HVAC insurance is a must-have for technicians in the heating, ventilation and cooling industry. If you are running an HVAC business, then you are most likely covered under general liability. That notwithstanding, there are other good-to-have insurance products for your business. The total cost of the policy depends on various factors, but it could range from $300-$10,000 per annum.
Strictly speaking, HVAC experts do not require too many insurance products. However, there are some bare minimum requirements for any contractor as far as insurance is concerned. For instance, a contractor must have a general liability policy. If you own a company, then you must also have workers compensation cover.
Commercial general liability
The commercial general liability covers any potential liability for moisture damage, property damage as well as injuries that may be caused by your staff. This policy also covers any problem that may arise due to the installation or repair of the HVAC system. Commercial general liability is arguably the most critical policy for HVAC contractors because of the nature of their work. For instance, the installation of HVAC systems needs a special skill set to make sure no leaks follow an installation. Such leaks could cause serious damage to the premise of your client. Commercial general liability comes in handy in case of a mistake that might result in such a leak. Leaks are the biggest liability area for HVAC insurance providers, and they happen so often that going into this business without appropriate cover is just risking failure.
Workers compensation
If you’re running a full fledged HVAC business with employees, then you must also ensure you have gotten workers compensation cover. The cover will ensure your business is protected from liabilities arising from accidents that may happen when the employees are on site. The accidents might result in the damage of property or worse still, the injury of your staff. The workers compensation plan ensures that when this happens, all medical expenses and any other related costs like legal fees are taken care of. Because such costs can easily spiral up, having an appropriate cover can save your business a lot of losses.
The workers compensation programs will vary in price depending on the kind of work that your employees typically do on a day to day basis. Another determinant is the number of employers your company currently has. On average annual premiums fall in the range of $300-$10,000, and they cover up to $1 million per claim.
The two policies discussed above are the prerequisites for any HVAC business. Granted, there are other add-ons that some insurance companies might have. For instance, if you have a big company, you might also need to purchase auto insurance for your company cars. There is also an errors and omission insurance that can help you when dealing with claims related to your recommendations. For instance, if you recommend something to your client and it doesn't quite work out for them, they might end up suing you for your “bad” advice.
As with all other contractors, HVAC experts must ensure they are insured before they start working on any projects. This is often a government regulation and not heeding to it could land you in hot soup.
Md Rasel is a professional blogger.
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