Building a career as a professional handyman makes perfect sense if you love working with your hands and have a talent for handling a wide range of improvement, repair, maintenance and installation tasks. But as rewarding as it can be to work as a handyman or even start your own handyman business, it also exposes you to several risks that could cause severe damage to your bottom line and jeopardize your business's success.
The best way to deal with the risks faced by handyman businesses is to transfer the risk via the right handyman insurance coverage. That's why a robust business insurance policy is critical to any reliable, effective handyman risk management plan. It's critically important to thoroughly understand the potential risks that are part of life as a handyman and how they can be mitigated with the right insurance. If you have questions or need more information on handyman insurance, rely on the experienced brokers at Morison Insurance to answer all your questions and track down the right combination of coverages for your unique insurance needs.
There is a wide range of risks handyman businesses can be subjected to, but they tend to fall into three broad categories. We break down the three overarching types of risks handyman businesses need to be aware of and list several risks within those categories, along with the types of insurance coverage designed to address them. It's important to note that risk exposures can vary significantly based on factors such as how you choose to run your business and the specific types of services you offer, so you may need or want the financial protection of additional coverage types that are not listed below.
Suppose you need clarification on which types of risks and corresponding coverages are most applicable to your business practices. In that case, the best course of action is to contact a Morison Insurance broker. Our insurance experts with consult with you to learn more about your unique business, so we can find the perfect combination of insurance coverages and give you the peace of mind that comes with knowing you won't suffer major financial setbacks if you're stuck with unexpected expenses resulting from an insured peril.
Handyman professionals are exposed to several liability risks, which is valid for any business professional—but because handymen and handywomen typically work on their client's properties rather than at their own commercial property, they are exposed to additional risks that don't necessarily apply to professionals who don't have to travel to a job site to provide their services. That's one of the key reasons why handyman liability insurance is such an essential part of business insurance packages for handyman businesses.
Liability policies are designed to cover costs related to litigation and legal settlements should you be accused of causing injury or damage and be forced to defend yourself in a court of law and if you are found liable and required to pay a settlement to the plaintiff. Exactly which costs are covered depends on the types of coverage you have in place and how your specific liability policies are written.
Here are some of the liability risks that can be mitigated with the right handyman insurance coverages:
Litigation and settlements aren't the only perils that could force a handyman business to contend with the risk of loss. You have commercial property, tools and equipment necessary for you to deliver handyman services, and they're just as vulnerable to damage and destruction as anything else. You likely need the funds available to deal with repair or replacement costs for everything all at once should they be destroyed by a fire or stolen, for example. While property risks, in general, are relatively straightforward and involve the need to repair or replace buildings, tools and equipment that have been damaged or destroyed, different types of commercial property insurance are necessary to address various types of damage, damage that occurs in other locations, and so on.
Some of the risks that can be mitigated with the right commercial property insurance policy are:
You must travel to and between job sites if you provide handyman services. You may use your personal vehicle for that which, as you know, has to be covered by personal auto insurance to be driven legally in Canada. Suppose you use your vehicle for work purposes, such as transporting subcontractors or employees to job sites or carrying materials. In that case, it's considered a commercial vehicle that must have a commercial auto insurance policy. Commercial vehicle insurance covers the same risks as personal auto insurance. It can have similar coverage additions, such as accident forgiveness, but it applies to vehicles being used for business purposes, and your car insurance does not.
Suppose you've read through the three categories of risks that handyman businesses are faced with. In that case, you'll know that the financial protection offered by the right handyman insurance coverage is necessary to help deal with a wide range of costs related to handyman risk exposures. While those handyman business risks are the major reason why handyman insurance is essential and why it's so important to speak with an experienced broker who can find the best coverage for your unique insurance needs, insurance compensation to deal with financial setbacks isn't the only reason why you need handyman insurance.
The fact that many handyman professionals don't necessarily consider when they're first starting out is that many clients will refuse to hire a handyman who can't provide proof of insurance. If you're a subcontractor, it's unlikely that any legitimate independent contractor worth their salt will hire you without insurance coverage. That means if you can't produce a certificate of insurance that lists the suitable types of coverage for your services, you'll have to wave goodbye to lucrative contracts that will go to your competition instead. If you hire subcontractors, you should also require them to have their own handyman insurance coverage.
This content is written by our Morison Insurance team. All information posted is merely for educational and informational purposes. It is not intended as a substitute for professional advice. Should you decide to act upon any information in this article, you do so at your own risk. While the information on this website has been verified to the best of our abilities, we cannot guarantee that there are no mistakes or errors.