One of the biggest mistakes one can make when starting a handyman business is to operate without liability insurance. For a fledgling business, the money spent on insurance may appear to be a waste. However, you risk going bankrupt if you get sued and you don’t have liability coverage. Read on for all the information you need to know about small business liability insurance.
Cost Of Handyman Insurance
The amount you will pay will depend on where you live, the type of services you offer and the rate you negotiate with your insurer. Insurance is costlier in some states such as Nevada whereby you can expect to pay as much as $1000 a year for an established handyman business. On average you should budget between $500 to $1000 a year for handyman insurance. This cost should be passed on to your clients as a cost of about $1 per hour should be added to your fees to cover liability insurance.
To get the best possible rate shop around and get quotes from three different providers. This will give you an overview of how much you can expect to pay. Shopping from different providers also gives you a stronger footing to negotiate a final price with your preferred provider.
Types Of Insurance
There are several types of handyman insurance that one can take out. These include insurance plans that can cover property, tools, cyber activities, and even advertising. However, the only insurance you really need to take out is general liability insurance. This should cover you for at least 2 million dollars in damages annually. With at least a 1 million dollar liability per claim.
Is Handyman Insurance Necessary?
In many states, you do not need liability insurance to start a handyman business. But it is a necessary cost to protect your clients from any damages to their property in the course of your services. Many clients will be looking at your contract to ensure that you have insurance cover of at least $1million.
While many established handymen and handyman bloggers stress the importance of general liability insurance, you may be able to get by without it the first few months of business. This is because you will still be scouting for clients and won’t do much work. Just take the utmost care when doing your work so that you don’t damage your clients’ properties.
But once you start getting clients then it is important to get insurance to protect yourself and your clients. Once your income supports it, there is no excuse not to get handyman insurance. Also, if your state requires you to have insurance to operate as a handyman business then you must take out a policy. Additionally, if you intend to work on bank-owned properties or apartment complexes it is best to take out liability insurance as they will require proof before you can do work on these properties.
Where Can You Get Liability Insurance?
To find a good insurance company it is best to ask for recommendations from other handymen that you know. Alternatively, you could search online for insurance brokers or insurance companies in your area.
Are you interested in becoming a handyman? Then read the rest of our blog for more tips on running a successful handyman business.