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In this article, I'm going to share everything you need to know about liability insurance for a handyman business so you can rest assured that you're getting the right coverage without paying too much.

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  • I'll answer the following questions and more...

  • How much does handyman insurance cost?

  • What kind of insurance do you need for a handyman business?

  • Do you really need handyman business insurance?

  • Where should you go for handyman insurance?

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Feel free to click on any of the questions above to be taken directly to that section. Or just scroll down to the bottom if you're looking for the best place to get a handyman insurance quote.

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How much does handyman insurance cost?The S from the handyman startup logo You can expect to pay between $450 to $1000 per year for general handyman liability insurance (which is $42 - $83 per month). Your premium will depend on where you live, your services, sales volume, and some other factors.

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The best way to make sure you aren't paying too much is to get at least two quotes (see below for where to go), but as long as you are in the range I mentioned above, you're doing just fine.

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My general liability insurance policy for my handyman business costs me about $1,000 per year for $1,000,000 of liability insurance (That's about $83 per month). I'm on the higher end of insurance premium costs or a handyman business because I live in Nevada.

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It seems that where you live has a big impact on rates. Other states seem to have cheaper insurance plans.

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Regardless of what it costs to be licensed and bonded, this expense is passed on to the customer, which should add about $1 per hr to your hourly rate if your working as a full time handyman.

What kind of insurance do you need for a handyman business?

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There are lots of different insurance plans available and you can go overboard with things like cyber insurance, property insurance, or even advertising insurance - San Diego Handyman General Liability Insurance .

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But all you really need as a pro handyman is general liability insurance. That will cover things like property damage, settlements, legal fees, judgments, damage to property, and medical expenses.

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A typical handyman liability insurance will have the following coverage:

$1,000,000 liability coverage per claim

$2,000,000 per year aggregate coverage limit

$1,000 deductible

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Basically, if you file a claim, most insurance plans will cover up to $1 million per incident, with a maximum of $2 million per year. Hopefully you won't cause that much damage to a customer's home. And if you do, hopefully you filed as a multiple member LLC or a corporation to protect your personal assets from business risks.

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Many insurance companies also offer the option to insure your vehicle on the same plan. I was advised by my insurance agent that this wouldn't really make sense. Just ask your agent and if they think this makes sense in your unique situation.

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If you're driving a van or have a lot of tools in your vehicle (who doesn't), you may also consider adding coverage to cover tool theft. However, I've found this type of insurance to be expensive and not worth it.

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Do you really need handyman insurance?

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Unless you are a licensed contractor, insurance usually isn't required to provide handyman services. It's just a way to limit risks in case you damage a customer's home.

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Most people will say that you should get handyman insurance no matter what service you provide. However, I disagree in certain situations like when you are just starting out or working part time.

When I started my handyman business, I didn't get insurance until about 4 months in.

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I wasn't doing enough business to justify the expense. Secondly, not a single customer asked me if I was insured. Not one! I guess my website and uniform gave them all the trust they needed to hire me.

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Instead of dealing with another expense during the startup phase, I decided to simply be careful while performing handyman work for customers. I'm just a one man band so I didn't have to worry about any employees screwing things up either.

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If I was to go back and do it all over again, I still wouldn't get insurance until my income could support it.

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But, should you get insured?

The answer to this question is going to depend on several factors. If you answer yes to any of the following questions, it's probably a good idea to go ahead and get it.

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Is insurance required by your state to perform home repairs? Does your target market include apartment complexes? (They will typically require proof of insurance before starting.)

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Are you planning to do any work on bank owned properties? (They also require proof of insurance.)

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Are you planning to get a contractor's license?

Are you well established and can easily justify the expense?

Will you be performing plumbing and electrical work?

Do you where a helmet everywhere you go?

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If you answer no to all of the questions above, you may consider waiting to get insured until your business gains some momentum.

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Some people will say better safe than sorry, but for many people just starting out the risk is very low and the money would be used more effectively toward other areas of growing a business.

However, I wouldn't go too long or take on any electrical or plumbing jobs without general handyman insurance. It really is important because it not only protects you, but it protects your customers in the event of an accident.

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Getting Quotes - What's the best place to get Handyman Insurance?

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The easiest place by far to get a quote is CBW Insurance. All you have to do is answer a few questions online and you'll get a customized quote within minutes, San Diego Handyman General Liability Insurance.

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Or, you can find a local broker. Do a quick google search for "contractor liability insurance" or even "handyman liability insurance" and you should get several local results.

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If you can, I recommend asking for a referral to a good insurance agent. Talk to other contractors or handymen and ask them which agent they used and if they like them. I was referred to the agent I use and I'm really happy with the service and information I was provided. It saved me a lot of time and headache trying to research everything myself and get a bunch of quotes because he was able to get me quotes from multiple different providers.

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The only downside of going with an agent is it can be slightly more expensive.

Want to learn more about what you need to start a handyman business? Check out my in depth post on handyman business licenses and laws.

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And be sure to sign up for my e-mail newsletter and join over 10,000 others who enjoy insider tips about handyman business pricing, marketing, scheduling, and more.

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