Workers Compensation Insurance for HVAC Contractors

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What is Workers Compensation Insurance?

Owning a business means that you are responsible for making sure your employees have a safe working environment. Unfortunately, no matter how well you manage risk within your business, accidents can happen. If employees are injured on the job or become ill, you will be responsible for their medical bills and payroll. Workers Compensation insurance is designed to provide coverage for these medical bills, lost wages, and even disability if it should happen. Also sometimes referred to as Work Comp, Workers Comp, Workman’s Comp this coverage is required in most states. The goal of this insurance policy is to prevent employees from suing employers over negligence if they should become injured.

Do HVAC Contractors Need Workers Compensation Insurance?

HVAC contractors need to have Workers Compensation insurance for many reasons. Most likely, the state that you are operating your business in will require it. Keep in mind, though, that some states have different requirements depending on the number of employees. Minor injuries can happen often in the HVAC industry and Workers Compensation will pay for these medical bills so that you don’t have to dip into the business's profits.

Another reason HVAC contractors should carry Workers Compensation insurance is that your employees are more than likely driving to and from job sites. If they get in an accident and are injured, Workers Compensation is what will pay for their lost wages. Additionally, if you have an employee who works in the office in a clerical setting, a common claim is carpel tunnel. Workers compensation will also pay death benefits if an unfortunate incident happens where an employee is killed on the job. Disability benefits are also available if a workplace injury or illness causes an employee to be unable to work. All of these things can bankrupt a business if the proper insurance coverage is not in place. Also, it will give employees peace of mind knowing you care enough about them to pay for the proper insurances to protect them. Even though, it protects you in the long run.

Unfortunately, even though the purpose of Workers Compensation is to prevent your employees from suing you, it can still happen if they feel like their injury or illness was a result of your negligence. Employers’ Liability which is a coverage part of this policy will pay for defense costs, settlements and judgments, and court costs. It is important to have this coverage because accidents happen every day and you don’t want to get caught in a situation where you have to pay out of pocket because of an oversight.

If you have employees there are a lot of insurance policies you need to think about as well. Covering your employees for work-related injuries is important, and often a state requirement. Also, protect your business against claims of wrongful termination and wage issues. All of these unfortunate events have an answer and that is Food Truck insurance. While you may need to purchase several policies to properly protect your food truck business, the investment will be worth it if one of these events does happen.

What Additional Types of Insurances Are Needed?

As an HVAC Contractor, you have a lot of exposure to risk. Luckily, most of your risk can be absorbed by your available insurance policies. Here are some of the insurance policies that you should carry.

  • General Liability – General Liability is super important for an HVAC contractor. GL pays for lawsuits that arise claiming bodily injury or property damage to others property. An example would be if someone comes to your office and trips on something. Or if you are working in someone’s home and damage their furniture or wall.
  • Commercial Auto A Personal Auto policy almost always excludes business operations so be sure to obtain a Commercial Auto insurance policy. It will cover your owned vehicles for property damage and liability, and there is also an option to cover liability for hired and non-owned autos. Hired and non-owned auto liability is important if you have employees using their vehicles for business, such as picking up materials or doing a bank deposit. Keep in mind this coverage is not for them, it covers you as the employer if you are named in a lawsuit since they were working for you at the time of the incident.
  • Commercial Property – You definitely will want to have coverage for all of your business property. Commercial Property insurance can cover a lot from your building if you have one, to computers and desks, to your tools and equipment. Some equipment and tools may need to be scheduled on an Inland Marine policy, be sure to discuss with your experienced insurance professional.
  • Errors and Omissions – If your work is claimed to have caused an injury or financial hardship, this will not be covered under General Liability. Instead, you will find this coverage under Errors and Omissions insurance. An example would be not properly sealing something causing a leak which results in mold. As a business owner, you want to make sure the problem gets fixed as soon as possible to protect your reputation.
  • Commercial Umbrella – Sometimes judgments that are awarded in court can be surprising and often exceed the limit on your General Liability, Auto, or Employers’ Liability. You can purchase a Commercial Umbrella policy which is an extra limit of liability that sits over the top of the existing limits on the underlying policies. Having an Umbrella insurance policy will give you peace of mind because this is usually where businesses end up closing because they don’t have enough insurance coverage.
  • Employment Practices Liability - Discrimination is still very prevalent in today’s world, as well as sexual harassment. Even if you know that you will never commit one of these acts, you can't guarantee that your employees or any third parties won’t as well. Employment Practices Liability insurance will provide protection for your business should you be sued for discrimination, harassment, wage issues, and even breach of contract.
  • Cyber Liability - The chances are you take credit card payments, even if you don’t use technology a lot in your business. This means there is a chance of your customers’ information being stolen or leaked. Cyber Liability will help protect your business should a data breach of this sort take place. Also, if you store customer information on a computer or other technological device you are at risk.

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Is Workers Compensation Insurance for HVAC Contractors Required in All States?

HVAC Contractors are required to carry Workers Compensation in almost every state. Some states offer exemptions for contractors, however, it is almost always better to have it anyway. And some states will only require it if you have a certain number of employees, such as 3 or more. Even if you don’t want it, you might end up having to have it anyway if you contract to work with other companies. A lot of General Contractors will make it a requirement of their contract for everyone, regardless of the size or number of employees.

Business Insurance

Running a business is challenging enough without having to worry about lawsuits, employee injuries or property damage. Having the right insurance gives you the peace of mind to focus on what matters - running your business.

The coverage you need depends on the type of business you run. A restaurant owner needs to be covered against customers possibly getting food poisoning while an accountant needs to be covered against calculation errors. CoverWallet's intelligent assessment system will identify the insurance you need based on your specific business, get you a policy that fits your budget, and do it all in less time than you think.

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