What Is Handyman Insurance?

Handyman insurance is a specialised business insurance policy tailored for self-employed tradespeople and small repair businesses. It protects you against the financial consequences of accidents, injuries, property damage, and liability claims that arise from your work.

Unlike general business insurance, handyman policies account for the hands-on nature of your work and the variety of tasks you undertake. A typical handyman might perform plumbing repairs one day, install kitchen units the next, and fix roof tiles the day after. Each task carries different risks, which is why comprehensive coverage is crucial.

Handyman insurance typically includes public liability coverage (protecting third parties), employers liability (if you have employees), and often tools and equipment coverage. The best policies are flexible enough to cover multiple trades under one policy.

Understanding Multi-Trade Coverage

Multi-trade coverage is a policy structure that allows you to operate across several different trades without needing separate insurance for each one. This is a game-changer for handymen because it simplifies administration and often provides better value than purchasing multiple single-trade policies.

A multi-trade handyman policy typically covers work such as general repairs, maintenance, decoration, basic plumbing, carpentry, joinery, tiling, painting, decorating, fence installation, and minor electrical work. The exact trades covered depend on your insurer and policy tier.

The key advantage is flexibility. You're not locked into one trade classification, which means you can adapt your business offerings as opportunities arise. If a customer asks you to hang a door one week and install a bathroom suite the next, you're covered under the same policy.

Core Components of Handyman Insurance

Public Liability Insurance

Public liability is the cornerstone of any handyman insurance policy. It protects you if a member of the public (customer, neighbour, passerby) is injured or their property is damaged as a result of your work.

For example, if you're installing shelving and accidentally damage a customer's wall, or if a tool falls and injures someone, public liability covers the legal costs and compensation claims. Cover typically ranges from £1 million to £10 million, with £6 million being standard for most handymen.

Without public liability insurance, a single claim could bankrupt your business. Court costs, compensation, and legal fees can quickly exceed £50,000 or more.

Employers Liability Insurance

If you employ staff—even one part-time assistant—you're legally required to have employers liability insurance. This covers you if an employee is injured or becomes ill as a result of their work.

Employers liability covers medical expenses, rehabilitation costs, and compensation claims. It's a legal requirement in the UK and failure to have it can result in fines up to £20,000 per employee, plus unlimited compensation liability.

Many handymen operate solo, so this may not apply initially. However, if you plan to grow and hire help, ensure your policy includes this cover or can be easily upgraded.

Tools and Equipment Coverage

Your tools are your livelihood. A quality multi-trade handyman policy includes coverage for your tools and equipment, protecting against theft, loss, and damage.

This is particularly important if you work from a van or carry expensive equipment like power drills, saws, and specialist tools. If your van is broken into or tools are damaged on site, you're covered for replacement or repair costs.

Cover limits typically range from £2,500 to £10,000, depending on the value of your equipment. Some policies also cover tools left at customer premises overnight.

Professional Indemnity (Optional)

While not always essential, professional indemnity insurance protects you if a customer claims you've provided poor workmanship or advice that resulted in financial loss. For handymen offering design advice or guaranteeing specific outcomes, this cover is valuable.

It covers legal defence costs and compensation claims, protecting your reputation and finances if disputes arise.

Why Multi-Trade Coverage Matters for Handymen

The handyman business thrives on versatility. Customers value tradespeople who can handle diverse tasks without needing to call multiple specialists. However, this versatility creates insurance complexity.

Multi-trade policies eliminate the need to juggle multiple insurance documents, renewal dates, and premium payments. Instead of maintaining separate policies for plumbing, carpentry, and electrical work, one comprehensive policy covers everything.

This approach also provides better value. Single-trade policies can be expensive, especially if you only occasionally work in that trade. A multi-trade policy spreads the cost across your entire business activity, often resulting in lower premiums overall.

Additionally, multi-trade coverage ensures you're never caught without protection. If a customer asks you to do something slightly outside your usual scope, you're covered rather than operating uninsured.

Trades Typically Covered Under Multi-Trade Policies

Most multi-trade handyman policies cover a broad range of activities, including:

• General maintenance and repairs
• Carpentry and joinery (non-structural)
• Painting and decorating
• Tiling and flooring installation
• Fence and gate installation
• Basic plumbing (non-gas)
• Door and window installation
• Shelving and furniture assembly
• Damp-proofing and waterproofing
• Gutter cleaning and repair

However, some trades require specialist coverage and cannot be included in standard multi-trade policies. Gas work, electrical installation (beyond basic repairs), asbestos removal, and structural work typically require separate certification and specialist insurance.

Always check your policy documents to confirm exactly which trades are covered. If you regularly perform work outside the standard multi-trade scope, discuss additional coverage with your insurer.

Exclusions and Limitations to Be Aware Of

While multi-trade policies are comprehensive, they do have limitations. Understanding these exclusions is critical to ensuring you're properly protected.

Most policies exclude specialist trades like gas engineering, electrical installation, and asbestos work. They also typically exclude work on listed buildings or heritage properties without specialist approval, structural work, and work involving hazardous materials.

Damage caused by poor workmanship is often excluded unless you have professional indemnity cover. Similarly, claims arising from work performed without proper qualifications or certifications may not be covered.

Other common exclusions include work performed under the influence of alcohol or drugs, work undertaken without proper health and safety procedures, and claims arising from failure to comply with building regulations.

Always read your policy wording carefully and ask your insurer about any specific work you're unsure about. It's better to clarify before an incident than discover you're not covered when you need to claim.

Cost Factors: What Affects Your Premium?

Multi-trade handyman insurance premiums vary based on several factors:

Business Turnover: Insurers assess your annual revenue to determine risk exposure. Higher turnover typically means higher premiums, though many policies offer competitive rates for small businesses.

Claims History: Your previous insurance claims directly impact your premium. A clean claims history results in lower premiums, while multiple claims increase costs.

Number of Employees: If you employ staff, premiums increase. Each employee adds to your liability exposure, particularly with employers liability cover.

Coverage Limits: Higher public liability limits (£10 million vs £6 million) increase premiums. Choose limits appropriate for your work type and customer base.

Excess Amount: A higher excess (the amount you pay toward a claim) reduces your premium. Many handymen choose £250-£500 excess as a balance between affordability and protection.

Location: Where you operate affects premiums. Urban areas with higher crime rates may have higher tool theft cover costs.

Most multi-trade handyman policies cost between £200-£600 annually for basic coverage, making it an affordable investment in your business protection.

Choosing the Right Multi-Trade Policy

Selecting appropriate handyman insurance requires careful consideration of your specific business needs:

Assess Your Work Scope: List all the trades and services you currently offer and plan to offer. Ensure your chosen policy covers everything you do.

Determine Coverage Limits: Consider the maximum liability exposure from your work. If you work on high-value properties or for commercial clients, higher limits may be necessary.

Evaluate Tools Coverage: Calculate the replacement value of your tools and equipment. Ensure your policy limit matches this value.

Consider Future Growth: Choose a policy that can scale with your business. If you plan to hire employees, ensure employers liability can be added easily.

Compare Multiple Quotes: Don't settle for the first quote. Compare at least three providers to ensure competitive pricing and appropriate coverage.

Check Insurer Reputation: Verify the insurer's claims handling reputation and customer reviews. You want a provider who pays claims promptly and fairly.

Making a Claim: What to Expect

If an incident occurs and you need to claim on your multi-trade handyman insurance, follow these steps:

Report Immediately: Contact your insurer as soon as possible after an incident. Most policies require notification within a specific timeframe (typically 30 days).

Document Everything: Take photographs of the damage, injury, or incident. Gather witness statements and keep all correspondence with the injured party or their representatives.

Provide Detailed Information: Give your insurer comprehensive details about what happened, including date, time, location, people involved, and circumstances.

Cooperate Fully: Respond promptly to insurer requests for information or documentation. Delays can jeopardise your claim.

Don't Admit Liability: Never admit fault or agree to compensation without consulting your insurer. Let them handle negotiations and legal proceedings.

Most straightforward claims are settled within 4-8 weeks, though complex cases may take longer.

Key Takeaways for Handyman Business Protection

Multi-trade handyman insurance is not optional—it's essential business protection. Here's why it matters:

• Protects against catastrophic financial loss from liability claims
• Covers multiple trades under one affordable policy
• Provides peace of mind when working on diverse projects
• Demonstrates professionalism to customers and potential clients
• Enables business growth without insurance complications
• Covers tools and equipment against theft and damage

By investing in comprehensive multi-trade coverage, you're protecting not just your business finances but also your reputation and future growth potential. The cost of insurance is minimal compared to the financial devastation of an uninsured claim.