Step-by-Step Guide to Getting Handyman Business Insurance

Getting the right handyman business insurance is essential for protecting yourself against a variety of risks. This short guide walks you through the steps to identify, select, and secure the best insurance coverage.

1. Evaluate Your Risks

Assess the specific risks associated with your handyman business. These can include:

• Bodily injuries to third parties
• Property damage caused during work
• Theft or damage to tools and equipment
• Hiring subcontractors
• Risks associated with business vehicles

Consider factors like the scope of your projects, your geographical location, the equipment you use, and whether you have employees. This evaluation helps you understand which types of insurance are most critical for your business.

2. Identify Necessary Types of Insurance

Based on your risk assessment, determine the types of insurance you need:

• General Liability Insurance: This is fundamental for any handyman business to cover accidents that cause injuries or property damage.
• Workers’ Compensation Insurance: Required if you have employees, to cover medical expenses and lost wages due to work-related injuries.
• Commercial Auto Insurance: Essential if you use vehicles for business purposes, covering damages from accidents.
• Tools and Equipment Insurance: Protects your tools and equipment from theft or damage.
• Professional Liability Insurance: Covers claims related to errors in the services provided, such as installation mistakes or project delays.

3. Shop for Insurance

Explore different avenues to find the best insurance provider:

• Direct Contact with Insurers: Reach out to insurance companies directly to get quotes. This might be suitable if you already have a preferred provider.
• Online Marketplaces: Use platforms that allow you to compare quotes from various insurers at once. This is useful for seeing a range of options quickly.
• Insurance Brokers: Work with brokers who can offer personalized advice and help you find coverage tailored to your specific needs.

4. Choose a Provider

Consider the following when selecting an insurance provider:

• Coverage Details: Ensure the policies cover all the risks pertinent to your business.
• Cost: Compare premiums, deductibles, and payment terms across different providers.
• Customer Service: Look for providers known for excellent customer support and efficient claims processing.
• Reviews and Ratings: Check reviews and the insurer’s reputation in the industry.

Below is a comparison table for some popular insurance companies offering handyman business insurance. This table includes starting prices, some key features, and cancellation policies, to help you find the best option for your needs.

Insurance Company	Starting Price (approx.)	Cancellation Policy	Key Features
Next Insurance	$29/month	Flexible, cancel anytime	Offers tailored packages, quick online services, instant COIs
The Hartford	$42/month	Cancellation with notice, no fee	Specialized for independent contractors, 24/7 claims line
Progressive	$45/month	Can cancel anytime, may incur fees	Broad coverage options, discount programs through Business Program
biBERK	$27/month	Free cancellation within a time frame	Direct, affordable coverage, backed by Berkshire Hathaway
Thimble	$17/month for short-term	Flexible, prorated refunds for early cancellation	Short-term coverage options, immediate policy activation

Please note, the starting prices are approximations and can vary based on specific factors related to your business such as the level of risk, the state you operate in, the exact coverages chosen, and other underwriting criteria. It’s always best to get a direct quote from the insurance provider to understand the exact cost and terms tailored to your situation.

5. Purchase Your Policies

Once you’ve chosen a provider, proceed to purchase your insurance policies. Ensure you understand all the terms and conditions. Set up any necessary online accounts and familiarize yourself with the process for filing claims.

6. Annual Policy Review

Regularly review and update your insurance coverage annually or whenever there are significant changes in your business, such as acquiring new equipment, hiring more employees, or expanding services. This ensures that your coverage remains adequate as your business evolves.
With your insurance needs well-managed, the next step in safeguarding your business’s future is to perform a regular financial health check for your business and your personal finances.

By thoroughly following these steps, you can secure robust insurance for your handyman business, mitigating risks and ensuring peace of mind as you operate and grow your enterprise.