A basic general handyman liability insurance plan (which costs $30 $83 per month) will cost you between $360 and $1000 per year. Your premium will be determined by your location, the services you provide, your sales volume, and the number of employees you have.
If you do power washing or roof repairs, for example, you’ll almost certainly have to pay a little more because these services are more likely to result in a claim.
My handyman business’s general liability insurance policy cost around $1,000 per year for $1,000,000 in liability coverage (approximately $83 per month). Because I live in Nevada and used a regular broker, my insurance premiums for a handyman service are on the higher end. Below, I’ll discuss several less expensive solutions.
The average cost of a handyman general liability policy, according to Insureon, is $65 per month, or around $800 per year. Unfortunately, liability insurance costs for building and contracting enterprises are the highest.
Getting at least two quotations is the best method to ensure you aren’t overpaying (see below for where to go). However, as long as you stay within the above-mentioned range, you’ll be alright.
Regardless of how much it costs to be licensed and bonded, the client bears the cost, which adds around $1 per hour to your hourly rate if you work full-time as a handyman. Remember that insurance protects you and your clients in the event that you make a mistake, which is good for them.
Do you have to be bonded as a handyman?
In California, there is no particular handyman license for small jobs. A handyperson working on tasks worth more than $500 must have a general contractor license from the state of California (even if your component is less than $500 but the entire job is worth more).
You will be excluded from the $500 limit if you work on a job that does not become a fixed component of the structure, such as hanging pictures or making furniture, and you will be able to work on larger projects.
You can obtain a California general contractor license from the Contractors State License Board to cover all of your possibilities. You must have four years of work experience, a certificate of insurance, and a $15,000 contractor’s bond to be eligible for the license. You must pass the trade, business, and legal examinations.
What do I need for a handyman license?
Professional handyman training, passing a professional handyman or handyman contractors USA exam, and handyman insurance and/or bonding are all common criteria for handyman licenses. Additional qualification, such as an occupational or handyman business license, may be necessary.
What is a handyman bond?
A fidelity bond might help specialty contractors who provide a variety of handyman services. The insurance is a low-cost solution to provide clients with safety while also allowing you to legally advertise as a “bonded company.” A “third party fidelity bond” or “dishonesty bond” is a term used to describe this form of crime coverage. Third-party fidelity bonds can be written on a blanket basis, covering all clients, or on a client/contract-specific basis, which is useful if the handyman’s customer is a financial institution or a high-net-worth individual who needs dishonesty coverage. Employees who provide handyman services “on the premises” of clients are covered by a fidelity bond. Theft of client property by employees is fairly common. Approximately three-quarters of retail and labor employees steal from their employers or clients at some point, and these losses often account for a major portion of a company’s revenue. Losses like these could put your carpentry business at risk.
- Three workmen from A1 Cabinetry, LLC were tasked to renovate a luxury home’s kitchen. One of the crew members walked away with a jewelry set valued around $15,000.
- A handyman from RT Detail & Restoration, Inc. who was installing bespoke woodwork departed the premises with $5,000 in guns that belonged to the property owner.
- A carpenter providing construction services in Virginia’s piedmont area stole checks from clients and faked them for personal gain, among other crimes (“Local contractor faces 58th Rappahannock criminal violation”, Rappahannock News).
Background checks and phoning references are good risk management procedures, but they don’t guarantee that a handyman won’t do something unethical. A single huge loss might wipe out a handyman company’s whole annual revenue, or even worse. A customer lawsuit against a contractor can lead to bankruptcy and lasting damage to a contractor’s image. Over a quarter of all business failures are due to employee theft. A handyman fidelity bond from a third party might mean the difference between closing the shop and running a thriving business that has the community’s trust.
The review and pricing of surety bond applications is free of charge. You are not obligated to buy anything.
What type of work can a handyman do legally?
Are you interested in starting a handyman business? If that’s the case, it’s critical that you grasp your city or state’s license requirements and handyman company standards, as investigators and contractors boards can be harsh. It’s critical to avoid violations, which could result in your company being shut down entirely since you weren’t functioning legally.
What can a handyman legally do?
In general, handymen can conduct minor repairs that do not represent a significant risk or necessitate specific licensing. These jobs should be able to be accomplished by one person and should not cost more than a certain amount of money. Consider things like shelf installation, paint touch-ups, gutter cleaning and repair, and flooring installation.
Beyond that, however, state and municipal laws govern what a handyman is allowed to perform lawfully. There are no state licensing requirements for handymen in New York, for example. However, in order to work as a handyman in New York City, one must first obtain a Home Improvement Contractor License.
The person or business can do “home improvement work” with this license, which “includes, but is not limited to, the construction, replacement, or improvement of basements, driveways, fences, garages, landscaping, patios, porches, sidewalks, swimming pools, terraces, and other improvements to structures or land adjacent to a home or apartment building.” 1
But that’s just in New York City. Some states and/or municipalities only require a handyman license if the work is worth more than a specific amount of money. The amount is different in each state: in California, it is $500; in Louisiana, it is $7,500. Some states have a “small work exemption” or “handyman exemption” that allows specific chores to be done without penalty.
- Check the website of your state’s contractors board for licensing guidelines and legislation that limit the types of handyman work and services that are permitted.
- While some states allow you to provide handyman services, promoting them is strictly prohibited. Make sure you’re familiar with the advertising laws in your area.
- Avoid promoting yourself as a general contractor. In fact, state unequivocally that you are not one.
You can avoid having your firm smacked with infractions, penalties, or cease and desist warnings by doing some research. Furthermore, taking these steps protects your small business from legal liability.
What’s the difference between a handyman vs. a general contractor?
There may appear to be little difference between what a handyman and a general contractor can accomplish. Some people may confuse the two terms. This is an acceptable oversight, given that both repair and renovate residential and commercial structures.
Professional handymen and professional contractors, on the other hand, have some important contrasts in their jobs.
Handyman vs. general contractor: Job definitions
To recap, handymen are skilled in a variety of trades and may undertake basic house improvements and repairs. Unlicensed handymen may only be able to undertake certain activities if they are valued under a certain dollar amount, depending on the state and locality.
Typically, a contractor monitors and handles larger projects that are bid on by other professions, whether commercial or residential. Because GCs rarely perform manual labor themselves, the emphasis is on “oversee and manage.” Instead, they contract and supervise construction workers and specialists such as plumbers, electricians, and carpenters. GCs have their own license standards, which (surprise, surprise!) differ by state.
In practical terms, a handyman can be hired to unclog a blocked sink, whereas a homeowner might employ a contractor to replace the sink or completely renovate the kitchen.
Let’s look at the differences between handymen and general contractors in further depth.
Handyman vs. contractor: Licensing requirements
As you may be aware, the licensing requirements for handymen vary by state and location.
General contractors are subject to the same regulations, however their license requirements may be more stringent. Some of these prerequisites could include:
For jobs worth more than $500 in California, for example, you must have a license and registration. To carry out those instructions, you must:
A handyman’s best tool
The greatest method to safeguard your handyman business is to figure out what you’re permitted to perform legally as a handyman. That one is self-evident!
What’s the second-best approach to keep your company safe? It is necessary to get general liability insurance. This shields you from claims of property damage, bodily harm, personal injury, and advertising injury from third parties. It’s the smartest method to protect yourself against the inherent risks in your field, even if it’s not legally mandated by your state.
Insurance is also a sensible business decision: if your clients know they’re covered, they’ll feel more comfortable hiring you to clean their pools, replace loose tiles, fix broken windows, or perform any of the other odd chores you can (legally) perform for them.
1. The Department of Consumer Affairs in New York City. Checklist for Obtaining a Home Improvement Contractor License.
How do I find a good local handyman?
Finding a reliable handyman in your new location is one of the most frustrating, though often neglected, aspects of moving. You presumably have a rolodex of tried-and-true home service providers in the past. You’ll have to restart your quest for the ideal “jack of all trades” now that you’ve relocated. Not to mention the fact that you’ll almost certainly need a new plumber and electrician. Pool maintenance, grass care, painting, and furniture repair may also be required for your new house. Not sure where to go for these local experts? Here are eight simple ways to locate a trustworthy handyman, plumber, or other home renovation professional in your new city.
What is the purpose of a surety bond?
A contract surety bond is often used to ensure a contractor’s (in this example, the principal’s) performance on a construction contract. If the contractor fails to complete the project, the surety firm must find a new contractor or reimburse the project owner for any financial losses.
What jobs do handymen do?
Repairs are frequently required by residential and commercial property owners, but not everyone has the time or abilities to complete them. It is your job as a handyman to make those repairs, thus possessing a diverse set of craftsmanship and practical abilities will come in helpful while performing repairs or regular upkeep on buildings. Simple building maintenance to plumbing, painting, and gardening are all possibilities.
Required experience.
To become a handyman, you don’t need any prior experience, but you will require basic arithmetic and literacy abilities, as well as the ability to read and interpret instructions.
There are a variety of qualifications you can obtain to further prepare yourself, including City & Guilds, BTECs, and NVQs. Health and safety courses, plumbing, plastering, carpentry, and general maintenance courses are all beneficial.
Other abilities that you might find beneficial depending on what function you take on as a caretaker or general maintenance worker in a household environment or in a commercial setting include:
Physically capable of working with machinery or moving large pieces of equipment
Day in the life of a handyman.
The day-to-day duties of a handyman are quite varied, and you might find yourself painting a wall one day and repairing a central heating system the next. It all depends on where you work, but some of your typical responsibilities can include:
- Changing light bulbs and inspecting other fixtures and fittings for proper operation
Career progression and salary.
On a contractual basis, a handyman can expect to earn between £9 and £16 per hour, depending on where you are placed. If you work full-time, your annual pay would likely range between £17,000 and £25,000, depending on your area and employer. As you gain experience, your pay doesn’t alter much.
Handyman work will provide you with a thorough understanding of building maintenance and repair, which may enable you to advance to more senior positions such as facilities manager. You might also explore creating your own maintenance company or specializing in a field that interests you, such as carpentry, and obtaining further certifications.
What type of work can a handyman do legally in California?
The work that handymen do must be of a “causal, small, or unimportant character,” according to the state of California. This includes minor repairs, installs, and upkeep. Handymen are legally allowed to provide any service for less than $500. However, some services are available, such as furniture installation.
Can a handyman install a ceiling fan in Texas?
A handyman is generally your best pick for hanging a ceiling fan; but, if you want to modify your electrical panel, you should consult a certified electrician. You won’t even have to break a sweat if you hire a handyman to complete all of those things for you.
How can I get a 15000 bond?
- A surety company licensed by the California Department of Insurance must write the bond.
- The business name and license number on the bond must match the business name and license number on the CSLB’s records precisely.
- The signature of the surety company’s attorney-in-fact is required on the bond.
- Within 90 days of the bond’s effective date, the bond must be received at the CSLB’s Headquarters Office.