As a handyman (or handyperson/handyworker), you could be called upon to do anything from repairing screen doors or air conditioning systems to fixing lawn sprinkler systems and cleaning gutters. Insurance requirements in Florida vary depending on the job you can do. Here, we will explain what you need to know about handyman insurance in Florida, as well as how to get a handyman license.
What are the insurance requirements for handymen in Florida?
First: If your handyman jobs are valued at more than $2,500, or you advertise yourself as a contractor, then Florida requires you to have some form of insurance. You should start by researching the insurance requirements for your specific county. In Miami-Dade, Florida, for example, you must have the following insurance before taking on jobs:1
- General liability insurance: Also known as commercial general liability (CGL), this coverage protects your handyman business from the financial impact of accidents such as third-party bodily injury or property damage. For example, if a client trips over your toolbelt and sprains their ankle, your general liability insurance can pay for their trip to the emergency room and pain meds.
- Worker’s compensation insurance: This coverage protects business owners if an employee becomes injured or ill on the job. Workers’ comp can pay for expenses including doctor’s visits, lost wages, disability, and rehabilitation.
What are other types of insurance do handymen need in Florida?
Even though the following policies are not required, they are recommended as they can protect your hard-earned income from other risks. Here are some of the most common insurance policies that handy workers carry in Florida:
- Professional liability insurance: This coverage safeguards your company from claims that your clients suffered financial or reputational harm because you failed to provide services properly. It’s also referred to as “errors and omissions insurance” or “professional indemnity insurance”.
- Business Equipment Insurance: Also known as Inland Marine insurance, this coverage protects your owned or rented work equipment from accidental loss, damage, or theft while you bring it to different job sites.
- Commercial property insurance: Protects the building where you work and the business contents inside and within 100 feet of the premises. With Thimble, you can buy commercial property insurance through a Business Owners Policy (BOP), which is bundled with general liability insurance. That means you have protection from third-party claims and coverage for your first-party property, such as your office and the equipment inside.
How much does Handyman insurance cost in Florida?
On average, Thimble’s Handyman Insurance costs $115.82 per month in Florida. However, your specific quote depends on several factors, including your ZIP code, policy length, and whether you need additional coverage such as equipment protection, professional liability insurance, or a BOP.
What are the handyman licensing requirements in Florida?
Before you start to work, you must know how to classify your business operation. Per Florida’s state law, handy workers are not required to obtain the same licensing as contractors as long as the work is fairly minor and the cost of the labor, materials and other items don’t exceed $2,500.2
However, you need a contractor’s license if your work is part of a larger project undertaken by a General contractor (in other words, you are a sub-contractor), or if you advertise your services and call yourself a contractor.3 So, if your jobs are valued at more than $2,500, you’ll need the proper licensing in Florida.
If your projects are large enough to require contractor licensing, there are a series of steps to take in order to prove to the state that you’ve obtained the necessary insurance coverage and are competent.
- Pass a licensing exam: You should look up the necessary license testing in your county because different types of jobs require different licenses. For example, plumbing maintenance contractors in Miami-Dade County must pass an exam testing their knowledge of fixtures, fittings, faucets and other subjects.4
- Provide proof of insurance: Much like contractors in other states, Florida handymen and handyworkers may need to obtain proof of insurance in order to meet licensing requirements in the state. Check with the Department of Business & Professional Regulation, or your county’s licensing board, to check whether you need to show proof of insurance. To obtain licensing in Orlando, for example, contractors must provide current proof of workers’ compensation insurance or an exemption.5 Thimble sends your Certificate of Insurance (COI) — which provides proof of an active, valid insurance policy — right away to your app and inbox. You can download as many COIs as you need at no additional cost.
- Register with your state and county authorities: Once you obtain your state license, you may need to provide it to the county authority in which your business is located. You may also need a Certificate of Insurance for your workers’ compensation and liability coverage, your corporation document containing your company name, and your business contact information.6
- Obtain a surety bond: Similar to insurance, a surety bond serves as a guarantee that you will do your job well, be honest, and operate in accordance with local, state, and federal regulations. In Orlando, state-registered and limited specialty contractors need a surety bond or continuation certificate. The surety bond must be at least $5,000 for state-regulated contractors, but specialty contractors that aren’t regulated by the state need a surety bond of $1,000.7
Don’t let a claim swamp your business
The ideal time to protect your up-and-coming handyman business is before an accident arises and you need to file a claim. In fact, you may not even be able to work in Florida without liability insurance or worker’s compensation coverage. Before you buy Handyman Insurance:
- The premium cost for Handyman Insurance varies based on your ZIP code and other business details.
- Florida handymen must pass a licensing exam, provide proof of insurance, obtain a surety bond and register with local regulatory agencies.
Ready to get covered? Click “Get a Quote” or download the Thimble app to answer a few quick questions. You can buy your policy online, in the app, or over the phone in minutes — and get to work before the other guys even call you back.
Sources:
- Miami-Dade County. Construction Trades Qualifying Board Application for Personal and Business Corporation Non-Exam.
- 2018 Florida Statutes. 489.103 Exemptions.
- The Handyman Exemption. Bay County, Florida.
- Miami-Dade County. Miami-Dade County Regulatory and Economic Resources Department Exam Descriptions.
- City of Orlando. Register a Contractor.
- Flagler County, Florida. State-Certified Contractors.
- City of Orlando. Register a Contractor.