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Avoid Becoming a Victim by Unethical Handyman Contractors

Sunday, Mar. 20th 2011 6:50 AM

Avoid Becoming a Victim by Unethical Handyman Contractors: Each year, thousands of property owners in Arizona are solicited by unlicensed contractors who promise deals, which sound too good to be true. Most of the time, they are, and all too often, the complainant is defrauded out of hundreds or even thousands of dollars. Some of the questionable tactics a consumer should be on guard against are:

DON’T accept a contractor’s advertising or word as proof of being legitimate or of possessing a current, valid contractor’s license. Call the ROC.

DON’T respond to “scare tactic” door to door salesman who say they were just driving by and notice a problem with your roof or driveway, and they just happen to have extra material on their truck. Call the ROC.

DON’T make major or full advance payments to the contractor for purchase of materials for your job site. Con men will often do superficial defective work, or even no work at all and never return. You then might encounter major bills to correct the damage or problems left behind.

DON’T supply telephone solicitors with credit card or other personal credit information on promises of free inspections or free gifts. Call the ROC, the Attorney General’s office, or the Better Business Bureau to check on other consumer complaints against the company.

DON’T accept the first price or bid that comes along, especially on major construction or remodeling projects. Be skeptical of bids or prices that are much lower than others obtained. Be sure all bidders possess current contractor’s licenses for the type of work to be performed.

DON’T assume that even if a contractor is licensed that you will get what you pay for and be protected. Occasionally, even licensed contractors develop financial difficulties, have employee or credit problems, or fail to keep their license current. Call the ROC before signing any contract or advancing any large payments for work that has not been performed.

DON’T allow solicitors or contractors to have access to your home or property without a prior appointment, and without having first verified the contractor’s name, the name of the business, the company’s current contractor license number, and the name of the person who will be sent to your home to do the work.

DON’T judge a book by its cover. Many con men depend upon their victim’s being fooled by their friendly, professional appearance or confident approach.

They may also take the other approach of attempting to intimidate or threaten people into signing contracts or making payments.  Call the Registrar of Contractors or call your local police.

DON’T forget that you are the customer. That means that you may also be a target for a fraudulent scheme or theft. Call the ROC!

Remember there is seldom a case where a property owner needs to sign a contract immediately.  A contractor who tells you that the work must be done right away, for your family’s or your own safety, is probably trying to force an immediate sale, or is perpetrating a fraud.  If you are told, or believe you have an emergency, such as a gas leak, or a serious electrical problem, call your local fire department or public utility company

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Handyman Insurance

Insurance might not be the first thing someone thinks about when running a business, but it should be an important consideration.   Handyman insurance is another requirement if you are thinking about starting a handyman business.  This website provides important insurance information on Handyman Insurance Coverage and quotes.

Handyman Insurance Coverage

Handyman insurance includes several types of coverage; each one offers a specific kind of protection for your business.  

(Handyman Insurance ) Commercial Auto: Covers a business's owned, no owned, and hired autos against liability and physical damage losses. 

Handyman Workers Compensation:  If your business as a Handyman employs any staff (including part-time, trainees or sub-contractors), Employers liability insurance cover is a legal requirement.  Employers liability insurance provides protection against your legal liabilities to pay compensation in respect of injury sustained by your employees in the course of your business as a Handyman.  (Handyman Insurance) Workers Compensation: Provides coverage for an employer's responsibility in the event of a work-related injury or illness.   Employers Liability Insurance for handyman work: This type of insurance would cover payment of legal fees and damages in the event that an employee was injured or killed while doing work for you. 

Tradesman Insurance for handymen: This is a package of several different kinds of cover for handymen, making up one policy that meets all your insurance needs.

Public Liability Insurance for handyman work: This type of insurance would cover you if your business activities caused injury or death to a member of the public.

Handyman General Liability - Commercial jobs will require you to have general liability coverage of $1,000,000 to $2,000,000 prior to being hired (not to mention that you protect your assets if something goes wrong on the job).

Products liability insurance for Handymen - Products liability insurance provides protection against your legal liability, compensation costs and expenses following injury or damage by goods that you have sold, supplied, repaired, tested or delivered in connection with your business as a Handyman.  Products Liability insurance for Handymen at 1,000,000 with the option to increase to 2,000,000 up to 5,000,000 or more.  Public Liability insurance cover provides protection against your legal liability for injury to third parties and damage to their property in connection with your business as a Handyman.

Professional Indemnity Insurance for handyman work: This covers you against any mistakes you might make  including bad advice you or your staff might give  that ends up costing your clients money, and leading them to take legal action against you.

(Handyman Insurance ) Umbrella Coverage: A broader form of coverage that extends the limits of liability found in a base policy form. 

Income Protection Insurance - If the essential person should be unable to work for a period of time, this handyman insurance helps to cover the loss of business as a result of the illness or injury.  Having sufficient income protection insurance is also a worth while consideration, if you were to fall off a step ladder or hurt your back and couldn’t work, accident, sickness and unemployment insurance could help you to pay for some of your monthly bills in the event of you not being able to work.

The Handyman Insurance Program gives our policyholder comprehensive coverage for their “handyman” businesses, and the program is designed for Handymen who: Are hired to do a variety of miscellaneous work that would be found in a residential household environment;

Please note that standard home owner's insurance will most likely not cover business assets, and may VOID your home insurance coverage.  If your business is home-based, do you need more liability coverage than your home insurance policy covers. 

The Handyman program gives our policyholder comprehensive coverage for their “handyman” businesses, and the program is designed for Handymen.

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