Insurance for Handyman Businesses
A handyman or “handyperson” is generally an unlicensed contractor specializing in home maintenance, small home repairs and simple installations. They may do some minor carpentry, plumbing and electrical work but nothing requiring a license or permit. Roofing does not fall into the job description of a handyman and should be separately rated.
Recommended Insurance Programs for a Handyman
Minimum recommended coverage:
• General Liability
• Property Insurance
• Commercial Auto if vehicles owned)
• Tools and Equipment
• Workers Compensation
Other coverages to consider for your Handyman business:
Building, Business Personal Property, Business Income with Extra Expense, Contractors’ Tool Floater, Installation Floater, Umbrella Liability.
Common Risks and Needs Associated with small contractors
General Liability Insurance
GL liability exposures at the contractor’s shop or office are generally limited due to lack of public access to the premises. Job-site exposures include potential injury to the client or damage to the client’s property. Tools, power cords, building materials and scrap material all pose trip and fall hazards. Use of saws and other power or hand tools may be hazardous to the client and bystanders at the jobsite. If there is work at heights, falling tools or supplies may cause damage and injury if dropped from ladders and scaffolding. Finally, the use of subcontractors and any contractual liability exposures should be examined if the handyman is responsible for finding licensed contractors to handle jobs outside the handyman category.
Completed operations GL liability exposures should be fairly minor since handymen usually do not handle or install items where incorrect installation would result in significant damage. It is important for a handyman to work or perform duties within his or her ability. Clear guidelines should be established with clients as to what jobs can and cannot be completed by the handyman.
Property exposures at the contractor’s own location are generally limited to those of an office plus storage for tools, material, equipment, and vehicles. The contractor may take items to the shop for repair and keep some materials in storage for use at the jobsite
Automobile liability exposures are generally limited to transporting workers, equipment and supplies to and from the job site. Since most jobs are small, the handyman may drive to several job sites during one day. The exposure could increase if the radius of operation is large or if there are any service time guarantees. Failure to monitor driving records or to ensure that drivers have the appropriate license may also be a concern. Vehicle age, condition, and maintenance are other important items to consider
Inland Marine Coverage
Inland marine exposures include owned or rented tools and equipment, building materials due to the installation exposure, and materials in transit to and from the job site. A handyman’s tools and equipment may represent the majority of the physical assets. Since the handyman is not a specialist, a variety of tools is needed. Tools travel with the contractor and are not normally left at the jobsite.
Workers compensation exposures vary depending on the size and nature of the job. Injuries due to cutting, sawing and hammering can be severe. Electrical burns can occur while doing electrical work. The potential injury due to falls from heights must be considered when doing outside maintenance work. Lifting injuries, hernias, strains sprains and back injuries may occur. Minor injuries may be frequent even when the severity exposure is controlled. Employee selection, training and supervision affect loss potential.
General Liability Quotes for Handyman
General Liability Shop.com offers affordable liability insurance quotes for your Handyman business throughout the U.S. Our Handyman programs include all lines of business insurance, as well as our Target programs for business owners policies (BOP). Contact one of our business insurance Specialists today at (800) 900-8657, or start a quote online now.
Our Top Carrier Solutions for Handyman
Handyman Liability Classification Codes
Commercial insurance companies use various liability classification systems in order to classify and rate coverage premiums for a Handyman. Here are the most common business insurance classification for a Handyman business:
Business Liability Category: Artisan Contractor
SIC Business Insurance Codes:
• 1521- General Contractor- Single Family Homes
• 1522- Residential Builders- Other Than Single Family
• 1799- Special Trade Contractor
NAICS Liability Classifications:
• 236118- Residential Remodelers
• 238350- Finish Carpentry Contractor
• 238990- All Other Specialty Trade Contractors
Business ISO General Liability:
• Code: 95625- Handyperson
Common Workers Compensation Class Codes:
• 5645- Carpentry and Construction- Residential