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As a handyman, your job can be as varied as it is rewarding. One day you could be building shelves, the next you could be tiling a bathroom or painting a ceiling.
And with such a varied assortment of jobs comes a greater risk of mishaps – anything from falling off a ladder and breaking your arm to accidentally smashing a client’s marble kitchen countertop.
Whatever occurs, one of the best ways to protect yourself from the financial consequences of an accident, injury or disaster is to take out a handyman insurance policy that’s tailored to the needs of your business.
What is handyman insurance?
Handyman insurance is not one specific policy, but rather an umbrella term for several products that can provide financial cover against incidents you might be held liable for while carrying out your work.
As you’ll spend most of your professional life working in other people’s houses, you should consider including public liability insurance in your policy. Public liability cover can help with compensation or legal costs if you, or an employee, accidentally injures someone, kills them, or damages or loses their property as a result of your business activities. For example, if you leave your toolbox on the floor and a client trips over it and injures themself.
Speaking of employees, if you have one or more people working for you, you’re legally required to cover them against illness and injury with employers’ liability insurance worth at least £5 million. The only exception is if your employees are based abroad or members of your immediate family.
Some providers may include specialist cover for temporary employees, which can be useful if – as can be the case with handymen – your need for additional help changes from one job to the next.
However, if you regularly employ another handyman, whether temporary or part-time, set their hours, and deduct income tax and national insurance from their salary, then they will be considered an employee. This won’t be the case if they work for other people and you don’t deduct tax from their salary. Always check exactly who will be covered before taking out employers’ liability insurance and ask the provider if you are unsure.
Next, you should consider cover for the tools you rely on. You can cover both your and your employees’ tools against loss, theft, and damage up to a certain value on one policy with tools insurance. You may be able to extend this cover to protect your tools overnight, whether at home or in a van, with additional 24-hour tools insurance.
Likewise, if you keep a stock of materials, such as plasterboard, wood, fillers, adhesives and paint, you might consider protecting them with stock and materials insurance. This can help to cover the cost of replacements if they’re lost, stolen or damaged while in storage or in transit. Wear and tear will not be included in this type of policy, and you will be expected to keep stock securely locked when not in use.
Finally, don’t forget to consider protecting yourself. If you’re self-employed and become ill or get injured and are unable to work, you’ll have no income coming in personal accident insurance can provide payments that could make up for some lost income to you if you’re out of action or to your beneficiaries in the event of your death.
Do I need handyman insurance?
Other than employers’ liability – which you’re legally required to have if you employ any staff in the UK who are not family members – there is no legal requirement to have handyman insurance.
However, even if you’re extremely careful, there is still the potential for things to go wrong while doing odd jobs on houses. So you may want to protect yourself from legal, compensation or replacement costs by taking out a comprehensive handyman insurance policy.
» COMPARE: Business insurance
What does handyman insurance cover?
Handyman insurance is not one policy, but a term used for several forms of cover that can protect you in various situations.
Handyman insurance generally includes:
- public liability insurance
- employers’ liability insurance
- temporary employee cover
- tools and equipment insurance
- stock and materials insurance
- personal accident insurance
As a rule, what your insurance covers will depend on which products you choose. Most insurers will allow you to select the products most relevant to your business.
However, vehicle insurance will likely need to be taken out separately through a motor insurer. If you use a van to travel between jobs, and to transport materials and tools, you will require business van insurance.
» MORE: What is business liability insurance?
What isn’t usually covered by handyman insurance?
It’s vital that you understand the limits of your handyman insurance policy. Handyman insurance is designed for general maintenance and odd jobs rather than large-scale and specialist work, such as bathroom and kitchen fitting.
Speak to your provider about exactly what is covered by your policy and check whether you’ll need additional cover for certain jobs. If you don’t have the right cover, don’t expect your insurer to pay out.
How much does handyman insurance cost?
It’s hard to give an exact cost because every handyman has different needs, but the main factors that dictate how much you’ll pay per month are your claims history, the size of your business, the types of cover you choose, and how much cover you need.
For example, if you have three regular employees, you may need a higher maximum cover limit than someone who only has one temporary employee. Likewise, a handyman with tens of thousands of pounds of tools and equipment needs a higher value of tools and equipment cover than someone with a few basic tools.
Handyman insurance FAQs
As a handyman in the UK, you could consider taking out a policy that includes public liability insurance, tools and equipment cover, stock and materials cover and personal accident insurance. However, it depends on your business activities. and you can pick and choose which products to include to suit your needs.
Additionally, if you employ any staff, you are legally required to have at least £5 million worth of employers’ liability insurance. The only exception is if your staff are based abroad or are close family members. If you fail to do so, you can be fined £2,500 a day until you have proper insurance in place.
» MORE: Do I need business insurance?
If you are using your car or van to drive to work, including transporting tools and materials, you will need to take out a business car insurance or business van insurance policy. You will need to apply for this separately rather than as part of your handyman business insurance.
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