Do you need insurance as a HVAC contractor or technician? If YES, here is a 5-step guide on how to apply and get insurance coverage for your HVAC business.
Why Get Insurance Coverage as a HVAC Business Owner or Contractor?
One of the requirements to fully set up your business is to get insurance. This is because the HVAC business comes with a lot of risks. With this profession, your liability risks range from making a mistake while rendering repairs to harming yourself or your employees while performing HVAC services. Heating, ventilation and air conditioning contractors insurance will help protect you from these and other risks.
Again, as a HVAC contractor, getting insurance for your business would also make you viable in the market because some building contractors would never hire a HVAC contractor that does not have insurance. For these reasons, it is now clear that insurance is not something you can do without in your business, the law would not even allow you to set up in the first place.
If you are a new HVAC contractor, and you are trying to get insurance for your business, there are few things you have to know before you proceed.
How to Apply and Get HVAC Insurance for your Business
- Research the HVAC Insurance company as well as the Coverage you want to buy
Before you get an insurance policy for your HVAC business, the first thing you need to do is to ask around about the coverage you seek. This process involves inquiring of each insurance company about the specific insurance you need, including their deductibles and premiums.
Be sure to confirm that the policies you are being offered cover HVAC insurance claims specifically. You should know that some insurance carriers cover some contractors while others do not.
You can use a broker or go directly to the carrier by yourself to make your findings. Brokers work with many carriers and shop around on your behalf to find the right insurance for an HVAC business in your area. They may also be able to get you bundles or discounts is you negotiate well with them.
- Make your application
If you have sought out the ideal insurance company for your business, the next thing you have to do is send out an application. The application is the start of the underwriting process. The insurance company needs to understand how to insure your HVAC business.
Whether online or over the phone, the application requires that you provide some business information such as logistic information for jobs and the financial base of your company. They’ll also need licensing and business experience information from you.
Some information you need to prepare ahead of time include:
- Revenue of the company
- Number of employees
- Driving records or driver’s license for everyone driving company vehicles
- Explanation of your business and nature of work
- Negotiate Insurance Terms
The next step to take when applying for your HVAC insurance is to negotiate terms with your chosen insurance company. Note that no rule says that you must take the initial terms the company puts out. Negotiating terms is not haggling over price.
Insurance carriers have to follow very specific underwriting risk assessment guidelines. But you can negotiate the options being offered. Consider the limits of coverage and ask about increase and decreases. While equipment limits often have a large impact on price, liability is usually negligible to overall pricing.
Every policy has more than one type of coverage itemized in it. Many of these coverages can be increased or decreased, and sometimes even waived. Go over every line item of coverage to understand what it covers and make sure you are paying for what is really important to your business. For example, if you were quoted $20,000 for business property but really only need $10,000 in coverage, speak up, so you can save money.
- Sign Documentation
Once you have settle on appreciable insurance terms with the company, and if you have fulfilled your own terms of the business, the only thing that is left is for you to sign the documentation. Once you put your name paper, you’ll be covered and ready to use your insurance as needed.
Carriers will vary on payment terms. Some won’t bind coverage, meaning make it effective, until the first payment is made. Others will bill you for the first premium while still binding coverage.
5. Re-assess your coverage every year
Your business with your insurance policy doesn’t just end after you have gotten the policy. You must endeavor to review the policy annually and inform your insurance agent about any new equipment purchases or new drivers. Any changes in your operations, such as expanding and purchasing or replacing equipment, mean that you should check with your agent to discuss how these alterations affect your coverage.
This could dramatically affect coverage and premium costs. Use your insurance agent as a partner to help keep your business protected against financial threats that naturally arise in claims and accusations.
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