6 Must-Have Handyman Insurance Policies
6 Must-Have Handyman Insurance Policies
As a handyman business, it’s essential to have the right insurance in place for peace of mind and financial security.
Make sure you consider all aspects by looking into these six coverage options important for any home-services provider! General liability is just the starting point; workers’ compensation can help protect your employees from workplace injuries or illnesses, while commercial auto coverage takes care of vehicles used on company time – plus three more policies that cover those hard-to-be-prepared situations.
Get your protection locked down now so you’re ready should something unexpected come up later!
handyman working in concrete with insurance policy protection
1. General liability insurance – The must-have handyman insurance coverage
General Liability coverage is the most essential business owner’s policy for handymen and construction businesses. This type of insurance can cover a variety of claims, including bodily injury, property damage, and advertising injury.
If a handyman’s work causes any kind of harm to another person or their property, General Liability Handyman Insurance can provide the financial protection needed to protect against such claims. Not only does it protect handyman contractors from legal costs associated with settling a claim, but also from possible financial ruin if that claim was to exceed the handyman’s assets.
Minimum Coverage Requirements
Handymen should have at least a minimum of $500,000 in basic general liability coverage. This will give them the protection they need if someone were to sue them for damages or injuries related to their work.
Additional Coverage Options
Personal and advertising injury protection can also be added to a handyman insurance policy, depending on the specific needs of each business. Personal injury protection provides additional financial protection against claims that may arise if a handyman’s work causes someone emotional distress while advertising injury protection helps cover libel, slander, or copyrighted material infringement claims related to promotional materials distributed by the handyman’s company.
Avoid Expensive Mistakes
Working without any kind of handyman insurance can be an expensive mistake. Not only could it result in costly settlements and/or penalties, but it also exposes handymen to potential lawsuits with no protection if they are found liable for an accident or injury caused by their work. Furthermore, some construction sites require contractors to carry certain levels of handyman liability Insurance before allowing them on the premises. Failing to meet these requirements can lead to hefty fines and/or loss of contract opportunities down the road.
Overall, having proper handyman liability insurance is essential for any handyman business looking to remain successful over the long term since it not only shields them from potential liabilities but also helps ensure that they can continue providing quality handyman services with confidence into the future.
In conclusion, a handyman liability insurance policy is a must-have for handyman businesses as it not only helps protect against losses related to accidents or injuries but also gives handymen peace of mind knowing that if something were to happen while on the job they would have some form of financial backup plan in place.
Pro Tip: Be Aware Of These Exclusions
- Professional Services: Most policies exclude coverage for professional services such as supervision, inspection, quality control, and architecture are not covered and if something goes wrong; unfortunately your policy will not be able to help you.
- Damage to property: Coverage does not provide coverage for claims made against your business due to damage or destruction of property owned by the business.
- Contractual Liability: If you are sued by someone who you have a contract with, your insurance will not cover those damages. This is an important exclusion to be aware of, as it can leave you liable for any damages that may be awarded in a lawsuit.
- Limited Coverage for Advertising Injury: Finally, another exclusion to watch out for is that it has limited coverage for advertising injury. This means that if you are sued because of something you said or wrote in your advertising, your insurance will only cover a portion of the damages. This is an important exclusion to be aware of, as it can leave you liable for a significant amount of the damages that may be awarded in a lawsuit.
handyman protected by general liability insurance while fixing a kitchen sink
2. Commercial auto insurance – protecting your vehicles from accidents or theft
Having business vehicles for a handyman business means that you need the appropriate commercial auto insurance. This type of insurance is essential to protect your business from any damage or loss caused by accidents, theft, or other unfortunate events. Not only does it keep your business safe and secure, but it ensures that all business purposes are covered under the policy.
Understanding your options
When choosing a commercial auto policy for your handyman business, it’s important to understand all the available options and determine which ones best meet your needs. For example, Comprehensive coverage protects handymen from losses due to events other than an accident such as fire, theft, or vandalism. Uninsured/Underinsured Motorist coverage can help offset costs associated with an accident involving another driver who does not carry enough coverage to pay for damages incurred by the handyman’s vehicle. Additionally, Personal Injury Protection (PIP) pays for medical expenses related to bodily injury caused by an automobile accident regardless of fault.
Having the right coverage in place helps handymen protect themselves financially against unexpected incidents involving their vehicle(s). Understanding all available coverages and selecting those that best meet your handyman business’ needs will ensure you’re properly protected in case of an emergency. Don’t let insufficient protection leave your handyman business vulnerable; make sure you have adequate commercial auto insurance in place today!
Auto insurance critical for handymen in case of car accidents
Top 5 Commercial Auto Insurance Options
1. Liability Coverage
Liability coverage is the most basic type of coverage available for commercial auto insurance. This type of coverage protects you from financial responsibility if your vehicle causes damage or injury to another person or property.
2. Collision Coverage
Collision coverage helps to pay for repairs to your vehicle if it is damaged in an accident. This type of coverage is typically optional but may be required by your lender if you have a loan on your vehicle.
3. Comprehensive Coverage
Comprehensive coverage helps to pay for repairs to your vehicle if it is damaged by something other than an accident, such as theft, fire, or vandalism. This type of coverage is typically optional but may be required by your lender if you have a loan on your vehicle.
4. Medical Payments Coverage
Medical payments coverage helps to pay for medical expenses incurred by you or your passengers in the event of an accident. This type of coverage is typically optional but may be required by your state.
5. Uninsured/Underinsured Motorist Coverage
Uninsured/underinsured motorist coverage helps to pay for damages caused by an uninsured or underinsured driver. This type of coverage is typically optional but may be required by your state.
Auto insurance for handymen protects against car break-ins and accidents
3. Inland marine coverage in handyman insurance policy: protects your tools wherever you go
The tools and equipment used by handymen form an important part of their business. As such, it is essential to have coverage in place to protect them against theft, damage, or other losses. Inland marine insurance is specifically designed for this purpose and provides tools and equipment coverage to help safeguard the livelihood of a handyman.
Whether they are transporting their tools to a job site, operating in remote locations, or simply storing them away in the garage, handymen need a comprehensive insurance policy to protect their investments no matter where they are.
The term “inland marine” refers to physical property that insures damage or theft when transported over land or water. It can also be used to protect handymen’s tools and equipment when stored in offsite locations such as warehouses, garages, and job sites.
This type of coverage is important for handymen because it covers losses caused by unexpected events whether your tools were on-site with you or at an alternate location.
Inland marine insurance typically provides handymen with protection against a variety of risks such as fire, vandalism, theft, and other perils. Depending on the policy you choose, this coverage may also include extra benefits like replacement costs for damaged items and liability protection if someone is injured while using your tools.
Having the right equipment insurance is essential for handymen So don’t leave your equipment unprotected–make sure you have an adequate inland marine policy in place today!
Handyman with inland marine insurance for protection of tools on the job
4. Workers’ compensation insurance – protecting your employees from injury or illness
Whether you operate independently or hire employees, workers’ comp is an important business owners policy designed to protect handymen and their employees from injury or illness sustained while performing their duties. It covers medical costs, lost wages, and other costs related to unexpected illnesses or injuries that may occur on the job. The goal of workers’ comp is to provide handymen and their employees with financial security if an unforeseen accident happens while on the job.
Covering costly medical bills
Having workers’ comp in place is essential for handymen because it can help cover medical bills associated with workplace accidents, rehabilitation costs, and even financial losses caused by temporary or permanent disability. In some cases, handymen may also be able to cover lost wages if an employee cannot work due to injury or illness sustained while performing his/her handyman duties. In some states, this type of insurance may even provide death benefits to family members of a handyman employee who dies as a result of a workplace accident.
Potential legal actions against you
Unfortunately, many handymen are unaware of how important it is to have adequate workers’ compensation coverage in place. Without proper coverage options, handymen could be held liable for all medical bills and other expenses related to any work-related injury or illness which could prove costly for their business over time. Furthermore, failing to secure the necessary coverage can put handymen at risk of legal action from injured employees or their families if they attempt to collect damages from an uninsured handyman business.
State Ran Program Options
Fortunately, obtaining workers’ compensation coverage is easy; most states have programs available for small business owners that need assistance getting started with the process. By understanding your state’s policies and requirements you can make sure your employees are covered should something happen during their handyman duties. Protecting your handyman business and its employees through Workers’ Comp will give you peace of mind knowing you have done your best to keep everyone safe!
Top Inland Marine Exclusions
- Defective material or workmanship
- Losses resulting from the insured’s intentional acts or omissions
- Property damage due to war, hostilities, or nuclear risk
- Losses from the ownership, operation, maintenance, or use of any aircraft or watercraft
- Pollution and contamination
- Losses caused by governmental action, orders, regulations, or insurance
- Losses arising out of any dishonest acts committed by anyone associated with the insured’s business
- Losses caused by wear and tear, deterioration, atmospheric conditions, vermin, mold, insects or animals
- Losses due to confiscation, seizure, detention, and destruction by order of a governmental authority.
Workers compensation insurance crucial for handymen and employees on the job
5. Professional liability insurance – covering any errors or omissions and advice given by your business
Professional liability insurance is an important policy that covers any errors or omissions in the advice given by handymen as part of their business operations. It is designed to protect handymen from any financial losses resulting from not providing accurate, professional advice to customers.
Are you providing consulting and/or advisory services to any projects or homeowners?
This type of insurance is especially important for handymen since they provide service and advice related to home improvement projects. In addition, handymen are often consulted on the cost of materials and labor associated with a project and they must be sure to make accurate estimates to avoid any potential legal disputes or costly lawsuits that could arise if a customer feels they have been wrongly advised. In addition to covering potential financial losses incurred due to negligence in the advice given by handymen, this type of insurance also provides handymen with protection against libel, slander, and other types of insurance claims.
Combatting the worries of legal accountability
Professional liability insurance can often cover legal fees and damages awarded to the customer if they are successful in their lawsuit against the handyman. This can provide handymen with valuable protection so that they can operate their businesses without fear of being held liable for any mistakes made on the job.
Examine your options and make an educated decision.
While professional liability coverage can help provide handymen with much-needed protection, they need to understand exactly what their policy covers and how it works before signing up for coverage. To ensure maximum coverage, handymen should research various policies available and compare different levels of coverage offered by each company before deciding which policy best meets their needs. By doing this, handymen will have peace of mind knowing that if anything unexpected happens—they won’t be left holding the bag financially!
Professional liability insurance essential for protecting handymen and their business on the job
6. Handyman Bonds – Protecting Your Business with a Quality Bond
Bonds are essential for protecting businesses against potential losses and liabilities that may be incurred due to the Handyman’s failure to meet the terms of an agreement or contract. These bonds typically guarantee projects will be completed on time, within a specified budget, and by the job specifications.
Contract Coverage:
A construction bond is a type of surety bond that provides coverage for any breach of contract by a contractor or subcontractor. If the contracting party fails to fulfill their obligations as stated in the contract, then the surety provider can step in and cover any financial damages or losses incurred by the client. The bonding insurance company agrees to pay out a certain amount of money if they determine that there has been a breach of contract on behalf of the contractor.
Attracting More Customers:
In addition to protecting against potential losses due to non-performance or malfeasance by contractors or subcontractors, having a surety bond in place can also help attract more business from bigger clients who prioritize working with trustworthy contractors only. A surety bond signals strength and reliability which gives clients additional peace of mind about hiring you for their projects.
Choosing an insurance agent with a focus on construction is critical:
When shopping for contractor bonds it is important to make sure you work with experienced professionals who understand your specific needs and know how to get you set up with the right solution that fits your budget without compromising on quality coverage. It is also important to find providers who offer competitive rates without sacrificing service quality since most contractors don’t need coverage for an entire year but only for certain projects/periods throughout their careers as independent contractors or subcontractors.
Calculating The Costs?
The cost associated with getting bonded varies depending on several factors such as the type and scope of work being performed, size of the project, number, and complexity of contracts, financial stability and creditworthiness of the applicant, prior claims history (if any), and other factors determined by underwriters at bonding companies. Generally speaking, contractors should expect to pay between 1-5% of their total yearly contract volume when obtaining contractor bonds.
Investing in your future:
By taking all necessary steps towards becoming bonded, you are making an investment in your future success as well as that of your clients who rely on your skill set and expertise when selecting you as a service provider.
Attract More Confident Clients:
By investing in quality contractor bonding services you can demonstrate your commitment not just towards completing projects but also towards meeting high standards of ethical conduct and professional integrity which is essential for gaining trust amongst clients and building a reputation over time among fellow professionals in your industry sector.
Popular Bond Types for Handyman
- License/Permit/Other Compliance Bonds
- Surety bonds
- Performance Bonds
- Payment Bonds
- Maintenance Bonds
Handyman bonding insurance protects against unexpected issues on the job
Consider These Tips Before Purchasing Your Next Policy!
Tip 1: Attention Online Shoppers: Be Cautious!
Before making an online purchase of insurance, it is essential to understand the coverage and security your policy provides. To ensure you get comprehensive protection for all that your business requires, be sure to consult a knowledgeable and reliable insurance agent and never purchase anything.
Tip 2: Is The Agent Knowledgeable About Handyman Insurance?
Research insurance companies that specialize in the construction, handyman work, and contractor industries. Consider their years of experience and customer satisfaction ratings.
Tip 3: Find Savings Through Bundling
If you’re looking to save on insurance costs, inquire about any discounts or bundle offers available. For instance, consider an umbrella policy that combines general liability and professional coverage into one package for extra savings!
Tip 4: Watching Out For The Hidden Exclusion
Make sure to take your time and read every detail of the paperwork before signing any document. Ensure that you thoroughly comprehend all exclusions, deductibles, limits, etc., before making a definitive choice on which insurance company is right for you.
All-inclusive insurance crucial for handymen to protect themselves and their business on the job
Save money and avoid costly lawsuits by purchasing the right small business insurance for your handyman businesses
When it comes to protecting your handyman business, having the right insurance coverage is essential.
It is important to purchase the right type of small business insurance for your handyman business. Not only does it protect your tools, materials, and reputation, but it can also help you save money in the long run by protecting you from costly lawsuits or accidents that happen on the job.
When you decide to purchase coverage for your handyman business, look for an affordable policy that covers the types of risks you face as a professional. Make sure to research different policies and compare quotes so that you can determine which one offers the most comprehensive coverage at a reasonable price. Additionally, purchasing multiple policies may be worth considering if doing so offers better protection than one single policy would.
With the right insurance policies, you will be well protected from potential liabilities. Having the peace of mind that comes with a comprehensive insurance policy for your handyman business can help you focus on serving your customers and growing your business without worrying about unexpected financial costs or legal trouble. Investing in proper coverage for your handyman business is an important step toward success.
Having the right business insurance ensures protection for handymen and their clients on the job
Unlock the protection your business needs by starting a proper insurance plan today!
At Citizens General Insurance Brokers, we understand the importance of finding the best handyman insurance companies that offer tailored options to meet your specific business needs. We have been in the industry since 2011 and are proud to save our clients money by connecting them with the best handyman insurance providers for their situation.
Our team of knowledgeable professionals that specialize in Cons can help you compare various policies so you can make an informed decision when choosing your insurance provider. With our expertise and assistance in the construction space, you can be confident that you will be getting the right coverage at a price that fits within your budget.
Don’t wait any longer – Get your Handyman Insurance quote today call us at 800-498-0884 for a Free over the phone quote!
How To Reduce Workplace Injuries On The Construction Site
The construction industry is high risk; ask the men and women who ply their trades and skills every day in environments filled with hazards. Moving equipment, hazardous chemicals, electrical equipment, working from extreme heights — it all can lead to accidents or injuries.
Construction Safety Week shines a spotlight on the importance of reducing and avoiding accidents and injuries for the men and women who work in this high-risk industry. In honor of Construction Safety Week, we’ve assembled some expert advice and tips on how you can reduce injuries in the workplace.
Have a Safety Program
If you’re an employer in California, you must have an Injury and Illness Prevention Program (IIPP) in place. A Cochrane study found that regulation alone isn’t necessarily effective in reducing non-fatal and fatal injuries in construction workers, but additional strategies such as safety campaigns and drug-free workplace programs do have an effect in reducing injuries in the long-term.
Increase the impact of your IIPP by incorporating regular safety campaigns/ events and a drug-free workplace policy.
Implement Drug Testing Programs
The US Department of Labor has reported that 65% of on-the-job-accidents and 38%- 50% of all workers’ compensation claims are the result of alcohol and drug abuse in the workplace. Drug testing programs provide a powerful deterrent to drug use on the job.
A survey of human resource professionals stated that companies with high workers’ compensation incidence rates reported a 57% improvement in workers’ compensation claims after implementing drug testing programs.
Incorporate a drug free workplace program with your workplace safety plan to reduce unnecessary risks and reduce injuries on the work site.
Wear Personal Protective Equipment
Personal Protective Equipment (PPE) is essential for many jobs on a construction site. Hard hats protect heads from falling or flying objects, safety boots protect toes and feet from being run over or from falling objects, protective eyewear protects eyes from chemicals and flying objects, and so on.
Stay up to date on OSHA requirements for PPE and ensure your employees are trained and encouraged to wear the proper equipment for the jobs they do.
Inspect (and Respect) Tools
Hand tools and power tools can be hazardous on a work site. Be sure to inspect and maintain these tools before use. According to CA State Fund, here are some things to check for when using these tools:
- Hand Tools
- Proper fitting handles without splits, cracks, or tape holding the handle together.
- Metal parts with wear and tear, which can prevent the tool from working properly.
- Power Tools
- Frayed or damaged plugs can be an electrical hazard
- Wet or slick areas when using power tools can cause electrocution Use Ground Fault Circuit Interrupters (GFCI)
Keep a Clean House
Housekeeping can go a long way in keeping the worksite safer for everyone. According to CCOHS (Canadian Centre for Occupational Health and Safety), poor housekeeping can be a cause of accidents, such as:
- tripping over loose objects on floors, stairs and platforms
- being hit by falling objects
- slipping on greasy, wet or dirty surfaces
- striking against projecting, poorly stacked items or misplaced material
- cutting, puncturing, or tearing the skin of hands or other parts of the body on projecting nails, wire or steel strapping
To avoid these accidents, implement a clean as you go policy for the workplace. Take responsibility for keeping your work area clean and hazards removed or covered whenever possible.
Have a Plan
No matter how much you train your employees and create a culture of safety, accidents can and will happen. That’s why it’s so important to have an emergency plan in place in the event of an accident or injury on the construction site.
- Train all workers and employees on basic first aid and CPR
- Have contact information available for emergency services and management
- Place first aid kits in readily available locations
Every worker should know how to act and what to do in the event of an accident.
Construction Safety Week may be held each year, but safety on the construction site should be emphasized every day. One in five work related fatalities every year occur in the construction industry. By making construction safety a priority, you can keep yourself and your workers safe on the work site and reduce the risk of accidents and injuries.
Workers’ Compensation Insurance 101
Workers’ comp is a special form of insurance coverage that protects your employees from the negative impact of an injury or illness that results from their job. If one of your employees trips over a stack of boxes in the storeroom, severely hurting themselves as they fall onto a hard cement floor, workers’ comp will pay for the expense of their medical bills and any wages lost as they recover.
And that means your employee won’t need to sue you in order to pay for their treatment or time off.
Workers’ comp helps protect your employees’ health and wellbeing, as well as your bottom line.
Workers’ Compensation Insurance 101
Here’s what you need to know about workers’ compensation insurance: why it exists, what it does, who it benefits, and whether or not you need this coverage for your small business.
A Brief History
Did you know that workers’ comp is one of the oldest insurance programs in our country? In the early 20th century, the industrial revolution was in full swing. Factories were popping up everywhere, and workers faced incredibly harsh work conditions. Workers who were injured needed a way to pay for their medical costs and would regularly sue their employers. Needless to say, trust between employers and employees was at an all time low.
In 1908, the first workers’ compensation law protecting federal employees was passed. From there, individual states began passing their own workers’ comp laws to further protect employees (and employers) from the damaging effects of lawsuits, unpaid medical bills, and a general air of mistrust.
Today, workers’ comp is required in nearly every state.
How it Works
As an employer, you pay into a workers’ comp State Fund. When an employee is injured or becomes ill, they will file a claim for benefits to pay for medical bills and missed time from work.
Even temporary or part-time workers are eligible for workers’ compensation benefits.
What does Workers’ Compensation Insurance Cover?
Workers’ comp coverage generally covers the following for employees who are injured or become sick at work:
- Medical bills
- Wages missed during recovery
- Rehabilitation and ongoing care
- Employee lawsuits
- Funeral expenses and death benefits
It does not cover costs to you, the employer, from:
- Hiring replacement workers
- OSHA penalties and fines
Workers’ comp primarily benefits your employees. The benefit to you, as an employer, is the form of protection from lawsuits as well as penalties, fines, and even jail time (more on this in a bit).
Who Needs Workers’ Comp?
If you are a business owner or self-employed person who has one (or more) employee, you need workers’ comp.
Even if you work out of a home office, and pay a part-time employee to help you with the occasional filing, you need workers’ compensation. Your employee could easily slam a finger in a filing cabinet, have a run-in with the business end of a stapler, or trip over a pile of contracts left sitting on the floor.
If you have a part-time employee who helps set up your booth at the local Farmers’ Market every weekend so you can sell your handmade soaps, homebaked brownies, or garden fresh veggies… you need workers’ comp. Afterall, you never know when your helper may trip over a crate of carrots, or be injured setting up your booth.
There is no business that doesn’t pose at least a small risk to the health and wellbeing of an employee.
If you pay a worker to help you do your job or operate your business, you are required by law in nearly every state to carry workers’ comp coverage. And if it isn’t required, it is still a smart business move to protect yourself from lawsuits arising from an accident that leads to a worker injury.
How Much will Workers’ Comp Cost Me?
There are a number of factors that go into determining the cost of your annual workers’ comp insurance premiums. Your insurance carrier will consider:
- Your industry classification
- Your company’s history of work-related injuries (aka experience modification)
- The size of your payroll
An insurance professional who specializes in business insurance can help you understand your specific costs, based on these (and other) factors.
What if I Don’t Carry Worker’s Comp?
You know that you should carry workers’ comp insurance. There is a very good chance that you are even required by law to carry it. But what happens if you don’t? The penalties for not carrying workers’ comp will depend on the specific laws of your state.
Consider the following penalties in the State of California, where failing to provide workers’ compensation coverage is a criminal offense:
- This misdemeanor is punishable by a fine of not less than $10,000, and/ or
- Imprisonment in the county jail for up to one year
- Payment of all bills related to a worker’s injury or illness
- Subject to civil action on behalf of the injured employee
- Enforcement penalties of $1,500 per employee up to a maximum of $100,000
Trying to reduce your workers’ comp premiums by misstating an employee’s job duties, or misclassifying an employee, is considered fraud. Fraud of the workers’ comp system is taken seriously, and agencies such as state Departments of Insurance and local district attorney’s offices will work tirelessly to prosecute employers caught violating the law.
When it comes to workers’ compensation insurance, consider it a must-have policy if you pay any person to help you with your business. Workers’ comp not only benefits the employees who help keep your business running, it also protects you from expensive lawsuits, penalties, fines, and even criminal prosecution.
What Kind of Insurance Do You Need for Your Landscaping Business
Lawn care and landscaping contractors have special considerations when it comes to running a business. Your clients count on you to keep their homes, offices, and city streets looking pristine, and that means you provide a service on their turf. Running a business that provides a service exclusively on your client’s property means you are in the unique position of having a higher risk for accidental property damage.
Your landscaping tools and equipment are not located on a specific job site with a safety fence around it to keep the public out. In most cases you are out and about with the public all around you as you work. The specialty equipment needed for your landscaping or lawn care business brings with it an added risk for injuries to your employees or third-parties.
To protect your business, you will need insurance custom-tailored for landscaping professionals. Here are some of the landscaping insurance options you should consider for your business.
General Liability—Landscaping Insurance Must
Landscaping and lawn care businesses have their own unique risks to property and person. One of your employees accidentally destroys a sprinkler system. Another damages a residential fence. A person is injured by debris from a piece of your equipment that malfunctions. Each of these incidents could lead to a lawsuit that could cost you your entire business.
With general liability insurance, your policy could cover the cost of repairs, legal fees, and any damages that have to be paid. Even a frivolous claim could cost your business millions if a judge decides it has some legs. General liability insurance is there to protect you from just that.
Workers’ Comp
Your employees handle potentially dangerous equipment in hazardous circumstances daily; it is part of the job when you run a landscaping business. Even something as small as a bee sting, or repetitive motion from mowing and other yard maintenance tasks could lead to an injury on the job.
Workers’ compensation insurance protects your landscaping business by providing medical treatment, and payment for lost time or disability to your employees in the event of an injury. With an adequate policy, your business can financially cover the unexpected medical expenses, court costs, or settlements that could arise from an accident.
Workers’ comp replaces legal liability with no-fault insurance, simultaneously protecting your business and providing for your employees. While laws vary from state to state, most states require that you carry workers’ compensation if you have W2 employees.
Inland Marine
Inland Marine insurance (aka tools and equipment insurance) may not sound like something one would add to their landscaping insurance coverage, but don’t let the name confuse you. Inland Marine is designed to compensate businesses if their goods are lost or damaged during transit.
Landscaping businesses and lawn care professionals regularly transport equipment, tools, and supplies as they service their clients. Inland Marine protects your mowers, sheers, weed eaters, and other valuable tools of the trade against accidental loss, theft, or vandalism while they’re in transit from one job to the next. Inland Marine even covers digital information and data, including lead-tracking data, accounting software, and other electronic assets.
You need your tools and equipment to service your customers and grow your business. If your equipment is stolen, lost, or damaged, Inland Marine insurance is your means to replace it.
Commercial Auto Insurance
Your personal auto policy does not cover any vehicles you use for your landscaping business purposes. You’ll need commercial auto insurance to protect you from devastatingly expensive property damage, medical expenses, and legal costs in the event of an auto accident. Your commercial auto policy (also called fleet insurance) can even supplement the personal policies of your employees if they use their own vehicles while doing your business.
Commercial Umbrella
What if you had an accident, say in your work truck, and after all was said and done, the settlement on the accident was $600k. Now let’s pretend your insurance limit on claims is only $500k. You would be responsible to pay the extra $100k. Would you be prepared to sell off your business assets to pay for it?
When you want extra peace-of-mind, Umbrella Liability is a cost-effective way to expand your landscaping insurance coverage. Umbrella Liability allows you to raise the limits of your General Liability policy, kicking in to cover the additional amount past your General Liability limits.
Don’t underestimate the random accidents that happen in business. Contact Citizens General to find out which policies are right for your landscaping business, and protect the assets you need to do your job.
Landscaping Business Risks You Need to Know About
There are many reasons that you may have started a landscaping business: you love working outdoors, you have a knack for keeping things green, or you’ve always dreamed of building a business on your own and working for yourself.
Whatever the reasons you started your business, there is one thing that can quickly stop it in its tracks: an inability to spot risks. Once you are a business owner, every risk can mean a big financial loss, a lawsuit, or even bankruptcy.
If you want your landscaping business to be a success, you will need to learn how to see a risk coming from a mile away, and know the right way to protect everything you’ve worked so hard to grow. Here are some of the risks unique to landscapers, and ways you can hedge against them.
Weather Risks
When you work outdoors, the weather can make or break your business. Weather conditions can slow, delay, or even stop your work altogether.
- Extreme weather such as heavy rains, winds, and floods can damage materials.
- Heavy hail can destroy delicate plants.
- High winds can uproot trees and bushes.
Carrying adequate landscaping insurance is the only way to protect yourself against mother nature. When extreme weather threatens your materials, you can protect yourself against the high costs of replacing them.
Injury on the Job
You couldn’t run your business without customers who want your service, or without the help of a few good employees on your side. Unfortunately, the more people involved on site, the more risks you take of an injury occurring.
Employee Injuries
The equipment you need to get the job done is heavy, sharp, and dangerous. One moment of distraction from an employee can mean loss of blood, limb, or even life. And that’s not all…
- Hot weather conditions can lead to heatstroke and dehydration.
- Heavy materials improperly lifted can lead to back injuries.
- Insects can bite and sting.
- Chemicals can be accidentally ingested, inhaled, or get into delicate eye tissue.
Any full-time, part-time, or seasonal employees should always receive proper training on the safest way to perform their jobs. This includes the right way to use equipment, lift and move materials, use dangerous chemicals, and the proper protective gear and clothing. But even the best safety training is not a foolproof way to protect against risk. If you have even one employee, then your landscaping insurance policies should include a workers’ comp policy, as well.
Third-party Injuries
The same equipment, materials, and chemicals that you use in your landscaping business can pose an injury risk to homeowners and other third-parties, too.
- Sharp tools and dangerous equipment can pose a safety threat to curious children.
- Chemicals can lead to illness or injury.
- Uneven ground can pose a risk for tripping and falling
- Certain plants may be toxic to children or animals.
You can safeguard homeowners and other third-party people to some extent while performing your job. Keep equipment and tools securely locked up and secured when not in use. Tape off areas where holes are being dug. Choose non-toxic materials if children or animals will be using the outdoor space. Talk to homeowners about any chemicals you plan to use, and how they can best avoid coming into contact with these chemicals.
To fully protect your business from the possibility of a lawsuit from a third-party injury, be sure that your general liability insurance is maintained and updated regularly. That way, in the unfortunate event that someone is injured as a result of your business, you won’t have to pay out of pocket for costly court fees, attorney fees, or expensive judgements against you.
Equipment Loss and Damage
Without your tools and equipment, you wouldn’t have a business to run. Plants couldn’t go in, hedges and trees couldn’t be trimmed, lawns couldn’t be cared for. Without your tools, you would be seriously up a creek without a paddle. What are some of the risks that could impact your most important business assets?
- Employees can damage or misuse equipment.
- Equipment can be stolen from an unsecure trailer, truck bed, or toolbox.
Your tools and equipment can be lost or stolen when being transported to the next job site. Even the best intentioned, well-meaning employees can misplace or damage a tool. You can protect your equipment by marking each piece well with the name and phone number of your business; having a check-in/ check-out system for equipment; and properly securing all tools in locking boxes. Lastly, your landscaping insurance will provide the final safety net for your most important assets. A tools and equipment policy (also called inland marine) will be there to protect you from loss and damage of the very things you need to get the job done.
Auto Accidents
When your office is the great outdoors, you put a lot of miles on your truck getting from one jobsite to another. Every time you hop in your vehicle, you put a lot on the line. An estimated 15,000 motor vehicle crashes happen every single day. And no matter how good a driver you are, you can’t always protect yourself from the many distracted (or just plain bad) drivers out on the road with you.
- Someone else could get injured in an accident while you are driving.
- An employee could get injured in an accident while driving your truck.
- An employee could get injured driving their own vehicle while doing work for you.
- Your work truck could get stolen.
- The trailers, equipment, and tools you use could get damaged in an accident.
You may think that you are protected from road risks with your personal auto insurance, but the plain truth is that a personal policy won’t protect your business vehicles. Only a commercial auto policy can protect the trucks, vans, or other vehicles that you use for work purposes, protect your employees while driving them, and protect your employees in their own cars if they are driving for your business.
Not running your Business like a Business
When you are just starting out your landscaping business, there can be a steep learning curve and a couple of shortcuts involved. But when you are running a business, some shortcuts just shouldn’t be taken. Even if you just have a single mower, a free pack of business cards, and one truck, your business should be treated like one.
- Written contracts may protect you from misunderstandings, liabilities, and lawsuits.
- Landscaping insurance policies protect you from major losses from lawsuits, theft, accidents, and injuries.
- Business licenses and permits protect you from fines, and get you more jobs.
Play by the rules, and always treat your business like one.
Most of the risks that your business faces can be covered with the right contractor insurance coverage. Just one incident, injury, or lawsuit could be so costly that it could put you out of business permanently. Protecting your landscaping business with the right insurance and a little know-how can help your business continue to bloom.
5 Ways to Get Lower Rates on Your Contractor Insurance
Independent contractors and small business owners know that the best way to improve cash flow is to bring more cash in, and pay less out. Sounds simple enough, but the costs of doing business can’t always be negotiated down.
One way you can reduce your operating costs is by lowering the rates you pay on your contractor insurance.
Here’s how to pay less, without giving up coverage.
#1. Review Your Current Coverage
The first place you can look to lower your insurance rates is on the policies that you already carry. If you have fewer employees, have sold equipment, or have retired vehicles from use, you may be able to find potential savings in your current policies.
Be on the look out for these changes:
- Employee roster
- Equipment bought or sold
- Vehicles no longer in use
- Type of construction work performed
Any changes in your business could mean a lower rate is available. Examine your existing policies, or talk to your broker to see where you can save money on your existing coverage.
#2. Calculate Before a Claim
Before you file a claim, take a quick moment to calculate and consider…
Can you afford a minor loss?
The number of insurance claims you file can impact the rate you pay. If you are considering filing a claim for a small incident, ask yourself if you can afford the loss.
If the answer is yes, you may save more money in the long run with lower contractor insurance premiums.
If your favorite hammer was stolen from the bed of your truck on the way to work, you can probably replace it without a claim.
If you were involved in an auto accident on your way to the jobsite, and you are facing vehicle damage, lost and damaged equipment and tools, and possible injuries to yourself, an employee, or a third-party…
Make the claim.
One way you can reduce your operating costs is by lowering the rates you pay on your contractor insurance.
Here’s how to pay less, without giving up coverage.
#3. Increase Your Deductibles
If you decide that paying out of pocket for small losses is an affordable option to prevent premiums from increasing, the next logical step is to increase the deductibles on your policies.
Take the biggest deductible amount you can afford.
Usually, a higher deductible means a lower premium rate.
The amount you save in annual premiums may be more than enough to cover your higher deductible when you finally do need to file a claim for a big-ticket loss.
#4. Don’t Let Coverage Lapse
Construction can sometimes be a seasonal profession, and it could be tempting to let certain coverages go in between projects, or during off-seasons.
If you want to save money, don’t do that.
Letting coverage lapse can actually lead to increased rates. It can also put you at risk for not getting coverage in the future.
Many insurance companies offer premium discounts for no-lapse coverage.
Determine the best policies that you need for your contractor business, and keep your policies active. Stopping and starting policies won’t save you money, and it can cost you even more in the long run.
#5. Combine Coverage
If increasing cash flow and protecting your profits is a priority, then there is a very good chance that you will use more than one contractor insurance policy to protect your business. And that gives you one golden opportunity to save some money with very little effort.
Combine your coverage.
Most insurance companies will offer a discount to you when you combine, or bundle, your coverage. Combine a general liability policy with an inland policy, for example, and you receive a discount on the premiums for both.
Talk to your broker about the ways you can bundle coverage on:
Saving money on your insurance rates gives you more cash flow for your business. And who doesn’t want to see more cash?
Remember…
Combine your policies together, review them regularly to make sure they fit your current business needs, increase your deductibles, don’t make claims for the small stuff, and be sure to maintain your coverage at all times.
Most Important Insurance for Photographers
Photography business insurance isn’t the most striking topic on the internet, we’ll admit that. It can be especially un-fun for free-wheeling creative types who would much rather be out in the world working their craft.
Unfortunately, ignoring business insurance can be the death blow for a photography business.
Why?
Photographers face unique business risks.
High quality camera equipment is expensive to buy and equally expensive to replace if it’s damaged. Many photographers take their art from the studio out into the world, and place their expensive equipment at the mercy of the elements.
If you’re working with clients, you’ve got a whole other set of potential risks to worry about. People are notoriously fickle, and have been known to cause trouble when their special event isn’t photographed exactly as they’d have imagined it should be.
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Since there are so many types of insurance, and so many types of photographers, we’ve made it simple to figure out what you’ll need to worry about with this list of insurance types most important for any photographer.
If you’re concerned with your own specific specialty, check out our 60-second photography business insurance wizard to see where your photography business faces the most risk.
Otherwise, here’s a list of the most important lines of insurance any photographer will want to consider:
Business Owner’s Policy (BOP) for Photographers
The simplest way to get broad coverage for your photography business is to buy a Business Owner’s Policy. It’s also called a BOP. A BOP combines three common insurance coverages most important to protect nearly all small businesses. It usually includes:
- General Liability – this would come in handy if your business is sued as a result of property damage or injury that occurred as a result of your photography work. Imagine a client came to your studio and tripped over a light cord, fell and broke her arm. Or if you’ve got employees, general liability would cover any damage they caused while they were representing your business. And if you ever get sued for copyright infringement of someone else’s work, there’s coverage to have your back.
- Commercial Property – all that expensive photo equipment you use to take photos edit your work is protected in your BOP under commercial property. Whether your own or lease a studio, the building and the items, your lights, props, cameras, computers, and other necessary equipment is covered.
- Business Interruption – what would happen if your studio burned down, or flooded. Your equipment would be covered under your commercial property policy, but you’d have a hard time making a living while you waited for new equipment to arrive, or repairs to be made. Business income insurance covers the income you’d lose if you couldn’t operate your photography business because of some type of damage to your studio.
Extra Photography Insurance Options for Add Protection
With the basics covered, you might want to look at a few extra layers of protection that are particularly helpful in the photography industry.
Workers’ Compensation Insurance
If you have even one employee working for your business, you’ll need to know if your state requires you to carry workers’ compensation insurance. Most states require this, and it helps cover the cost of injury or illness for employees, including medical care, lost wages, and more.
It also covers the legal fees if you’re sued by an employee or their family for a work related issue.
Commercial Auto Insurance
Chances are you or your employees occasionally need to transport equipment to or from a photo shoot or consult with a potential new client. Did you know your personal vehicle probably isn’t covered if you’re using it for work purposes?
If you own a vehicle that you use (even occasionally) for the purposes of running your photography business, you’ll need to make sure you’ve got a business auto policy to cover you in the event of an accident.
If all this seems confusing, you can easily get some quick answers by using our 60-second photography business insurance wizard to see which insurance lines you need most, and which you can probably worry about some other time.
How to Protect Your Business from Workers’ Compensation Claims
According to the Occupational Safety and Health Administration (OSHA), employers pay about $1 billion per week in workers’ compensation claims costs. New injuries occur roughly every seven seconds, bringing the average annual count to 4,500,000, per the National Safety Council.
Indeed, workplace injury is all too common, and it’s costly as well. OSHA provides a calculator business owners can use to tabulate the estimated direct cost of any given injury, with amounts ranging from an average of $13,364 for a contagious disease claim all the way through $149,103 for something severe like asphyxiation. This, of course, doesn’t include indirect costs, such as lost productivity, preventative training measures, and repairs to damaged business personal property. Depending on the size of your business, even a minor claim could wipe away profit for the year or result in your business shutting down.
Here are some suggestions to help protect your business from workers’ compensation claims.
Know Your Risk
Although all businesses are at risk, a few industries have more workers’ compensation claims than others. You’ll want to be especially mindful if your industry is:
- Service-Related
- Transportation / Shipping
- Manufacturing / Production
- Installation, Maintenance, and Repair
- Construction
Conversely, there are a number of industries with very little workers compensation exposure which in turn results in fewer claims.
- Banking and Finance
- Software and IT
- Professional Services
- Broadcasting
- Medical, Nursing, Health Services
Even though there are fewer claims in these industries, a claim can still be a heavy financial burden should an incident arise. A cost benefit analysis can show just how much you can gain by having coverage in place.
Be Familiar with the Most Common Workers’ Compensation Claims
The National Safety Council gathered data on the most common injuries. In knowing these, your business can establish policies to minimize the risk to employees.
Most Common Injury Types
- Sprains, Strains, or Tears
- Soreness or Pain
- Cuts, Lacerations, or Punctures
Most Common Events Leading to Injury
- Overexertion (34% of injuries)
- Contact with Objects and Equipment (25% of injuries)
- Slips, Trips, and Falls (25% of injuries)
By understanding what areas of your operations provide the most exposure to workplace injury, you can then tailor your operations in a way to minimize the event of an occurrence, the severity of an occurrence when it happens, or both.
Enact Policies to Reduce Risk
Let’s face it, things happen. If a company could find a way to reduce 100% of the risk for workplace injury, they would not only revolutionize business in general but they would be sitting on top of a goldmine. But until that day, the best business owners can do if enact policies to reduce of the risk as low as possible.
Breaks: Although rest periods are traditionally mandated by law, it’s important to adhere to them and offer extra recovery time for those in physically-demanding jobs.
Lifting: Create policies that require employees to use braces when lifting and set maximum lift amounts. Provide employees with training on how to safely lift objects and offer refresher courses. Also, refer to your workers compensation policy as carriers will typically have guidelines for maximum weight suggested.
Protection: Make sure employees have access to the right protective gear for their environment and do not allow anyone to work without it.
Housekeeping: Do a walk through your place of business and look for things that could result in slips, falls, or trips. Issues like uneven walkways should be corrected or marked, while spills should be marked and tended to promptly. Because each person will have slightly different abilities in terms of things such as balance and vision, it’s especially helpful to have several people do walkthroughs.
Shifts: People on the night shift have 30% more incidents than their daytime counterparts. Whenever possible, reduce or eliminate nighttime work. For those companies that have long operating hours, have a rotating schedule, or cover irregular shifts also have increased risk. If you cannot put your team on a standard daily schedule, be especially mindful about giving them a reliable schedule that enables their internal clocks to adapt and keep to the schedule as much as possible. Be advised that missing as little as two hours of sleep results in about the same impairment level a person would have after drinking three beers. Overwork and sleep deprivation has been found to be responsible for an estimated 274,000 workplace accidents per year. If you aren’t honoring their sleep schedule, it’s likely you’re increasing your risk for a workers compensation claim.
Phones: The leading cause of workplace death is car accidents, and 94% of all crashes are caused by human choices. While sleep is a major component of this, cell phone use is a huge concern as well. Your company should have a phone policy as well as policies which relate to other forms of distracted driving.
Here are a few other suggestions of ways your business can reduce workplace injury.
Have Adequate Insurance
Though having insurance in place does not itself protect your company from claims, it still makes good financial sense. In the event of an illness or injury, it provides benefits to employees for work-related injuries or illnesses including medical care, wages from lost work time, and more so you don’t have to come out of pocket. It will even help expedite your employee returning to their position.
If you can identify which injuries have the potential to occur within the normal scope of work for your employees, you can then use the OSHA calculator to help determine how much coverage you’ll need to provide adequate protection to your business. Depending on your state, limits may start at $100,000 per occurrence for bodily injury, $100,000 per employee for bodily injury by disease and a $500,000 policy limit for bodily injury by disease. Commonly though these limits can be raised to $1mil each for a marginal increase in your premium.
In addition to the fiscal benefits, having insurance is good for employee relations. Your team deserves to be taken care of if something goes wrong on the job. Your policy will add an extra measure of security so the team can feel confident and protected in their workplace.
Get Protection from Workers’ Compensation Claims
The above suggestions are to reduce risk are not all-inclusive, but they are a great starting point in helping you reduce your exposure. There is no way to totally safeguard against workplace injury, thus why it’s important you have workers’ compensation insurance if you want to protect your business and your employees. Take the first step toward a more secure future; get a free insurance quote today.
Three Tips to Prevent a Massive Workers Comp Audit
Audit is a dirty word. For most people, it carries a negative connotation because of the horror stories stories we hear from friends, from work contacts, and in the news media. In insurance, an audit is simply a review of the policy and policy premiums to establish if the risk presented at the start of the policy period is in-line with the actual risk experienced. For a workers compensation insurance policy, an audit is performed to assess the risk of providing insurance coverage for the employees of a company and the risk of injury associated in their profession. The horror typically is experienced when the estimated risk and the actual risk of the insurance coverage doesn’t sync, which can result in huge changes to your insurance premium.
Here are a few practices you can adopt in your business to make sure you don’t get stuck with a massive audit bill.
Make Sure You’re Periodically Reviewing and Reporting Payroll
Depending on how your workers compensation policy is structured, you may be reporting your payroll to your workers compensation carrier every time you run payroll or only at the end of your policy term. If you have your workers compensation policy integrated with a payroll company such as ADP, your payroll is already being reported each time you’re processing paychecks. If your payroll isn’t consistent, or you’re not setup with a payroll company, make your you’re reviewing your payroll at least once a quarter to see if it is in line with your estimated payroll when starting the policy. If it’s not, this is a huge red flag that a correction will be made at audit.
Let’s look at an example. You started a workers compensation policy with an estimated $100,000 payroll for a 12 month period, and are paying a set premium monthly. But your business is growing and you had to hire some more employees. After six months, you realize your payroll for the year is closer to $200,000, $100,000 higher than your beginning estimate. Since you’re making a set payment based on the original payroll estimate, there will be additional premium due to the carrier on the increased payroll. Being proactive and notifying your broker of the increase means that additional premium can be added to each monthly payment rather than as a lump sum at the end of the policy period.
Hiring a new employee is a great time to re-evaluate your business insurance and report changes in payroll to your workers compensation carrier. A new employee invariably means an increase in your employee payroll totals. Keeping your insurance carrier up to date with the latest annual payroll estimates will make sure your end of year totals are in-line with estimates.
Classify Your Employees With The Appropriate Class Code
A class code is a numerical identifier that corresponds to the operations performed by each employee, and each carrier assigns their own rate to each class code. Your workers compensation premium is calculated from the rate of your list of class codes and how much payroll is estimated within each class. Clerical employees, or office staff, are assigned class code 8810 and have a rate with AmGUARD Insurance of .54 in California (the rate will vary by state). To calculate your payroll premium, you would multiply this rate by your estimated payroll for your office staff.
Classifying your employees with the appropriate class code is incredibly important because you will be paying that class codes rate within your workers compensation premium. However if operations of your employees fall outside of that class code, an auditor will assign a different class code to those outside operations and assign the appropriate amount of payroll based on how much work was performed. If that new class code has a higher rate than your original class code, you may be looking at a hefty bill. Also if the different operations are not tracked, an auditor will have to assume the highest rated class code for all work, meaning you may be paying much more than you need to be.
Let’s look an example of this within the construction industry. You’ve hired some employees to perform painting on your residential remodel projects. But they routinely help out with flooring, cabinet installations, and running electrical while their paint is drying. An auditor will likely reclassify your employees class code to general carpentry. A painting class code of 5454 carries a rate around 16.00, whereas a general carpentry class code of 5403 has a rate around 23.50. Since the correct class code was not assigned, that additional policy premium will be coming due at audit.
Not sure if your employees are correctly classified? Review your workers compensation policy with an agent today.
Double Check That Your Subcontractors Have Workers Compensation Insurance
One of the biggest reasons for receiving a massive workers compensation audit bill actually doesn’t concern employees, but rather, subcontractors. Subcontractors differ from employees because these are the key guys (and gals) who have the specific training and know-how for those specialized tasks of your project, yet operate under their own business umbrella. Before you let a subcontractor onto your jobsite, make sure they provide you with a certificate of insurance showing proof of workers compensation. A certificate with workers comp listed is one of the things you should be collected from your subcontractors because it is a requirement from your own workers compensation carrier.
If a subcontractor is hired by your company, and that subcontractor doesn’t have their own workers compensation policy in place for their company, your carrier will automatically assume the risk and provide coverage should a work related injury occur. This scenario is bad for you in two ways: it leaves your policy open to a claim, and it may result in a heavy premium increase. The increase in the risk assumed by the carrier has to be paid for somehow, and that somehow is by increasing your workers compensation premium. In short, collecting a certificate at the start of their work is a lot easier than writing an unexpected check when the work is complete.
If you feel you may be at risk of a huge workers compensation audit, the first thing to do is review. Feel free to contact us to schedule a free consultation where we may help with the review and suggest ways to prevent an audit bill in the future.
