HANDYMAN
Category: Casual and Artisan Contractors

SIC CODE: 1521 General Contractors-Single Family Construction
1522 General Contractors-Residential Buildings, Other Than Single-Family

NAICS CODE: 236118 Residential Remodelers

Suggested ISO General Liability Codes: 95625

Suggested Workers Compensation Codes: 5645

Description of operations: A “handyman” or “handyperson” offers home maintenance, small home repairs, and simple installation services. They may do appliance installation, minor carpentry, drywall repair, electrical work, furniture assembly, painting, plastering or drywall work, plumbing, tiling, wallpapering, or window repair. Most work independently, although there are a few national franchises. In most states, a handyman is not required to be licensed, but is prohibited from doing work that does require a contractor's license. Specialties such as roofing, air conditioning or furnace installation do not fall into the job description of a handyman.

Property exposures at the handyman's own location are generally limited to an office plus storage for tools, materials, equipment, and vehicles. If the handyman does shop woodworking or repairs for customers, fire can result from the overheating or malfunction of equipment or the flammability of wood, paints, varnishes, and wood dust. There should be adequate ventilation and a dust collection system. Flammable varnishes and glues should be properly labeled, separated, and stored away from combustibles.

Inland marine exposures include accounts receivable if the handyman offers credit to customers, contractors’ equipment and tools, goods in transit, installation floater, and valuable papers and records for customers' and suppliers' information. There may be computers used to monitor inventory. Backup copies of all data should be stored off premises. A handyman’s tools and equipment may represent the majority of the physical assets. Since the handyman is not a specialist, a variety of tools may be needed to complete the various projects requested by customers. Tools travel with the contractor and are not normally left at the jobsite.

Crime exposures are from employee dishonesty, including theft of customers' goods by the insured's employee. Background checks, including criminal history, should be performed on all employees handling money. There must be a separation of duties between persons handling deposits and disbursements and reconciling bank statements.

Premises liability exposures at the handyman's shop or office are generally limited due to lack of public access. Off-site exposures are moderate due to potential bodily injury to the client or damage to the client’s property. The area of operation should be restricted by barriers and proper signage to protect the public from slips and falls over tools, power cords, building materials and scrap. Use of saws and other power or hand tools may be hazardous due to sharp edges and moving parts. If there is work at heights, falling tools or supplies may cause bodily injury and property damage if dropped. If woodworking is part of the job, the buildup of dust and scraps can result in fire and explosion. Disposal of waste materials (dust, scrap, varnishes or paints) could create an environmental hazard. If the handyman finds licensed contractors to handle jobs outside the handyman category, the liability exposure increases. Poorly written contracts can result in liability hazards not anticipated for this classification.

Personal injury exposures include allegations of assault to the customers' employees, discrimination, and invasion of privacy. Failure to run background checks and review references on employees increases hazard and reduces available defenses.

Completed operations liability exposures should be fairly minor since handymen usually do not handle or install items where incorrect installation would result in significant damage. A handyman should not work or perform duties outside his or her ability. Clear guidelines should be established with clients as to what jobs can and cannot be completed by the handyman.

Automobile exposures are generally limited to transporting workers, equipment and supplies to and from the job site. Since most jobs are small, the handyman may drive to several job sites during one day. The exposure could increase if the radius of operation is large or if there are any service time guarantees. Drivers must have valid licenses. MVRs must be run on a regular basis. Random drug and alcohol testing should be conducted. Vehicles must be well maintained with records kept in a central location.

Workers compensation exposures vary depending on the size and nature of the job. Work with hand tools and sharp objects such as saws, chisels and nails can result in cuts, piercings, and accidental amputation. Electrical work can result in burns or electrocution. When work is done on ladders and scaffolds, there is a potential for severe injury or death from falling, being struck by falling objects, or adverse weather conditions. Back injuries, hernias, strains and sprains can result from lifting or working from awkward positions. Other injuries include slips and falls, foreign objects in the eye, hearing impairment from noise, and automobile accidents during transportation to and from job sites. Occupational disease can result from exposure to noise, dust, and chemicals, such as from pressure-treated lumber.

Minimum recommended coverage:

Contractors’ Tools, Employee Dishonesty, General Liability, Umbrella Liability, Automobile Liability and Physical Damage, Hired and Nonownership Auto, Workers Compensation

Other coverages to consider:

Building, Business Personal Property, Business Income with Extra Expense, Earthquake, Equipment Breakdown, Flood, Leasehold Interest, Real Property Legal Liability, Accounts Receivable, Computers, Goods in Transit, Installation Floater, Valuable Papers and Records, Cyberliability, Employee Benefits Liability, Employment-related Practices, Stop Gap Liability