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What is handyman insurance?

When it comes to maintaining and repairing properties, handymen and women are the go-to professionals. From building furniture to hanging shelves to repairing appliances, handymen are Canada's go-to pros for a multitude of issues that can arise around the home.

As a handyman, having the right commercial insurance will protect your business from unexpected challenges that could happen.

Handyman insurance is an umbrella term for a variety of policies designed to protect handymen and handywoman contractors from specific risks while on the job. For example, if an accident occurs, such as inadvertently damaging a client's property, this insurance will cover the costs.

Handyman insurance typically includes general liability for accidents and protection for tools and equipment. Additional coverages, like commercial auto insurance, can be added to a policy so that the protection is customized to fit the needs of each individual or business.

Who needs handyman insurance?

Those who will need handyman insurance include:

• Independent handymen: These are the solo experts in the handyman world, working as sole proprietors or freelancers.
• Handyman businesses: These companies offer a range of repair and maintenance services to homes and commercial properties.

Any individuals or businesses that provide installations, repairs and maintenance services may fall into the handyman category for insurance coverage. Depending on the exact nature of the services you provide, you'll want to customize your policy so you have the relevant coverages.

What does handyman insurance cover?

Handyman insurance typically covers these three main areas:

• Commercial general liability insurance: Also known as CGL, this coverage is mandatory in some Canadian provinces, including Ontario. It provides financial protection against lawsuits related to third-party property damage or bodily injury. If, for example, a handyman is repairing a leaky faucet and accidentally damages a client's property, CGL will help cover any legal fees and repair costs.

• Professional liability insurance: Also known as errors and omissions (E&O) insurance, this covers claims related to professional errors or negligence. For instance, If you improperly install a cabinet and your client deems it to be unusable, they may seek legal recourse for reimbursement. Professional liability insurance will cover the legal fees required for your defence.
• Tools and equipment insurance: Often referred to as handyman equipment insurance, this coverage will offer extra protection for the tools and equipment used by you or your employees. This policy covers the repair or replacement costs if your tools or equipment are lost, stolen or damaged.

What insurance add-ons are recommended for a handyman?

While these add-ons are not always mandatory, a lot of handymen and women in Canada choose to include the following coverages as part of their business insurance policy:

• Commercial property insurance: This will protect your business in case of damage to your physical assets. For a handyman this could be your office or storage facility where you store your tools, equipment and supplies.
• Commercial auto insurance: If you use your vehicle to transport equipment, or even just to go to job sites, getting commercial auto insurance is necessary. It works much in the same way as personal car insurance, covering things like vehicle damage, liability and theft. Whether your vehicle is one used exclusively for business, or is used for both business and personal purposes, commercial auto insurance is required.
• Business interruption insurance: This insurance protects against lost income due to unexpected disruptions, such as natural disasters and fires. It helps cover fixed expenses, like employee salaries and rent, so you don't continue to rack up expenses during a period in which you're unable to generate a typical level of revenue.

How much does handyman insurance cost in Canada?

The cost of handyman insurance in Canada can vary based on several factors, including the size of your business, the different types of services you offer, your claims history and the type of coverage you choose. Here are some general guidelines:

• General Liability Insurance: Typically starts at around $450 per year for a $2 million coverage limit.
• Comprehensive Insurance Packages: Can start at approximately $575 per year.

Please note that many handyman insurance policies include additional coverage types. If, for example, you require commercial auto insurance (a typical need for handyman businesses), the cost of insurance will likely be higher.

There are numerous factors that go into determining the cost of an insurance policy. Generally speaking, Canadian handymen and women can expect to pay upwards of $1,000 for coverage.

What factors determine handyman insurance rates?

The cost of handyman insurance in Canada depends on a several variables. Some of the most influential factors include:

• Business equipment and property: The value and type of equipment you use can affect your insurance costs. If you have more expensive or specialized equipment, this will increase the premiums.
• Revenue: When your revenue goes up, your insurance costs follow. That's because as you make more money, it indicates to insurance companies that you require greater levels of protection.
• Deductible: The money you pay by yourself before insurance kicks in is called a deductible. If you choose to pay more at out of pocket (a higher deductible), you will pay less for your insurance each month.
• Location: Different locations are deemed to be of greater or lesser risk than others. Generally speaking, in large cities like Toronto or Montreal, a handyman business will pay more for insurance, all other things being equal, than that same business would pay if it was located in a small town.
• Years in operation: If your business has been around for a while and has a claims-free track record, you’ll often pay less for insurance compared to a brand-new business, or one that's made several claims over the past few years.

How does handyman insurance work?

Handyman insurance helps protect you from unexpected events. If something goes wrong and you have to make a claim, your insurance company will check it out. If your claim is covered, your insurance provider will cover the costs up to the limit of your policy, minus your deductible.

How to get the cheapest handyman insurance quote?

To get the cheapest handyman insurance quote in Canada, follow these steps:

• Compare multiple quotes: Go online and get offers, known as quotes, from multiple insurance providers. This way you can understand the market and select the provider offering the cheapest policy.
• Bundle policies: If you need multiple types of insurance (e.g., general liability, commercial auto, etc.), bundling them with the same provider can often result in discounts.
• Increase your deductible: Opting for a higher deductible can lower your premium. Just ensure you can afford the deductible in case of a claim.
• Maintain a good claims history: Insurers often offer lower rates to businesses with fewer claims. Implement safety measures to reduce the likelihood of accidents and claims.
• Ask about discounts: Some insurers offer discounts for things like paying annually instead of monthly, or for having a good safety record.