Does a Handyman Need Insurance

A handyman does a lot of maintenance work ranging from minor drywall patch-up to replacing a roofing shingle. The question is how does a handyman different from a general contractor and other specialty trade contractors? Most insurance companies would differentiate a handyman from a General Contractor by the amount of each project or completed job. Most insurance companies classify a handyman if he is not earning more than $2,500 per single job and anything more than that is already considered a specialty trade or a general contractor. With the current US inflation rates and materials getting more expensive, that $2,500 gray area can be easily crossed. Each state also has specific definition what a handyman and GC can legally do so best to check the state's website for licensing rules and work permit requirements. Just like other type of contractors, a handyman mainly needs a General Liability insurance, to protect himself and his business from financial loss against third parties who might sue him and his company for bodily injury or property damage.

What Does a Handyman Liability Insurance Cover?

Coverage A: Bodily Insurance and Property Damage Liability
The insurance company will pay for the damaged the handyman contractor is legally obligated to pay because of bodily injury or property damage to which the coverage applies. The insurance company has the right to defend the handyman contractor against any lawsuit seeking those damages for covered cause of losses. The insurance company usually investigates any filed claim against the handyman contractor and his/her business so the insurance company has the discretion to settle claims before it goes further to a more expensive lawsuit.

For the loss to be covered, the bodily injury or property damage should have taken place in the coverage territory during the policy period and the insured has no prior knowledge of the claim before starting the policy. The damages because of bodily injury include damages claimed by any person or organization against the handyman contractor for care, loss of services or death resulting at any time from the bodily injury.

Coverage B: Personal and Advertising Injury Liability
The insurance company will pay for those sums a handyman contractor becomes legally obligated to pay because of personal and advertising injury. It usually includes lawsuit or claims related to invasion of privacy, copyright infringement, libel, and slander. Common exclusions under this coverage are intentional violation of the third party's rights, criminal acts, breach of contract, and wrong description of prices. 

Coverage C: Medical Payments
The insurance company will pay for medical expenses for bodily injury caused by an accident on the handyman’s business premises including the jobsite of handyman. The accident should have taken place in the covered territory and during the policy period. The medical expenses should have been incurred and reported within one year of the date of the accident and the injured person submits to examination at the expense of the insurance company by their chosen physician if required. The limit will pay for first aid administered at the time of the accident, necessary medical, surgical, X-ray and dental services. It will also pay for prosthetic devices and necessary ambulance, hospital, professional nursing and funeral services.

Other Insurance Needed

1. Business Auto / Commercial Auto Insurance - Covers cars, trucks, motorcycles, and other road vehicles owned by or operated within a business. Its primary use is to provide financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise therefrom. Commercial auto insurance may also offer financial protection against theft of the vehicle and possibly damage to the vehicle, sustained from events other than traffic collisions.
2. Contractors Equipment / Inland Marine - The name might be confusing but the inland marine refers only to the equipment transported over inland and that include handyman and other contractors’ tools, equipment, and heavy machinery like a big excavator. This coverage is important to handymen and other contractors as insurance company will pay to replace all your tools and equipment if they get stolen or damaged.
3. Workers Compensation - Workers' compensation is a form of insurance providing wage replacement and medical benefits to the handyman’s employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue his or her employer for the tort of negligence.
4. Excess Liability / Umbrella Policy - Umbrella insurance refers to liability insurance that is in excess of specified other policies and also potentially primary insurance for losses not covered by the other policies. When an insured handyman is liable to someone, the handyman’s primary insurance policies pay up to their limits and any additional amount is paid by the umbrella policy up to the limit of the umbrella policy.

How Much Does Handyman Insurance Cost?

The general liability insurance cost for a handyman depends on the size of the business, the number of employees, amount of subcontracting cost, type of projects the handyman usually deals with and history of claims for the past three years. An owner operated handyman business should not exceed two thousand dollars a year in premium. 
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At Robinsons Insurance Agency LLC, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (888) 254-7350. You can also request a free quote by CLICKING HERE. Coverage discussed in this article is not guaranteed. Please contact our agents to help you understand your coverage. We are happy to help you!