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The Answers to Your Questions About HVAC Contractor’s Insurance

The Answers to Your Questions About HVAC Contractor’s Insurance

HVAC Business Tips

As a small business owner, there are many things to deal with at any given time. As an HVAC contractor, you will often visit customers’ premises needing to install, reinstall, or tear down HVAC systems, depending on that day’s job.

HVAC insurance can help cover your costs if you damage a client’s floors when installing an air conditioning unit or an HVAC technician is injured. In fact, it may not be just a good idea to seek this coverage—if you are going to operate in the HVAC space, you might be required to purchase these specialized HVAC insurance policies.

Additionally, depending on where your company is operating, you might also be required to carry additional insurance types. Insurance types might include, but not be limited to, general liability, commercial insurance, and worker’s compensation.

But what is HVAC insurance? Are there special types? And how does it differ from HVAC insurance for homeowners?

What is HVAC insurance?

As the name suggests, HVAC insurance policies are for business owners who work with HVAC systems. HVAC insurance can vary from a few hundred dollars a month to thousands of dollars a year for large companies.

Certain states require HVAC insurance by law, so you may not have the option to skip it. But even if it were optional, you should heavily consider it when contemplating startup costs for your HVAC business. HVAC insurance will cover your business from the unexpected when working in the HVAC space.

HVAC insurance for homeowners protects them from any damage or injury an HVAC system may have caused. HVAC insurance for contractors, however, protects you and your technicians from legal claims brought by your clients. These claims could deal with theft, loss of property, financial losses, or workplace accidents—to name a few.

Types of HVAC insurance

The kind of HVAC insurance you need may be different depending on the requirements of your state and local laws. The following are some of the most widespread insurance types HVAC contractors use.

General liability insurance

General liability is your basic umbrella insurance if you are an independent contractor or run an HVAC company. It covers a wide range of accidents at the workplace for both you and your HVAC technicians. If an employee gets hurt or if they end up damaging a client’s property, this can cover that kind of claim. General liability is the kind of HVAC business insurance that typically comes to mind when discussing HVAC insurance coverage, but it is not the only kind.

Professional liability insurance

This type of HVAC coverage helps with costs and damages you might face if lawsuits are filed against you by a client who claims financial damages against your company. These accusations might include any errors the client says you made or if they claim you gave them an improper quote. Professional liability insurance is one of the best policies for an HVAC business to have; it will help safeguard your business from many unpleasant legal issues.

Professional liability insurance also comes into play when a client claims you did not comply with what you agreed to in the contract. Errors and Omissions insurance is another name for professional liability insurance. 

Even if you are the best in the business, we are all human, and we can make mistakes, and when that happens, it’s better to be on the safer side. Do not just stop at general liability insurance; make sure you also have an HVAC insurance policy for professional liability. 

Tools and equipment insurance

Tools and equipment insurance, or HVAC equipment insurance, protects your tools and equipment against theft or damage. If theft seems unlikely, keep in mind that you often work with expensive tools, which thieves can sell for easy money. Even if you operate in a relatively crime-free neighborhood, insurance for HVAC equipment and tools becomes a consideration since the possibility of breakage is always a concern.

Workers’ compensation

If your HVAC technicians have a workplace accident and you need to cover their medical bills and lost wages, workers’ compensation can help. Carrying workers’ compensation insurance does not just help cover expenses; it also shows that you care about your staff’s safety and well-being.

Depending on your state, this might be mandatory and sometimes even required before getting your HVAC license. But even if it is optional in your state, workers’ compensation insurance is a type of insurance that any HVAC business should consider.

Commercial auto insurance

Commercial auto insurance covers any vehicles that you operate for the business, including any injuries and property damage that occurs when you or your HVAC technicians are using a company vehicle.

While this may sound similar to personal auto insurance, personal insurance will not cover you if you or your staff are in an accident with a business vehicle. Any HVAC insurance claims you make on your personal insurance will probably not be covered; business vehicles have their own registration process, making them ineligable for personal insurance claims.

Business owner’s insurance

Business owner’s insurance is a bundled purchase where you buy both general liability and professional liability insurance together. The advantage of taking business owner’s insurance lies in receiving a lower price because you buy them together instead of purchasing both types of insurance separately.

How to obtain HVAC insurance

Getting these insurance policies is often no different from applying for other types of insurance.

  1. Ask insurance companies about HVAC insurance.
  2. Provide the necessary information and documentation.
  3. Negotiate the terms and conditions of the policy to suit your requirements.
  4. Sign off on the paperwork.

Get the best terms possible when negotiating HVAC insurance, even if you pay a little more in insurance premiums. It is better to have comprehensive coverage instead of worrying about whether or not the policy taken out covers you adequatly.

Conclusion

Ultimately, HVAC insurance is not just about protecting your business but also peace of mind. HVAC insurance is a worthwild investment; it lets you go about your work without constant fear of financial duress and lawsuits—and that is worth something.

If you are considering opening an HVAC business, check out state and local laws, and see what you will be required to comply with in terms of HVAC insurance. Ultimately, insurance is also a matter of legal compliance. Many states will not grant HVAC licenses without knowing you have taken out the necessary insurance policies to protect yourself, your business, and your workers.

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