Having proper insurance coverage in place is absolutely vital for handymen in Oklahoma to protect their business from the inherent risks that come with maintenance, repair, installation, and small construction projects. Even routine handyman tasks carry hazards that can lead to substantial financial losses if something goes wrong – a slipped tool that causes accidental property damage, a fall from a ladder that results in injury and lost wages, or even simple quality defects that require rework.
Operating without insurance exposes a handyman business to major financial and legal liabilities from potential accidents, natural disasters, lawsuits from dissatisfied customers, injuries to employees, and other unforeseen circumstances. Suitable insurance policies provide a safety net so Oklahoma handymen can survive these risks and continue serving customers.
This comprehensive overview examines the key factors that influence insurance costs specifically for handymen in Oklahoma. It provides illustrative premium ranges for essential policies like general liability, workers compensation, and surety bonds across common handyman business sizes. Additional common policies are also reviewed.
Understanding typical insurance rates allows Oklahoma handymen to evaluate whether their current premiums are competitive within the local marketplace. While every business is unique, handymen can use this guide as a reference point to ensure their coverage is both affordable and sufficient for their particular operations’ size and risk profile.
Handymen working in Oklahoma need to have the proper handyman insurance policies in place. This typically includes liability coverage for handymen to safeguard against third-party claims and workers’ comp insurance for handymen to cover employee injuries sustained while on the job.
Key Factors Influencing Insurance Costs for Handymen in Oklahoma
Insurance premiums for handymen in Oklahoma depend upon several variables:
Revenue
Higher annual revenue equates to larger project values and greater liability exposure. This increased exposure results in higher premiums across policies like general liability and workers compensation to cover expanded risks. As a handyman business grows, policy limits and premiums must scale up accordingly.
Number of Employees
More employees means expanded workers compensation exposure. Premiums must increase appropriately to account for additional staff. Each new hire enlarges payroll and chances of workplace injuries. A larger, well-trained staff may also take on more complex projects, further increasing general liability risks.
Years in Business
Newer handyman businesses usually pay higher initial insurance rates due to limited operating history. In contrast, long-tenured handymen tend to receive lower premiums based on years of demonstrated risk management. However, once insured, keeping premiums low requires avoiding frequent claims.
Claims History
Too many past claims drive premiums upward. A clean history without major claims keeps insurance rates affordable. But once claims occur, insurers consider the business riskier and must charge higher premiums to account for higher anticipated losses.
Services Performed
Conducting higher risk tasks like extensive electrical work, handyman, roofing or HVAC installation may result in moderately elevated premiums compared to general handyman services. Insurers classify risk by work categories.
Business Size
Larger handyman firms with more revenue, employees, fleet vehicles, expensive tools and equipment, and higher customer volumes inherently have greater risk exposure. Thus, premiums climb higher to match expanded risks and liabilities.
Insurance Carrier
Premiums can vary significantly between insurance providers. Each carrier assesses risk differently. Rigorously shopping policies from multiple insurers ensures handymen find the most competitive pricing. Avoid just automatically renewing an existing policy.
Overview of Cost Illustration for Handyman Businesses in Oklahoma
Below we provide typical premium ranges for small, medium, and large handyman businesses in Oklahoma based on their annual revenue, number of employees, years in operation, and claims history.
These premiums assume the handyman business is well-established, operating for 5+ years, and working predominantly with homeowners on lower-risk residential repair, maintenance and installation jobs using experienced and properly trained staff. Most importantly, these businesses have no major claims within the past 3 to 5 years.
As such, the rates represent approximate competitive pricing Oklahoma handymen could expect from reputable regional and national insurance carriers for businesses meeting those criteria. Individual handyman businesses may certainly fall outside these ranges based on their unique risk characteristics, services performed, safety record, and actual claims history.
However, these examples serve as a useful benchmark to compare a handyman’s own insurance rates against when evaluating policies. Significant variances above these industry averages may indicate room to negotiate lower pricing from incumbent insurers or motivation to shop quotes from alternative providers.
Small Handyman Business Insurance Costs
$150K Annual Revenue, 1 Owner, 1 Employee
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General Liability
Typical policy limits:
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$1 Million per occurrence
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$2 Million aggregate
Typical Premium: $2,300
Low End: $1,800
High End: $3,100
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Workers Compensation
Typical policy limits:
- Statutory state limits
Typical Premium: $4,800
Low End: $3,800
High End: $8,400
Surety Bonds
Typical bond amount:
- Not required by state of Oklahoma
For a handyman just starting to grow beyond sole proprietor status, securing general liability and workers compensation policies are crucial first steps. As their toolbox expands, adding inland marine coverage becomes important as well.
Medium Handyman Business Insurance Costs
$500K Annual Revenue, 1 Owner, 3 Employees
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General Liability
Typical policy limits:
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$1 Million per occurrence
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$2 Million aggregate
Typical Premium: $7,000
Low End: $6,200
High End: $9,300
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Workers Compensation
Typical policy limits:
- Statutory state limits
Typical Premium: $14,300
Low End: $10,800
High End: $23,700
Surety Bonds
Typical bond amount:
- Not required by Oklahoma
Once hiring multiple employees, handymen must prioritize workers compensation coverage. Umbrella insurance also becomes important for additional liability above general liability/auto policies.
Large Handyman Business Insurance Costs
$1M Annual Revenue, 1 Owner, 5 Employees
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General Liability
Typical policy limits:
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$1 Million per occurrence
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$2 Million aggregate
Typical Premium: $14,200
Low End: $11,500
High End: $16,600
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Workers Compensation
Typical policy limits:
- Statutory state limits
Typical Premium: $23,900
Low End: $16,700
High End: $37,100
Surety Bonds
Typical bond amount:
- Not required by Oklahoma
For larger firms, extra coverages like cyber liability, employment practices liability, and commercial property round out a comprehensive insurance portfolio.
Overview of Additional Common Insurance Policies
Beyond general liability and workers compensation, Oklahoma handymen commonly carry these additional policies:
Commercial Auto Insurance
Covers any vehicles used for business purposes like driving to job sites, hauling equipment, or transporting supplies.
Typical policy limits:
- $500,000 to $1,000,000 per accident
Typical premiums range from $1,500 to $3,050 annually per vehicle. Commercial auto is mandatory if any driving is done for work purposes. Personal auto insurance will not cover business-related liabilities.
Inland Marine (Tools & Equipment) Insurance
Protects valuable tools and machinery both at customers’ premises and in transit.
Typical policy limits:
- $10,000 to $100,000 in total equipment coverage
Typical annual premiums range from $500 to $2,000 or more based on total insured equipment value and risk factors like job site location. Often includes per item limits capping coverage for a single item.
Commercial Property Insurance
Safeguards any structures a handyman business owns like workshops, warehouses, sheds, offices, or showrooms. Also covers furnishings, inventory, and contents inside those buildings.
Typical policy limits:
- Based on total insured value of the property
Typical premiums range from $1,000 to $5,000 annually depending on property value, location, and construction.
Employment Practices Liability Insurance
Shields against employee lawsuits alleging discrimination, wrongful termination, sexual harassment, infliction of emotional distress, breach of employment contract, work-related misdeeds, and other employee issues.
Typical policy limits:
- $100,000 to $1,000,000 per incident
Typical premiums range from $1,000 to $5,000+ annually depending on number of employees, revenue, and risk factors. Larger staff counts and bigger payrolls increase risks and premiums.
Cyber Liability Insurance
Critical coverage for handymen managing any sensitive customer data like names, addresses, emails, phone numbers, payment information or other personally identifiable information.
Protects against cyber crimes like data breaches, hacking, ransomware, and electronic theft resulting in compromised customer information.
Typical policy limits:
- $100,000 to $1,000,000 per incident
Typical premiums range from $300 to $1,000+ annually depending on revenue and cyber security protocols.
Umbrella Liability Insurance
Provides additional liability coverage above and beyond the limits of other policies like general liability and auto insurance. This added cushion becomes essential as a handyman business grows.
Typical policy limits:
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$1,000,000 is common for small businesses
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Larger firms may opt for $2,000,000 or higher limits
Typical premiums range from $500 to $1,000+ per year for $1 million in additional coverage.
Getting Multiple Quotes and Securing the Right Insurance
Shopping insurance coverage with multiple specialized providers is key to securing the optimal policies at competitive pricing tailored for a handyman business.
Rather than just automatically renewing incumbent insurers, handymen should periodically solicit fresh quotes from both national insurers and regional Oklahoma-based insurance agencies. Avoid just going direct to a single insurer.
Partnering with an independent insurance broker who specializes in serving handymen and contractors provides important advantages:
- Access to multiple insurance carriers and markets
- Ability to compare numerous quotes side-by-side
- Expert guidance from experienced handyman insurance advisors
- Help negotiating favorable terms and rates
- Customized packages bundling multiple policies
This multi-carrier access translates into significant negotiating leverage and flexibility for the insured. Independent brokers can shop policies from both national insurers and local Oklahoma providers to find the ideal combination of coverage, service and competitive premiums.
Conclusion
Understanding typical insurance costs based on business size allows Oklahoma handymen to assess whether their premiums align with local industry norms. Carefully evaluating policies at renewal periods ensures ongoing coverage remains both sufficient and cost-effective as the business evolves.
While each handyman’s insurance needs are unique, the rates and policies outlined here serve as an approximate benchmark to compare against when assessing renewals. Partnering with an independent broker often provides access to better pricing through multi-carrier quote comparisons.
Properly insuring an Oklahoma handyman business eliminates the risks of going uninsured by securing protection for the company’s assets, people, reputation and financial well-being. Operating with the right insurance reduces risk so handymen can focus on serving more satisfied customers.