As a handyman, you’re the first person clients call when they need help fixing things around their house. From installing shelves to fixing cosmetic and structural issues, you do it all!
As you conduct repair work on job sites, there’s always the chance of accidents and mishaps. Should you inadvertently injure someone or damage their property, you could face costly lawsuits.
That’s why most handymen need handyman insurance. But how much does handyman insurance cost? And what factors determine the pricing? Let’s take a look.
How much does handyman insurance cost?
Handymen are exposed to significant risk from various perils around job sites including live wires, open trenches, dangerous tools, and more. This is why handymen need liability insurance and why they can expect higher insurance costs than lower-risk professions.
The most important type of insurance for handymen is general liability insurance.
Typically, general liability insurance is purchased annually with a monthly premium payment. However, Handyman Insurance arranged by Thimble is flexible with coverage options by the hour, day, week, or month.
Based on our policies sold, here are the median costs of handyman liability insurance:
Your handyman insurance costs may vary based on other variables such as your location, coverage duration and limits, the value of what you’re insuring, as well as your overall risk profile.
In addition to general liability coverage, handymen should add equipment coverage. General liability insurance provides coverage when a client or third party’s property is damaged. But it doesn’t cover your tools and equipment that travel with you. For that you need Business Equipment Protection.
Here are the median costs of handyman tool equipment insurance, based on monthly Thimble coverage:
- $6 per month for a $1,000 coverage limit
- $15 per month for a $2,500 coverage limit
Why do handymen need general liability insurance?
General liability insurance is the most common coverage across many professions. It’s especially important for handymen, who face a comparatively high likelihood of the following kinds of third-party claims:
Non-employee third-party bodily injury – You conduct repairs in people’s homes with the help of tools like miter saws and power drills. There’s an inherent risk that someone could trip and fall or be injured while you’re working.
Third-party property damage – Likewise, you could accidentally damage a client’s home or the property inside it.
Personal and advertising injury – A competitor could sue you for advertising practices that damaged their business.
How to choose the right handyman equipment insurance?
Given the cost and time it takes to build up your tools, insuring them is a critical business expense.
Traditionally, this type of coverage (known as inland marine insurance) only protects tools and equipment that are specifically listed on your policy. This can be less than ideal if you forget to list something or forget to add new tools to your policy. That’s why Thimble’s Business Equipment Protection provides blanket coverage, which ensures your valuable business property (under $2,500) is adequately covered even if it’s not listed on your policy.
With Thimble, Business Equipment Protection helps cover:
- Accidental loss or damage and loss-of-use of your equipment
- Lost and stolen property and tools
- Accidental loss or damage to equipment that you’re renting or borrowing
Factors that influence how much handyman insurance costs
The specific cost of your handyman insurance coverage can vary based on factors like the following:
Location – If you work in a more densely populated urban area, you encounter more people in the course of your work and incur a higher risk of an accident. Your business insurance rates reflect this increased risk.
Coverage limits – How much coverage you need impacts your insurance premium, or how much you pay each month. On average, the more coverage you need, the higher your premium.
With Thimble, you can select between a $1 million or $2 million coverage limit for handyman general liability coverage. And for equipment coverage, we provide two coverage limits of $1,000 or $2,500, both with a $500 deductible. According to Thimble data, 85% of handymen chose a $1 million general liability coverage limit.
Coverage term – Do you need insurance that is year-round, or do you only work seasonally and only need insurance by the hour, day, or month? Thimble’s on-demand insurance makes it possible to get coverage when you need it, which helps you manage your business expenses.
Crew size – The more people who work for you, the greater the likelihood that your company will face a lawsuit after an interaction with a client or third party. Your premium is partly determined by your crew size.
It’s important to note that even two very similar handyman businesses may pay different amounts, depending on these factors.
What other types of insurance should handymen consider?
Beyond general liability insurance and coverage for tools, some handymen may need additional insurance coverage. These types of coverage won’t impact handyman liability insurance, but may be additional expenses
Auto liability insurance – Another important insurance cost to consider as a handyman is auto liability coverage. As a handyman, you likely use a small van, pick-up truck, or car to get to and from job sites and carry your equipment.
If you drive a vehicle for personal use, you’re required to have auto liability insurance. If you have personal auto insurance and merely drive to and from job sites, that should be sufficient. But if your handyman business owns the vehicle, you will almost always need a commercial auto liability insurance policy. It’s best to check with your auto insurance provider to make sure you have adequate coverage.
Workers’ compensation – If you have one or more full-time employees, your state likely requires you to get workers’ compensation coverage. This kind of insurance can help cover the costs associated with an employee injury or illness that results from their work for you. You might be a one-person operation. Thus, unless you add any employees, you probably don’t need to worry about workers’ compensation coverage and costs. Be sure to check the requirements in your state to verify what you need to do to comply with the workers’ compensation laws.
Fix up your handyman business with insurance
As a handyman, you tell your clients that it’s better to deal with an issue before it becomes a crisis. The same goes for your liability. Purchasing adequate business insurance helps you prepare for possible claims and lawsuits and safeguard your business’ financial future. Remember that:
- On-demand handyman insurance generally ranges from $98 a month to $11 an hour.
- Auto liability insurance is required to drive for work or personal uses. Whether or not you need a separate commercial policy depends, so make sure to work with your auto insurance provider to assess your needs.
- Consider additional types of coverage based on your handyman business needs.
At the end of the day, handyman insurance is a small cost to pay for peace of mind. If you’re ready to protect your venture, click “Get a Quote” or download the Thimble mobile app to get started. Our process takes less than 60 seconds to complete. You answer a few quick questions, click to purchase. and we’ll send your policy and Certificate of Insurance to your inbox immediately.