Does Homeowners Insurance Cover Handyman?

When hiring a handyman to perform maintenance on your home, you must verify that he possesses a valid insurance policy. Otherwise, you may have to pay for the damages or medical bills resulting from a worker's injuries or property losses out of your own pocket.

Homeowner's insurance does not cover handymen because it is primarily intended for personal use. Consequently, you should double-check whether a contractor you've hired is insured to avoid financial liability for another party's faults.

The occupation of a handyman has substantial dangers, which is why they should consider getting insurance. A vital component of such a policy is general liability coverage, which will protect them from significant financial issues resulting from unanticipated incidents.

Typically, policyholders can add or remove coverages from their handyman insurance policies, depending on their needs. For instance, sole owners with no employees do not require workers' compensation, but if they use a car for business reasons, they must purchase commercial vehicle insurance.

What is Coverage for Handyman Insurance?

Handyman insurance is a coverage that protects workers against financial loss resulting from dangers, property damage, or automobile accidents.

To create a policy that matches their demands optimally, handymen should evaluate their overall risks and acquire the coverages that will activate in the event of a potential accident.

Who Requires Handyman Insurance?

Although it is not mandated by law, every handyman should carry insurance. Clients can sue you if you perform work in their homes, which makes it a risky proposition.

Claims that are not covered by insurance can be costly, and uninsured handymen are typically not viewed as credible or trustworthy.

What Does Home Improvement Insurance Cover?

These are the most frequent coverages found in handyman insurance:

The Business Owner's Policy (BOP) is an all-inclusive insurance plan that includes general liability and commercial property insurance. It is a cost-effective solution, and I would recommend it.

General liability insurance for handymen covers legal fees if you are proven legally responsible for an accident or damage.

Workers' compensation is required for any tradespeople with workers. Specifically, it will pay medical and salary compensation if an employee is harmed.

Handymen who use their vehicles for business purposes must have commercial auto insurance. This coverage will protect them against the costs associated with accidents and property damage.

The business property consists of a handyman's work-related tools and equipment.

Builder's risk insurance protects supplies, tools, and equipment left on construction sites.

Umbrella liability insurance provides more coverage for general or car claims, ensuring that expenditures exceeding your policy limit are covered.

A surety bond expedites small third-party claims, but a handyman remains financially responsible.

Overall, insurance coverage for a handyman will depend on the work performed. There is always the opportunity to buy an additional plan to protect other elements of your business in addition to the common handyman insurance options listed above.