Handyman

Do Handymen Really Need Insurance?

Many handymen wonder if insurance is necessary for their work. After all, you're handling small repairs and maintenance tasks, not major construction projects. The answer is clear: yes, insurance matters for handymen, perhaps more than you realize.

Handymen often work alone, without the backing of a larger company. If something goes wrong on a job, you personally bear the consequences. Insurance provides a safety net that protects both your livelihood and your personal assets.

The Variety of Work Creates Varied Risks

One of the things that makes handyman work appealing is the variety. In a single day, you might fix a leaky faucet, patch drywall, install a ceiling fan, and repair a deck railing. Each of these tasks carries different risks and potential liabilities.

A handyman was hired to install new light fixtures throughout a client's home. During the installation, he accidentally drilled through an existing wire, causing a short that damaged the home's electrical panel.

Small jobs can create significant damage.

What Coverage Does a Handyman Need?

Handyman insurance programs typically include:

• General liability: Covers property damage and injuries you cause while working
• Tools coverage: Protects your investment in hand tools and basic power tools
• Commercial auto: Covers your truck or van if you use it for work
• Completed operations: Addresses issues that arise after you've finished a job

Workers' compensation becomes necessary if you have employees, even part-time helpers.

Understanding Handyman License Limitations

Many states limit the scope of work a handyman can perform without a specialty contractor's license. These limits often affect both what you can legally do and what your insurance will cover.

If you exceed your licensing limitations, your insurance may not cover resulting claims. Understand the rules in your state and make sure your coverage aligns with the work you actually perform.

Scaling Coverage as Your Business Grows

Many successful handymen eventually expand their businesses, hiring helpers or branching into specialty work. As your business grows, your insurance needs grow with it.

Review your coverage annually and whenever you make significant changes to your operations. Adding an employee, buying new equipment, or expanding into new service areas all affect your insurance requirements. Stay proactive to ensure you're always properly protected.