Handymen fill an important role in Australia, undertaking building maintenance work and other odd jobs that do not require the services of a qualified builder.
As with builders, handymen need to have certain types of insurance in place to protect themselves and their clients. In this guide we’ll take a closer look at these requirements.
Common forms of insurance for handymen:
- Public Liability
- Tool Insurance
- Income Protection
- TPD Insurance
To get a better understanding of the types of insurance available to handymen and the benefits they can provide, we will now look at some of the risks which handymen in Australia face.
Property Damage & Loss
For a handyman there are two different types of potential loss or damage. The first type is loss or damage to your own property, and the second is loss of damage to other people’s property.
Both of these events can be covered by different types of insurance.To Yourself
Loss or damage to your own property can be covered through general property insurance, which is also commonly known as tool insurance.
Most insurance companies in Australia offer a form of tool insurance for handymen, but the coverage can differ significantly from policy to policy.
A typical policy will cover your tools and equipment for theft from a secure location, fire or storm damage and damage caused in a vehicle collision or rollover.
Some policies do not cover theft however, so it is important to check this when comparing handyman tool insurance policies.To Others
Property damage caused to others can vary from the very minor to the very serious.
A minor property damage incident for a handyman could involve spilling paint on carpet which then requires replacement. A more serious claim could involve serious structural damage to a property caused by negligence.
This risk can be covered by public liability insurance, which for some handymen may even be mandatory, especially if you are performing work for real estate agencies and some other businesses.
When it comes to the seriousness of claims and events, the most serious often involve personal injury either to yourself or to other people.
As with property damage, the risk of personal injury is split into the same two categories.
Many handymen in Australia are self-employed sole traders, and this means there is no access to sick leave or workers compensation.
If you are injured on or off the job and you cannot work for a period of time, you won’t be able to earn money to pay your bills.
You can protect yourself against this risk with income protection insurance. Income protection can replace up to 75% of your usual income if you are unable to work for a period of time due to an injury or illness.
For more serious injuries that leave you unable or unlikely to ever return to work again there is TPD insurance. This form of cover will pay you a lump sum if a doctor believes that you are unlikely to ever return to work due to your injuries or illness.
Causing personal injury to other people such as customers or the general public as a result of negligent business activities can have some serious financial consequences.
If your work results in injury to another person, and you are found to have directly or indirectly caused that injury via negligence, you could be liable for all of their financial costs.
A minor injury may result in a small claim for some medical bills, but large claims involving death or disablement have the potential to reach into the millions.
This risk can be protected against using public liability insurance, which will cover the cost of a claim if you are found to be responsible for another person’s injury (or worse) to your business activities.
Insurance for Handymen
For more information about handyman insurance please contact your broker or insurance adviser. Alternatively you can contact us or request a quote via our online request form.