Do you need insurance as a HVAC contractor or technician? If YES, here is an estimate of how much it cost get insurance coverage for your HVAC business.

No two businesses are identical, so you can expect your HVAC insurance cost to be different from other heating, ventilation and air conditioning companies. Common factors that influence your cost include your claims history, coverage needs and level of exposure, to name a few.

But that aside, there are certain averages that HVAC businesses tend to pin their insurance policy costs to. We would attempt to show some of the average insurance policy costs in the industry. You must note here that these numbers are only estimated and not the real thing. Your actual premiums might be higher or lower.

How Much It Cost to Get HVAC Insurance for your Business?

a. General Liability Insurance

General Liability Insurance is one of the most basic insurance policies – and among the most important for HVAC companies. This is because this insurance covers property damage, moisture damage, installation problems, and injuries caused by your work. General Liability Insurance typically costs between $398 and $1,204 for HVAC service techs.

  • Median policy premium: $398 – $1,204
  • Per claim limit: $1,000,000
  • Policy limit: $2,000,000
  • Median policy deductible:$1,000

b. Business Owner’s Policy

A Business Owner’s Policy bundles General Liability with Property Insurance, making it a smart way for HVAC professionals to get a discount on two important insurance coverages. The typical BOP starts at $500 for HVAC companies.

  • Median policy premium: $500
  • Per claim limit: $1,000,000
  • Policy limit: $2,000,000
  • Median policy deductible: $500

c. Commercial Auto Insurance

One of the signature items for any HVAC professional is their truck or van. Not only does it help you get from place to place, but by painting your logo and contact information to it, you can market your company without doing much work.

Commercial Auto Insurance protects your business from the cost of auto accidents, including legal expenses and repairs. To cover your HVAC business, Commercial Auto Insurance typically costs $1,267 to $4,199.

  • Median policy premium: $1,267 – $4,199
  • Median policy limit: $1,000,000
  • Median policy deductible: $500

d. Workers’ Compensation Insurance

Almost every state requires HVAC employers to have Workers’ Compensation Insurance. Because of the physical nature of your work, Workers’ Comp is important for protecting you from on-the-job injuries, lawsuits, and settlements. HVAC companies can pay anywhere from $391 to $9,061 in Workers’ Comp premiums.

  • Median policy premium: $391 – $9,061
  • Per claim limit: $500,000
  • Median policy limit: $500,000

e. HVAC umbrella liability insurance

Umbrella insurance extends other liability coverages, providing more protection than existing underlying policy limits. Most umbrella policies will require minimum limits of at least $250,000 on commercial auto and $1 million on liability for commercial umbrella insurance eligibility. For an extra $1 million per claim, HVAC insurance umbrella coverage costs $500 to $1,000 annually.

4 Factors That Influence the Cost of your HVAC Insurance

It has been said before that no HVAC companies carry the same insurance. The coverage rates do vary based on several factors that are peculiar to your business. Some of these factors may include;

  • The length of time your company has been operational: One thing that expressly affects the insurance your HVAC business carries is the length of time your company has been operational. If an HVAC contracting company has been in the business a long time and has a relatively clean accident record, their insurance quote is likely to be lower. As customers assess the risk associated with younger companies untested by time, so do insurance companies.
  • The accident history of your company: Accidents happen, otherwise there’d be no need for insurance at all. However, if your company has a track record of having many accidents over a short period of time, it’s likely you’ll receive a higher rate, a lower limit, or both.
  • Your company’s Credit History: Another factor insurance companies look out for is how your company has been able to manage its credit. Low scores tell insurance providers that your company’s ability to pay month-to-month or quarter-to-quarter is unreliable, which can affect your ability to even receive a policy in the first place.
  • The employees you hire: Yet another thing insurance companies can judge you with is the caliber of employees you hire for your business. Insurance agencies consider how well your employees have been trained, where they went to vocational school, the current age of your employees, how long they’ve been in business and their individual histories.

But one thing you have to note here is that just because insurance companies consider these factors, doesn’t mean every approach to these factors is shared by every company out there. Your needs, your background, and your history make your company and every other company out there unique.