An HVAC contractor is in high demand year round, especially if someone’s heater or air conditioner goes out on an unbearably hot or cold day.
HVAC emergencies are something HVAC contractors are comfortable and capable of dealing with regularly. As an HVAC contractor, emergencies that may occur related to work you’ve done can be a bit more difficult to manage.
This is why it is so important you know what kind of insurance you need to run an HVAC business in Arkansas.
Keeping customers’ homes warm, cool, and safe from leaks or dangerous gas involves significant liability. Customers or HVAC employees can become injured or property damaged, and equipment can malfunction – all of which can result in expensive lawsuits.
This post takes a look at the answer to the question, “What kind of insurance do I need to run an HVAC business?”
Common HVAC Insurance Coverage
Your HVAC contractor insurance needs won’t be the same as another HVAC business’ insurance needs.
But, make no mistake about it, an HVAC contractor is one of of three kinds of businesses that need commercial insurance the most.
Each and every HVAC business needs insurance coverage customized to meet that business’ exact needs.
This coverage can be made up of several different components, including:
Commercial General Liability: A commercial general liability policy safeguards you from third-party injuries, third-party property damage, installation and repair problems, moisture damage, and more.
If an employee damages a client’s home or business while installing a ventilation system, your business will be held financially responsible for the damages.
With a commercial general liability policy, the cost of these damages is covered, freeing you from paying them out of your own pocket.
Read our quick guide to commercial general liability Insurance to learn more about commercial insurance for your business.
Commercial Property: A commercial property insurance policy covers both the physical structure of your business and the contents inside.
If a natural disaster destroys or damages your business property or equipment, a commercial property insurance policy covers the cost of repairs to your building.
Additionally, it assists in covering the replacement cost for any damaged equipment.
Errors and Omissions: Errors and omissions (E&O) insurance protects you and your employees against negligent claims made by clients.
E&O, sometimes called professional liability insurance, covers legal fees (including attorney and court fees) in the event a client files a lawsuit against you claiming negligence.
An E&O policy also pays for any settlement that may be awarded from such a lawsuit.
Workers Comp: If you employ a staff, you definitely want to have workers compensation coverage.
Workers compensation provides your HVAC business coverage when it comes to liability related injuries or illnesses your employees may sustain while they’re working.
For example, if an employee were to be injured while installing a ventilation system, workers comp would cover the cost of that employee’s medical care.
That’s good to hear. A friend of mine that’s thinking about leaving his stock advising program to go into trades mentioned that hvac had high injury rates. He’s a big stats and spreadsheet guy.— Maintenance Groyper (@maintaingroyp) August 15, 2020
Additionally, while an employee is recovering from a work related injury, workers’ comp assists that employee with missed wages.
Commercial Auto: Business auto insurance covers automobiles used for businesses purposes.
This includes business-only vehicles, but in some cases, your (or an employee’s) vehicle may be covered while in use for business.
Commercial auto insurance policies have high limits, ensuring you can cover your costs if one of your business’ vehicles gets into an accident.
Questions to Ask
These are a few common coverage options when building an insurance plan for your HVAC business.
Keep in mind your particular situation may warrant additional or differing coverage.
Because coverage needs vary, coverage cost will also vary based on location, size, payroll, sales, and experience.
You want to be sure your Arkansas HVAC business has insurance coverage fit to your specific needs.
This involves answering a few questions. For example:
- Is the work you do commercial, residential, or both?
- Are most of your jobs focused on construction and remodeling, or installation and repairs?
Each contractor’s specific services come with their own set of risks, so coverage will vary depending on your answer to those (and other) questions.
At M&P Insurance, we are happy to assess your HVAC insurance needs and create a customized HVAC insurance plan designed specifically for your HVAC business in Arkansas.
We’ve even made it easy to get a business insurance quote online.
We’re a small, hometown business who believes in the power of community. Our staff works here, plays here, lives here, and gives here.
As insurance experts, we also understand the vital importance of planning and of having a solid financial foundation. We’re here to help, and would love to hear from you. Contact us today!