Your heating, ventilation and air conditioning (HVAC) business needs several types of insurance for adequate protection. If you are just starting out, this article can help you ensure you have the right coverage for your business. If you’re an experienced HVAC contractor, use this article as a checklist to review your current coverage. You might learn there are better options available to you.
What kind of insurance do I need for HVAC business?
As a baseline, HVAC contractors need a business owners policy (BOP), employment practices liability insurance (EPLI), errors and omissions insurance—also known as professional liability insurance—and workers’ compensation coverage. These business insurance components protect you, your employees and your clients in a variety of ways.
Let’s dive into each type of coverage to explore the benefits and limitations.
Business owners policies for HVAC contractors
Grange Independent Agents are ready to work with you and our underwriting team to create a business owner policy to fit your HVAC business plan. Business insurance for HVAC contractors typically includes:
- Risk evaluations—our risk control experts will help you pinpoint potential business hazards.
- Commercial property coverage—protection for the commercial building and business personal property you own including tools and equipment.
- Business interruption coverage—if you experience a loss from a catastrophic event, this insurance covers the loss of income while your business operations are disrupted.
- Liability protection—the Insurance Information Institute (III) says your business owners policy “covers your company's legal responsibility for the harm it may cause to others. This harm is a result of things that you and your employees do or fail to do in your business operations that may cause bodily injury or property damage due to defective products, faulty installations and errors in services provided.”
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Additional HVAC liability insurance
Your business owners policy is not complete liability coverage for your company. Here’s other liability insurance that can help better protect your operations:
Employment practices liability insurance (EPLI)
An employee may file a lawsuit for harassment, discrimination, wrongful termination or other employment-related issues. EPLI coverage can offer you peace of mind because legal fees are expensive, even if you’re not at fault.
With Grange, you can get first-party and third-party coverage when you purchase EPLI. This means you’ll get coverage for lawsuits from employees (first-party) and vendors, customers and other third parties. We also offer free legal counsel and free risk management training. Talk to a local, independent agent today to learn more.
Errors and omissions insurance
You may also know this coverage as professional liability insurance. Cornell Law School says errors and omissions insurance “provides policy-holding professionals with coverage against damage suffered as a result of the professional’s errors and omissions in rendering professional services.”
Workers’ compensation insurance
Your employees could get hurt on the job. Workers’ compensation can help cover medical bills, missed wages and other expenses related to an employee’s job-related injury. Here are a few ways your HVAC technicians may get hurt on the job:
- Incur hearing loss from repeatedly using loud equipment to install new HVAC units.
- Get an injury from a car accident on the way to a client’s property.
- Wound themselves from making a mistake with a tool.
Consider equipment breakdown coverage for HVAC repairs
As an HVAC repair technician, you’re very familiar with the inconveniences your customers experience when their heating and cooling equipment is on the fritz. What happens when your own equipment breaks down? Equipment breakdown coverage can be added to your business insurance to keep your business running.
Don’t forget auto insurance for HVAC contractors
Beyond your business owners policy, you will need a separate commercial auto insurance policy. This policy may cover the vehicle and employees for transporting HVAC equipment and traveling to job sites.
How much is insurance for a HVAC contractor?
HVAC business insurance costs depend on the business size, location, risks involved with HVAC equipment and other factors. Get a quote from a local Grange agent today.
References
Insurance Information Institute
Cornell Law
Coverages described herein may not be available in all states. Please contact a local independent Grange agent for complete details on coverages and discounts. If the policy coverage descriptions herein conflict with the language in the policy, the language in the policy applies. The material provided above is for informational, educational, or suggestion purposes and does not imply coverage. WE RESERVE THE RIGHT TO REFUSE TO QUOTE ANY INDIVIDUAL PREMIUM RATE FOR THE INSURANCE HEREIN ADVERTISED. Grange Insurance policies are underwritten by Grange Insurance Company, Trustgard Insurance Company, Grange Indemnity Insurance Company, Grange Insurance Company of Michigan and Grange Property & Casualty Insurance Company*. Not all companies are licensed in all states. *Not licensed in Pennsylvania.