Scenario: Cooper, a seasoned handyman, received an urgent call to troubleshoot a malfunctioning air conditioning unit. The AC unit sat outside, its metal casing radiating heat. He observed the compressor, noting its repeated start-and-stop behaviour.
Thinking it might be a faulty pressure sensor, he bypassed the safety system to get the compressor running continuously, despite knowing this was not in line with standard operating procedures.
As the compressor continued to run, the pressure within the condenser tubes—containing the high-pressure R32 refrigerant—began to skyrocket due to the choked valve. As the pressure sensor was bypassed, the compressor kept on running and within moments, the excessive pressure caused a condenser tube to rupture, resulting in a catastrophic blast and fire. The explosion severely injured Cooper, leaving him with significant burns and other injuries that required immediate hospitalisation and an extended recovery period.
This incident starkly illustrates the dangers that can arise when proper safety protocols are not followed. For handymen, having the right insurance is not just advisable; it’s essential. This blog will explore some common risks handyman face and how handyman insurance can save their business and livelihood.
Common Risks in Appliance Repair
- Property Damage: Whether it’s a simple misstep that results in a damaged floor or an electrical malfunction that harms the customer’s appliance, the consequences can be costly. Repair professionals often work in close proximity to valuable household items, and even a small mistake can lead to substantial financial losses. Proper insurance can cover these damages, ensuring that the repair business doesn’t bear the full brunt of the cost.
- Bodily Injury: Accidents can occur unexpectedly, leading to anything from minor cuts to severe injuries requiring medical attention. Having comprehensive insurance in place helps cover the costs associated with these injuries, protecting both the business and the individuals involved.
- Legal Issues: Faulty repairs or accidents can result in lawsuits from dissatisfied customers or injured parties. Even when the technician follows all the proper protocols, there’s always a possibility of something going wrong that could lead to legal action. Lawsuits can be expensive, time-consuming, and damaging to a business’s reputation. With the right insurance coverage, repair businesses can mitigate these risks, covering legal fees, settlements, and other related costs.
Importance of Handyman Insurance
Protection Against Liability Claims
Appliance repair is inherently risky. A dropped wrench, a faulty part, or even a simple misstep can lead to property damage or personal injury. Handyman insurance offers an essential safety net by covering legal fees and damages if a customer files a claim against you. This protection is essential for preventing financial ruin.
Coverage for Property Damage
Accidents happen. A spilt paint can, a broken pipe or a damaged appliance can result in costly repairs. Handyman insurance can help cover the cost of repairing or replacing damaged property, protecting your business from financial loss.
Compensation for Injuries
If you or your employees are injured on the job, workers’ compensation insurance, a component of many handyman insurance policies, provides medical care, lost wages, and disability benefits. This ensures your team is protected and can focus on recovery without worrying about financial strain.
Protect Your Assets
Handyman insurance plays a crucial role in safeguarding your financial investments, ensuring that your assets are protected. For appliance repair services, key assets include expensive tools and equipment such as diagnostic instruments, power tools, and vehicles used for transportation. Additionally, your business’s reputation and client base represent significant intangible assets. Insurance helps shield these investments from unforeseen events like accidental damage to client’s property or equipment theft. With the right coverage, you can mitigate financial losses and continue operations without severe economic disruption.
Peace of Mind
Peace of MindKnowing you’re protected by insurance can give you peace of mind to focus on your work. This can lead to increased efficiency, better customer service, and overall business growth.
Workers’ Compensation Insurance
Workers’ Compensation Insurance is essential for covering work-related injuries sustained by employees. In the high-risk environment of appliance repair, injuries can occur despite all safety measures. Tradies and handymen are covered for medical expenses and lost wages. It also helps protect your business from potential lawsuits related to workplace injuries, ensuring that your employees receive the necessary care and support while keeping your business protected from significant financial liability.
If you are a repair and maintenance business owner, click here to read this blog about the importance of handyman insurance in protecting your tour business.
Tailoring Handyman Insurance to Your Needs
Every appliance repair business is unique, so your insurance policy should be too. Here’s a breakdown of some common coverage options.
Self-Employed Handyman Insurance
If you’re a sole proprietor running your appliance repair business, you’ll need a policy that covers your specific needs. This typically includes general liability insurance to protect against property damage and bodily injury claims, as well as professional liability insurance to cover errors or omissions in your work.
Technician Insurance
Appliance repair technicians are exposed to unique risks. A specialised policy can address these, including coverage for equipment damage, tool theft, and potential injuries while handling heavy appliances.
Customising Your Policy
The key to effective insurance is customisation. Working closely with an insurance provider allows you to create a policy that perfectly aligns with your business. Consider factors like the size of your business, the types of appliances you repair, your work location, and your employees when tailoring your coverage. By taking the time to build a customised policy, you can ensure you have the protection you need without paying for unnecessary coverage.
Don’t let unexpected challenges derail your business.
Protect your livelihood with a comprehensive handyman insurance policy from Tradies365. Get a free quote today and enjoy peace of mind knowing you’re covered.
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Note: The material offered here is for informational purposes only. It does not constitute legally binding advice and should not be a substitute for a consultation with an insurance expert.