A small handyman business where most of the work being performed costs less then $1,000 and is not being performed on apartment buildings, bank owned homes or work is being performed for friends and family can often get away without insurance but at some point every handyman decides insurance will help protect them against personal liability.
Insurance is a major step in growing your handyman business to include larger clients. General Liability Insurance is the primary insurance you will need for your business. If you have employees you will need Workers Compensation as well. Growing your business to more then financially taking care of your immediate needs is important and can’t be done without being insured!
The first question you might ask is how will you be able to keep your prices low if you have insurance you have to pay for? Maybe you are even thinking that not having insurance is a competive advantage! A good rule of thumb is to add $1 per hour to your quote. General Liability Insurance depending upon the number of years you have been in business will generally cost somewhere between $600 to $1,000 per year for $1,000,000 of liability coverage. You can buy less coverage but there is not much of a price difference. The good news is that you can make payments and split out the payments over a year.
When you primarily have a vehicle driven for work purposes you will want to get a commercial auto insurance policy. Especially if you have employees driving the vehicle this is an essential policy to own.
Competing for contracts with larger companies to complete the repairs that they need is another benefit of having General Liability Insurance. Always as the first part of the bidding process the company will verify that the bidders have proper insurance and licensing. You won’t get a chance to bid without it.
These steps are enough for handymen with a few years experience. You might also look into a tools and equipment policy to be able to replace your tools if they are stolen.
Our insurance agents are available at (855) 773-1100 we can find you the best price and shop multiple sources for you. We happen to be licensed and insured as well! Our California Brokers License is #0G05840