The Complete Guide to Handyman Business Insurance in Florida

Running a handyperson service in Florida requires insurance to protect your business. This guide examines the essential insurance policies for handypersons in Florida.

Having adequate coverage is crucial to safeguard against liability claims and other losses that could put you out of business. Learn what policies you need, recommended limits, and tips for choosing the right insurance. If you want to quote and buy Handyman business insurance immediately, go to our partner carrier, NEXT.

Key Takeaways on Handyman Insurance in Florida

Insurance TypePurposeRecommended Limits
General LiabilityCovers third-party property damage and bodily injury claims$1 million
Errors & OmissionsProtects against claims of inadequate work or negligence$500,000 to $1 million
Workers’ CompensationRequired for employees, covers job-related injuriesState minimums
Commercial AutoCovers vehicles used for business purposes$1 million
UmbrellaProvides additional liability coverage above other policies$1 million
Key Takeaways

Why Handymen in Florida Need Insurance

Operating without insurance exposes your business to significant risks. Just one lawsuit or claim could bankrupt your company if you lack coverage.

Florida’s litigious legal environment means homeowners won’t hesitate to take legal action over faulty work or accidents. Defending yourself is expensive, even if you did nothing wrong.

Insurance lets you hand off liability to your insurer. It also covers the costs associated with claims so you can stay in business. This protection is essential for surviving in Florida’s competitive handyman market.

General Liability Insurance for Florida Handymen

This is the most vital coverage to carry. General liability insurance protects your business from third-party claims alleging bodily injury or property damage caused by your operations.

For handypersons, common claims include:

  • Accidentally damaging a client’s home, furnishings, or systems while performing work
  • Injuries to customers or the public caused by negligent work, unsafe conditions, or defective products
  • Injuries to passersby from falling objects, debris, or obstacles relating to your work

Policy limits of $500,000 to $1 million are recommended. Higher limits may be prudent depending on the type and size of projects you take on.

General liability insurance will pay for legal fees to defend against covered claims. It will also pay settlements or judgments up to your policy limits.

Why E&O Coverage Matters

Also called errors and omissions insurance, E&O protects your business if clients allege you performed negligent or inadequate work that failed to meet industry standards.

For handypersons, common E&O claims include:

  • Failing to complete a project properly
  • Making mistakes that affect the customer’s operations or cost them money
  • Providing poor advice that leads to the customer suffering damages

Lawsuits can allege misleading advertising, breach of contract due to subpar work, or loss of income due to delays. E&O Insurance responds to these professional liability claims, paying legal fees and damages awarded.

Typical E&O limits for handypersons range from $500,000 to $1 million annually. It’s recommended for those performing skilled trades like electrical, plumbing, and carpentry.

Workers’ Compensation Coverage

Businesses with employees must carry workers’ compensation insurance in Florida. It provides medical care and lost wages to workers injured on the job.

This state-regulated policy benefits workers while protecting business owners from expensive injury lawsuits. Florida’s statutory limits and rules apply.

Independent handymen can opt out of workers’ comp with an exemption form. However, purchasing voluntary coverage is wise even if you use subcontractors. You’re covered if an uninsured contractor gets hurt on your job site.

Securing Commercial Auto Insurance

Commercial auto insurance is necessary if your handyman business uses company vehicles like work vans and trucks. It covers liability and physical damage to vehicles, similar to personal car insurance.

Ensure the policy names your business as the insured and covers all drivers and vehicles used for work. Recommended limits are $1 million per accident.

Without commercial auto coverage, you’d have to rely on personal insurance in the event of an accident, which won’t cover business activities.

Umbrella Insurance for Extra Protection

Add an umbrella insurance policy for enhanced protection on top of your other coverage. This provides additional liability limits that kick in when your underlying limits are exhausted.

Umbrella coverage starts at $1 million but can reach $5 million. It’s inexpensive compared to boosting limits on your other policies.

Umbrella insurance also fills gaps in underlying policies. It’s one of the most affordable ways to bolster your liability protection.

Choosing the Best Insurance for Handymen

Here are tips for buying the right insurance:

  • Work with an agent or broker familiar with plumbing, electric, and construction trades. They can advise on risks.
  • Ask about business owners policies (BOPs) that package general liability, property, etc., into one more straightforward policy.
  • Ensure you have adequate limits and coverage before taking on new projects. Review annually.

Running a handyman business without proper insurance is risky. Protect yourself and your company’s assets by securing adequate coverage immediately. With the appropriate protection, you can confidently take on projects, knowing you’ve safeguarded your business’s future.