Learn about recommended handyman coverage options, costs, and best practices to safeguard your business in this comprehensive guide to handyman insurance.
Handyman Insurance: Benefits and Cost
Starting a new handyman company is an amazing achievement and one you should be excited about. However, it's important that anyone going into business understands the risks involved and takes the necessary steps to protect themselves. One of the best methods of safeguarding yourself and your assets is by securing an excellent deal on insurance. In this article, you'll learn about the various benefits of handyman insurance and discover expert advice to help you find the right deal.
Let CraftJack do the legwork of finding new customers and use your time to land the best insurance deal. We can source high-quality, verified Handyman leads so you can focus on leveling up your business.
Benefits of Getting Handyman Insurance
Operating a successful handyman business means knowing how to safeguard your investments and being a jack-of-all trades. Financial savviness is critical, and part of that is having an insurance package that acts as a safety net in case anything goes wrong. Discover the advantages that insurance coverage offers below.
Peace of Mind
Most of the benefits of handyman insurance directly relate to protecting your business, but it's also a great way to ensure your brand appeals to customers. One of the main priorities for handyman clients is trust.
If a customer is considering two handymen in their local area — one with insurance and one without — they'll go for the one who has it. That's because they can feel secure in the knowledge that their property and safety are protected by your insurance policy. It also demonstrates professionalism and commitment.
Property Damage Coverage
Even the best handyman in the world isn't accident-proof. No matter how careful you are, the nature of your work means you're moving bulky objects, fixing pipes, and working among clients' prized possessions.
If you accidentally split a worn-out pipe or knock over an expensive vase without insurance, you could be liable for substantial costs. Having insurance means your business won't be affected, and the customer has peace of mind knowing any repairs are covered.
Bodily Injury Coverage
Working in a profession that involves handling tools and machinery and working at heights comes with risks. If the worst happens and you have an accident or unintentionally cause physical harm to a third party, your livelihood could be in jeopardy. The legal fees and medical bills would likely be overwhelming, and handyman insurance is the only way to protect yourself and your reputation in that situation.
Protection of Handyman Business Assets
Your van, tools, and equipment are your handyman company's biggest assets, and they aren't immune to damage or theft. Insurance safeguards them and prevents disruption to your operation, ensuring you don't lose out on jobs because you're waiting for more cash flow to replace something that was stolen or broken. If your van is vandalized or an important tool gets stolen from a job site, insurance ensures you have a swift replacement that you don't have to pay for in full.
Litigation is one of the biggest risks for a business owner, and it's crucial that your handyman company has an insurance policy that covers legal action. Clients may sue you for property damage, personal injury, or inadequate workmanship. Even if you aren't at fault, you'll need to go through a lengthy, draining legal process to prove your innocence. Insurance is your best defense against hefty legal fees and the damage they could do to your business.
What Does Handyman Coverage Include?
Having the right handyman coverage protects your business, and several types of policies are available. Here's a list of the most important insurance options for handymen:
- General liability insurance: Many people consider this to be the first policy a handyman should invest in, as it covers you against financial losses resulting from property damage and third-party injury.
- Professional liability insurance: If you work on more complex or technical projects, professional liability covers you in case you're sued for making a mistake in your work.
- Commercial auto insurance: Any handyman with a company vehicle should consider getting this type of coverage in case they get into an accident.
- Workers' compensation insurance: Most states require this type of insurance by law if you have employees, as it covers you (and them) in case someone is injured on a job.
- Tool and equipment insurance: Damage or theft of your handyman tools could put you out of action for days or weeks. This type of insurance covers your precious equipment.
- Business interruption insurance: If your business must close for unforeseen reasons, this type of policy offers financial protection.
- Business property insurance: This policy covers your business location and inventory if they're destroyed or damaged.
- Directors’ and officers’ liability insurance: If you make a mistake as the director of your company, this policy will protect you.
- Bond insurance: This protects your clients in case you don't fulfill contractual obligations or fail to finish a handyman project.
Best Companies for Handyman Insurance
Based on customer reviews, these are the four best companies for handyman insurance:
- AON: AON is an international insurance broker offering a range of coverage options for handymen, including general liability, workers' compensation, and commercial auto insurance.
- The Hartford: With headquarters in Connecticut, The Hartford operates in all 50 states and the District of Columbia. It offers general liability, workers' compensation, commercial auto, tools and equipment, business property, and business interruption insurance. The company also offers a flexible insurance option for contractors who work occasionally, with coverage lasting from 2 hours to 2 weeks.
- Safeco: This company operates in all 50 states, as well as in D.C., and provides general liability, workers' compensation, commercial auto, tools and equipment, business property, and business interruption insurance. It has specific packages for handymen called Handyman's Plus and Handyman's Pro.
- Progressive: Headquartered in Ohio and operating nationally, Progressive offers general liability, workers' compensation, commercial auto, tools and equipment, and business property insurance. It also has coverage packages tailored to handymen, Handyman's Package and Handyman's Plus.
Handyman Insurance Best Practices
When choosing a handyman insurance policy, take the following into consideration:
- First, take stock of your current business needs. Think about the size of your company, how many employees you have, which services you offer, and the scope of the projects you take on. Consider the risks and liabilities that apply to your handyman business so you can choose the right level of coverage.
- Thoroughly research insurance providers, taking into account their track record and online reputation. Reviews and recommendations from other people in your line of work are great places to start.
- Compare coverage details, such as limits, exclusions, deductibles, and out-of-pocket expenses, and make sure the policy covers everything relevant to your handyman business.
- Get quotes from multiple insurance providers and compare coverage and pricing.
- Select a policy once you've read and reviewed the fine print of your top policies. Taking the time to review the details of your policy ensures you get the best possible insurance coverage for your handyman business.
How Much Does Handyman Insurance Cost?
The cost of insurance depends on a range of factors, including the size of your business, the services you provide, your location, and your claims history. Generally speaking, you can expect to pay around $100 per month for comprehensive coverage, with specialty insurance policies costing a little more.
Even if handyman insurance isn't a legal requirement in your state, getting covered is an essential safeguard against financial loss and supports long-time sustainability. It also shows customers you're a serious business owner, willing to go the extra mile to protect people's safety and property.
Get More Handyman Customers
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