“Handyman insurance” refers to commercial insurance policies explicitly tailored to handymen and handyman businesses. The most common type of policy included is general liability insurance (sometimes called handyman liability insurance). Still, policies like commercial auto, workers’ compensation, tools and equipment, and commercial property are also frequently included.

While insurance requirements vary from state to state, anyone working as a career handyman should consider having a few different insurance policies to protect themselves and their customers should anything happen on the job.

In California, a handyperson working on any project exceeding $500 must be licensed as a contractor. Similarly, in Arizona, a license is required if any project exceeds $1,000 in value or a permit is required.

Most states don’t have a specific license for becoming a handyman, and as a result, don’t have specific insurance requirements for handyperson businesses. However, certain states require handypersons to obtain a general contractor license if the size and scope of their projects exceed particular criteria. In these states, handypersons will be subject to the same licensing and insurance requirements as larger general contractors, which often involve securing a contractor’s bond, public liability insurance, and workers’ compensation insurance.

Handyman business owners typically purchase a combination of coverage in their insurance package, which includes: 

• General Liability: This can help protect you if bodily injury or damage to someone or their property occurs.
• Workers’ Compensation: This can help protect you if your employee has a workplace injury or work-related illness.
• Tools & Equipment:  This can help protect you if your devices are lost, damaged, or stolen
• Commercial Property:  This can help protect you if you own your building, lease property, or work from home.

Handyman insurance can cost as little as $51.67 per month, but the exact price will vary depending on your specific circumstances and needs. The kind of work you do, where you work, how many employees you have, and other factors will impact your customized quote.

It’s essential to provide the most accurate information about your business to ensure you get the right coverage for you so that your policy covers your claims and that any claim you might make is processed as quickly as possible.

An insurance company’s ability to pay claims without delay is always a top concern. Companies with healthy finances are less likely to encounter issues that may prevent them from meeting their obligations as insurance providers. AM Best has a tried-and-true formula to determine which companies are positioned for long-term success and which may have murkier futures.

This credit rating agency focuses specifically on the insurance industry and reviews various aspects of a company’s financial circumstances and creditworthiness to assign it a rating. The highest rating— A+ —indicates that the company has a “superior” ability to continue providing insurance to its customers and paying out claims. While customers don’t necessarily need to use an insurance company with the highest AM Best insurance rating possible, it’s generally advisable that they approach low-rated providers with some degree of caution.

A basic handyperson insurance policy may only provide general liability coverage for property damage, injuries caused to others while on the job, or claims of subpar work. But the many handyman insurance companies often offer add-on options to policies and endorsements to build out coverage as needed. In some cases, providers package together multiple forms of insurance—liability, property, and commercial auto, among others—into a single policy suitable for small business insurance needs.

Given the nature of the work, tools, and equipment coverage is a standard add-on purchase, as a more basic policy may need to cover the best handyperson tools. Contractors may also be able to purchase endorsements to protect against losses from business interruptions, equipment failure, and workers’ compensation claims. Some insurance companies may even offer disability insurance if a handyperson is seriously injured on the job and can’t work for an extended period. Because handyman and contractor businesses can vary so much in scale, business owners will always want to check that their insurance company can provide the right type and amount of coverage to meet their needs.

Running a contractor business comes with several handyman costs, so they may look for ways to keep expenses down any way they can, including with their insurance. Deductibles can impact the overall cost of handyperson insurance policy. The policy’s deductible is the portion of a claim the policyholder is responsible for paying before the insurance provider begins to cover any repair, replacement, or liability costs. If the cost to repair a damaged water pipe was $1,500, for example, and a handyman had a $1,000 deductible, they would need to pay $1,000, and the insurance company would pay the remaining $500.

Handyman insurance is an outlier in that $0 deductible options appear more common than other types of insurance. With a $0 deductible, a handyperson wouldn’t need to pay out of pocket when filing a claim. Still, they would likely have higher insurance premiums to offset the increased cost taken on by the insurance provider.

Handyperson contractors (especially sole proprietors) can not afford to wait for an extended period for an insurance payout if the equipment used every day is damaged or an angry customer wants money to repair property damage that occurred during a job. With that in mind, a speedy claims process can be necessary for people in this line of work because they can file a claim and receive approval as quickly as possible. Approval times on handyman insurance claims can vary across different providers, so it’s good for business owners to see if the approval windows suit their needs.

Insurance companies may also approach the claims process differently, allowing customers to file a claim online, over the phone, or with an agent, depending on the provider. Policyholders may even be able to file a claim using one of the best apps for handyperson business operations, but not all providers offer that support. Business owners may prefer one approach over others and want to check that their insurance company supports whatever claims process they would like to use.

When buying insurance, customers should shop around and get quotes from multiple providers before making a decision. Quote processes are far from uniform in the insurance industry, and customers will likely find that some companies offer a more streamlined quote process than others. Quotes can be done online, over the phone, or through an agent, but insurance companies may not always support all of these options. When looking for the best handyman websites for insurance, customers may want to prioritize quick and seamless online quotes. Business owners who would rather speak directly to a representative or agent for answers to questions and help to find the right policy terms may not need that capability.

Handyman insurance can benefit various businesses, from sole proprietorships to larger construction businesses. One of the perks of the best handyman insurance is that customers can often expand their coverage and customize it to fit a range of business conditions. By purchasing endorsements and policy add-ons, business owners can insure vehicles for transporting materials and equipment, any offices they maintain, and expensive equipment used on the job. Contractors may also buy workers’ compensation insurance or extended liability coverage if an employee or subcontractor gets injured on a work site. The degree to which these policy add-ons are available will vary from provider to provider, so handyman contractors will want to account for all of their business-specific insurance needs when vetting insurance companies to ensure their needs are covered.

The coverage amount indicates how much the insurance company will pay out on behalf of the policyholder on a claim. Insurance providers may offer a range of coverage amounts to choose from or set the same limit on every policy. Business owners must determine whether coverage amounts are based on the occurrence or aggregate limits when searching for the best handyperson insurance providers. An occurrence limit is the amount the insurance provider will pay per claim. In contrast, an aggregate limit is the total coverage provided across the policy term—usually a year, but that’s not always true.

Choosing the right coverage amount can be tricky if handyperson contractors forgo taking stock of their business assets and potential liability risks. Operating commercial vehicles, employing subcontractors, and using expensive equipment could raise liability risks. The more variables there are to account for, you may need more coverage. Coverage amounts will also impact the overall handyman insurance cost, so business owners will also want to keep that in mind.

Insurance companies often ask for the customer’s address or ZIP code when providing a quote. If the company doesn’t provide service to the customer’s location, it won’t be able to offer them an insurance policy.

Because handyman insurance, general liability insurance, and other forms of commercial insurance are, for the most part, not impacted by geographic constraints, they may be widely available across the country, but that won’t always be the case.

Even the best handyman insurance company won’t be much help if a handyman’s business is outside its service area. So, it’s always a good idea for potential customers to inquire about coverage areas from the outset, allowing them to check any unsuitable options off their list.

What you are looking for in a handyman insurance company will have many different options, and only some insurance providers will be the best fit for some situations. When searching for the right handyman insurance, business owners will want to consider what they need from a provider and a policy before agreeing to terms. Some key areas to consider include coverage, cost, and overall experience. Some of these factors may be a higher priority than others, depending on each individual’s exact needs and circumstances.

CAPE CORAL, Fla.: A Cape Coral handyman faces felony charges after ripping off victims for home repairs.

Cape Coral Police said they had a warrant for the arrest of Robert Doerr Jr. after learning he had scammed three victims over $20,000.

Source: ABC News

Question: How much does a handyman charge per hour in California on average?

Reply: In California, the average hourly cost is around $70.00. Individual pay rates will, of course, vary depending on the job, department, and location, as well as each handyperson’s skills and education. To ensure you get the best cost, shop out a few handyperson services for a job to compare prices in your area. 

If you are looking for a handyperson, you want to ensure they have these necessary skills before highering them.

1) You will want a handyman that is good at problem-solving. A handyperson must be able to think of solutions to a homeowner’s unique problem.

2) With problem-solving comes creativity. Sometimes a handyman needs to devise a creative way to help achieve their client’s needs most efficiently and cost-effectively.

3) Endurance and Dexterity: You will want a handyperson that can work several hours, days, or weeks and have physical and mental stamina and endurance, along with being agile and nimble when handling fragile materials.

Question: What is the Difference between a Handyman and a Contractor In California

Contractors: Contractors are professionals that are licensed in a specific area and work on specialized projects related to home maintenance and construction.

Handyman: Handyman/person does not require a license and may have a broader range of general skills that are used around the home. In the State of California, individuals that perform handyman services can not charge more than $500 for labor and materials.

When shopping for a handyman, a good tool is online reviews. Not all handypersons are in the Better Business Bureau, but you should check. It does not mean they are unreliable if they are not listed. But if they are listed and have bad reviews, you would want to know that before hiring them. Other online review sources, such as Yelp, Google, and Angi, to name a few, can help make sure you pick the right handyman for the job.

When shopping for a handyperson, ask for local references. Many handypersons rely heavily on word of mouth and customer referrals. If a do-it-yourselfer is experienced and does good work, they should be able to provide you with local references. As with any other service, as for three to five customer references and call at least two of them at random.

You may have a long to-do list of repairs or jobs needed around your home. However, before hiring a handyperson, you will want to verify the types of jobs they can do. Review your list with the handyman you speak to ensure they can provide the services you need. Some handyperson may do minor electrical or plumbing work, like fixing a light fixture or unclogging a drain. But more extensive work should be given to a tradesperson.

For small jobs, a customer may not think to ask whether or not you have insurance. However, more savvy customers will ask you for proof of insurance before hiring you. That’s because they know you are putting them at risk if you are not insured. If something goes wrong and an accident occurs while you are on the job, they could be on the line. They would either have to pay for the damages themselves, file a lawsuit, or check to see if their homeowner’s policy would cover the incident.

While it is a good idea for all businesses to have insurance, being a handyperson involves certain risks, making a specialized handyman insurance policy essential financial protection. An insurance broker will consider the specific risks you face based on the types of jobs you take when advising you on which insurance policies you need.

In California, a handyman and or contractor are not required by law to carry insurance, although it is strongly recommended. However, you must have worker’s compensation insurance if you have employees. Furthermore, a licensed general contractor in California legally has to tell customers whether or not they carry insurance and how to contact their insurance company.

In a prior post, we discussed how some states do not require a handyperson to be licensed. However, for the states that do require a license, how to become a licensed handyperson can involve several different steps, such as:

• Providing proof of insurance
• Completing work experience
• Passing an exam
• Registering with the department of labor

In addition to your state’s guidelines, you should also check your city or town’s requirements since their license and permit rules can differ from your state’s.