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Working as a handyman or contractor presents some significant liability concerns, as these professionals spend much of their workday in homes, private businesses, or work sites where the slightest mistake could cost a lot of money to fix. For instance, a handyman may accidentally damage a water pipe or electrical wire while replacing drywall for a customer. Even an experienced professional providing the best handyman services could run into liability issues while on the job, and that’s before accounting for other potential insurance concerns such as working with subcontractors, employing crews to handle day-to-day work, and operating dangerous equipment. As such, handyman contractors often find that they need professional liability insurance to protect their businesses. Given the stakes, one of the best tools for a handyman may be a handyman insurance policy.
The best handyman insurance can provide that protection against liability claims for a handyman who is on the job. If a client tripped over a worker’s extension cord and knocked over a vase, for example, handyman insurance would cover the cost to replace the broken vase as well as help pay for medical bills related to any injuries the client sustained during the fall. Depending on the coverage terms, policies may also insure tools, equipment, vehicles, and property used by the business.
Coverage needs can vary significantly depending on the nature of the handyman or contractor business. Some professionals in this space may only require the most basic general liability coverage, while others will want to insure themselves, their employees, vehicle fleets, equipment, and much more. As such, there’s a lot to consider when searching for the best handyman insurance available, but it’s worth taking the time to sort through every provider’s capabilities to find the right fit.
- BEST OVERALL: NEXT Insurance
- BEST EXTENDED POLICIES: CoverWallet
- MOST FLEXIBLE TERMS: Thimble
Photo: depositphotos.com
What to Consider When Choosing One of the Best Handyman Insurance Companies
The best handyman insurance companies can bring a lot of different options to the table, and not all providers will be the best fit for every situation. When searching for the right handyman insurance, business owners should consider what they absolutely need from a provider and a policy before agreeing to terms. There are some key areas to consider, including coverage, cost, and overall experience. Some of these factors may be a higher priority than others depending on the exact needs and circumstances of each individual.
Coverage Area
One of the first pieces of information that insurance companies will often ask for when providing a quote is the customer’s address or ZIP code. It’s not hard to see why: If the company doesn’t provide service to the customer’s location, it won’t be able to offer an insurance policy. Because handyman insurance, general liability insurance, and other forms of commercial insurance are, for the most part, not impacted by geographic concerns, they may be widely available across the country, but that won’t always be the case. Even the best handyman insurance company won’t be of much help if a handyman’s business is located outside of its service area, so it’s always a good idea to inquire about coverage area from the outset.
Coverage Amount
The coverage amounts indicate how much the insurance company will pay out on behalf of the policyholder if a claim is filed. Handyman insurance providers may offer a range of coverage amounts to choose from, or they may set the same limit on every policy. When searching for the best handyman insurance providers, it’s important to determine whether coverage amounts are based on occurrence or aggregate limits. An occurrence limit is the amount the insurance provider will pay per claim, while an aggregate limit is the total coverage provided across the policy term—usually a year, but that’s not always the case.
Choosing the right coverage amount can be tricky if handyman contractors forgo taking stock of their business assets and potential liability risks. Operating commercial vehicles, employing subcontractors, and using expensive equipment could all raise one’s liability risk. The more variables there are to account for, the more coverage may be needed. Coverage amounts will also impact the overall handyman insurance cost, so business owners will want to keep that in mind as well.
Business Type
Handyman insurance can benefit a wide variety of businesses, running the gamut from sole proprietorships to larger construction businesses. One of the perks of the best handyman insurance is that customers are often able to expand their coverage and customize it to fit a range of business conditions. By purchasing endorsements and policy add-ons, business owners can insure vehicles used for transporting materials and equipment, any offices they maintain, and expensive equipment used on the job. Contractors may also be able to buy workers’ compensation insurance or extended liability coverage in the event an employee or subcontractor is injured on a work site. The degree to which these policy add-ons are available will vary from provider to provider, so handyman contractors should account for all of their business-specific insurance needs when vetting insurance companies.
Quote Process
When purchasing any kind of insurance, it’s always recommended that customers shop around and get quotes from multiple providers before making a decision. Quote processes are far from uniform in the insurance industry, however, and customers are likely to find that some companies offer a more streamlined quote process than others. Quotes can sometimes be done online, over the phone, or through an agent, but insurance companies may not always support all of these options. When looking for the best handyman websites for insurance, customers may want to prioritize quick and seamless online quotes. Business owners who would rather speak directly to a representative or agent for answers to questions and help finding the right policy terms may not need that capability.
Claims Process
Handyman contractors—especially sole proprietors—can’t afford to wait for an extended period of time for an insurance payout if equipment that’s used every day is damaged or an angry customer wants money to repair property damage that occurred during a job. With that in mind, a speedy claims process can be quite helpful for people in this line of work because they can file a claim and receive approval as quickly as possible. Approval times on handyman insurance claims can vary across different providers, so it’s a good idea for business owners to see if the approval windows are suitable for their needs.
Insurance companies may also approach the claims process in different ways, allowing customers to file a claim online, over the phone, or with an agent, depending on the provider. Policyholders may even be able to file a claim using one of the best apps for handyman business operations, but not all providers offer that support. Business owners may prefer one approach over others, and they will want to check that their insurance company supports whatever claims process they would like to use.
Deductible
Running a contractor business comes with a number of handyman costs, and so professionals in this space may look for ways to keep expenses down any way they can, including with their insurance. Deductibles can impact the overall cost of handyman insurance. The policy’s deductible is the amount of money paid by the policyholder before the insurance provider begins to cover any repair, replacement, or liability costs. If the cost to repair a damaged water pipe was $1,500, for example, and a handyman had a $1,000 deductible, they would need to pay $1,000, and the insurance company would pay the remaining $500.
Handyman insurance is somewhat of an outlier in that $0 deductible options appear to be more common than with other types of insurance. With a $0 deductible, a handyman wouldn’t need to pay out of pocket when filing a claim, but they would likely have higher insurance premiums to offset the increased cost taken on by the insurance provider.
Additional Policies
The most basic handyman insurance policy may only provide general liability coverage for property damage, injuries caused to others while on the job, or claims of subpar work. But the best handyman insurance companies often offer add-on options to policies and endorsements to build out coverage as needed. In some cases, providers package together multiple forms of insurance—liability, property, and commercial auto, among others—into a single policy suitable for small business insurance needs.
Given the nature of the work, tools and equipment coverage is a common add-on purchase, as the best handyman tools may not be included in basic coverage. Contractors may also be able to purchase endorsements to protect against losses from business interruptions, equipment failure, and workers’ compensation claims. Some insurance companies may even offer disability insurance in the event a handyman is seriously injured on the job and can’t work for an extended period of time. Because handyman and contractor businesses can vary so much in scale, business owners should always check that insurance companies can provide the right type and amount of coverage to meet their needs.
AM Best Rating
An insurance company’s ability to pay out claims without delay should always be a top concern no matter what type of insurance a customer is considering. Companies with healthy finances are less likely to run into any issues that may prevent them from meeting their obligations as insurance providers. Contractors know that the best handyman service often has a sterling reputation, and that holds true for insurance companies, too. AM Best has a tried-and-true formula to determine which companies are positioned for long-term success and which may have murkier futures.
This credit rating agency focuses specifically on the insurance industry, and it reviews various aspects of a company’s financial circumstances and creditworthiness to assign it a rating. The highest rating—A+—indicates that the company has a “superior” ability to continue providing insurance to its customers and paying out claims. While customers don’t necessarily need to use an insurance company with the highest AM Best rating possible, it’s generally advisable to approach low-rated providers with some degree of caution.
Our Top Picks
When considering the best handyman insurance available, business owners should weigh the strengths and weaknesses of each company and then determine which provider offers the best overall experience and services for their unique needs.
Photo: nextinsurance.com
Why It Made the Cut: NEXT Insurance has a strong focus on handyman insurance, providing a seamless digital customer experience, helpful customer support, and various bundling options to potentially ease the cost of coverage.
NEXT Insurance provides business insurance for different types of professions, but it is especially attuned to the needs of handyman contractors. The NEXT mobile app allows business owners to file claims, update policies, and share a certificate of insurance at any time and from any location, even while on the job. NEXT offers a speedy claims process, returning claim decisions within 48 hours in most cases, so policyholders won’t need to wait very long to find out if their claim has been approved.
The company has a very strong digital presence in general, allowing customers to buy a policy directly from its website and enroll immediately without needing to speak to an agent or representative beforehand. Although quotes can only be done online, customers will likely find that the process itself is very quick and easy to complete. The online quote process is also quite detailed, allowing customers to choose from numerous policy terms, coverage options, and information about their business so they can customize their quote to suit their exact needs.
NEXT’s customer support is a core strength as well, with virtual agents standing by to help customers using the website’s online chat feature. While the AM Best rating of A- is somewhat low for this space, it’s still considered an excellent rating overall, and customers can feel confident that coverage will continue uninterrupted and claims will be paid out in full. Customers who are interested in saving money on their insurance may be able to take advantage of extra discounts when bundling their general liability insurance with workers’ compensation or property insurance coverage.
Specs
- Coverage area: 50 states and Washington, D.C.
- Coverage amount: $300,000 to $1 million
- Quote process: Online
- Claims process: Online, phone, app
- Deductible: $0
- AM Best rating: A-
Pros
- Quick 48-hour claim decisions
- User-friendly and specifics-driven quote process
- Quick and streamlined online enrollment
- Convenient policy management via mobile app
- Competitive discount bundles for workers’ compensation and property insurance policies
- Responsive online chat staffed by live agents
Cons
- AM Best rating of A-
- Quotes cannot be completed over the phone
Photo: coverwallet.com
Why It Made the Cut: CoverWallet is a top choice for business owners who want to expand their coverage by adding different types of endorsements and add-ons to their policy.
CoverWallet brings a lot to the table, but what really makes this provider stand out is the wide variety of coverage options that can be added to a handyman insurance policy. Customers can build out their policy to protect their businesses and themselves from costly operational interruptions, injuries that prevent them or their employees from working, and equipment failure, among many other insurance options. Regardless of the size or scope of a handyman or contractor business, CoverWallet can likely provide the coverage needed to suit the situation.
Because there are so many options to choose from, CoverWallet has created a quick online assessment tool to help customers determine what type of policy would best meet their business needs. Policyholders can also contact customer support through a variety of channels, and while online agents may take up to 24 hours to respond to requests, CoverWallet offers 24/7 support over the phone, so representatives are always available in some capacity. For business owners looking for a more personal touch, CoverWallet assigns a dedicated representative to each customer the moment a new quote is started. With a single point of contact, policyholders can more easily receive updates about policies, claims, and other information because that agent should already be familiar with their account.
Specs
- Coverage area: 50 states and Washington, D.C.
- Coverage amount: $1 million
- Quote process: Online, phone
- Claims process: Online, phone
- Deductible: $0
- AM Best rating: A
Pros
- Extremely wide selection of add-on policies available
- Ideal policy choice determined by individual assessment report
- Dedicated agent assigned to each quote
- 24/7 customer support over the phone
Cons
- Relatively long 24-hour online chat response time
Photo: thimble.com
Why It Made the Cut: With numerous ways to adjust policy terms, Thimble offers a high degree of flexibility that can help handyman contractors who may need to quickly change their coverage for different jobs.
Thimble is among the most digital-focused handyman insurance providers in the market, allowing customers to get a quote and buy coverage entirely online, which can be very convenient for business owners who don’t have time to sit down with an agent. That digital focus also extends to its customer support, which is exclusively managed online through the company’s website.
Thimble customers can use the company’s dedicated mobile app to manage their policies at any time, adding endorsements, changing coverage terms, or retrieving certificates of insurance to present to prospective clients. One of the most standout features that Thimble provides is the ability to adjust policy terms on the fly, including pausing or canceling coverage whenever necessary. This capability can be very helpful for contractors who need to increase coverage when taking on larger jobs and bringing in more subcontractors or roll back coverage when available jobs are not so demanding.
Customers can also purchase coverage for specific durations—a year, a month, a day, or even a few hours. Handyman contractors who may take on last-minute jobs or projects that vary significantly in scope can get the right amount of insurance to suit their working conditions without overpaying for more coverage than they need through the rest of the policy term.
Specs
- Coverage area: 50 states and Washington, D.C.
- Coverage amount: $1 million or $2 million
- Quote process: Online
- Claims process: Online
- Deductible: $0
- AM Best rating: A
Pros
- Flexible range of policy durations
- Policies can be modified, paused, or canceled at any time
- Convenient policy management via mobile app
- Quick and streamlined online enrollment
Cons
- Limited customer support options
Our Verdict
NEXT Insurance was named Best Overall due to its focus on handyman insurance as a core competency, offering quick quote and claims processes, mobile app support, and potential bundle discounts. We selected CoverWallet for Best Extended Policies on account of the sheer variety of endorsements and add-on terms that can be applied to a handyman insurance policy.
