As a handyman, having adequate insurance coverage is crucial to safeguard your business from potential liabilities and risks. Here are some of the main types of insurance policies a handyman should consider:

Workers Compensation
Workers Compensation insurance is crucial for a handyman as it covers medical expenses and lost wages for employees who are injured while on the job. Given that the handyman profession can involve various tasks and environments, the risk of injury is evident. This type of insurance is mandatory in most states and protects both your employees and your business from work-related illnesses, injuries, or accidents.

Learn more about Workers Compensation for a handyman.

General Liability
General Liability insurance is indispensable for a handyman. It covers third-party bodily injury or property damage resulting from your business operations. Suppose a client claims you damaged their property while fixing something; in that case, General Liability will cover the repairs and any associated legal expenses. It’s a protective shield against customer lawsuits.

Learn more about General Liability Insurance for a handyman.

Commercial Auto Insurance
For handymen who frequently travel between job sites or transport tools and equipment, Commercial Auto Insurance is a necessity. This policy covers accidents that might occur during work-related commutes. It ensures that your business remains financially stable, even in the face of unforeseen vehicular incidents.

Learn more about Commercial Auto Insurance for a handyman.

Surety Bonds
Surety Bonds assure your clients of your commitment to the task. If a job isn’t completed as per the agreement, the bond provides compensation to the client. This is particularly valuable for a handyman who undertakes large or critical projects, guaranteeing the quality and completion of work.

Learn more about Surety Bonds for a handyman.

Inland Marine Insurance
Given the array of tools and equipment a handyman might use, Inland Marine Insurance is essential. This policy covers any damages, thefts, or losses of crucial tools like drills, saws, and other equipment.

Learn more about Inland Marine Insurance for a handyman.

Umbrella or Excess Liability Insurance
This insurance adds an extra layer of protection over your General Liability limits. Given that a handyman works in various environments, sometimes even high-risk, having an Umbrella policy ensures that you’re covered against significant claims.

Learn more about Umbrella or Excess Liability Insurance for a handyman.

Employment Practices Liability Insurance (EPLI)
Hiring and managing workers come with its own set of challenges. EPLI protects a handyman from claims of wrongful termination, discrimination, harassment, and other employment-related issues.

Learn more about EPLI Insurance for a handyman.

Cyber Liability Insurance
A handyman might store client data, bookings, or payment details digitally. A breach can lead to significant losses. Cyber Liability insurance covers the costs related to data breaches, hacking incidents, or electronic theft.

Learn more about Cyber Liability Insurance for a handyman.

Directors & Officers Insurance
For handymen running larger businesses or incorporated entities, D&O insurance is pivotal. It covers the company’s leaders against claims of misrepresentation, negligence, or other related lawsuits.

Learn more about Directors & Officers Insurance for a handyman.

Environmental & Pollution Liability Insurance
A handyman often works with materials or in environments that might pose environmental risks. This insurance ensures that your business is covered against any claims relating to pollution or environmental hazards resulting from your services.

Learn more about Environmental & Pollution Liability Insurance for a handyman.

Errors & Omissions Insurance
E&O is especially relevant for a handyman. If a client claims that the work done was below standard or led to further issues, E&O insurance protects you from the resulting financial implications.

Learn more about Errors & Omissions Insurance for a handyman.

Having the right insurance coverage is a pillar of effective risk management for any handyman. Collaborating with a knowledgeable insurance agent or broker familiar with the handyman industry is invaluable. They can help ascertain specific risks and customize policies accordingly. Proper insurance not only brings peace of mind but also ensures the long-term growth and success of your handyman business.

Insurance TypePurposeKey Coverage Points
Workers CompensationCover employee injuries– Medical expenses
– Lost wages
General LiabilityProtect against third-party damages– Bodily injuries
– Property damage
Commercial Auto InsuranceInsure business vehicles– Accidents
– Vehicle damages
Surety BondsGuarantee project completion– Contract assurance
– Compensation
Inland Marine InsuranceCover equipment and tools– Theft
– Damage
– Loss
Umbrella or Excess Liability InsuranceExtra liability coverage– Over General Liability
– Major claims
Employment Practices Liability InsuranceProtect against employment-related claims– Wrongful termination
– Discrimination
Cyber Liability InsuranceCover data breaches and electronic theft– Hacking incidents
– Data loss
Directors & Officers InsuranceProtect company’s leaders– Negligence claims
– Misrepresentation
Environmental & Pollution LiabilityCover environmental risks– Pollution events
– Cleanup costs
Errors & Omissions InsuranceProtect against claims of inadequate work– Below-standard work
– Resulting issues

Key Takeaways for a Handyman:

  • Diverse Work, Diverse Risks: A handyman’s job is versatile. Different tasks come with different risks, and having a variety of insurance types mitigates these risks.
  • Client Trust: Surety Bonds and General Liability insurances can boost a client’s trust in your services. They know they’re protected against potential damages or incomplete projects.
  • Digital Age Precautions: Even if you believe your business is small or offline, Cyber Liability is becoming increasingly essential. As more services become digital, the risk of cyber threats grows.
  • Asset Protection: Tools, equipment, and vehicles are essential assets for a handyman. Protect them with the right insurance to avoid sudden financial setbacks.
  • Legal Peace: Legal issues can arise in any business. Insurances like D&O and EPLI safeguard against potential lawsuits, offering peace of mind.