Essential Guide: "Handyman" General Liability Insurance
By Charles Munyi—
Handymen are finding their skills and services more in-demand than ever. In fact, the Bureau of Labor Statistics estimates that the maintenance and repair industry will grow 8% between 2020 and 2030.
Though a career as a handyman can be quite lucrative, it can also come with a number of occupational hazards. In addition to the common risks of personal injury, handymen can face claims from their customers that could legally result in costly out-of-pocket expenses. These issues can put a self-employed handyperson out of business for good if he or she is not covered.
In this post, you’ll learn the importance of why you need general liability insurance for handyman.
Who Needs Handyman Insurance?
Generally, insurance is not required to operate a handyperson business. An exception to this standard includes if you are working as a licensed contractor; then insurance may be required in certain states. Specific customers may also require proof of coverage before awarding work to contractors. As a business owner, it’s still recommended that you have at least some handyman insurance coverage to protect you even if it may not be required.
What Does General Liability Insurance Cover for a Handyman?
Broad categories of general liability insurance include personal injuries and property damage. Therefore, a few instances could qualify for general liability coverage. For example, you’re on a handyman job and you accidentally knock over a customer’s china cabinet while painting a room; general liability insurance will help cover the associated costs of the damage.
Similarly, if you’re pressure washing a customer’s driveway and your machine malfunctions and damages the house, general liability insurance may cover you.
What’s Not Covered Under Handyman General Liability Insurance?
While general liability insurance can be quite extensive, there are certain circumstances that it will not cover.
Intentional injuries or property damage will not be covered by general liability insurance. If you offer handyman services and employ contractors, your insurance will also not cover any injuries they experience on the job.
Faulty workmanship is also not covered by general liability insurance. The costs to fix incomplete or poor quality work is not something that will be reimbursed by insurance.
Lastly, general liability insurance does not include equipment coverage and tool loss or damage. In such situations, you will need to absorb the full replacement or repair costs, or you can invest in power tools and business equipment insurance for a nominal fee each month (typically between $12-$45).
What are the Handyman Liability Insurance Policy Limits?
Your policy coverage limits for general liability insurance will depend upon the policy you purchase. An example of one available policy rate looks like this:
- Customers pay between $30-$60 per month
- $500,000-$1M per occurrence limit (depending on policy specifics)
- $500,000-$2M aggregate policy limit (depending on policy specifics)
- $0 deductible may be available
Policy limits may vary drastically depending upon the size of your business or team and the number of customers you work with on a regular basis. More customers mean more jobs, and more jobs might indicate a need for a higher policy limit. Also, insurance companies will provide different terms and conditions for your policy.
How Much Does Handyman Insurance Cost?
Handyman general liability insurance for a small business costs $50 on average. Your monthly premium will depend upon the specifics of your business, such as your annual payroll or revenue; moreover, every policy offered by a different company will look slightly different.
You’ll want to consider whether that low monthly premium is worth the high corresponding deductible, or whether you’d be adequately covered by the policy limits.
Begin the affordable insurance selection process by allocating a budget for it in advance. You’ll be able to narrow down your additional options more quickly.
When Do I Get the Certificate of Insurance?
A certificate of insurance or proof of insurance shows that you are a policyholder and provides a one-page summary of your business coverage. Customers may request to see your certificates of insurance prior to doing business with you, so it’s important to keep it readily accessible.
In many cases, you will be able to download your certificate of insurance from your insurance account portal upon purchasing a policy. Or your certificate might be mailed to your insurance agent.
Get General Liability Insurance for Handyman
Consider investing in general liability insurance if you operate a handyman business. You’ll protect your business in case of on-the-job accidents. Contact your licensed insurance agent and ask them to get you Pathpoint online quotes.