This type of insurance covers small companies that are dedicated to repair or construction (handyman) and need it in their BOP, that is, in the employer’s policy. This insurance is for homeowners and repairers who have few employees.
How Handyman Insurance Works
If you are a handyman and damages your client’s home, you will have to pay to fix the damage. For accidents like this, you need insurance coverage. In this way, the insurance company will pay for the damages caused.
Insurance coverage for handyman
No matter how often the handyman works, you will need a general liability to cover the job. If something goes wrong and the property you are working with is damaged, it is probably protected by a liability policy up to $ 1 million. This is important because everything a handyman does is covered by insurance. What is included in this is: Work performed by subcontractors, incomplete work, damage to houses or property, medical payment for accidents or advertising injury.
Workers’ compensation covers all liabilities for medical bills due to work accidents. Premiums range from $ 500 to $ 5,000 per year depending on the number of employees and the dangerousness of the projects.
Handyman’s insurance can cover the cost of hospitals, medicines, and if required it includes special treatment. They also cover the wages that employees lost when they were under treatment.
Types of insurance for maintenance companies
Handyman needs different types of insurance for its business. The above requirements are sufficient for businesses with four or fewer workers or if you have large projects such as completed home remodeling. But for large companies with more employees, they necessarily require new insurance coverage. The main types of coverage for the handyman are:
Commercial auto insurance
If you are using a car for projects, vehicle insurance is recommended. This type of policy covers any damage to the vehicle due to work or transportation of materials. For example, if you transport wood, you could damage the bed, which may be covered by the commercial auto insurance.
Generally, you receive coverage for $ 1 million per claim. Actual costs will depend on the number of cars you have for the company and their driving history.
Builder’s Risk or Land Navigation Vessel Insurance
Hazard coverage is a form of insurance to cover products, equipment and materials that are transported by land. The insurance payment costs between $ 500 and $ 1,300 each year and if something happens to the materials you are transporting, the builder’s risk will cover this loss.
Insurance for tools and equipment (Equipment Insurance)
Tools are completely necessary for manual work. The tools they have are extremely expensive depending on the work they do, so tool and equipment insurance helps protect tools from damage from accidents or theft but not from normal use.
Global Insurance (Umbrella Insurance)
General liability, workers’ compensation, and commercial vehicle coverage can be covered by this type of insurance. This policy is less popular for a handyman than it is for a general contractor because a $ 1 million claim is not common. If you need to extend coverage, there is an option for an additional blanket policy. The payment for this insurance is 800-2000 dollars per year.
Insurance costs for handyman
The main cost of a handyman insurance is the annual premium. An annual payment is made for all coverage combined. The payment is divided into 12 monthly payments of $ 350-5000 each month.
The cost of the premium is paid based on the risk associated with the work performed. In addition to the annual premium, you may also have out-of-pocket expenses. These costs vary from one policy to another.
The average annual cost of insurance is $ 350-1000 with $ 1000 being deductible, this is for a Overall responsibility. For the worker’s compensation, the average annual premium is $ 500- $ 5000 with no deductible. Commercial auto insurance has an average annual premium of $ 1,300- $ 2,200 with a $ 500 deductible.
When it comes to builder risk or boat insurance or inland transportation, the average annual premium is $ 500- $ 1,300 with a $ 500 deductible. Equipment and tools insurance requires a $ 900- $ 1500 average annual premium and the deductible amount is $ 500. For umbrella insurance (Umbrella Insurance), the average Annual Premium is $ 1,000- $ 2,500 and the deductible varies.
If your handyman insurance coverage has a deductible, your payment is required before coverage begins. The general liability covers $ 1 million for any claim totaling $ 2 million per year.
Workers’ compensation varies according to how much will be covered per claim.
The best insurance companies for the handyman business.
One of the best insurance companies for a handyman is Next Insurance.
There are three methods to achieve this: the basic, the pro and the pro plus. The difference is the amount of the limit, the add-ons and the deductible. In the case of the basic plan, the limit is $ 300,000 while the pro and pro plus have a limit of $ 1,000,000. In the case of basic plan, the total is $ 300,000, the pro plan requires a total of $ 1,000,000, and the pro plus plan requires a total of $ 2,000,000.
The amount of the deductible also varies from plan to plan. For a basic plan, the deductible is $ 500- $ 1500, the most popular pro plan needs a $ 500 deductible, and the pro plus plan has a $ 0- $ 500 deductible. It is important to mention that all plans include general liability coverage. This means having bodily injury, property damage, medical payments, slander, and slander.
It is important to pay an insurance company for the maintenance or handyman business, clients should know that you are protected under any company and certificate. They are easy to pay and you don’t get stressed. If you decide to pay a monthly payment, don’t worry about paying a large payment at the end of your year. You can buy any police officer online in just a few minutes and your business will be covered.