The most common handyman insurance mistakes are working uninsured, carrying limits that are too low, skipping workers' compensation when required, using personal auto coverage for work, letting policies lapse, ignoring subcontractors and being classified wrongly. Each can leave you personally paying for a claim.
1. No general liability
General liability covers accidental property damage and injuries from your work. Many clients and property managers require proof of it.
2. Limits too low
Ask your agent what limits are typical for your work and contracts. Some clients specify minimums.
3. Skipping workers' compensation
If you have employees, most states require workers' compensation. Rules for sole proprietors and subcontractors vary; ask your agent and your state agency.
4. Personal auto for business use
Personal auto policies may exclude or limit business use. Ask your insurer about commercial auto or a business-use endorsement.
5. Letting the policy lapse
A lapse can leave you uncovered and may violate contracts. Set calendar reminders for renewal and payment dates.
6. Not accounting for subcontractors
Uninsured subs can create liability for you. Ask for certificates of insurance before they start. See subcontractors vs employees.
7. Wrong classification
If your policy describes your work inaccurately, a claim could be denied. Describe your actual services honestly.
See how to start a handyman business for where insurance fits in your setup.
FAQ
Do handymen need liability insurance?
It is strongly recommended and often required by clients, and some states or licenses require it. Check your state rules.
How much does handyman insurance cost?
It varies by state, services and claims history. Get quotes from several providers.
Does my homeowner's policy cover my business?
Typically not. Ask your insurer.
What is a certificate of insurance?
A document from your insurer proving your coverage, which you can send to clients on request.