The Essential Guide to HVAC Insurance – What You Need to Know

The correct HVAC insurance policies provide the financial peace of mind to focus on your client’s needs and your business’s growth. Start with these legally required policies and add coverage to suit your needs.

This coverage reimburses your business for repairs or replacement costs if the equipment is damaged in a covered event. It also covers the cost of your business property while it is in transit.

General Liability

The most basic form of insurance for HVAC contractors, general liability, protects your business from claims of accidental injury or damage to third-party property while you’re on the job. It’s typically included in a standard small business owner’s policy (BOP), or you can purchase it separately.

A professional liability policy, sometimes known as errors and omissions insurance, can help cover legal costs when a client accuses you of making a mistake that resulted in financial harm, such as misquoting parts markups. It’s an essential policy because it protects your reputation as an HVAC company.

Property insurance is essential to every HVAC company, especially one that regularly uses expensive tools and equipment. It helps compensate contractors for losses resulting from theft, fire, or natural disasters that affect their warehouses and offices. It may also pay for expenses associated with opening a temporary office while repairs are made. Also, it provides coverage for equipment and inventory in transit overland.

Property Insurance

Running an HVAC business comes with certain risks. Transporting equipment, working in client homes, and managing employees all create the potential for accidents that can devastate your company. But with the proper series of insurance policies, your company can weather a financial disaster without losing its footing.

A few of the essential types of HVAC insurance include professional liability, also known as errors and omissions coverage; installation floater insurance (for covering materials that are installed or destined to be installed but don’t show up on the invoice, such as shingles); and workers’ compensation, which helps cover medical bills and lost wages if an employee gets injured on the job.

A reliable insurance broker specializing in commercial insurance for HVAC businesses can help you select the policies your business needs.

Commercial Auto Insurance

Commercial auto insurance is necessary for any HVAC company that uses vehicles to transport its employees and equipment. It covers the cost of repairs and medical bills in case of accidents and theft. It also provides coverage for vandalism and matches up with liability insurance so that you have an extra layer of protection for your business.

Having an HVAC company is risky work, and protecting your investment is essential. A professional liability policy, or errors and omissions coverage, protects your reputation if you make an error that damages the customer.

Finally, business interruption insurance can help you pay for lost revenue if your business is forced to shut down because of an unexpected event like a natural disaster or local emergency. It can even help you pay rent, utilities, and other expenses until operations resume. This is an excellent option for any HVAC company regularly bringing in new customers.

Workers’ Compensation

Most states require HVAC contractors to carry workers’ compensation insurance, which covers medical bills and lost wages if an employee is injured. Depending on the type of work, this coverage may also protect your business against claims of negligence or professional mistakes. It is expected to find this type of coverage included in a general liability policy or as part of a bundled package, such as a business owner’s policy.

Lastly, commercial property insurance helps cover the cost of repairing or replacing tools and equipment if they are stolen or damaged while on the job. Often, this is included as part of a business owner’s policy or in a bundled HVAC insurance policy.

Other important types of coverage for HVAC contractors include professional liability (also known as errors and omissions insurance), which helps protect your business from legal costs if you are held responsible for a mistake that leads to financial harm for a client, and installation floater, which covers building materials like roofing shingles regardless of where they’re being installed.

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