License & Insurance question (house, tax, exemption)

[MABloxham]

Do I have to have insurance to get some type of handyman license? I only want to do small cosmetic handyman jobs nothing structual.

[JimRom]

Do you have to have insurance to get the license? Nope, you just have to pay about $50 down at the tax office. Btw, it's not called a license anymore, it's a business tax receipt.

On to the more important question: Why wouldn't you get insurance? The cost isn't that great (you can get $100,000 coverage for less than $400 a year if you shop around), and it's yourself that you are getting it for.

Look at it this way: you want to do cosmetic handyman work. I'm assuming you mean things like painting. What happens when you accidentally kick a can of paint and it spills all over the customer's carpet? Do you really want to replace the carpet out of your pocket?

Also, while you don't have to have insurance to get the license, it is technically a requirement to do any work. You can and will be fined if you are caught working on someone's house for money and don't have insurance (as well as worker's comp exemption if you are a sole proprietor).

[EricBoyd]

Something else to consider, if you'll be doing any painting, is the extensive EPA requirements for working on homes built before 1978. You'll want to be lead-certified for this type of work. RRP is the official acronym, I believe.