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 know you are covered if something happens during the job. For example, if you drop a hammer and it breaks their floor, they may look at your COI to see if you are covered.
- 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.
- A bank or lender may ask for it when you apply for a loan. They want to see you are covered in case something happens during the job.
It is a fast way to prove you are covered 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 does not show if you are covered for your own injuries. If you want that, you need to choose that coverage when you get your quote. For example, if you fall off a ladder and break your leg, the insurance will only cover you if you chose to be included in that coverage.
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 you have your policy, ask your insurance provider for a certificate. You can usually get it right away, by email or as a download.
- Some providers let you download it or send it to your email right away. If you are not sure how to get it, check with the insurance company or 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 policy to show you are covered in case of injury.
But remember: a workers' comp certificate does not cover your own injuries if you choose to be excluded from coverage. If you want to be covered for your own injuries, you must choose an owner inclusion election when you get your quote. This choice costs more but covers you if you are hurt on the job.
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. For example, if you work on roofs or use power tools, you may need more coverage than someone who only installs cabinets.
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 general liability coverage with enough limits? Some jobs need higher limits than others.
- Does it include the correct class code for your work? This helps the person asking know what kind of work you do.
- 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 without employees. 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.
