What your handyman insurance covers depends on the which policies are best suited to protect your business and ensure your financial security. While all handyman businesses have unique needs, a few key policies provide the building blocks that will allow you and your insurance broker to determine the coverage that’s best for you.
General liability insurance is generally the foundation of your insurance package, it’s your must-have handyman policy. The policies you choose to add to your general liability insurance will help you protect whichever assets are the most important to you, from your tools to your truck.
What Does Handyman Insurance Cover?
General Liability Insurance
Your general liability insurance is the most important policy you’ll invest in. This policy protects your business assets in case someone claims damages against you, preventing small accidents from becoming the type of legal battle that can damage your company.
General liability insurance covers you from incidents such as:
A third party sues you over injuries incurred on a job site
You cause damages to a third party’s property
Advertising injuries such as slander or libel
This policy is an essential part of your handyman insurance coverage because it stands between you and costly liability lawsuits.
Your work truck is one of your most valuable assets. Some days it’s a second office; the center of operations. Commercial auto insurance protects you in case of repair bills, injuries, or other damages incurred if an accident happens on the job. Don’t make the mistake of relying on your personal auto insurance policy for your work vehicle- it may not cover your truck if an accident happens while the vehicle is being used for work purposes.
An inland marine policy protects your tools in case they’re vandalized, stolen, or otherwise destroyed while you’re transporting them. Inland Marine insurance complements your Commercial Auto policy. Commercial Auto takes care of your truck, and Inland Marine protects the valuable materials, supplies and tools you use it to haul to and from a job site.
While many handyman businesses are one-man operations, if you have employees you’ll need to have workers comp insurance. This policy protects your employees from any injuries incurred on the job, and protects you from legal fees in case your employee sues you. In most states, workers’ comp is required by law.
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, protects you from lawsuits from customers that are based on your work. A professional liability lawsuit may arise from a variety of situations.. This policy protects you from complaints such as:
- Mistakes that cost clients time or money
- Incidents where they claim you’ve given them poor advice
- Missed deadlines
Professional liability insurance protects you when the quality of your work is called into question.
Builders Risk Insurance
Builders risk insurance, also called course of construction insurance, protects you against accidents that occur while you’re working on a specific project.. Builders risk insurance differs from your general liability policy in that it protects you from external events beyond your control, such as fires, wind, theft, lightning, explosions, vandalism, earthquakes, and flooding.
Lastly, umbrella insurance is a catchall, otherwise known as excess liability insurance. Umbrella insurance covers you in the event of an incident that exceeds your existing coverage limits on your other policies.
Finding the right insurance for your business is an important part of safeguarding the assets that matter most to you. Whether you’re a part-time handyman working a one-man operation or starting a larger company with dozens of employees working under you, make sure your insurance policy has you covered. For more advice on which policies will serve you best, contact us.