What Handyman Insurance
Do I Need?

Insurance - more handyman red tape. Handyman insurance is another requirement if you are thinking about starting a handyman business.

The question is: What do I need for insurance coverage?

The answer is: It depends on how much risk you want to assume.

Insurance comes in many shapes, sizes, and forms. You can purchase insurance for assets (cars, equipment, inventory, and buidlings), key employees, injuries, and any other liability you might encounter (from mistakes made by you or your employees).

Below is a list of typical insurance types available to purchase (this is by no means a complete list):

• Life Insurance - Protects your family in case of death
  Note: especially important in a sole proprietorship because business owners are personally liable for all debts of the company.

• Disability Insurance - For business owners and operators whose livelihood depends on their ability to run a business.

• Partnership Insurance - Designed to protect a surviving partner and the business by allowing the partner to purchase the shares of the deceased to continue the business.

• Key Person Insurance - Covers the cost of the loss of an integral member of your business team. If the essential person should be unable to work for a period of time, this handyman insurance helps to cover the loss of business as a result of the illness or injury.

• Vehicle Insurance - Your personal vehicle insurance is inadequate if you are using the vehicle for business purposes. Your insurance policy must include the use of your vehicle for business purposes.

• Product or Service Liability Insurance - Protects you in the event you are sued by a client/customer for non-performance of a contract or a product and any liability arising from the non-performance.

• General Liability - Covers injury to clients and employees on your premises or elsewhere, either in the performance of duties for the company or involving activities of the company.

• Business Premises and Contents Insurance - Whether your office is in your home or elsewhere, this insurance covers damage, loss or theft of property (See note below about home insurance).

Worker's Compensation may also be mandatory in your location. Check with your local Worker's compensation board for more details on whether you need this handyman insurance or not.

Click here for a full listing of worker's compensation boards in the United States.

Please note that standard home owner's insurance will most likely not cover business assets, and may VOID your home insurance coverage. Please be sure to talk with your insurance representative to talk with them about your needs.

Some questions below may help guide your conversation:

• What kind of handyman insurance do you absolutely need by law?
• What is not covered in your current policies?
• Are there risks or hazards for which you cannot buy insurance?
• Will your homeowner's policy cover your home business?
• If your business is home-based, do you need more liability coverage than your home insurance policy covers?
• What is your deductible and how does it affect your premium?
• What can you do to lower your insurance costs?