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Handyman businesses often find themselves wondering why they would need a general liability insurance policy. Most handyman businesses consist of either one or a handful of workers. Sometimes the thought of revising the budget to account for insurance costs seems unjustifiable, if there hasn’t been a liability issue on a job site since the business was founded. However, if you talk to any insurance agency, each of them will recommend having at the very least a handyman insurance policy.
The reasoning behind this suggestion is that it is impossible to rule out risks on the job, regardless of how small your business is or how stellar your accident record is. Handyman professionals should always work with an insurance agent to get a general liability insurance policy, to be sure. But there is also a vital need to get fast proof of coverage, should a potential client or a government agency ask for it.
Will Business Owners and Customers Always Ask for Proof of Insurance?
If you’re working on a project for a large business or company, chances are very likely you will be asked to provide proof of insurance by that party. Let’s say you’re bidding for a government contract. The federal agencies in question will always ask for proof of workers compensation and liability insurance, as well as proof of property insurance and commercial auto insurance. This is due to two factors that are out of the agency’s control: Federal regulations regarding worker’s compensation insurance must be adhered by the client and the contractor, plus federal agencies are likely to have business insurance regulations which require them to ask.
Even if you are working with organizations that are unrelated to the federal government, your insurance company will encourage you to carry proof of liability coverage with you. Most clients will ask you to provide proof of this type of insurance because of the risks of property damage that are associated with the type of handyman work you may be contracted for. Although clients generally tend to place their trust in the people they work with, insurance coverage and the subsequent proof of it offers them the green light they need to allow you to begin bidding on their job, whether it is by a state or local regulation or by a professional standard they adhere to by matter of principle.
What is Included on a Certificate of Insurance?
A certificate of insurance for handyman companies includes:
- The name of the policyholder
- What types of insurance the policyholder has (namely liability insurance, workers compensation, commercial auto, or property insurance)
- The effective insurance dates, policy numbers, and contact information for both the insurance company and the general contractor or handyman.
Thanks to the ACORD form, which is a standardized certificate of insurance form that lists all this information, it is easy for even the newest of small business to understand exactly what their own coverage is, what said coverage is capable of, and what to do when the coverage needs to be revised or extended.
How Do I Get Proof of Insurance?
Obtaining proof of handyman liability insurance is simple in most cases. Simply reach out to your insurance provider and they should be able to fill out one of these forms for you, provided you already have obtained coverage through that provider. If you haven’t, you will have to take the time to discuss the nature of your business with your insurance agent, that way they can give you both the coverage and the COI as promptly as possible.
It is then up to you to provide your client with the form and make sure that it meets their standards. Although ACORD forms are usually enough proof for customers, they might want to reach out to your provider. Should they ask for permission to do this, show them the policy numbers and provider information on the form and they can contact your provider with any specific questions they might have about the scope of your coverage.
Any handyman company with a business owners policy will most like encounter a client that asks them for a COI at some point in their career. Obtaining one often is as easy as filling out an online application and/or contacting your insurance agency. If you are in need of a reliable policy, get a quote from one of the insurance agents at Contractors Liability today!
Our specialized general liability coverage, as well as our other types of insurance, provide all the protection a handyman needs whenever an accident happens. Commercial general liability COIs don’t have to be complicated to obtain or understand – when you work with Contractors Liability, you’ll be getting the proof of coverage you need without the hassle that keeps you from doing your job the way you need to.