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As an HVAC contractor, you’re often in high demand. This is especially true when a heater or air conditioner breaks down on an overwhelmingly hot or cold day.

While a client’s HVAC emergency is something you’re comfortable and capable of dealing with, emergencies that occur related to work you’ve done can be more difficult to navigate.

This is why having the right kind of insurance to run your HVAC business is essential.

Keeping customers’ homes warm, cool, and safe from leaks or dangerous gas involves significant liability.

Customers or HVAC employees can become injured or property damaged, and equipment can malfunction – all of which can result in expensive lawsuits. 

This post takes a look at the answer to the question, “What kind of insurance do I need to run an HVAC business?” 

Common HVAC Insurance Coverage

You need HVAC contractor insurance coverage customized to meet your business’ exact needs.

This coverage can be made up of several different components, including: 

Commercial General Liability

A commercial general liability policy safeguards you from third-party injuries, third-party property damage, installation and repair problems, moisture damage, and more.

If an employee damages a client’s home or business while installing a ventilation system, your business is financially responsible for the damages. With a commercial general liability policy, the cost of these damages is covered, freeing you from paying them out of your own pocket. 

Commercial Property

A commercial property insurance policy covers the physical structure of your business and the contents inside.

If a natural disaster destroys or damages your business property or equipment, a commercial property insurance policy assists in paying for repairs to your building.

Additionally, it assists in covering the replacement cost for any damaged equipment. 

Errors and Omissions

Errors and omissions (E&O) insurance protects you and your employees against negligent claims made by clients.

connecticut hvac business insurance lawsuit

Sometimes called professional liability insurance, E&O covers legal fees, including attorney and court fees, in the event a client files a lawsuit against you claiming negligence.

Learn more about E&O insurance on our recent article: “Business Insurance Policy Highlight: Errors and Omissions

An E&O policy will also pay for any settlement that may be awarded from such a lawsuit. 

Workers Comp

Workers compensation is coverage you don’t want to be without if you employ a staff.

Workers comp covers your HVAC business from liability related to injuries or illnesses that befall your employees while they’re working.

If an employee sustains an injury while installing a ventilation system, for example, workers compensation would cover the cost of medical care.

While an employee is recovering from a work related injury, workers’ comp assists with missed wages. 

Commercial Auto

Business auto insurance covers automobiles used for businesses purposes.

This includes business-only vehicles, but in some cases, your (or an employee’s) vehicle may be covered while in use for business.

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Commercial auto insurance policies have high limits, ensuring you can cover your costs if one of your business’ vehicles gets into an accident. 

Questions to Ask

While these are a few common options when building an insurance plan for an HVAC business, your particular situation may warrant additional or differing coverage.

Because coverage needs vary, coverage cost will vary based on location, size, payroll, sales, and experience. 

You want to be sure your Connecticut HVAC business has insurance coverage that fits your specific needs.

This involves answering a few questions:

  • Is the work you do commercial, residential, or both?
  • Are most of your jobs focused on construction and remodeling, or installation and repairs?

Each contractor’s specific services come with their own set of risks, so coverage will vary depending on your answer to those (and other) questions. 

Contact Us

At Paradiso Insurance, we are happy to assess your HVAC insurance needs and create customized HVAC insurance plans designed specifically for you.

We’re a small, hometown business and we face the same challenges other companies do—managing people, delivering great service, finance, and, of course, growth.

As insurance experts, we also understand the vital importance of planning and of having a solid financial foundation.

We’re here to help, and would love to hear from you. Contact us today!  

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