Handyman Insurance: How Handy Is It?

What is Handyman Insurance? 

As a jack-of-all-trades, working as a handyman comes with a lot of risks. These risks can affect both the handyman’s business and the handyman. For example, suppose your employees can get hurt while installing kitchen equipment. This can cause financial difficulties for your business. Handyman insurance will help protect your business from the challenges resulting from such risks. 

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Who Needs Handyman Insurance? 

Handyman service is a large industry in the United States. As per IBISWorld, in 2021 the handyman service had a market size of 4.4 billion U.S. dollars based on revenue.

Given the different types of service in this industry, every business has different needs and they require appropriate coverage. Here are some examples of different types of handyman insurance:

Local drywall contractor

Drywall contractors are vulnerable to various outdoor risks that can cause injuries. These injuries can lead to medical costs and lost wages. Thus, having a contractors insurance policy will help contractors avoid financial difficulties from such situations.

Painters Insurance

Painters face dangerous risks while on the job. It’s possible for employees to get fatally injured while painting in risky locations. Handyman insurance for painters will protect your business and employees.

Electrical Contractors Insurance

Electricians provide valuable services that make our lives easier, but even they are open to accidents while on the job.  Your business can be liable for any property damage and could even face lawsuits. For example, Record-Courier reported that an insurance company had sued an electrical contractor and a trash hauler for a fire that caused around $677,000 worth of property damage. This only highlights the importance of securing one’s business with electrician insurance.

Cleaning Insurance

Cleaning businesses face many risks on a daily basis. Your business can face lawsuits for property damage that arises from faulty services. In such cases, a cleaning business policy under handyman insurance will help you handle the risks and reduce the financial burden.

Plumbers Insurance

Your business can face lawsuits because of property damage, fraud and bodily injury arising from plumbing services.

For instance, two plumbers — a father and his son — faced a lawsuit for defrauding Pennsylvania consumers by recommending unnecessary plumbing replacements, as per a news article by Georie.

Appliance Insurance

Appliance businesses tend to face various costly risks such as theft and vandalism. Having appliance coverage under a handyman insurance policy protects your business from these risks.

According to Business Insider, Best Buy faced a lawsuit from a customer when they were attacked by the person delivering her washing machine.

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Snow Plow Insurance

Snow-removal disasters can lead to accidents, bodily injury and malfunctioning equipment. You can protect your business with snow plow insurance.

As reported by Total Land Scaper, the number of slip and fall lawsuits related to snow removal has increased in the past few years since they are easy lawsuits for lawyers to pursue.

What Policies Come Under Handyman Insurance? 

The following are some of the basic coverages you should consider while purchasing handyman insurance:

Business Owner’s Policy (BOP)

business owners policy is a packaged insurance policy that can certainly be modified according to your needs. A BOP includes several policies to choose from to protect a handyman service business. Additionally, it helps your business with the following claims:

  • Property Damage: Coverage for damage to your client’s property due to your business operations.
  • Bodily Injuries: BOP covers medical expenses if your client faces injuries while the insured is on the clock.
  • Employee Lawsuit: It can help cover the financial losses if an employee decides to sue your company for mistreatment.

Worker’s Compensation Insurance

Workers compensation insurance protects your business from the financial losses that arise due to injured workers not being able to perform their duties. This policy helps your business with the following coverages:

  • Medical Expenses: When employees face injuries on the job, a worker’s compensation policy under handyman insurance will cover their medical expenses.
  • Lost Wages: The insurance will cover workers’ lost wages when they are unable to work due to an injury or illness.

Commercial Auto Insurance

If your handyman business uses vehicles for transportation, then you will need commercial auto insurance. A commercial auto insurance policy covers the following:

  • Vehicle Damage: The insurance policy covers any damage caused to your vehicle due to accidents.
  • Bodily injury: The policy covers claims relating to any physical injury to a third party.
  • Property damage: The insurance covers the damages caused by your vehicle to someone else’s property.

Commercial Property Insurance

commercial property insurance policy helps your business by providing coverage for equipment stored on the job site. This coverage does not include the theft of goods during transit from the warehouse to the job site.

Commercial Property insurance helps your business:

  • Repair and replace any equipment and tools.
  • Cover the damages caused by fire or theft.

Additionally, you can include inland marine insurance along with commercial property insurance to secure your materials during transportation. 

Multiple coverage options on your fingertips.

Choose from various options and select the policy
that best suits your requirement.

Commercial General Liability Insurance (CGLI)

general liability insurance policy provides a business coverage if it is found liable for any property damage or personal and advertising injury.  With this insurance, you do not need to worry about the medical and legal expenses of those sorts of claims.

CGLI covers your business from the following:

  • Physical damage by your company to any property belonging to a third party.
  • Medical expenses for injuries to a third party.

Professional Liability Insurance

Professional liability insurance is also known as errors and omissions insurance. This insurance helps you cover certain professional and personal services provided by your company. Professional liability insurance is used by businesses to protect against claims of negligence.

Employment Practices Liability Insurance (EPLI)

Employment Practices Liability Insurance helps your company cover the legal expenses when an employee takes legal action against you. EPLI can also be purchased as a stand-alone policy or as an endorsement to an existing BOP or CGLI policy as per the size and needs of your business.

Business Interruption Insurance (BII)

When your business is temporarily shut down due to unforeseen events, then a business interruption insurance policy will help you cover the lost income. Handyman insurance can save your business when you shut down due to relocation, upgrades, or renovation.

The following factors affect the eligibility for the BII policy:

  • The business industry
  • Business location
  • Previous claims history

BII should be combined with other insurance policies.

Commercial Umbrella Insurance

Commercial umbrella insurance extends the coverage limits of your existing policies. When the claim amount exceeds the amount of the coverage limits, then umbrella insurance provides additional coverage. However, an umbrella insurance policy does not increase the limit or extend the coverage of a professional liability policy.

For instance, suppose you incur a loss of $500,000 in worker’s compensation claims but your worker’s compensation policy only covers $300,000. In that case, umbrella insurance helps you pay for the remaining $200,000.

handyman-insurance

Popular Handyman Endorsement Package Inclusions 

  • Builders risk insurance: Including a builders risk insurance helps protect your business structure from a wide variety of dangers such as fire, storms, and natural disasters.
  • Contractor’s equipment policy: This insurance policy helps you replace or repair your equipment and tools.

How Much Does This Insurance Cost?

An individual who performs dangerous tasks can expect a different handyman insurance premium compared to one who does not. A few factors determining the cost of handyman insurance are:

  • Policy limit
  • Business risk
  • Equipment value
  • Team size
  • Coverage length

Has this article been helpful to you? Leave a comment below and share your thoughts with us.

Also, feel free to browse our insurance directory for all your coverage needs.

Multiple coverage options on your fingertips.

Choose from various options and select the policy
that best suits your requirement.

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