When you go to an HVAC job, customers are usually happy that you’re coming to restore their comfort. That doesn’t mean that nothing can go wrong. No matter how careful you are, a single accident could cost you thousands or even millions of dollars. To protect yourself, you need to choose HVAC contractor insurance coverage that’s right for your business.
What is HVAC Contractor Insurance?
HVAC contractor insurance is a package of insurance products tailored for HVAC contractors. It includes standard business insurance options as well as some specifically designed for your work. You can choose exactly which coverages you need based on what you do and if you already have some types of insurance.
Do You Have to Have HVAC Contractor Insurance?
Customers are always told to select licensed, bonded, and insured contractors. This gives them peace of mind that the work will be done correctly and that there’s a financial guarantee for any mishaps. If you don’t carry insurance, you could find it hard to win business. In some locations, having insurance may also be a condition of your license or being able to get work permits.
What Coverages Come with HVAC Contractor Insurance?
Just like when you sell a new HVAC system, HVAC contractor insurance starts as a recommended package that you can customize to your needs. These are the most common coverages that you have to choose from.
Commercial General Liability Insurance
If you accidentally hurt someone or damage their property, your commercial general liability takes care of any settlements or needed legal defense costs. It can also protect you if a customer gets hurt at your place of business. If you make a mistake in your work that causes a fire, flooding, or other damage, your commercial general liability insurance can also protect you. Note that some insurance companies may separate mistakes in your work into a separate professional liability policy.
Commercial Auto Insurance
If you cause an accident on the way to a job or injure someone while repositioning your van, commercial auto insurance protects you. You need this coverage even if you already have personal auto insurance on your work vehicle because personal insurance usually doesn’t cover business incidents. Similarly, your general liability insurance policy typically excludes anything to do with your vehicles. Commercial auto insurance also covers damage to or theft of your work vehicle itself.
If your employees get hurt on the job, workers’ compensation covers their lost wages and medical bills. In Arizona, you’re typically legally required to have workers’ compensation insurance any time you have employees. Even if you aren’t required to carry it, workers’ compensation is still a good idea, because your workers may be able to sue you for payment if you don’t have insurance for them.
Commercial Property Insurance
If someone steals your tools or they get damaged by a fire, commercial property insurance protects you. If you own a building, commercial property insurance can protect that as well. You can typically select a limit that’s equal to or just above the value of the property that you need to insure.
Umbrella insurance allows you to add extra liability protection on top of your general liability, commercial auto, and other liability policies. The advantage of using an umbrella policy is that it’s usually more cost-effective than raising all of your limits separately. However, umbrella insurance is an extra coverage, so you can’t use umbrella insurance only and need to have minimum limits on each policy under your umbrella policy.
What Type of Work Does HVAC Contractor Insurance Cover?
You may perform a wide variety of work, including installations, repairs, and maintenance on commercial and residential properties. You may also specialize in only one or a few areas. You can customize your HVAC contractor insurance to only cover the type of work that you do and not any type of work that you don’t. This keeps you from paying for insurance that you don’t need. If you want to expand your offerings, you can call your insurance agent to update your policy.
What’s Covered if You Make a Mistake in Your Work?
If you make a mistake in your work and have the right coverage, your insurance policy will typically pay for third-party damages. For example, if the HVAC system you improperly installed shorts out and starts a fire, your insurance policy will pay for the cost of clean up, repairing the structure, and replacing any damaged property. If you make a mistake during an installation and have to replace the HVAC system itself, that cost would typically be on you.
What’s a Business Owner’s Policy?
A business owner’s policy is essentially a different name for HVAC contractor insurance. Like HVAC contractor insurance, a business owner’s policy is a package deal of different common insurance types. The main difference is that a policy marketed as for HVAC contractors will typically already have what most HVAC contractors need, while a policy marketed as for business owners might not be specialized for HVAC work and need additional customization.
Get a Quote
If you need help figuring out what coverage you need or where to get the best price, talk to an independent insurance agent. Your insurance agent works directly for you, so you don’t need to worry about being oversold. Talk to Dave Mohr Agency now to learn more or start your quote.