Running an HVAC business means dealing with unique risks every day. From installing heating systems in residential homes to maintaining large industrial cooling units, things can go wrong. That’s why having the right insurance is a must. With HVAC contractor insurance, you’re not just protecting your tools and gear—you’re protecting your entire business.
General liability insurance (GL) is the foundation of your coverage as an HVAC contractor. This insurance covers a variety of situations where you could be held responsible for damage or injury. Whether you're working on-site at someone’s house or in a commercial building, GL has you covered.
Here’s a breakdown of what’s included:
Each Occurrence: This kicks in when a single event causes injury or property damage. Say you’re installing a new AC unit, and it accidentally falls, damaging a customer’s property—this coverage steps in to help.
Damage to Rented Premises: If you rent office or storage space for your HVAC business and accidentally cause a fire or some other kind of damage, this covers the repair costs.
Medical Expenses: If someone gets injured while you’re working on a project, this part of your coverage helps with their medical bills, so you’re not stuck footing the bill.
Personal and Advertising Injury: Let’s say your business gets caught up in a defamation lawsuit—this coverage protects you from claims that accuse you of libel, slander, or false advertising.
General Aggregate: This is the maximum your insurance will pay for all claims in a policy period (usually a year). It’s a safeguard so you know your limits.
Products/Completed Operations: Once you’ve finished a job, this covers any damages or injuries that might occur due to your completed work. Imagine a heating system you installed malfunctions and causes a fire—this coverage handles those claims.
As an HVAC contractor, your tools, equipment, and materials are vital to your business. Business Personal Property (BPP) insurance covers your stuff in case of damage or theft.
Claim Example: A fire breaks out in the warehouse where you store all your HVAC supplies, damaging your trucks, tools, and inventory. Thankfully, BPP coverage comes to the rescue, covering the cost to replace the lost equipment and supplies. This allows you to get back to work without draining your bank account.
When you’ve got employees, you’re legally required to carry workers’ compensation insurance. This coverage protects your workers if they get injured while on the job, whether they’re installing a furnace or working on duct systems in a tight attic.
Claim Example: One of your technicians was on a rooftop installing an HVAC unit when they slipped and injured their knee. The technician filed a workers' comp claim to cover their medical bills and the time off they needed for recovery. Your insurance company approved the claim, and your technician got the help they needed.
In addition to GL, BPP, and workers' comp, you might want to think about other types of insurance to cover your bases.
Commercial Auto Insurance: You and your team probably spend a lot of time driving from job to job in work vehicles. If one of your trucks is involved in an accident, this insurance covers damages to the vehicle, as well as liability for injuries or damage to other vehicles.
Professional Liability Insurance: Sometimes referred to as "Errors & Omissions" insurance, this covers mistakes or negligence in the services you provide. If you install an HVAC system that doesn't work correctly and it costs the client big money, this insurance can help protect you.
Tools and Equipment Insurance: HVAC equipment isn’t cheap. This insurance covers theft, loss, or damage to your tools, whether they’re in transit or stored on a job site.
USA Insurance in Burbank, CA, is a leader in commercial insurance, serving HVAC contractors nationwide. With nearly 20 years of experience, our U.S.-based agents specialize in creating tailored coverage plans for small to mid-sized businesses. Licensed in all 50 states, we offer a unique combination of personalized service and comprehensive protection.
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.
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