What is handyman insurance?
Handyman job involves numerous risks; both to the business and the handyman themselves. Your employees work hard fixing a light bulb or installing a kitchen sink, and any accident during the job can result in financial hurdles for your business. Handyman insurance helps you protect your business from financial challenges that could result from risks.
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Why should you opt for handyman insurance?
Your clients call you when something needs to be fixed, and you are there to help them. But what will happen when something goes wrong for your business. Your employee could be fixing a door, and suddenly a child runs by the door knocking one of his teeth. As a matter of fact, you might need help to cover the financial loss when accident happens. Moreover, the cost of these accidents can financially devastate your business.
Insurance companies are here to protect you from financial loss. No matter what type of work you perform such as tree pruning and landscaping, contractors insurance can protect you from risks.
Each business is different, and you want to be covered. Some examples of handyman insurance are:
- Local drywall contractor – Drywall contractors are exposed to multiple outdoor risks that can lead to medical costs and lost wages in case of an accident. Nonetheless, having a liability insurance for handyman will help drywall contractors avoid any financial burden that they might face in the workplace.
According to the LA Times, 4000, drywallers walked off their jobs to protest for low wages and lack of health benefits.
- Painters insurance – Being a painter can be a lucrative profession. Above all, to fully protect your business, you need painter’s insurance.
According to Justice, a fraud suit was filed against three painting contractors for lying about disadvantaged business participation on federal projects.
- Electrical contractors insurance – The services that electricians provide to make lives easier and simpler are invaluable, but accidents can happen anytime. You could be held liable for medical costs, lawsuits or even repair of damaged property. Thus, secure your business with electrician insurance.
According to USAToday, electrician contractors had filed a lawsuit to force payment for the job they had done for President Trump’s hotel.
- Cleaning insurance – If you’re oblivious to the risks you face, then serious legal trouble can befall your cleaning business . However, cleaning business insurance will help you mitigate all those risks and reduce the financial burden.
According to Bruinglegal, they claimed that in 2012 they filed a class-action lawsuit against American Cleaners to force them to reimburse their customers and to stop deceptive practices.
- Plumbers insurance – Having a plumbing insurance will protect your business from lawsuits, bodily damage and property damage.
A lawsuit was filed against two plumbers – a father and his son – for defrauding Pennsylvania consumers in recommending an unnecessary replacement, as per Georie.
- Appliance insurance – Having an insurance protects owner and operator of an appliance business from numerous costly risks like theft, and vandalism.
A lawsuit had been filed against Best Buy when a woman said that she was attacked during the delivery of the washing machine, news from Business Insider.
- Insurance for snow plowing – Protect your business and property with snow plow insurance. It provides a buffer protection between your business and snow removal activities.
In an interview with James business (Chris James Landscaping Inc.) said that the slip and fall lawsuits have become increasingly popular, reported by Total Land Scaper.
What policies are under handyman insurance?
Basic coverage that you should consider while receiving handyman insurance quote are:
Business owners policy:
Business owners policy is a pre-packaged insurance policy with fewer coverage gaps. A BOP includes several policies to choose from to protect a handyman’s business. Furthermore, a business owner policy helps your business from the following claims:
- Bodily injury: BOP covers the expenses if your client gets injured in line of business.
- Property damage: Any damage to the client’s property because of your business.
- Employee suing: If your employee decides to sue your company, BOP helps you cover the financial losses.
Workers compensation insurance:
Workers compensation insurance protects your business from bearing any financial losses to the workers due to work-related duties. If you hire workers on a contract basis, you will need a ‘ghost policy’ which has minimum premiums. Workers compensation helps your company to cover for the following coverages:
- Medical expenses: Immediate medical costs and ongoing medical costs such as physical rehabilitation will be covered by workers compensation insurance.
- Lost wage: If your employee is unable to work due to the injury, then insurance companies covers the lost wage.
Nonetheless, most states do not require companies to carry workers compensation insurance for independent contractors.
Commercial auto insurance:
If your handyman business uses any vehicle, from a sedan to a truck, then you need a commercial auto insurance. Cars are an essential part of day-to-day life for a handyman and can demand significant business expenses. Having commercial auto insurance covers the following:
- Bodily damage: Covers claims of any physical injury to a third party.
- Property damage: Your car accidentally caused damage to a property that is not owned by you.
- Vehicle damage: The insurance covers any damage done to your vehicle.
Therefore you should consider adding commercial auto insurance in your handyman insurance policy to cover your losses as a result of accidents.
Commercial property insurance:
Commercial property insurance helps to cover the tools and equipment stored on the job site. Usually, the coverage does not include any stolen goods during the transit from the warehouse to the job site.
Property insurance helps to:
- Repair or replace any tools and equipment.
- Cover damages caused by fire, theft.
You can include inland marine insurance with property insurance to secure your materials during transportation
Commercial general liability insurance:
General liability insurance for small business provides coverage for financial and legal liabilities. With this insurance, you don’t have to worry about the medical or legal expenses of your business. CGLI covers your business from:
- Physical damage to any tangible property caused by your company.
- Any medical expense that your company has to bear due to an injury caused by your company.
Professional liability insurance:
Professional liability insurance, also known as errors and omissions insurance, helps you cover for certain professional and personal services your company offers. It is used in business to protect against claims of negligence. For example, your client can sue you for not completing the given task on time; professional liability insurance will cover legal defense costs.
Employment practices liability insurance:
If your employees take any legal action against your company, then employment practices liability insurance or EPLI helps covers the legal expenses. Furthermore,EPLI can be taken as a stand-alone policy or offered as an endorsement with BOP or CGLI as per the size of your business.
Business interruption insurance:
When your business shuts down from any covered losses, then business interruption insurance helps cover lost income.
Factors affecting the eligibility for business income policy are:
- The industry of the business
- Previous claims
Therefore, make sure to add business interruption policy in your certificate of insurance.
Commercial umbrella insurance:
Commercial umbrella insurance extends the coverage per claim of existing policies. When the amount of claim exceeds the amount of coverage, umbrella insurance provides additional coverage. Nevertheless, umbrella insurance does not increase limit or extend coverage of professional liability.
For example, you incur a loss of $4 million; your general liability covers only $2 million, then umbrella insurance helps you pay for the remaining $2 million.
Popular handyman endorsement package includes:
- Builders risk insurance: Add the builders risk insurance to protect your business structure from a wide variety of events like fire, wind.
- Contractor’s equipment policy: It will help you replace or repair your tools and equipment.
How much does handyman insurance cost?
A handyman who performs dangerous labor-intensive tasks can expect a different handyman liability insurance cost than a handyman who doesn’t. Few factors that determine the handyman insurance cost are: