What Type of Insurance Do You Need as an HVAC Contractor?
Posted on Jun 26, 2019
HVAC contractors can be some of the most popular people in your town or community. When people need their air conditioning repaired in the middle of a heat wave or heaters replaced during the worst weather winter, you come in and save the day or night.
That doesn’t mean your job is not without risks, though. Getting the right insurance protection is your best bet to mitigate many risks and protect your business along the way. Each business is different and has different insurance coverage requirements. The types of insurance you may need as an HVAC contractor are as follows.
Commercial General Liability Insurance
Protects against accidental injuries to people and property damage resulting from your work as an HVAC contractor.
Workers Compensation Insurance
Most states require this for HVAC businesses that have employees. It helps to pay the medical costs and payroll costs of employees who are injured while working for you.
Commercial Auto Insurance
Protects your business vehicles as you make service calls from one address, business, or home to the next. Also protects your vehicles against accidents, acts of vandalism, and theft.
Business Owner’s Policy
This is a standard policy most business owners need as a foundational insurance product in addition to other types of insurance specific to the HVAC profession.
A standard business owner’s policy (BOP) includes the following types of coverage:
- Business property insurance. Covers the costs of repairs to property and equipment damaged in a covered event.
- Business interruption coverage. Offers assistance to business owners who are forced to close for repairs in the aftermath of a covered event.
- General liability insurance. While rarely sufficient to cover all your liability insurance needs, most BOPs offer some general liability protection. Adding to this basic coverage is a must for most HVAC contractors.
While this is something all business owners need, it is only meant to be a foundation for your insurance and not the sum total of insurance protection you purchase. However, it’s an essential coverage you as an HVAC contractor needs.
Surety Bonds for HVAC Contractors
While not officially insurance, many states require a minimal surety bond for HVAC professionals. The bond helps to guarantee your work, and customers are happy to know that you have it.
Business Property and Equipment Insurance
In your role as an HVAC contractor, you must invest in specialty tools and equipment. This type of insurance coverage protects your business property so that if it is damaged, destroyed, or stolen, you can replace it without excessive costs to your business.
Professional Liability Insurance
When you or one of the contractors you hire make mistakes in the course of your work, the costs to your business and your reputation can be substantial. Professional liability insurance provides specific protection for this type of situation, allowing you to recover and move forward after an incident occurs by covering legal fees, attorney costs, and judgments awarded against you – up to the policy limit.
Umbrella Liability Insurance
Sometimes judgments and legal fees exceed the limits of your general commercial liability protection or your professional liability insurance protection. When this occurs, umbrella liability insurance kicks in to make up the difference, allowing you an additional sum of protection beyond your standard coverage limits.
HVAC Inland Marine Coverage
Protects your tools, equipment, heating, and air conditioning units while in transit overland from damage related to accidents, theft, and other covered losses.
It’s not enough to simply buy the right type of insurance protection for your HVAC business. You must also work to make sure you have the right amount of protection. That is why working with an independent agency is so important for your insurance needs.
Work with Otterstedt Insurance Agency for Your HVAC Contractor Insurance Needs
Work with a trusted independent insurance agency, like Otterstedt Insurance Agency, to learn the specific types of coverage you need as an HVAC business. We’re celebrating a century of service, helping individuals and businesses with their insurance needs.
