Handymen provide essential services to busy and unskilled homeowners. Your work helps them maintain and improve their homes, from minor repairs to new installs.
The skills you bring to each job help create happy clients. But what if an accident leaves a customer unhappy? Are you prepared for these types of incidents and others that could potentially derail your business?
A risk management plan could help you protect and grow your handyman business. Understanding where you are vulnerable and responding to those risks before they happen could mean the difference between building success or closing your workshop forever.
What is a risk management plan?
A risk management plan is a strategy for identifying potential threats to your business and taking steps to help minimize their impact.
Though it may sound complicated, risk management plans are often simple. You might even be following one now without knowing it. Examples of risk management steps a handyman might take include:
- Providing accurate, written job quotes before starting a project
- Turning off breakers before working with electricity
- Cleaning spills as soon as possible to avoid slip and fall accidents
- Always leave customers’ homes clean when you finish a job
As you can see, a handyman risk management plan may include a variety of precautions to help you prevent complaints, accidents, or injuries while you work.
Why do handymen need a risk management plan?
Many handymen are sole proprietors and may not think their one-person business faces many risks. But you’d be surprised.
Customers could sue you over unintentional damage to their property or accidentally causing an injury. Even if it was a mistake, you could still be liable for fixing the situation. These handyman business risks (and others) could cause trouble for more than just your company.
When you work for yourself, your personal assets are often just as vulnerable as your business ones. An expensive lawsuit could mean dipping into your savings or selling your home to compensate a client. This makes a risk management plan crucial for small business owners.
How do I create a handyman risk management plan?
Creating a risk management plan for your handyman business will take time but will no doubt be worth the effort you put in.
The first step to creating your handyman risk management plan is to identify the potential risks you face. A common hazard of handyman work is third-person property damage. Every time you enter a customer’s home, you risk damaging their house or belongings. Other common risks may include customer injuries, stolen tools, or auto accidents.
Next, you should think of ways to help prevent these risks from happening. For example, to avoid damaging a client’s property, you might:
- Ask the homeowner to remove breakable or expensive items from the area you’re working in temporarily
- Take extra care when moving furniture
- Covering floors and furniture with drop cloths when painting
Your prevention steps are often simple, but they can be practical tools for preventing mishaps if you follow them every time.
What if an accident still happens?
Even with the best handyman risk management plan, an accident can still happen. Insurance is one way to transfer this risk and create a safety net for your business.
Your policies will cover various handyman business risks that you might face on the job. For example, General Liability insurance can help protect you against third party property damage and bodily injury claims. The cost of compensating customers for unintentional damage to their homes or belongings would be covered by your policy instead of coming out of your wallet.
How can insurance and risk management grow a handyman business?
Creating a risk management plan might sound like extra work to a busy business owner. Buying insurance is just another expense to add to a strapped budget. But the rewards for doing both could lead to a big payoff. Here’s how:
Lower insurance rates
Insurers consider many factors when they calculate your insurance premium. One is your claims history.
Generally, the more claims you have made in the past, the higher your premiums will be. Maintaining an accident-free record (or one with few insurance claims) could help you save money on your insurance policies. Having a handyman risk management plan may even work in your favor with some insurers.
More cash flow
Avoiding accidents and injuries can also help you keep your hard-earned cash in your bank account.
Instead of paying for unexpected incidents from your pocket, your insurance policies will cover these expenses for you. The money you would have otherwise spent on lawsuits or compensation could instead go towards advertising, upgrading your equipment, hiring employees, or anything else your business needs.
People want to hire a handyman who is professional. Insurance coverage and risk management procedures can help build trust and lead to more business.
Letting customers know that you are insured and follow safety measures can build their confidence in your abilities and help you stand out from the competition. They may be more likely to refer you to their family and friends looking for a handyman or leave you a positive review that could also lead to more business.
Start protecting your business
Insurance and a risk management plan are common ways to handle the handyman business risks you may face. These steps can help keep money in your pocket and grow your handyman business from a one-person operation into something bigger.
BizInsure is proud to help handymen find the insurance to fit their needs. Compare online quotes from top insurers now.