4 Types of Insurance Your HVAC Company Needs

Servicing heating and cooling systems is a highly technical trade, which is why it takes HVAC contractors years to obtain their license. However, even with years of training, things can still go south. HVAC equipment is expensive and the smallest mistake can result in disaster. As an HVAC contractor, the last thing you want is for your client’s system to be seriously damaged because of you.

Since it’s incredibly risky, HVAC companies must obtain contractors’ insurance. In this article, we’ll look at the four types of insurance that your HVAC company needs.

#1 General Liability Protection

HVAC systems are inside your client’s homes or business establishments. If something goes wrong with the HVAC system during servicing, the entire property will be put in danger. For instance, an electrical malfunction can fry your client’s fancy devices.

General liability protection protects you from injuries and property damage that are related to your duties as an HVAC contractor. It covers installation problems, repair costs, moisture damage, medical bills for physical injuries, and so on.

With general liability protection, you can forget about footing the bill. For example, in the event that you accidentally damage your client’s property, your insurance policy will be able to cover the costs of repairs.

#2 Business / Commercial Property Insurance

To become one of the top HVAC companies in the area, you’ll need to invest in a number of HVAC installation equipment. If you’ve been in the industry long enough, you’ll know that these don’t come cheap. Power tools alone cost anywhere between $200 to $400.

To protect your tangible assets in the event that they get damaged, stolen, or destroyed, it would be wise to get commercial property insurance. This covers the replacement value of your property so that it can be replaced as soon as possible. This means you can get back to work without missing a beat.

#3 Workers Compensation Insurance

Your technicians may be the most skilled in the industry, but that doesn’t mean they’re safe from accidents. In the event that your workers are injured while at work, workers compensation insurance can cover their payroll while they recover. It also covers the costs of medical bills.

#4 Business Owners Policy (BOP)

A business owner’s policy (BOP) is for businesses that have less than 100 employees, and have annual revenue of not more than $1 million. It is usually purchased in addition to other insurance policies for those in the HVAC industry.

Among other coverages, the BOP typically includes business interruption coverage. This protects you if your business is forced to close due to a covered peril such as a fire.

It’s worth mentioning that the BOP is a standard insurance policy, which means that it’s not sufficient enough to protect your HVAC company. You’ll need additional coverage depending on your business’ needs.

The bottom line

There are other types of insurance policies that your HVAC company should consider getting, but these four should provide basic protection. Still, it’s best to sit down with an insurance agent to learn more about your options. As a consumer, you should be confident that the company you hire has appropriate insurance coverage, for that rare instance when something could go wrong.