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.
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.
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.
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.
The good news about Workers Compensation is that different insurance companies set different rates. Each job description is going to have what is called a class code. For example, an HVAC contractor may have a different class code and rating than a concrete contractor. It is important to communicate what your employees are doing, even incidental things, to your insurance agent so that they can determine the right class codes. Once that is determined you will need to report your payroll. When you start your policy you will estimate the payroll for the policy period. Once the policy expires you will then be audited and either pay the difference or get a refund if your payroll turns out to be less than what you estimated.
When you are ready to get a quote for Workers Compensation for your HVAC Contracting business, give Coverwallet a call. One of our experienced insurance advisors will work through all of your details and will be able to give you more than one quote since we have access to several companies. Protect your business properly by working with a trusted insurance business.