types

Handyman insurance generally includes two main types of coverage:

• General Liability: This covers third-party bodily injury, property damage, and advertising injury claims. If someone is injured on the handyman’s work site or their property is damaged due to the handyman’s actions, this coverage helps in paying for medical expenses, repairs, legal fees, and settlements.
• Property Insurance (Optional): This covers the handyman’s tools, equipment, and property against theft, damage, or loss. This coverage is optional but can be valuable for handymen with expensive tools and equipment.

#3. Incident Occurs

If an accident, injury, property damage, or other covered incident occurs while the policy is active, the handyman or the affected party (such as a client) can file a claim with the insurance company.

#4. Claim Processing

The insurance company investigates the claim to determine its validity and the extent of the damages. They may communicate with the parties involved and gather relevant information.

#5. Settlement or Coverage

If the claim is valid and covered under the policy, the insurance company will either pay for the damages, legal fees, medical bills, or other covered expenses directly to the affected parties, or it may reimburse the insured handyman for the covered costs, up to the policy’s limits.

#6. Policy Limits

It’s crucial to note that every insurance policy has limits. There’s a maximum amount the insurance company will pay for a covered claim. If the damages exceed the policy limits, the handyman may be responsible for the remaining costs.

#7. Policy Renewal

Handyman insurance policies are usually valid for a specific period (such as one year). The policy needs to be renewed regularly to maintain coverage.

In addition, by investing in handyman insurance, professionals in the sector can lessen the monetary risks of their employment, giving them the peace of mind they need to carry on with their businesses in the face of unforeseen liabilities.

Essential Coverage for Your Handyman’s Insurance

Having adequate insurance coverage is crucial for the safety and financial stability of your handyman business.

Make sure you’re covering all your bases by researching the types of coverage that any respectable provider of home services should offer. In addition to general liability, a comprehensive business insurance package should include workers’ compensation insurance to defend against workplace accidents and illnesses, commercial auto insurance to protect cars used in the course of business, and three other policies to prepare for the unthinkable.

Get your protections set up right now so you’re prepared for the future!

#1. General Liability Insurance: The Must-Have Handyman Insurance Coverage

Business owners in the handyman and construction industries would do well to prioritize general liability coverage. This insurance may cover claims involving bodily harm, property damage, and even harm to a company’s reputation.

General Liability If the insured handyman’s work results in injury or damage to a third party’s property, handyman insurance can offer the financial security required to defend against claims made by third parties. It safeguards handymen from the high expense of legal defence and the possibility of bankruptcy in the event of a claim exceeding the handyman’s assets.

Minimum Coverage Requirements

General liability insurance for handymen should be at least $500,000. In the event that they are sued for injuries or damages incurred on the job, this will provide the necessary protection.

Additional Coverage Options

Depending on the demands of the individual company, a handyman insurance policy may also include coverage for personal and advertising injuries. Coverage for advertising injuries helps cover libel, slander, or copyrighted material infringement claims related to promotional materials distributed by the handyman’s business, while personal injury insurance protects the handyman financially in the event that his work causes emotional distress to a third party.

Learn How to Avoid Costly Errors

If you’re a handyman, you should definitely have some sort of insurance. If a handyman is found liable for an accident or damage caused by their labour, it could lead to expensive settlements and/or penalties and leave them open to litigation with little protection. In addition, before a contractor may work on a construction site, the owner may insist that he or she possess a minimum amount of handyman liability insurance. The consequences of not meeting these standards can be severe, including financial penalties and the loss of future contract prospects.

Overall, any handyman business that wants to succeed in the long run should get handyman liability insurance, as it will protect them from lawsuits and give them the peace of mind they need to keep providing high-quality services to their customers.

In conclusion, a handyman liability insurance policy is essential for handyman businesses because it helps protect against losses related to accidents or injuries and gives handymen peace of mind knowing that they will have financial backup should anything happen on the job.

#2. Commercial Auto Insurance: Protecting Your Vehicles From Accidents or Theft

Having company vehicles requires commercial auto insurance, which is essential for a handyman business. Protecting your company from the financial fallout of mishaps, theft, and other misfortunes requires this form of insurance. In addition to ensuring the safety and security of your company, this policy will also cover any and all business-related activities.

Acknowledging your choices

In order to make an informed decision about the commercial auto insurance you’ll need for your handyman business, it’s crucial that you fully grasp all of the coverage types and limits that are at your disposal. Examples of non-accidental perils covered by comprehensive insurance for handymen include fire, theft, and vandalism. If the handyman is involved in an accident with a motorist who does not have sufficient insurance to cover the cost of repairs to his vehicle, uninsured or underinsured motorist coverage can help. Personal Injury Protection (PIP) also helps with medical bills after an auto accident, no matter who was at fault.

In the event of an accident involving their vehicle(s), handymen can rest easy knowing they are financially covered. Make sure you’re covered in case of an accident by learning about your insurance options for your handyman business and choosing the policies that best fit your needs. Make sure you have sufficient commercial auto insurance in place today to safeguard your handyman business against the risks of operating without proper coverage.

#3. Inland Marine Coverage in Handyman Insurance Policy: Protects Your Tools Wherever You Go

A handyman’s tools and equipment are essential to his trade. Therefore, having insurance in place to safeguard them from loss due to theft, damage, or other causes is crucial. Because of its intended use, inland marine insurance can protect a handyman’s livelihood by covering the cost of replacement tools and equipment.

Whether they are taking their tools to a job site, working in a remote area, or just keeping them in the garage, handymen should have coverage that covers them everywhere they take their gear.

The phrase “inland marine” is used to describe insurance coverage for tangible property that is in transit over land or sea and is at risk of being damaged or stolen. When not in use, it can be put to work protecting the tools and equipment of handymen in offsite storage facilities, garages, and construction sites.

This insurance is essential for handymen since it pays for broken tools no matter where they were located at the time of the accident.

Protection against fire, vandalism, theft, and other calamities are only some of the risks that inland marine insurance normally covers for handymen. Extra benefits, including replacement expenses in the event of damaged products and liability protection in the event that someone is injured while using your tools, may be included in your policy, depending on your specific needs.

It is crucial for handymen to have enough insurance coverage for their tools. Don’t risk your equipment’s safety by not having an inland marine strategy in place.

#4. Workers’ Compensation Insurance: Protecting Your Employees From Injury or Illness

Workers’ compensation insurance is a vital part of any business owner’s portfolio, and it is especially crucial for handymen who either work alone or employ others. When an employee suffers an illness or injury on the job, workers’ compensation pays for medical care, missed earnings, and other expenses. To protect handymen and their employees financially in the event of an accident on the job, workers’ compensation laws were enacted. Also, read Best Workers Compensation Insurance Of 2023

Covering costly medical bills

If a handyman gets injured on the job, workers’ compensation can assist in paying for his medical care, rehabilitation, and any lost wages he may incur as a result of his injury. If a worker gets hurt or sick while on the job as a handyman, the business may be entitled to compensation for lost pay. Also, if a handyman worker is killed on the job, his or her family may be eligible to receive death benefits in those jurisdictions that require such coverage.

There may be legal action taken against you

Unfortunately, the importance of having workers’ compensation coverage is often overlooked by handymen. Without the right kind of insurance, a handyman who gets hurt or sick on the job could end up paying for everything, which could be disastrous for their business. In addition, if handymen don’t have the right insurance coverage, their businesses are vulnerable to lawsuits from employees who have been harmed on the job or their loved ones.

#5. Handyman Bonds: Protecting Your Business with a Quality Bond

Businesses need bonds to safeguard them against financial damages and legal claims that could result from a handyman’s breach of a contract or agreement. Typically, these bonds ensure that a project will be finished on time, on budget, and in accordance with all requirements.

Contract Coverage

When a contractor or subcontractor fails to fulfill their contractual obligations, the surety bond known as a “construction bond” will compensate the client. Surety companies are in place to protect their clients from financial loss in the event that one of the parties to a contract fails to perform as agreed upon. In the event of a breach of contract by the contractor, the bonding insurance provider has pledged to pay out a specified amount.

Increasing One’s Number of Clients

In addition to insuring against losses that could occur as a result of contractors’ or subcontractors’ non-performance or misconduct, a surety bond can also help recruit larger clients who value working with only trustworthy contractors. When clients see that you have a surety bond, it gives them confidence in your capacity to complete their projects successfully.

How Do I Get Handyman Business Insurance?

Getting handyman business insurance involves a few essential steps to ensure you have the right coverage for your specific needs. Here’s a guide on how to obtain handyman business insurance:

#1. Risk Assessment

It’s safe to assume that an established handyman company with multiple employees will have very different insurance requirements than a one-man operation. In the event of an employee getting hurt or sick on the job, the business will need workers’ compensation insurance to pay for their medical bills, but the handyman will not.

Insurance coverage should be chosen after careful consideration of the risks the business faces, such as the possibility of injury to its employees.

Other common dangers faced by handyman businesses include:

• Incidents lead to physical harm.
• The harm done to someone else’s possessions.
• Damage done to or theft of machinery
• Damage to or malfunction of company cars

It’s important to consider the risks your company faces, such as natural disasters, accidents, and human error. You should also think about how variables like location, industry, years in business, assets, and staff size affect your overall risk.

#2. Assess Your Needs and Choose the Appropriate Insurance

If you own a handyman business, you should insure it against the various threats you’ve identified.

Commercial general liability coverage for handyman services

Any self-employed handyman must have general liability insurance, and your state, municipality, or client may require it for particular jobs.

In most cases, the following are included in a standard liability policy:

• Physical harm: Injuries sustained by a third party as a direct result of your company’s activities. This policy would help cover the client’s medical bills, legal fees, and settlement if they were injured as a result of tripping over your toolbox.
• Property destruction: Loss or harm to a third party’s property as a result of your operations. If you break a client’s window while installing curtains, your general liability insurance will assist in paying for repairs.
• Damage to reputation or privacy: Legal action taken against your company for alleged violations of copyright, libel, or slander. If you use a trademarked phrase in promotional materials for your business without realizing it and the trademark holder sues you, this insurance will pay for your defence and any settlements reached.

#3. Shop for Coverage

If you own a handyman business, you can choose from several different types of insurance policies:

Make direct contact with your insurance company

Policies for handyman businesses can be purchased from both online providers like Next and Thimble and more traditional insurers like Progressive.

It’s possible to acquire quotations and buy policies straight from a provider if you already have a working relationship with them or if you have a firm grasp on the coverage you require.

A business insurance quote could be available online or via phone, depending on the insurer. You can get a tailored insurance quote from some businesses that also put you in touch with a local agent to go over your specific requirements.

Make use of a virtual market

Quotes from several insurance companies can be compared side-by-side in online marketplaces. The customer service departments of these exchanges are there to help you with your coverage queries and concerns.

You may acquire quotes from most markets online, while some also provide quotes over the phone.

#4. Understand the Policy

Carefully read and understand the terms and conditions of the insurance policy before purchasing. Pay attention to coverage limits, deductibles, exclusions, and any additional endorsements. If there’s something you don’t understand, don’t hesitate to ask the insurance provider for clarification.

#5. Buy Your Policies

Purchasing insurance policies is the next step after deciding which company provides the best protection for your company. Create an online account (if one is offered) to manage your policy, payments, and claims once you’ve bought insurance.

If you need a certificate of insurance to start a handyman task or establish a work contract, you should get one from your supplier well in advance of getting started. Sending a client a copy of your insurance certificate via email or text message is an option with some service providers.

In a similar vein, some customers may request that you name them as an additional insured on your policy; it’s helpful to know how this is done.

#6. Maintain Yearly Policy Renewals

Once a year, you should check in on your handyman business insurance to make sure it still adequately protects you. Before your insurance policies are up for renewal, you may want to examine your coverage to see if your company has seen considerable growth or change, such as by employing your first employee.

Handyman Insurance Cost

A handyman is an expert in a wide range of house repair and maintenance tasks. Contractors need insurance just like any other business to protect themselves from lawsuits, protect their investment in tools and equipment, protect their vehicles, and more. But how much does insurance for a handyman cost?

According to Insureon, handyman insurance with a $1 million maximum and a $500 deductible costs about $800 annually. Contractors can be protected from financial ruin in the event that they are judged legally responsible for harming a third party by purchasing this form of insurance for handymen. The size of your business, the number of employees you have, and the insurer you choose will all affect how much handyman insurance will cost you.

Factors in Calculating Handyman Insurance Cost

Several factors can influence the cost of handyman insurance. Insurance providers consider these factors when calculating the premium for a handyman insurance policy:

• Type of Coverage: The type of coverage you choose, such as general liability insurance, property insurance, or a combination of both, will affect the cost. Additional coverage options and endorsements can also impact the premium.
• Coverage Limits: Higher coverage limits mean the insurance company would potentially pay out more in the event of a claim. As a result, policies with higher limits tend to have higher premiums.
• Business Size: The size of your handyman business, including the number of employees and subcontractors, can affect the premium. Larger businesses might pay more due to the increased risk associated with more workers and projects.
• Services Offered: The specific services you provide can impact the cost. Riskier services or those involving potentially dangerous tasks might result in higher premiums.
• Tools and Equipment: The value and type of tools and equipment you use can affect your insurance cost. Expensive tools might lead to higher premiums, especially if you opt for property insurance to cover your equipment.
• Deductible Amount: A deductible is the amount you pay out of pocket before the insurance coverage kicks in. Choosing a higher deductible can lower your premium, but it also means you’ll pay more in the event of a claim.
• Risk Management Practices: Insurance companies may inquire about your safety protocols, training programs, and risk management practices. A well-documented safety program can sometimes lead to lower premiums.

Give the insurance company the right details while getting quotes. The price you pay depends on your business operations, services, and history, so be honest. Consult an insurance professional or broker to get the most affordable and effective insurance policy for your handyman business.

Handyman Insurance Florida

In Florida, as in many other states, handymen, and handywomen typically need liability insurance to protect their businesses from potential risks. When looking for handyman insurance in Florida, you can follow these steps:

#1. Research Insurance Providers

Start by researching insurance providers that offer coverage for small businesses, contractors, or handymen in Florida. Look for companies with a good reputation and a history of providing insurance to businesses in your industry.

#2. Check State Regulations

Familiarize yourself with the insurance requirements specific to Florida. Each state may have different regulations and minimum coverage limits. Make sure the policy you choose complies with Florida state laws.

#3. Evaluate Coverage Options

Determine the type of coverage you need for your handyman business. General liability insurance is usually a fundamental requirement, covering third-party bodily injury, property damage, and advertising injury claims. Depending on your needs, you might also consider property insurance to protect your tools and equipment.

#4. Get Multiple Quotes

Obtain quotes from different insurance providers. Compare coverage options, policy limits, deductibles, and premiums. This comparison will help you find a policy that suits your business requirements and budget.

#5. Consider Additional Coverage

Depending on the nature of your handyman services, you might need additional coverage such as commercial auto insurance (if you use vehicles for business purposes) or workers’ compensation insurance (if you have employees). Evaluate your business activities to determine if these coverages are necessary.

#6. Consult an Insurance Agent

Consider consulting with an insurance agent or broker who specializes in commercial insurance for small businesses. They can help you navigate the complexities of insurance policies, ensuring you get the right coverage tailored to your specific needs.

Does a Handyman in Florida Need Liability Insurance?

Florida does not legally require handymen to have liability insurance. However, it is highly recommended for handymen in Florida to obtain liability insurance. Having liability insurance provides financial protection in case of accidents, property damage, or injuries while working on projects. It also enhances the credibility of your business, can fulfill contractual requirements from clients, and offers legal protection in case of lawsuits. 

While not mandatory, liability insurance is a crucial investment that safeguards your business from unexpected financial burdens and legal liabilities. Please note that regulations vary, so it’s advisable to consult with legal or insurance professionals in Florida to get the most recent and specific information regarding liability insurance requirements for handymen.

What Are the Insurance Requirements for Handymen in Florida?

First, in Florida, you must carry insurance if the value of your handyman job exceeds $2,500 or if you market yourself as a contractor. Find out first what kind of insurance is needed in your county. In Miami-Dade County, Florida, for instance, you need the following kind of coverage in order to legally work:

• Coverage for general liability: This insurance, also known as commercial general liability (CGL), shields your handyman company financially in the event of an accident that causes bodily injury or property damage to a third party. If a customer trips over your toolbelt and sprains their ankle, for instance, your general liability insurance will cover their medical expenses.
• Compensation for injuries on the job: In the event that an employee has an injury or illness on the job, the owner will be protected by this insurance. Medical care, time away from work, disability, and retraining are all covered under workers’ comp.

Best Cheap Handyman Insurance

Here are some of the best cheap handyman insurance companies you might want to consider:

#1. Simply Business

Due to its superior quote, policy purchasing, and policy administration tools, Simply Business is the finest general broker for handyman insurance. It can provide free estimates from the best service providers in about 10 minutes. The coverage’s limits and deductibles can be adjusted to fit your budget and other factors.

The lack of an app and the fact that it’s only open throughout the week are its two biggest drawbacks. While coverages like liability and workers’ comp can be purchased online, some, like commercial property, need phone contact with an agent. Next Insurance is our go-to recommendation for handyman insurance because of its convenient online tools and mobile apps for managing policies and generating and distributing certificates of insurance for use in the workplace.

Simply Business compared five different insurance providers, including Hiscox, for the handyman’s policy. The annual average cost of this insurance was $977, while the average monthly cost was not specified.

The coverage was for a one-year period of general liability insurance with a million-dollar cap. The policy does not protect your tools. However, if you need something more comprehensive than liability insurance, you can always give Simply Business a call to go over your coverage alternatives.

#2. CoverWallet

CoverWallet is an online insurance broker that compares rates from numerous A-rated providers like Chubb, Liberty Mutual, and The Hartford for you in one place. It provides a fantastic method for managing policies and requesting COI for new positions immediately. The combination of its services and its capacity to compare makes it the finest broker for handymen who wish to shop around for quotations.

CoverWallet offers a wider variety of coverage alternatives than Simply Business, however, purchasing insurance online is not typically possible. You may get multiple rates for many types of company insurance, including commercial property, professional liability, and commercial car insurance.

CoverWallet gave us one Hiscox quotation after we answered some questions, but it said we might get more if we called to talk about the details. For liability protection, the quoted policy was a two-million-dollar umbrella policy. There were also “blanket additional insureds” added. The yearly premium for this coverage was $4,107 ($342.00/month).

#3. Next Insurance

Because of their policy variety, ease of obtaining immediate insurance a free certificate of insurance online, and attention to the needs of small enterprises in the construction industry, Next Insurance is our top pick for cheap handyman insurance.

Inland marine coverage for machinery and other fixed assets is included in addition to general liability protection. There are three tiers of protection available, from “basic” to “pro” to “pro+,” with correspondingly lower and higher limits on the value of the tools covered. Equipment, as well as other tools and equipment, including any loaned tools or equipment, are all protected by the inland marine insurance.

The Hartford is an alternative to Next Insurance with a wider variety of coverage options, such as business cars. The Hartford is worth looking into if you drive a work van to transport equipment and supplies from place to place and need insurance.

#4. Thimble

Thimble is the perfect choice if you are just starting out as a handyman or doing it on the side. It is the only company reviewed here that sells day-to-day or month-to-month temporary liability coverage without any middlemen. Temporary liability insurance protection is immediately accessible. If you need insurance for a longer period of time, Thimble also offers annual coverage. Free COIs can be made whenever necessary and shared immediately.

However, as a managing general agent (MGA), the service is only available during business hours and does not process claims directly. However, if you want to compare quotes and have a better picture of the coverage available, you should visit a broker like Simply Business.

Options for short-term liability insurance range from one month or more to one month or less. Insuring your business from the time of the quote to the next night at 11:59 p.m. will set you back $28.73. This was for one million dollars worth of coverage on our standard liability insurance policy.

Limits of either $1 million or $2 million are available with most policies. There is no coverage for your property or equipment under this insurance. During the quote phase, Thimble lists the specific actions that are not included in the purchase price.

Do I Need to Get Handyman Insurance?: Bottom Line

Yes, since you’re a handyman, you know that accidents do happen. Accidents, malfunctions, and other forms of damage are inevitable on any given day. That’s why your customers keep coming back to you. What if something goes wrong, though? Who do you contact?

The smartest company leaders make contact with their insurers. Because there is a high risk of accidents that general liability policies cover, the majority of people who hire in your industry will request proof of insurance before even considering hiring a handyman service.

If you’re a handyman who does business with homeowners, businesses, or both, insurance is as much a symbol of legitimacy as it is protection from the kinds of claims that might destroy your bottom line.

If you offer handyman services, you should carry general liability insurance so that you are not responsible for any damages or injuries that may occur on the job. You can give your full attention to running and expanding your handyman company if your assets are protected from legal and financial risk.

Frequently Asked Questions

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Reference

• nextinsurance.com
• forbes.com
• thimble.com
• citizensgeneral.com
• nerdwallet.com
• fitsmallbusiness.com