What Is a Certificate of Insurance for a Handyman?
If a customer or a company asks to see proof that you have insurance, they want a certificate of insurance, or COI. It is like a photo of your insurance. It shows the basics of your coverage so the person asking can see you are covered.
This article tells you what a handyman needs to see on a COI. It also tells you how to get one and what it means.
What Must Be on the Certificate for a Handyman?
A handyman's certificate of insurance must show five main things:
- The name of the insurance company that is providing the coverage.
- The types of insurance you have, such as general liability (covers other people's property and injuries) or workers' comp (covers injuries to people you pay to work for you).
- The dates when your coverage starts and ends.
- The coverage limits – this is the most the insurance will pay for a claim.
- The policy number – this is a special number that identifies your insurance.
If the person asking needs more details, they might ask to see the full policy. But the COI gives the main facts.
What Is a COI Used For?
A handyman might be asked to show a certificate of insurance for a few reasons:
- A customer may want to see proof of insurance before the job. Damage to their floor would be a general liability matter, which a workers' comp policy does not cover.
- A company may require proof before you work on their property. Some companies will not let you work unless you show proof you are covered for their property.
It is a simple way to prove you have workers' comp without sharing your full insurance policy.
What You Should Not Expect from a Certificate
A certificate of insurance is not the full insurance policy. It does not list all the rules or exclusions (things the insurance does not cover). If you are not sure what your policy does or does not cover, always read the full policy.
Also, the certificate will not show that you are covered for your own injuries. A ghost policy does not cover you, the owner. For example, if you fall off a ladder and break your leg, the policy will not pay your medical bills or your lost wages.
How to Get a Certificate for Your Handyman Business
You can get a certificate of insurance in a few easy steps:
- Get your insurance policy first. If you do not have one, go to start your quote. You cannot get a certificate without a policy.
- Once Cimarron issues your policy, you can download your certificate. Cimarron issues your policy within 24 business hours of your payment and signed documents.
- If you are not sure how to get it, check your policy documents.
You can also get one after you start working if a customer or company asks for it. Just make sure your coverage is active and matches what they need.
What If You Are Asked for a Workers' Comp Certificate?
Some places in the US require a handyman to have workers' comp insurance if they have employees. If you are asked to show a workers' comp certificate, you must have a policy for that. If you are the only person in your business, you can still get a ghost policy to show proof of workers' comp to the person who asks.
But remember: a ghost policy does not cover your own injuries. You reject coverage for yourself when you buy it. It exists to show proof of coverage to the client, contractor or landlord who asks for it. If you want a policy that pays you when you get hurt, you need regular workers' comp, not a ghost policy.
What to Do If You Are Not Sure About Coverage
If you are not sure what a customer or company needs, ask them. It is better to be clear than to send the wrong certificate. Also, always make sure your coverage is up to date and matches what the person asking needs.
If you are not sure what coverage you need, you can start your quote at start your quote. This will help you get the right coverage for your handyman work. Work above 15 feet, like work on a roof or on a high ladder, can't be covered by this program. If any of your work goes that high, you need regular workers' comp, not a ghost policy.
How to Make Sure You Have the Right Certificate
To make sure you have the right certificate for a handyman job, check the following:
- Does the certificate show the coverage the person asked for? A ghost policy shows workers' comp only. General liability is a different policy that UNO does not sell. See cost and payment for what a ghost policy includes.
- Does the description of your work match what you do? This helps the person asking know what kind of work you do. Learn more in solo business basics.
- Is the policy active and not expired? Check the dates on the certificate.
- Is the certificate from a trusted company? You can find ghost policies for businesses with no employees and no subcontractors. But make sure it is real and not just a fake.
Always read the certificate before you send it. If you see something that does not look right, call your insurance company or check your policy documents. Better to be sure than to send a certificate that is missing something important.
