How Much is Handyman Insurance UK?
Insurance for a small handyman business can cost anywhere from £75 to £600 or more, depending on the types and levels of coverage required, as well as the size of the business.
A handyman business is exposed to certain types of risk that should be insured against. Sharp tools and working in clients’ homes can create a dangerous environment, even for the most careful and experienced handyman. Plus there’s the risk of personal injury and, of course, a handyman’s tools being stolen or lost in a fire or flood which should be considered as well.
This article will aim to shed some light on the size of premiums that a handyman might have to pay to protect themselves and their business against some of the job’s typical risks.
How much is public liability insurance for a handyman?
According to NimbleFins, handyman public liability insurance for a sole trader costs roughly £75 a year for a policy with a £2 million insurance limit. The limit of insurance is the most that an insurance company will pay out for valid claims during a policy year.
Handyman public liability insurance with a higher limit will cost more, not surprisingly. However, it’s usually the first £1 million of cover that costs the most. From there, each additional £1 million of coverage usually costs less than each previous £1 million of cover.
So, while a £2M public liability policy for a handyman might cost around £75, that same handyman would probably pay around £90 to get a policy with £5 million of protection. That’s only £15 more per year to more than double the protection. Of course, if you don’t need the added cover, this could be a waste of money. But for a handyman who believes they need or even would be comforted by having the added protection of a higher limit, the good news is that getting a higher policy limit is relatively affordable – at least when it comes to public liability insurance.
Handyman insurance cost the UK
While a sole trader handyman might pay around £75 or so for public liability insurance, they should budget closer to £230 or more if they want to add personal injury and tools cover to their protections. All of these figures, of course, vary from person to person and will depend on coverage levels (e.g., the level of tools cover) and other factors.
If handyman insurance premiums seem expensive to you, consider that handymen can find themselves in dangerous situations that have the potential to have a devasting impact on a family and their finances.
How much is insurance for a handyman business?
A handyman business set up as a limited company will pay higher premiums than a handyman would pay as a sole trader. For example, public liability for a larger handyman limited company with two directors would start from around £350, which is more than 4X as much as a sole trader handyman would probably need to pay.
A larger handyman business will pay more for insurance, likely many hundreds of pounds, due to the added risks of hiring employees and carrying out more business. Each job has the potential for an accident to happen, so a handyman business with a higher turnover is theoretically a higher risk for an insurance company – so premiums could be higher. You’ll typically be asked for your turnover when filling out an insurance application. This data point is one of many that affect the premium that you’ll be quoted for cover.
And the cost of insuring against an employee becoming ill or getting injured due to their work for a handyman business may seem quite high indeed. For example, hiring just one employee to help can add £400 or so to your insurance premiums, for employers’ liability insurance. While it seems expensive, it is required by law in most cases when you hire someone. Also, keep in mind the added costs of getting personal injury cover for any employees, as the premiums for this will rise with the number of workers.
Handyman insurance quote
When looking for handyman insurance quotes, comparing prices from multiple providers can help you secure a discount and pay the cheapest price for the best cover. Comparison sites can be useful for getting handyman insurance quotes, as can specialist providers or brokers. Some insurers like Direct Line and Axa will sell policies directly to handymen.
Some people prefer to buy directly from an insurer. If you do that or use a comparison site, be sure first to do your research to ensure that a particular insurer offers the particular types of cover you need. On the other hand, brokers should provide some assistance in making sure their clients understand the types of cover available in the market and help them get the right cover for their needs. But there’s usually a commission or fee to pay to a broker, which you should also keep in mind.