Insurance for handyman contractors
For a jack-of-all-trades or jill-of-all-trades, handyman or handywoman insurance is a comprehensive insurance policy that’s designed to safeguard you from the various risks you are exposed to and provide you with financial support in the event something goes awry.
Whether due to an accident, error, or unforeseen circumstance, insurance for handyman contractors is a policy tailored to meet your unique business needs and provide you with the coverage you need to do your job with confidence.
What is handyman insurance?
Handyman insurance is a policy that’s customized to reflect the work you do and protect handyman and handywoman contractors against the liabilities and risks they faces while working at a client’s property. Mistakes can happen and potential lawsuits against your business can be financially devastating. Handyman insurance can ensure you have the financial support you need if you are sued or if an accident or event results in injury or property damage.
What does it cover?
Handyman contractors are versatile, talented, fixers with a broad range of skills to repair or conduct maintenance work in residential or commercial settings. Their work may be interior or exterior and can vary from small, odd jobs to more significant tasks such as gutter cleaning and repairs, installations, painting, or plumbing maintenance.
Regardless of the types of handyperson jobs you do, it is vital to have insurance coverage specifically designed to protect you from the risks you encounter and the equipment you own. A comprehensive handyman insurance package typically includes the following coverages:
- Commercial General Liability (CGL) Insurance: CGL coverage provides you with financial support for your legal expenses and court-ordered settlements if you are sued by a client for third-party bodily injury or property damage.
- Tools and Equipment Insurance: All contractors and handymen should have tools and equipment coverage. It covers the cost to repair or replace your tools and equipment if they are damaged by fire or flood or are vandalized or stolen.
- Pollution Liability Insurance: Pollution liability coverage addresses your liabilities associated with environmental damages or exposure to pollution. It covers third-party bodily injury and property damage claims that occur because of gradual or immediate pollution-related events, including funds for clean-up costs, civil fines, and emergency response fees.
- Commercial Property Insurance: Whether you work out of a home office or have a commercial office space elsewhere, commercial property insurance provides you with financial coverage for physical loss or damage to your property and contents because of severe weather, fire, flood, theft, or vandalism.
- Commercial Auto Insurance: Whatever type of vehicle you use for business purposes – a car, pickup, or utility van – requires a commercial auto policy. Although the coverages in a commercial auto policy are similar to those in private-passenger car insurance, the latter is not designed to protect any vehicle used for business purposes from damages or provide coverage if you are in a collision.
- Cyber Liability Insurance: Protecting your computing systems and data, as well as your customers’ personal and financial data, is essential for all small businesses and self-employed professionals. Cyber liability insurance provides you with support if your computing systems or website is hacked and your data is stolen or compromised. It also provides coverage for accidental data breaches and is designed to pay the cost to repair and restore your software systems damaged by a cyber-attack.
Does a handyman need insurance?
Although it may not be required by law, any independent or self-employed handyman should have a handyman insurance policy to protect themselves from damage, loss, or the financial fallout of a third-party lawsuit regardless of the services you provide. However, if you are working as a subcontractor, you may need to provide a certificate of insurance to get hired for work, or one of your customers may ask to see that you have proof of insurance.
How much does it cost?
The cost of a policy for a small handyman business working on residential projects typically starts at $450 per year for commercial general liability insurance with a $2 million coverage limit.
Insurance companies consider several factors when assessing your risks and setting a price for your policy, including:
The number of employees you have or if you work independently
- The types of services you provide and whether it is commercial, residential, or both
- Your years of experience
- The tools and equipment you own
- Your annual and projected revenue
- Your insurance claims history
Common claims scenarios
Frequently asked questions
Other contractor trades we can provide coverage for: