Handyman Insurance Policy Information
Handyman Insurance. A "handyman" or "handyperson" is an unlicensed contractor who offers home maintenance, small home repairs and simple installation services. They may do minor carpentry, plumbing, electrical work, painting, plastering or drywall work, but nothing requiring a license or permit. Specialties such as roofing, air conditioning or furnace installation do not fall into the job description of a handyman.
At some point in time, everyone needs the services of a handyman, and your handyman business likely fills a need in your neighborhood and community. But are you protecting yourself, your assets, and your business against potential litigation and loss?
If not, then you need a business insurance review with a seasoned agent to determine your business' areas of weakness and correct them with policies designed for your individual business' needs. Handymen do a wide range of work and you to be sure your policy covers you for what you are doing.
Handyman insurance protects your business from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked handyman insurance questions:
- What Is Handyman Insurance?
- How Much Does Handyman Insurance Cost?
- Why Do Handymen Need Insurance?
- What Type Of Insurance Do Handymen Need?
- What Are Handymans Risks & Exposures?
- What Does X Insurance Cover & Pay For?
What Is Handyman Insurance?
Handyman insurance is a type of insurance that provides financial protection for handymen and other small business owners who provide home repair and maintenance services. It typically covers things like liability for damages or injuries caused by the handyman's work, as well as damage to tools and equipment.
It may also include coverage for lost income in the event that the handyman is unable to work due to an accident or illness.
How Much Does Handyman Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small handyman businesses ranges from $37 to $49 per month based on location, size, payroll, sales and experience.
Why Do Handymen Need Insurance?
Handymen need insurance for a variety of reasons. Firstly, it protects them financially in the event of any accidents or injuries that may occur while on the job. Without insurance, a handyman could be held personally responsible for any damages or medical bills, which could be financially devastating.
Additionally, insurance provides protection for the handyman's tools and equipment. If these tools are damaged or stolen, the handyman would need to replace them out of pocket without insurance coverage. This can be a significant financial burden, especially for those who rely on their tools for their livelihood.
Another reason why handymen need insurance is to protect themselves and their clients from liability. If a handyman makes a mistake or error while working, they could potentially be held liable for any damages that result. Insurance coverage can provide protection in these situations, allowing the handyman to focus on their work without worrying about the potential financial consequences.
Overall, handyman insurance is an essential component for any handyman's business. It helps protect them, their clients, and their tools, ensuring that they can continue to work without worrying about financial risks.
What Type Of Insurance Do Handymen Need?
Handymen may need several types of insurance, including:
- General Liability: This type of insurance covers damages or injuries that occur on a job site. It also covers any legal costs associated with a claim or lawsuit.
- Workers' Comp: This type of insurance covers medical expenses and lost wages for a handyman who has employees that are injured on the job.
- Business Owner's Policy: This type of insurance combines general liability insurance with property insurance for a handyman's business.
- Professional Liability: This type of insurance covers mistakes or errors made by a handyman while performing their work.
- Commercial Autoe: If a handyman uses a vehicle for business purposes, they will need to have auto insurance coverage.
In addition to the types of insurance mentioned above, handymen may also want to consider purchasing additional coverage such as:
- Equipment and Tools Coverage: Handymen rely on their tools and equipment to complete their work, so it is important to have insurance coverage in case of theft, damage, or loss.
- Business Interruption Insurance: This type of insurance covers lost income and expenses if a handyman's business is disrupted due to a covered event such as a natural disaster.
Overall, it is important for handymen to carefully consider their insurance needs and choose coverage that adequately protects their business and themselves. It is also a good idea to speak with a licensed insurance professional to determine the right coverage for their specific needs.
What Are Handymans Risks & Exposures
Premises liability exposures at the contractor's shop or office are generally limited due to lack of public access. Off-site exposures include potential bodily injury to the client or damage to the client's property. Tools, power cords, building materials and scrap material all pose trip and fall hazards even when not in use. Use of saws and other power or hand tools may be hazardous due to sharp edges and moving parts.
If there is work at heights, falling tools or supplies may cause bodily injury and property damage if dropped from ladders and scaffolding. If woodworking is part of the job, the buildup of dust and scraps can result in fire and explosion. Disposal of waste materials (dust, scrap, varnishes or paints) could create an environmental hazard. There may be significant contractual liability exposures if the handyman is responsible for finding licensed contractors to handle jobs outside the handyman category.
Completed operations liability exposures should be fairly minor since handymen usually do not handle or install items where incorrect installation would result in significant damage. It is important for a handyman to work or perform duties within his or her ability. Clear guidelines should be established with clients as to what jobs can and cannot be completed by the handyman.
Workers compensation exposures vary depending on the size and nature of the job. Work with hand tools and sharp objects such as saws, chisels and nails can result in cuts, piercings, and accidental amputation. Electrical work can result in burns or electrocution. When work is done on ladders and scaffolds, there is a potential for severe injury or death from falling, being struck by falling objects, or adverse weather conditions. Back injuries, hernias, strains and sprains can result from lifting.
Property exposures at the handyman's own location are generally limited to an office plus storage for tools, materials, equipment, and vehicles. If the handyman does shop woodworking or repairs for customers, fire can result from the flammability of wood, paints, varnishes, and wood dust.
Crime exposures are from employee dishonesty. Background checks, including criminal history, should be performed on all employees providing services to customers or handling money. All ordering, billing and disbursement should be handled as separate duties with reconciliations occurring regularly.
Inland marine exposures include accounts receivable if the handyman offers credit to customers, contractors' equipment and tools, goods in transit, installation floater, and valuable papers and records for customers' and suppliers' information. A handyman's tools and equipment may represent the majority of the physical assets. Since the handyman is not a specialist, a variety of tools is needed. Tools travel with the contractor and are not normally left at the jobsite.
Business auto exposures are generally limited to transporting workers, equipment and supplies to and from the job site. Since most jobs are small, the handyman may drive to several job sites during one day. The exposure could increase if the radius of operation is large or if there are any service time guarantees. MVRs must be run on a regular basis. Random drug and alcohol testing should be conducted. Vehicles must be well maintained with records kept in a central location.
What Does Handyman Insurance Cover & Pay For?
Handymen can be sued for a variety of reasons, including:
- Property damage: If a handyman accidentally damages a client's property while performing work, the client may sue the handyman for the cost of repairs or replacement.
- Bodily injury: If a client or someone else is injured on the job site, they may sue the handyman for medical expenses, lost wages, and other damages.
- Breach of contract: If a handyman fails to complete a project according to the agreed-upon terms, a client may sue for breach of contract.
- Negligence: If a handyman fails to perform work up to a reasonable standard of care and it results in damage or injury, the client may sue for negligence.
- Fraud: If a handyman misrepresents their qualifications or the quality of their work, a client may sue for fraud.
Handyman insurance can protect against these types of lawsuits by providing liability coverage. Liability insurance will pay for damages or legal fees if a handyman is found liable for property damage, bodily injury, breach of contract, negligence, or fraud. Here are some examples of how insurance can help pay for a lawsuit:
Property damage: If a handyman accidentally damages a client's property while performing work and is sued for the cost of repairs or replacement, their liability insurance will cover those costs up to the policy limit.
Bodily injury: If a client or someone else is injured on the job site and sues the handyman for medical expenses, lost wages, and other damages, their liability insurance will cover those costs up to the policy limit.
Breach of contract: If a handyman is sued for breach of contract because they failed to complete a project according to the agreed-upon terms, their liability insurance may cover legal fees and damages up to the policy limit.
Negligence: If a handyman is sued for negligence because they failed to perform work up to a reasonable standard of care and it resulted in damage or injury, their liability insurance will cover those costs up to the policy limit.
Fraud: If a handyman is sued for fraud because they misrepresented their qualifications or the quality of their work, their liability insurance may cover legal fees and damages up to the policy limit.
It's important for handymen to have liability insurance to protect themselves against potential lawsuits. Without insurance, they would be personally responsible for any damages or legal fees, which could be financially devastating.
Commercial Insurance And Business Industry Classification
- SIC CODE: 1521 General Contractors-Single Family Construction, 1522 General Contractors-Residential Buildings, Other Than Single-Family
- NAICS CODE: 236118 Residential Remodelers
- Suggested Workers Compensation Code(s): 5645 Carpentry - Construction of Residential Dwellings Not Exceeding Three Stories in Height
Description for 1521: General Contractors-Single Family Construction
Division C: Construction | Major Group 15: Building Construction General Contractors And Operative Builders | Industry Group 152: General Building Contractors-residential
1521 General Contractors-Single-Family Houses: General contractors primarily engaged in construction (including new work, additions, alterations, remodeling, and repair) of single-family houses.
- Building alterations, single-family-general contractors
- Building construction, single-family-general contractors
- Custom builders, single-family houses-general contractors
- Designing and erecting combined: single-family houses-general contractors
- Home improvements, single-family-general contractors
- House construction, single-family-general contractors
- House: shell erection, single-family-general contractors
- Mobile home repair, on site-general contractors
- Modular housing, single-family (assembled on site)-general
- One-family house construction-general contractors
- Prefabricated single-family houses erection-general contractors
- Premanufactured housing, single-family (assembled on site)-general
- Remodeling buildings, single-family-general contractors
- Renovating buildings, single-family-general contractors
- Repairing buildings, single-family-general contractors
- Residential construction, single-family-general contractors
- Rowhouse (single family) construction-general contractors
- Townhouse construction-general contractors
Description for 1522: General Contractors-Residential Buildings, Other Than Single-Family
Division C: Construction | Major Group 15: Building Construction General Contractors And Operative Builders| Industry Group 152: General Building Contractors-residential
1522 General Contractors-Residential Buildings, Other Than Single-Family: General contractors primarily engaged in construction (including new work, additions, alterations, remodeling, and repair) of residential buildings other than single-family houses.
- Apartment building construction-general contractors
- Building alterations, residential: except ssingle-family-general contractors
- Building construction, residential: except single-family-general contractors
- Custom builders, residential: except single-family-general contractors
- Designing and erecting, combined: residential, except single-family-
- Dormitory construction-general contractors
- Home improvements, residential: except single-family-general contractors
- Hotel construction-general contractors
- Motel construction-general contractors
- Prefabricated building erection, residential: except single-family-general contractors
- Remodeling buildings, residential: except single-family-general contractors
- Renovating buildings, residential: except single-family-general contractors
- Repairing buildings, residential: except single-family-general contractors
- Residential construction, except single-family-general contractors
Handyman Insurance - The Bottom Line
Since 'handyman' is a broad contracting category and encompasses so many different types of work - speak to a licensed insurance agent to go over your all your options to find out exactly what type of handyman insurance you need and how much coverage you should have - based on your specific operations.
Additional Resources For Contractors & Home Improvement Insurance
Learn about small business contractor's insurance, including what it covers, how much it costs - and how commercial insurance can help protect your contracting business from lawsuits.
- Air Conditioning Systems Installation Repair
- Appliance Repair & Service
- Blacksmith & Metal Workers
- Boat Repair & Dry Docks
- Boiler Contractors
- Builders Risk
- Building Cleaning & Maintenance Services
- Cabinet Installer
- Cable And Satellite TV Installer
- Chimney Sweep
- Cistern Contractors
- Contractor Liability
- Curtain Cleaners
- Deck Builders
- Door And Window Installers
- Dryer Vent Cleaning
- Drywall Contractor
- Electrical Contractors
- Environmental Remediation Contractors
- Fence Installation
- Fire Sprinkler Contractors
- Fire & Water Restoration Contractors
- Flooring Contractor
- Furniture Repair
- Garage Door Installer And Repair
- General Contractors
- Glass Contractor
- Glazier Insurance
- Gutter Installation And Repair
- House Cleaning
- HVAC Contractor
- Insulation Contractor
- Janitorial Cleaning Services
- Lawn Care
- Lawn Irrigation Sprinkler System Installation
- Oil And Gas Well Drilling Contractors
- Paperhanging Contractors
- Plastering And Stucco Contractor
- Pressure Washing Contractors
- Propane And Fuel Dealers
- Rug, Upholstery & Carpet Cleaning
- Sandblasting Contractors
- Security Alarm
- Septic Tank Cleaning
- Siding Contractor
- Sign Installation & Repair
- Solar Panel Installers
- Snow Plow
- Stone And Tile Installer
- Surety Bonds
- Swimming Pool Contractor
- Swimming Pool Service And Maintenance
- Tank Cleaners
- Tool Grinding And Repair
- Tree Surgeon
- Tree Trimming
- Upholstery Shop
- Waste Haulers & Garbage Collection
- Water Well Drilling
- Welding Contractor
- Wildlife & Pest Control
- Window Cleaning
- Specialty Contractors
The contracting industry is a field that involves a lot of risks, both for the contractor and for the clients they work for. This is why commercial insurance is so important for contractors. Insurance can protect contractors from a variety of potential losses, such as:
Liability: If a contractor causes damage to a client's property or if a client is injured while on a job site, the contractor could be held legally responsible. Liability insurance can cover legal fees and any settlements or judgments that may be awarded.
Property damage: Contractors often use a lot of expensive equipment and tools, and there is always a risk that this equipment could be damaged or stolen. Commercial property insurance can help cover the cost of replacing damaged or stolen equipment.
Business interruption: If a contractor is unable to work due to an unforeseen event, such as a natural disaster, insurance can help cover their lost income during this time.
Workers compensation: If a contractor or one of their employees is injured on the job, worker's comp can help cover medical expenses and lost wages.
Overall, commercial insurance is an important risk management tool for contractors. It can provide financial protection against a wide range of potential losses, helping contractors to stay in business and continue serving their clients.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Contractors' Equipment and Tools, General Liability, Employee Benefits Liability, Umbrella Liability, Automobile Liability and Physical Damage, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Accounts Receivable, Builders Risk, Computers, Goods in Transit, Installation Floater, Valuable Papers and Records, Cyber Liability, Employment-related Practicesand Stop Gap Liability.