This kind of insurance covers the small businesses that dedicate themselves to reparation or construction and they need it in their BOP which means business owner’s policy. This handyman insurance is for those owners and repairmen that have few employees.
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How insurance works for a Handyman
If you are a handyman and you damage your client’s house, you will need to pay for fixing the damages. For accidents like this, it is necessary to count on an insurance coverage. This way, the insurance company will pay the damages done.
No matter how often the handyman works, he will need a general liability to cover the work. If something is going wrong, and the property you are working with is damaged, probably it is protected by a policy liability of 1 million dollars. This is important because everything a handyman does is covered by the insurance. What is included in this is: Work done by subcontractors, incomplete work, damage to houses or properties, medical payment for accidents or advertising injury.
The compensation for workers covers all responsibilities for medical bills due to work accidents. Premiums go from 500 to 5000 dollars every year depending on the employees’ number and how dangerous the projects are.
The handyman insurance can cover the time at hospitals, medicine, and needed special treatment. They also cover the salaries that the employees lost when they were under treatment.
Types of insurance for handyman business
Handyman needs some different types of insurance for their businesses. The mentioned requirements are enough for the businesses that have four workers or less or if has big projects like completed houses remodels. But for big businesses with more than few employees, it is necessarily new coverage to of insurance. The main coverage types for handyman are:
If you are using a car for the projects, any insurance for the vehicles is recommended. This kind policy covers any damage to the car due to the work or the transportation of materials. For example, if you transport wood, you could damage the bed which can be covered by the commercial auto insurance.
Generally, you will receive the coverage for 1 million dollars per claim. The real costs will depend on the amount of cars you have for the business and the driving history of them.
Builder’s risk or Inland Marine Insurance
The risks coverage is an insurance way to cover products, equipment, and materials that are transported over land. The insurance payment costs 500-1300 dollars every year and if something happens to materials you are transporting, the builder’s risk will cover this loss.
The tools are completely necessary for handyman work. The tools they have are extremely expensive depending on the work they develop, for this, the equipment insurance helps to protect the tools from damage for accidents or theft but not from normal use.
The general liability, the compensation for work and the coverage of commercial vehicles can be covered by this kind of insurance. This policy is less popular for a handyman than for a general contractor because 1 million dollars claim is not common. If you need to prolong the coverage, there is an option for an additional general policy. The payment for this insurance is 800-2000 dollars per year.
The main cost of a handyman insurance is the annual premium. An annual payment is done for all the combined coverage. The payment is split up over 12 monthly payments and 350-5000 dollars are paid every month.
The premium cost is paid depending on the risk associated with the work developed. Besides the annual premium, you can also have pocket costs. These costs vary from a policy to another one.
The average annual costs for an insurance are $350-1000 dollars with $1000 dollars that are deductible this is for a general liability. For a worker’s comp, the average annual premium is $500-$5000 dollars with nothing deductible. The commercial auto insurance has an average annual premium of $1300-$2200 with $500 dollars deductible. When we talk about builder’s risk or inland marine insurance, the average annual premium is $500-$1300 dollars with $500 deductible. The equipment insurance requires $900-$1500 dollars of average annual premium and the deductible amount is $500. For an umbrella insurance, the average Annual Premium is $1000-$2500 dollars and the deductible varies.
If the handyman insurance coverage has a deductible, the payment of it is required before the coverage starts. The general liability covers $1 million dollars for any claim with a total of $2 million dollars per year.
The worker’s compensation varies according to how much is going to be covered per claim.
The best insurance companies for the handyman business.
One of the best insurance company for a handyman is Next insurance.
There are three methods for getting it: the basic, the pro and pro plus. The difference is the amount of limit, the aggregates, and the deductible. In the case of the basic plan, the limit is $300,000 dollars while the pro and the pro plus have a limit of $1,000,000. In the case of the basic plan, the aggregate is $300,000 dollars, the pro plan requires an aggregate of $1,000,000 and the pro plus plan needs a $2,000,000 aggregate. The deductible amount also varies from one plan to another. For a basic plan, the deductible is $500-$1500 dollars, the pro plan which is the most popular needs a deductible of $500 and the pro plus plan has a deductible of $0-$500 dollars. It is important to mention that all the plans include a general liability coverage. This means the fact to count on bodily injury, property damage, medical payment, libel, slander, and defamation.
It is important to pay an insurance company for handyman business, clients must know you are protected under any company and certificated. They are easy to pay and you don’t get stressed. If you choose to pay a monthly payment, you do not worry about paying a big payment at the end of your year. You can buy any police online in just a few minutes and your business will be covered.