Your Handyman Insurance cost depends on the type of service your company provides. If your company offers tiling and painting services, the cost will be low. But you will have to pay a higher rate if your company offers high-risk fixes and installations. There are other factors too. Before we discuss these, let’s first get some rough estimates of what handyman insurance costs.
Handyman Insurance cost estimates
For general handyman liability insurance, you can expect to pay $40 – $80 per month (roughly $450 – 1000 per year). If you are in this range, you are not paying too much. Please note that the goal of buying insurance is to limit risks in case you end up causing damage to your client’s property or to a third party. Insurance is required only for a licensed contractor. If your do not provide handyman services on a consistent basis, perhaps you do not need handyman insurance.
Get customized insurance quotes
There are many websites that can give you customized quotes in just a few minutes. You just have to answer some questions to get a quote. And if you are not comfortable with that, you can talk to a broker. Just be sure that the insurance agent can offer the following:
- They are a licensed insurance agent
- They work with A-rated insurance companies to ensure that you get you service that you can trust
- They aim to provide you with the lowest price for the best coverage out of any of their competitors
Talking to other handyman service providers is also a good idea. Your insurance coverage and cost may not be the same as theirs, but you’ll have an idea of what other handyman services are paying for their insurance coverage.
However, you will get a better idea of your handyman insurance cost if you know how it is calculated.
4 Factors that determine handyman insurance cost
Several factors are taken into consideration when calculating handyman insurance cost. Here are some of the most important factors:
Your annual revenu
This concept is very simple. The cost of your insurance is determined by your annual revenue. Your gross income is directly related to the number of jobs you get and the number of employees you have. The risk is determined by the type of work your company deals with.
Type of business
The handyman insurance cost you pay is directly correlated to the type of business you operate. The level of risk is measured by the type of work your employees regularly do. If they usually do low-risk jobs, you will not have to pay much. But if they play dangerous roles on a regular basis, you will have to pay more.
There are personalized packages offered by insurance companies, and additional plans can increase the cost. In some cases you can pay a lower rate by combining packages. If you do not have enough experience, you can get help of an insurance agent at Contractors Liability to determine which package is suitable for your business.
Age of company
You can pay lower rates if your company has been around for a couple of decades. For new companies, the rates are higher. To some extent, the age of a company determines whether customers trust the company and how frequently it makes mistakes.
Consequently, the rates vary a lot. To ensure fare rates, talk to a licensed insurance agent. We can help. Give us a call and get a good quote in just 5 minutes! Contact an experienced insurance agent at Contractors Liability (866) 225-1950.