So if you’re a contractor or handyman or if you’re a consumer looking to hire somebody to do work on your house be aware. That handyman is a category of worker that many times you see advertise on Craigslist or Facebook or, you know even a sign on a bulletin board somewhere that’ll work on your house. The question is what’s the difference between a handyman and a contractor?
A lot of times it has to do with what kind of work they’re doing Does it require to be licensed? Is it in certain categories like, plumbing electrical, or even some, framing has to be done by a licensed contractor but regardless of whether or not you hire a contractor or not or you are a contractor, be aware that workers’ comp is an important thing for you to be aware of?
If you hire a handyman that comes to work on your house and if they get hurt on your property, you may have some serious insurance problems. Because your homeowner’s insurance might not cover it because they were technically an employee. And you might say well I’m not an employer I’m not setting up payroll, but many states have rules about what qualifies as an employee. Again we’re not attorneys we’re not giving you legal advice. but you want to know what you’re getting into If you’re hiring a handyman.
If you are a handyman you also might want to have insurance because some of the jobs you work on might require you to have proof of insurance, and proof of coverage. And it’s good to have it anyways cause if you do get hurt, you have some coverage. And you can represent that to your client. You know clients may not know this and they may be calling five people out of the phone book or out of Craigslist, getting quotes to fix their deck. And if your quote was going to be 900 and everybody else’s quote was 400, you might think well they’re just going to go with the cheaper bid. But if you tell them that you have worker’s comp in coverage And they’re not going to be liable If you get hurt. Look to save four or $500 Nobody wants to be on the hook for $50,000 in injury claims. Somebody gets hurt or, you know they swing a hammer and hit themselves in the head, or cut their finger off with a saw or whatever it is. You want to be the one that shows you have professionalism and coverage, but it’s not the easiest thing to get the market.
Handyman insurance is a tough market. Not all people have an easy time obtaining this coverage This is from the insurance journal. Due to the very duties of a handyman. Carriers may shy away from writing work comp for this class of business, especially if they are a new venture. Right. As an agent do you avoid writing work comp policies for handymen? So this is from the agent standpoint insurance agent’s standpoint. It’s exhausting to go through that program. Unlike automobile or homeowner’s insurance, this type of coverage is not easy for the insurance agent to write in for the client to get, look you see ads on TV all the time. From progressive, the lizard and all the insurance companies are begging to do insurance. Handyman insurance is very difficult In fact some states you have to go to what’s called an assigned risk pool because no companies want to write it
Oftentimes as a handyman, you’re required to show coverage before you have started a new job. And if you can’t get that policy how are you going to get The job, to begin with.
There are options for this. If you are a handyman or a smaller contractor get with a good insurer To see what options you have. Start the process early because it might be a complicated process It might not just be as simple as over-the-phone reading some information. If you’re a client, a consumer looking into hiring a handyman, ask them what they have for insurance. General liability work comp because you want to know what liability. You have possibly For somebody working on your property if they get hurt.
If you’re a larger contractor make sure of course all your employees do have workers comp. So that you’re covered there. Be aware that this insurance is more than just a piece of paper. It keeps everybody from having potential financial burdens and problems down the road.