Do you run a HVAC business? Or you are a HVAC technician and you need insurance coverage? If YES, here are 9 best insurance policies for HVAC contractors.
Heating and ventilation are important in buildings as buildings that are not properly heated or properly ventilated can pose health risks. This is one of the reasons why heating, ventilation and air condition contractors are very important in the construction industry. The job description of HVAC contractors is related primarily to heating and air conditioning.
There are quite a number of insurance policies HVAC contractors need to take out for the sake for their business and the life of their employees and themselves. These policies may include;
9 Best Insurance Policies for HVAC Businesses and HVAC Contractors
i. HVAC Contractor General Liability Insurance
A variety of risks are associated with running a heating and air conditioning business. For this reason, the contractor needs to take out a HVAC contractor general liability insurance policy. When you purchase a general liability insurance, your business would be protected from a lot of liabilities.
Included in your general liability policy is the coverage for completed operations, products liability, and premises liability. For instance, if your client gets wounded by the repairs you completed, the costs associated are covered by completed operations.
In the area of Products liability, this coverage protects you from any products you sell your clients, such as a cleaning agent that caused an allergic reaction. With premises liability, you’re protected against bodily injury that might occur in your office.
ii. HVAC Contractor Commercial Auto Insurance
Another major insurance protection your HVAC business needs is the commercial auto insurance. The majority of your work as a heating and A/C contractor is done at client’s homes or businesses. This means that you use a company vehicle to drive to your job posts, and this vehicle should be covered by commercial auto insurance.
A commercial auto insurance policy provides ample coverage for your company vehicle in the event of an accident. It will provide coverage against bodily or property injury, as well as vandalism or theft. Damage to your vehicle can low you down on a business day that is why this coverage is very necessary.
iii. HVAC Surety Bond Requirements
Another thing your insurance company can provide you apart from insurance is your HVAC surety bonds. To obtain and maintain state board licensing as an HVAC technician, most states require at least a $15,000 surety bond. Surety bonds are sold in specialty divisions of insurance companies but are not insurance.
But for businesses that cannot afford these bonds, they require the help of insurance companies The bond is paid in a claim and then the insurance carrier recoups the money from the HVAC technician.
State boards use surety bonds to protect consumers without creating huge expenses for licensed tradesmen. It is unlike insurance where a more costly premium is paid and the insurance company pays claims without recouping the claim value.
iv. HVAC Contractor Inland Marine Insurance
Inland marine insurance is a special type of insurance policy that protects property while it is in transit. This means that while you are driving to a client’s residence or place of business, your property and theirs is protected.
Any type of accident or theft can occur between the time you drive to the client’s home or business, as well as when you’re making repairs. If something was to be damaged or stolen, the losses are covered by inland marine coverage. This is yet another must-have insurance policy for your HVAC business.
v. HVAC Contractor Employee Dishonesty Insurance
Another insurance you can look to having in your business is the employee dishonesty insurance. Employee dishonesty insurance will insure your heating and air conditioning contractor company against crimes committed by your employees.
This may include theft of money or tools and equipment you use, along with theft or vandalism committed at a client’s home or business. It is an unfortunate thing but as a business owner you will have to deal with it so it is better that you protect yourself from it from the start, rather than grappling with the aftermath.
Errors and omissions (E&O) insurance covers your HVAC business from any liability related to your recommendations as a professional HVAC technician. It is sometimes referred to as professional liability insurance. Something as small as not properly sealing a duct could lead to mold, causing occupant health problems and building damage requiring expensive remediation.
Errors and omissions insurance is a nice addition to your total insurance coverage on top of general liability, especially if you employ other technicians and aren’t always supervising the work.
vii. HVAC Contractor Workers’ Compensation
If you have at least one employee working for your heating, ventilation and air conditioning company, you need to get worker’s compensation insurance. Not only is it legally required in most states, but it is an important way to protect your employees and your company.
Worker’s comp protects against work-related injuries or illness. For example, if a worker is installing a new A/C unit in a client’s home, and due to a water leak, deals with an electrical shock, their injuries and other medical costs are covered. Your company also won’t have to deal with a lawsuit or medical costs.
If you are found negligent or you purposely create an unsafe working environment, you might still be vulnerable to lawsuits even with adequate coverage. However, as long as you meet OSHA requirements, then your workers’ comp policy should protect you against liability for the injuries or illnesses that happen to your employees.
Your Workers Compensation Insurance covers any on-the-job injury or illness. This includes when your employees are on other premises for the job, such as when they visit clients or drive for business purposes. Common instances covered by this insurance include:
- Trips and falls
- Equipment or machinery
- Overexertion, sprains and strains
- Repetitive motion injuries (i.e. carpal tunnel syndrome or back pain)
- Sick building syndrome
- Mold exposure
To be eligible for workers’ compensation insurance coverage, the illness or injury must have a direct link to the employee’s job. But note that the same injury or illness may not have the same coverage, since the situation matters.
viii. HVAC Contractor Umbrella Insurance
Yet another insurance policy that would be good for your HVAC business is the HVAC contractor Umbrella insurance. This is because the liability policies for your Heating, ventilation and air conditioning Contractors business (General Liability, Commercial Auto, and Employers Liability) all have coverage limits.
Umbrella liability insurance therefore is used to increase your liability limits for all of these risks under one policy to protect your business for claims that exceed your primary policy limits. Depending on the scale of your business, you may need need to also take on this insurance policy.
ix. HVAC Technician Insurance
HVAC technician insurance is also another insurance that can protect your business from common risks that could result in injuries or property damage ending in financial losses. These costly mishaps can even put your business at risk if you don’t have adequate coverage.