What Type of HVAC Contractor Insurance Do You Need?

Did you know that the average replacement cost of an HVAC system is between $4820 and $9350? Depending on the size of your business, it could cost more.

The liabilities associated with the HVAC system go beyond a breakdown. The risks include property damage or bodily harm to contractors. Some risks may even be unavoidable. You need HVAC contractor insurance to protect your business from unfortunate events.

Like other insurance policies, they are unnecessary until you need one. Don’t wait for that moment, as one accident can cost your business. Keep reading to learn the types of HVAC contractor insurance your business needs.

Types of HVAC Contractor Insurance

Getting the right HVAC insurance is the best bet to mitigate risks. Different insurance coverages may be necessary depending on your business dynamics or the state where you conduct business.

Different states in the US require specific types of HVAC insurance. Most states require HVAC technicians and business owners to have general liability insurance at a minimum.

General Liability Insurance

HVAC installation and operation pose risks like property damage and accidental injuries. HVAC liability insurance covers primary third-party risks, while general liability insurance protects your company from common risks that affect other businesses.

So, what coverage does general liability insurance offer?

• Property damage costs
• Courts and legal fees in case of a lawsuit
• Medical payments for people injured on-site
• Physical injuries during an onsite job
• Moisture damage caused by HVAC work

Injuries or damages by HVAC systems can exhaust life savings. You don’t want to work under such risks.

Workers’ Compensation Insurance

Over 13,000 non-fatal work injuries occur annually in HVAC and plumbing operations. Injuries in the line of duty can attract claims and costly medical bills.

Since HVAC installation and maintenance require a team of professionals, you’ll want to cover a good number of people. You can also expect to send in HVAC contractors or other staff for repairs and maintenance occasionally.

You need security for the staff in case of injuries. A workers’ compensation insurance policy covers the staff’s medical and payroll costs. Many states require business insurance for HVAC contractors, particularly employees.

Contractors Error and Omission Insurance (Professional Liability Insurance)

Although your HVAC contractors are skilled and experienced, accidents happen. Some mistakes are minor and don’t warrant hefty consequences. However, the errors that lead to claims and lawsuits are not to be ignored.

You need contractor error and commission insurance to address negligence claims and professional mistakes. The policy allows HVAC contractors to move on smoothly from client disputes. You must be accountable for your mistakes if you run an HVAC installation business. Choose a professional liability insurance to build trust with clients.

Commercial Auto Insurance

HVAC service providers commonly need vehicles to transport equipment and technicians from one job to another. They invest in vehicles for convenience and branding. If your firm has company vehicles, commercial auto insurance should be among your priorities. It is necessary if your company operates an installation car, transports tools and equipment, or sends employees on errands.

An accident by staff using the company car can cause property damage and medical bills. The costs of an automotive injury can accumulate to thousands of dollars. If third parties are injured, the liabilities extend to lawsuits and medical bills. You can save thousands of dollars by paying a monthly premium of around $200 or less.

You need to protect your fleet and staff. Commercial auto insurance covers collision and property damage costs, medical bills, and car vandalism. Your cars and staff are valuable assets needing coverage, and you must match your commercial auto insurance with New Jersey’s liability insurance requirements.

Technician Umbrella Insurance

HVAC companies or any business are vulnerable to civil suits or liability incidents. These incidents commonly overwhelm your HVAC liability insurance. The umbrella liability insurance protects you from additional costs that exceed the liability insurance.

The policy offers you backup coverage for your HVAC Company. The extra coverage works with liability insurance, commercial auto liability coverage, and employer liability insurance.

HVAC contractor insurance is necessary for companies working with high-risk clients.

Equipment Insurance

HVAC systems carry expensive equipment and tools. Machinery such as air conditioners and gas furnaces are costly. It’s essential to protect assets from theft or accidental damage.

Standard insurance does not cover the HVAC unit if the damage is because of wear and tear. The insurance will only cover specific conditions.

HVAC equipment insurance is ideal for the following:

• Equipment less than five years old
• Mobile Equipment
• Small quotes

The policy covers the repair or replacement of HVAC equipment and tools. If you run an HVAC contractor company, you must transfer equipment from one place to another.

HVAC contractor insurance protects your tools wherever you take them.

Choose the Right HVAC Contractor Insurance and Insurance Agency

We cannot control some of the risk factors for HVAC systems. However, you can control the extent of the damage during the aftermath. Work with a competent insurance agency to determine your business’s ideal HVAC contractor insurance.

Before acquiring a policy, research your company’s needs. You want to choose the HVAC insurance policies that perfectly match your parameters. If you are unsure of your needs, work with an insurance broker. A professional will conduct a needs analysis to help determine the most suitable type of HVAC insurance for you.

While insurance coverage may appear to be an annoying expense, it’s not. It protects your bank account and ensures business growth.