[Updated on 6/4/2020] As a heating and A/C contractor, you are well qualified and trained for your working in all types of conditions and repairing a variety of units. But are you protecting yourself from the risks your business faces daily? Your liability risks may range from making a mistake while performing repairs to harming yourself or your employees while servicing HVAC units. The proper insurance policies will help protect you from these and other risks.
Why HVAC Contractors Need Insurance
As an HVAC contractor, dealing with electricity always poses a chance for something to go wrong. Take for instance, during installation, the electrical voltage must be turned off at the job site. This is to cut down on the risk of electrical burns or electrocution to others entering the area.
Then it must be turned back on after work stops, all while minimizing any disruption of electrical service to other homes or businesses in the area. Failure to do so could present a liability loss.
Or an employee could cause damage to the client’s property or physical injury to their family members in the household, the public, or employees of other contractors.
Even when not in use tools, power cords, and scrap materials all pose trip hazards. If the work is being performed from above falling tools or supplies may cause damage and injury if dropped from scaffolding, ladders, cranes, or helicopters. If you perform pressure-testing of boilers and other pressure vessels those tests may result in explosions or fire.
Completed operations pose a significant threat to HVAC contractors as well. Let’s say a heating unit malfunctions, and the cause may be difficult to determine. The client may have to hire specialists to determine whether or not it arose from improper operation and maintenance, faulty system design, faulty manufacture, or incorrect installation. In addition to maintaining the proper general liability insurance, quality controls such as work order documentation, and employee training, background, and experience are essential to protecting your HVAC business.
Additionally, contractors performing boiler work, LP gas units, and wood-burning units have high product liability exposures. Improperly installed heating units pose potential injury within buildings due to exposure to carbon monoxide and other fumes or gases.
Types of Coverages for HVAC Contractors
HVAC insurance 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.
Basic HVAC insurance coverages:
General Liability: Pays for bodily injury and property damage that arises from your business. This basic coverage also includes protection for advertising injury and completed operations.
Commercial Auto: If you use your vehicle to travel to job sites or carry supplies such as ducts, air conditioners, and tools, you’ll need a commercial policy. We insure vehicles common to HVAC contractors including cargo vans, box trucks, and trailers.
Other insurance for HVAC contractors:
Business Owner’s Policy (BOP): Combines General Liability and protection for your commercial buildings and personal property into one package.
Workers’ Compensation: Covers your employees’ medical costs and a portion of their lost wages should they become injured or ill on the job.
At the End of the Day
At Paradiso Insurance, we understand that no two HVAC businesses are the same, and that’s why we will work with you to protect your business from any sort of mishap now or in the future.
To make sure we get you the best insurance at the right price, we spend time learning about you, your particular business, your people, your operation, and your specific risks and exposures. We then identify the best insurance program available from the dozens of top-rated insurance companies we work with to create a protection package just for you.