HVAC Contractor Insurance

As an HVAC contractor, you are responsible for installing, maintaining, and fixing climate systems in homes or commercial buildings. It’s a relatively safe profession for workers. However, having the right types of HVAC contractor insurance to protect your business is important.

For example, what would happen if your business was accused of property damage while installing a new heating system? What would you do if you got into an accident on the way to a job site, and someone was injured? These are the risks your business can face unexpectedly, even if you take the right safety measures.

Fortunately, HVAC contractor insurance protects your business, your employees, and your clients in these types of situations. There are a variety of HVAC contractor business insurance policies that can be beneficial. Here are some of the most popular types of commercial insurance that your business may want to consider.

General Liability

Property Coverage

Auto Insurance

Workers Compensation

Tools Coverage

General Liability Insurance

General liability insurance is one of the most important insurance policies for HVAC contractor businesses. This policy helps pay for the cost of third-party liability claims of bodily injury and property damage. For example, imagine that one of your workers accidentally damages the siding of a house when disconnecting an old air condenser. If the homeowner sued you for the mistake, your general liability insurance would cover the cost of repairs.

Inland Marine Insurance

Inland marine insurance may sound like an insurance policy for boats, but it actually covers business equipment and tools. Specifically, inland marine insurance pays to replace equipment and tools that are damaged in transport via truck or train. It also covers materials that are stored in an off-site location. So, for instance, if you accidentally drop your brand new thermal imaging camera when taking it out of your work truck, your insurance policy would pay for a new one if was damaged beyond repair.

Workers Compensation Insurance

If you have any employees on the payroll, then you probably need to carry workers' compensation insurance. If one of your workers gets sick or injured on the job, your workers’ comp policy will pay for their medical bills and lost wages.

For example, imagine that one of your installation technicians cuts their finger on a piece of sheet metal and needs to get stitches. Workers’ comp would pay for their emergency room visit, and their lost wages if they had to take a few days off of work. Texas is the only state that does not require workers' comp.

Commercial Auto Insurance

Most HVAC contractor businesses rely on work vans or trucks to get to and from job sites. If you and your employees drive company-owned vehicles, you need to have commercial auto insurance. Commercial auto insurance is similar to personal car insurance. A standard policy includes liability insurance based on your state's minimum coverage laws. However, you can upgrade to a full coverage policy if you want collision insurance, comprehensive insurance, medical payments, or uninsured motorist coverage.

Surety Bond

A surety bond can be valuable if your business uses contracts to guarantee your services. It’s a fixed amount of money that a client is eligible to receive if your business fails to uphold your contractual agreements. Rather than taking legal action against your business and going to court, the client can claim the surety bond, which acts as a settlement.

Excess Liability Insurance

For most HVAC contractor businesses, a standard general liability insurance policy provides more than enough coverage. However, if you want even more protection against liability claims, you might consider purchasing excess liability insurance, or umbrella insurance. This policy is only available once you have reached the highest liability coverage limit offered by your insurance company.

HVAC Contractor Business Insurance Cost

Your HVAC contractor business insurance premium will depend on a multitude of factors. These include where your business is located, how many employees you have, the insurance policies you buy, your coverage limits, and your deductibles. Some insurance companies offer discounts that can help you save money.

HVAC Contractor Business Insurance FAQ

We’re big believers in keeping things simple, so ask us anything and we’ll answer honestly and without the jargon.

How To Get HVAC Contractor Insurance

If you’ve never purchased commercial insurance before, the process is relatively simple, but it involves some research and planning before you pay the first premium. Here’s a quick look at how to get HVAC contractor insurance:

Research insurance companies: There are lots of commercial insurance providers on the market, but their coverage options, discounts, and customer ratings are not the same. Do some research and identify several insurance providers that offer what you need and meet your personal criteria.

Choose the coverages you want: Every HVAC contractor business has different insurance needs. There are many different types of commercial insurance available, so start by deciding which policies make the most sense for your business.

Pick your coverage and deductibles: The next step is to decide on appropriate coverage limits for each policy, and choose a deductible for the policies that require one. The higher your deductibles are, the lower your premium will be.

Apply for rate quotes: Every commercial insurance company charges different rates for coverage. In addition, every business has a personalized rate. Get a few quotes from different insurance providers to see which one can offer you the most competitive price.

Purchase your policy: The last step is to purchase your chosen insurance policies. Some insurance companies let you buy a policy online, whereas others require you to work with an agent. If you are getting business insurance for the first time, it’s a good idea to speak to an agent who can answer questions and make sure you are choosing the right policies for your needs.

Why Do HVAC Contractors Need Insurance?

Simply put, HVAC contractors need business insurance because they face certain risks. Workers can get injured, business equipment can get lost or damaged, and clients can sue your business for property damage. Even the smallest risks can have a big financial impact on your HVAC contractor business. In addition, some clients will only sign a contract with your business if you can show proof of commercial insurance.

What Are The Risks Facing HVAC Contractors?

HVAC contractors face a variety of risks on the job. Workers lift heavy objects, use power tools, disassemble old systems, and work in potentially hazardous areas. Certain jobs can put workers at risk of exposure to dust and certain toxins from old ducts. Fortunately, workers' comp covers many of these types of injuries and illnesses.

Is Insurance a Requirement For HVAC Contractors?

HVAC contractors need to have certain types of insurance. If you have employees on staff, you need to carry workers’ compensation in almost every state. If you drive business-owned vehicles, you need to carry commercial auto insurance. Some states require HVAC contractors to get general liability insurance in order to obtain a business license.

Your state or local municipality can tell you exactly what types of insurance are required in your location.