Professional Liability Insurance (or E&O Insurance), protects your small business from claims of mistakes, negligence or malpractice made when providing your services that caused somebody financial loss. PLI covers your legal defense costs, damages and settlements.
Workers Compensation covers your employees' medical costs and lost wages while recovering from a work-related injury or illness. The employee gives up the right to sue your company in return for receiving cash and benefits from Workers Compensation. In some states it’s mandatory for businesses!
A Fiduciary Bond (or Surety Bond) protects a fiduciary - someone who is granted power over another person’s interests or assets via a will or contract - from being sued for alleged fraud, embezzlement, or dishonest acts.
General Liability Insurance protects your small business against claims of third-party bodily injury and property damage, reputational harm and advertising injury. It covers medical bills, repair costs & legal fees.
Why do HVAC Contractors need insurance?
As HVAC contractor, your business deals with your client's heating and air conditioning need - some immediate needs and others simply maintenance. Keeping your customers' homes free of certain dangers are a risk of a liability upon your HVAC business. Your insurance will make sure that these risks are mitigated. It makes sure that when a covered risk happens, the insurance will pay for these first instead of coughing the payments out of your business and personal assets.
What risks do HVAC Contractors face?
Below are some of the common risks HVAC Contractors can face:
How much does HVAC Contractor Insurance cost?
The cost of insurance for HVAC contractors depends on the size of your business, the number of employees you have, the coverage required and other possible factors. Without taking these into account, below are the average cost of insurance policies for your business:
Get a free, no-obligation quote and know your concrete insurance costs.
What Type of Insurance Do HVAC Contractors Need?
As an HVAC contractor, you have a lot of things that you need to protect. Depending on the size of your business, some insurance policies are going to be more necessary than others. For example, the starting point will always be General Liability insurance. General Liability will cover claims made against your business alleging bodily injury and property damage that arises out of your work. For instance, if you have to climb into a homeowner’s attic to service a heat pump and the ladder falls and breaks an antique heirloom vase, your client would likely sue you for property damage and that sentimental heirloom vase could cost a pretty penny.
In addition to General Liability insurance, another important insurance policy an HVAC contractor should have is an Equipment Floater. You certainly have tools and equipment that are of utmost importance to do your job, so what happens if your tools and equipment are lost, stolen, or damaged? Due to their value, it is a great idea to insure them because it is much more affordable than having to buy all new items. Plus, if you ever need to rent, lease, or borrow any equipment, then that can be covered here too.
If you have employees, then it is a simple fact that you will likely need to obtain Workers Compensation insurance to pay for lost wages and medical expenses if they are injured on the job. If you have a website and take payments electronically, which you probably do in this day and age, Cyber Liability is something to consider as well. Cyber Liability insurance takes into consideration the amount of data breaches that happen on a daily basis and protects you against coordinated attacks that can severely cripple your business. While this list of policies is a good starting point, it is not all-inclusive and it is always a good idea to check what other coverages are available for HVAC contractors.