What Insurance Does a Handyman Need?

As a handyman, you're the person clients call for all kinds of home repair and maintenance tasks. Whether you're fixing a leaky tap, installing shelves, or tackling larger renovation projects, the diverse nature of your work comes with unique risks. Insurance can help protect your business, your clients and yourself. This guide explores the types of insurance handymen carry, why they matter, and how to choose a policy for your business.

Why do handymen need insurance?

Handymen face numerous risks on the job, from accidental property damage to injuries sustained while working. Without insurance, you could be held financially responsible for damages or legal claims. Insurance can help with the cost of a claim, depending on the policy, and demonstrates professionalism to your clients.

Key risks handymen face

• Property damage: Accidentally breaking a valuable item while working in a client's home.
• Personal injury: A client or passerby slipping on tools or equipment left on-site.
• Workplace injuries: Sustaining injuries while using power tools or climbing ladders.
• Theft or damage to tools: Losing essential tools to theft or accidental damage.

Types of insurance handymen carry

1. Public liability insurance

Public liability insurance is the cover most handymen look at first. It can cover claims related to third-party injuries, property damage, and legal expenses. For example, if you accidentally damage a client's wall while installing shelves, this policy may cover repair costs and legal fees, depending on the policy and up to its limit.

2. Tools and equipment insurance

Your tools are the backbone of your business. Tools and equipment insurance can protect against theft, loss, or accidental damage, up to the limits in the policy.

3. Professional indemnity insurance

Also known as errors and omissions insurance, professional indemnity insurance can cover claims that your professional advice or design caused a client a financial loss. Many handymen don't give that kind of advice, so ask a broker whether it applies to your work. Damage caused by your repair work is usually a public liability matter.

4. Workers compensation insurance

If you employ workers, Australian law requires you to have insurance to cover them in case they get sick or injured because of work (Safe Work Australia). It can cover medical expenses and lost wages if an employee is injured on the job.

5. Personal accident and illness cover

If you're a sole trader, workers compensation insurance doesn't cover you (business.gov.au). Personal accident and illness cover can pay a weekly benefit if an injury or illness stops you working. How much, and for how long, depends on the policy.

6. Commercial vehicle insurance

If you use a vehicle for work, commercial vehicle insurance can cover accidents, damage, or theft involving your work vehicle, depending on the policy. Tools in the vehicle usually need their own cover.

7. Business insurance package

A business insurance package can bundle public liability insurance and property insurance into one policy. It can suit handymen who want several covers in one place; ask how it compares with separate policies.

What a policy covers depends on its wording, limits, excesses and exclusions, and the insurer decides whether a claim is paid, so read the PDS (product disclosure statement) or policy wording before you decide.

Benefits of insurance for handymen

1. Financial protection: Can cover unexpected expenses from accidents, injuries, or damages, depending on the policy.
2. Client trust: Demonstrates professionalism and reliability to potential clients.
3. Legal compliance: Helps you meet legal requirements, especially if you hire employees.
4. Business continuity: Can protect your livelihood in case of major setbacks, such as theft or lawsuits.

How to choose an insurance policy

1. Assess your risks

Evaluate the specific risks associated with your work. For instance, tell the insurer if you work in wet areas or near pipes and cables. In WA, check with Building and Energy which licence electrical and plumbing work needs (Electrical licensing; Information for licensed plumbers). Licensed work, such as electrical, plumbing or gas work, done without the right licence, or left off your policy, could mean a claim is reduced or refused. Read more about handyman insurance.

2. Compare providers

Research different insurers to find a policy that suits the work you do. Look for providers with experience in insuring handymen or small businesses.

3. Understand policy exclusions

Read the fine print to understand what is not covered by the policy. For example, some policies may exclude damage caused by subcontractors.

4. Consider excesses and premiums

Balance the cost of premiums with the cover offered. A lower premium might come with a higher excess (the amount you pay towards a claim), so choose a policy that fits your financial situation.

5. Talk to a broker

An insurance broker who works with trades and small businesses can compare policies from insurers and help you choose.

FAQs about handyman insurance

1. Is handyman insurance mandatory?

Not always, but most handymen carry public liability because clients and property managers ask for it. If you hire employees or operate a vehicle for work, certain types of insurance are mandatory: workers compensation insurance if you have employees, and third party personal injury insurance for your vehicle, which is often part of the registration fee (business.gov.au). Some handyman jobs also need a licence or a registered builder, depending on the work and your state. Read handyman or builder: which insurance do you need? for the WA rules.

2. What happens if I don't have insurance?

Without insurance, you're personally responsible for any damages, injuries, or legal claims. This could lead to significant financial losses.

3. What sets the price of handyman cover?

The insurer looks at the jobs you take on, your turnover, the limit you choose, who works with you and your claims history; see handyman insurance or get a quote.

4. Can I get insurance as a self-employed handyman?

Usually. Insurers offer policies for self-employed handymen, and the insurer decides whether to offer you cover. These policies can provide the main covers without the complexity of larger business insurance plans.

5. Does handyman insurance cover subcontractors?

Not always. You may need additional cover or require subcontractors to carry their own insurance.

6. What should I look for in an insurance provider?

Look for providers with experience in insuring tradespeople, flexible policy options, and excellent customer service. Reading reviews and seeking recommendations can also help.

At Tradies365, our brokers ask about the work you do and get you quotes for the cover you ask for. Read more about handyman insurance.