Handyman Insurance

Here are some of the factors that affect your premiums during the underwriting process:

• Type of handyman work. A contractor who takes on smaller jobs, like drain cleaning, will pay less for insurance than one who takes on larger home renovation or exterior cleaning projects.
• Business property and equipment. Expect to pay more to insure an office building and expensive equipment than a smaller setup.
• Number of employees. A larger workforce brings a higher risk of employee injuries and accidents, which raises the cost of workers' comp, general liability, and similar policies.
• Annual revenue. Increased business revenue is associated with higher risks and more frequent claims, which results in higher insurance costs.
• Policy limits and deductibles. Policies with higher limits cost more but cover more expensive claims. Choosing a higher deductible can lower your premium, but your insurance won't activate until you pay the full amount.
• Claims history. It'll cost more to insure a business that has filed an insurance claim in the past than one that has a clean history of claims.
• Business location. Regional factors such as crime rates, population density, and property values affect how much you pay for insurance.

Our insurance agents can help you find ways to reduce your costs while still getting the coverage you need.

While handymen and general contractors both focus on repairs, maintenance, and construction work, there are several differences between them. This includes their licensing and insurance requirements, and the size and type of projects they are able to take on.

• General contractors are typically required to obtain a certain amount of education, licensing, and insurance in order to work.
• Handymen usually only need the right tools, skill set, and working knowledge to perform simple maintenance and repair jobs.

A general contractor often works on larger projects and can build new homes, perform major renovations, and complete structural work. They may also hire subcontractors to work on specialty projects, such as an electrician, plumber, flooring installer, or roofer.

A handyman is usually a jack-of-all-trades who handles a variety of small-scale projects and home maintenance tasks, such as pressure washing, basic carpentry, and fixing leaking faucets.

Any contractor who does work on client properties could end up facing hefty medical bills or legal costs, which makes insurance essential. Most often, you'll want to secure your own coverage. In some cases, you can get added to the project owner's policy as an additional insured.

Keep in mind, personal insurance won't cover work-related claims, so you can't depend on personal auto insurance, homeowner's insurance, or health insurance for coverage.

Here are the top policies you should consider if you work independently:

• General liability insurance covers third-party bodily injuries and property damage, such as a client who trips over your toolbox and breaks their wrist, or accidental damage to a sink or cabinet.
• Contractor's tools and equipment insurance protects your saws, hammers, wrenches, ladders, and similar items both in transit and at jobsites.
• Hired and non-owned auto insurance (HNOA) provides liability coverage for handymen who drive their own vehicles for work purposes.
• Workers' compensation insurance pays for medical bills and provides disability benefits if you're injured on the job.

If you hire 1099 contractors or subcontractors, they won't be covered under your policies, but you could be blamed for any damage they cause. You'll want to make sure they have their own coverage or add them to your policies as an additional insured.

Even for a single job or short-term project, liability insurance is essential due to the high cost of an accident or lawsuit. Your clients may also require you to have coverage.

While you could buy short-term liability insurance or seasonal insurance, there are several reasons to opt for year-round coverage instead:

• It's expensive to stop and start coverage. Handyman contractors who cancel their policies may see increased premiums or have difficulty restarting coverage, as it's a red flag for insurers.
• It may cost more in the long run. Going without insurance leaves you exposed to costly risks. For example, a storage unit could catch fire and destroy your tools and equipment while you're uninsured.
• Some policies won't provide coverage. Occurrence-based policies like general liability continue to cover incidents that happened while you were insured, but that's not the case for claims-made policies like professional liability insurance, which must be kept active to provide protection.

Handyman contractors and other small business owners should consider the following types of coverage for a comprehensive risk management plan:

• Commercial property insurance covers your building and its contents, such as tools, furnishings, and computers. It protects against financial losses from fires, storms, and burglaries.
• Business personal property (BPP) coverage can be added to your general liability policy to protect business property kept at a designated location, even if you don't have a building.
• Business interruption insurance, also called business income insurance, reimburses you for lost income and day-to-day expenses if your business is forced to close temporarily due to a burst pipe or other covered property claim.
• Employment practices liability insurance (EPLI) pays for legal defense costs related to claims of unfair hiring practices, wrongful termination, and other violations of employee rights.
• Commercial umbrella insurance boosts the coverage on your general liability, commercial auto, or employer's liability insurance once the policy limit is reached.
• Surety bonds guarantee financial reimbursement for a client if you are unable to fulfill the terms of a contract. You might need a bond to bid on a project, get a license or permit, or work for a certain client.

Handyman contractors and businesses can save money on general liability insurance by comparing quotes from different providers. With Insureon, you can get free quotes from top-rated insurance companies by filling out our easy online application.

Other ways to save money include:

• Bundle policies. Contractors with low risks can often buy general liability coverage and commercial property insurance together in a business owner's policy, which costs less than buying these policies separately.
• Choose inexpensive coverage options. Choose lower coverage limits or higher deductibles to reduce your premium, but make sure your policy can still cover a potential claim.
• Avoid accidents and claims. Handyman businesses can prevent customer accidents that lead to liability claims by keeping paths clear of tools and clutter, making sure children and pets are kept away from the worksite, and using proper ventilation for dust and fumes.

Our agents can help you find the right contractor insurance for your budget and your business needs, whether your focus is furniture assembly, basic repairs, clogged drains, or other odd jobs.