As a skilled handyman, you offer various services, such as fixing leaks and remodeling kitchens. These various duties make you liable to lawsuits, injuries, and other faults that can quickly add up if you don’t have insurance. However, it’s crucial to protect your business from potential risks and liabilities. This is where handyman insurance comes in.
Handyman insurance is a type of business insurance that covers you against property damage, bodily injury claims, and lawsuits that may arise from your work. But with so many options, how can you select the best insurance company? Here are the key factors to consider when choosing a handyman insurance provider.
Liability Insurance
The foundation of a handyman insurance policy is liability insurance, which protects against damages or injuries to third parties caused by your work. For instance, if a client trips over your equipment and gets injured while you’re working, liability insurance covers their medical bills and legal costs. Additionally, liability insurance compensates for third-party property damages, such as mistakenly breaking a client’s window or spoiling their flooring.
When choosing a handyman insurance provider, make sure they provide adequate limits of liability insurance. General liability insurance coverage is typically set at $1 million per occurrence and $2 million aggregate, but some clients may require higher limits depending on the project’s size and complexity.
Benefits of Liability Insurance For Handyman
- Protection against third-party claims: Liability insurance can protect you from financial losses resulting from third-party claims against you. For example, if a client sues you for damage to their property or bodily injury resulting from your work, liability insurance can help cover the cost of legal fees, settlements, or judgments.
- Peace of mind: Having liability insurance can provide peace of mind knowing that you are financially protected in the event of a claim. This can allow you to focus on your work and provide better client service.
- Professionalism: Having liability insurance can demonstrate to potential clients that you are a professional and take your work seriously. Clients may be more likely to hire you if they see that you are insured, giving them a sense of security.
- Compliance with legal requirements: Liability insurance may be a legal requirement depending on where you operate. Insurance can ensure that you comply with any legal requirements in your area.
Commercial Property Insurance
Handymen often own or rent tools, equipment, or workspace that are essential to their business. Commercial property insurance protects these items from destruction or loss caused by theft, fire, vandalism, or other covered hazards. It covers the repair or replacement of business property, allowing you to resume operations without delays.
When selecting an insurance provider for handyman services, ensure they have sufficient coverage limits for commercial property insurance. The coverage limits should cover the entire value of your business property, including tools, equipment, and workspace.
Benefits of Commercial Property Insurance For Handyman
- Protection against property damage: Commercial property insurance can protect your business property, including your tools, equipment, and workspace, against damage or loss caused by fire, theft, or natural disasters. This coverage can help you recover the cost of repairing or replacing your property, which can be critical to keeping your business operational.
- Business interruption coverage: If your business property is damaged or destroyed and you cannot operate your business, commercial property insurance can cover the loss of income and ongoing expenses such as rent and utilities. This can help you stay afloat during a period of business interruption.
- Customizable coverage: Commercial property insurance policies can be tailored to the specific needs of your business. For example, if you have unique tools or equipment critical to your business, you can add coverage specifically for these items.
- Peace of mind: Having commercial property insurance can provide peace of mind knowing that your business property is protected. This can allow you to focus on providing high-quality service to your clients without worrying about the financial consequences of property damage or loss.
Workers’ Comp Insurance
If you have a team working under you, obtaining workers’ comp insurance is crucial. It covers medical bills, lost wages, and other benefits for workers who get hurt or fall ill while on the job. For example, if your employee falls off a ladder and breaks their leg while at a client’s location, workers’ comp insurance would cover their medical expenses and lost wages.
Workers’ comp insurance is mandatory in most states, so verify that the handyman insurance provider you choose offers this coverage. The coverage limits for workers’ comp insurance vary depending on the state and the number of employees you have.
Benefits of Workers’ Comp Insurance For Handyman
- Legal protection: Workers’ compensation insurance can also provide legal protection for you and your business. If an injured worker decides to sue you, workers’ compensation insurance can help cover the cost of legal fees and any settlements or judgments that may result.
- Medical benefits: If you or one of your employees is injured on the job, workers’ compensation insurance can cover medical expenses related to the injury. This can include doctor visits, hospital stays, surgeries, and rehabilitation.
- Compliance with legal requirements: Depending on where you operate, workers’ compensation insurance may be a legal requirement. Workers’ compensation insurance can ensure that you comply with any legal requirements in your area.
- Employee retention: Workers’ compensation insurance can help attract and retain employees. Employees are more likely to work for a business that offers workers’ compensation insurance because it provides financial protection in case of an on-the-job injury.
Protect Your Business With The Right Insurance Plan
Selecting the right handyman insurance provider is vital to protecting yourself and your business from potential risks and liabilities. When searching for a handyman insurance company, make sure they offer general liability insurance, commercial property insurance, workers’ comp insurance, and commercial auto insurance. The coverage limits should be sufficient to cover your business property, personnel, and vehicles. By choosing the appropriate handyman insurance policy, you can focus on providing excellent service to your customers.
