HVAC Contractor Insurance
All contractors can benefit from having protection against losses due to fires, vandalism, theft, and more.
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Christine Lacagnina has written thousands of insurance-based articles for TrustedChoice.com by authoring consumable, understandable content.
Should a heater break down in the middle of winter or an air conditioning unit need preparation for summer, HVAC contractors are there to make sure customers can be as warm or cool as they'd like. But to remain fully functional, your business needs the proper protection. Having the right HVAC contractor insurance can help prevent extended shutdowns and potentially serious financial losses after a disaster.
An independent insurance agent in your town can help you get equipped with coverage. They'll get you matched to the right policy. But first, here's a closer look at HVAC contractor insurance.
Common Risks for HVAC Contractors to Consider
When you're providing a service to someone else, working on another's property, and using a variety of tools and equipment, there's a lot at stake. As an HVAC agent, you're responsible for what happens before, during, and after a project, as well as the customers' property you're working on. Consider some of the most common risks HVAC contractors face on a daily basis:
- While repairing a customer's heating unit, you accidentally punch a new hole in the wall.
- You or an employee slips and falls while on the job and needs stitches.
- You're working on a heating unit and accidentally start a fire in the customer's home.
- A customer or guest visits your business's office and injures themselves, then sues you.
All of these scenarios could be costly for your business, especially if they result in a lawsuit. So making sure you have the proper HVAC contractor insurance can help make it so a mistake or accident won't cost your business a loss that's not recoverable.
HVAC Contractors Need Workers' Compensation
As an HVAC contractor, your work is all about your employees. With employees traveling to and from job sites and working in people's homes or in business buildings, the risk of possible injury is already high.
Additionally, employees work with complicated materials and are at risk of getting cuts, burns, and other injuries. That's why an essential part of business insurance for HVAC contractors includes protection for your team.
Most states require business owners who have employees working for them to carry workers' compensation insurance. Workers' comp. can reimburse your business for medical expenses, lost wages, and even funeral costs if an employee dies as a result of the job. This coverage also shields your business from the risk of lawsuits related to workers’ injuries.
Why HVAC Contractors Must Have Business Liability Insurance
At the very least, your business should be covered with general liability insurance for HVAC contractors. This critical coverage provides protection against third-party claims of personal property damage or bodily injury caused by your business. It pays for the costs of third-party medical care or property repair and covers your legal defense costs if someone sues you.
You may want to look into the following types of HVAC contractor liability insurance for your business:
- Premises liability coverage: Covers incidents of injuries or third-party accidents that occur on your business's premises, such as if you have an office building.
- Commercial auto insurance: Covers costs related to lawsuits and damage to or theft of company-owned vehicles.
- Commercial umbrella insurance: Extends your existing liability coverage limits in increments of $1 million.
- Professional liability insurance: Covers the cost of lawsuits related to your business making professional errors, such as completing a project in a way that causes damage or injury to a third party.
An independent insurance agent can help you get equipped with all the different types of liability protection your business needs most.
Additional Insurance Coverage for HVAC Contractors to Consider
Now that you've got a solid foundation of coverage, work with your independent insurance agent to determine additional insurance policies that your business could benefit from. This includes a variety of coverages to protect your business's property. Be sure to look into the following types of coverage:
- Business property insurance: This insurance covers your business's buildings and contents against loss or damage caused by a covered event. Coverage typically includes rented or owned office buildings, warehouses, storage facilities, garages, office equipment, computers, inventory, tools, and equipment.
- Equipment breakdown insurance: This covers repairs or replacements of major appliances and equipment used by your business and the cost of renting temporary equipment until repairs are completed.
- Inland marine insurance: This covers tools and equipment while it's transported to and from job sites. This coverage is particularly important if you store tools and equipment in a truck or work van.
- Employee dishonesty insurance: If an employee steals equipment, tools, or cash from your business or burglarizes a customer's house, this insurance can pay for financial damages related to the incident.
- Builders risk insurance: This covers equipment, tools, and materials kept on a job site against theft and damage while a project is still underway.
Talk to your independent insurance agent about covering your commercial property against losses due to theft and other disasters.
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How Much Does HVAC Contractor Insurance Cost?
How much HVAC contractors insurance costs depends on a number of different factors. These can include:
- Your business's location
- How much coverage you need
- The number of employees you have
- The value of your business's property and equipment
- Your business's claims history
- Your business's unique risks and operations
An independent insurance agent can help obtain exact quotes for HVAC contractor insurance in your town.
Why Work with an Independent Insurance Agent?
Building a solid HVAC contractor insurance policy can be a complicated process if you go it alone. By ensuring that you have all the coverage you need at adequate amounts, you can protect your business from losses that could potentially cause major financial harm.
An independent insurance agent can shop and compare policies from many different carriers to help find you the best blend of coverage and cost. They'll make sure all of your business's risks are addressed.