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 a multitude of things they can deal with at any given time. As an HVAC contractor, you will often find yourself visiting customers’ premises, installing, reinstalling, and tearing down HVAC systems as a daily part of the job.

If you damage a client’s floors when installing an air conditioning unit, or an HVAC technician is injured when installing a unit, HVAC insurance can help cover your costs. HVAC insurance are policies that you’ll often be required to buy to operate in the HVAC space. Depending on which state you’re operating out of, your company might need general liability insurance, commercial insurance, worker’s compensation, and so on.

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

What is HVAC insurance?

As the name suggests, HVAC insurance are policies made for business owners for HVAC systems. HVAC insurance can cost from a few hundred dollars, but can go up to $10,000 for very large companies.

Depending on where you live, HVAC insurance is required by law in certain states. It will cover

our business from a number of things that could happen when working in the HVAC space, and should be considered heavily when you’re contemplating HVAC business startup costs.

It differs from HVAC insurance for homeowners by protecting you, your HVAC technicians, and your business from legal claims by clients, theft or loss of property, financial losses and workplace accidents, whereas the former is designed to protect your clients from any damage or injury that an HVAC system may have caused.

Types of HVAC insurance

Depending on your requirements based on state and local laws, there may be different requirements of what kind of HVAC insurance that you might need. Let’s look into some of the most popular HVAC contractor insurances that are taken.

General liability insurance

This is your HVAC umbrella insurance. If you’re an independent contractor or work in an HVAC company, this covers a wide swathe of accidents that can happen at the workplace for 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. This is the kind of HVAC business insurance that typically comes to mind when discussing HVAC insurance coverage.

Professional liability insurance

This type of HVAC coverage helps with the costs and damages that you might be facing if lawsuits are filed against you by any client who claims financial damages against your company. This can include any errors the client claims that you’ve made, or if they claim that you gave them an improper quote, professional liability insurance is one of the best HVAC business insurance policies that you can take to safeguard your business from any unpleasant legal issues.

Professional liability insurance also comes into play when a client claims that you didn’t comply with the contract of the job at hand, which is why it’s also often referred to as Errors & Omissions insurance. In addition to general liability insurance, it’s often a good idea to have an HVAC insurance policy for professional liability as well. Even if you’re the best in the business, we’re all human and we can make mistakes, and when that happens, it’s better to be on the safer side.

Tools and equipment insurance

Tools and equipment insurance, or HVAC equipment insurance, is designed to protect your tools and equipment against theft or damage. If theft seems unlikely, keep in mind that you’re often working with expensive tools, which can be resold on the market by thieves for easy money.

Even if you operate in a relatively crime-free neighborhood, insurance for HVAC equipment and tools becomes a thing since there is always a likelihood of breakage.

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 not just foot the bill, but also show your staff that you’re dedicated to their safety and well-being.

Depending on the state you live in, this can very well be mandatory, sometimes even required before you get your HVAC license. But even if it isn’t, workers compensation insurance is one of the best HVAC business insurance types to get.

Commercial auto insurance

Commercial auto insurance covers any vehicles that you operate for the business, including any injuries and/or 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 won’t cover you if you or your staff make any mistakes with a business vehicle. Any HVAC insurance claims that you make on your personal insurance might not be covered, since business vehicles are required to be registered properly, and that would separate them from being available for personal insurance claims.

Business owner’s insurance

Often times, General liability and professional liability insurance can be bundled into one package, known as Business owner’s insurance. The advantage of taking business owner’s lies in the fact that you might be able to get a lower price for both certificate of insurance as a package.

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 terms and conditions of the policy to suit your requirements.
  4. Sign off on paperwork.

When negotiating HVAC insurance, get the best terms you possibly can, even if it means paying a little more as an insurance premium. It’s better to have comprehensive coverage instead of worrying about whether or not a particular scenario would be covered in the policy you choose to take out.


Ultimately, HVAC insurance is not just about protecting your business, but also giving you peace of mind to go about your work without constant fear of financial duress and lawsuits.

If you’re 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, and many states won’t grant HVAC licenses without knowing that you’ve taken out the necessary insurance policies to protect you, your business, and your workers.

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