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Heating, ventilation and air conditioning (HVAC) insurance is a collection of coverage that HVAC firm owners are often obliged to purchase. While most states just need Bonds of Assurance, HVAC businesses may additionally require general liability, workers’ compensation, and commercial car insurance. Depending on coverage and company demands, the total cost of the three insurance plans might range from $8,500 to $21,300 each year.
Providers of Commercial HVAC Insurance
You may either engage a broker or go straight to a certain insurance company when seeking economically cost business insurance. Although having all plans with one insurer is handy, a broker may be able to discover better coverage or cost by splitting products. Brokers and agents may both aid in lowering the cost of HVAC insurance.
AP Intego, CoverWallet, Hiscox, Travelers, and Nationwide are our top five small business insurance carriers for HVAC coverage.
AP Intego
AP Intego, as an insurance brokerage, allows you to engage with professional agents to shop and compare various HVAC insurance rates from industry-leading providers like Travelers. HVAC companies with employees should utilize AP Intego’s pay-as-you-go workers’ compensation, which interfaces with common payroll programs to automatically calculate precise monthly workers’ compensation premiums.
CoverWallet
HVAC contractors can receive inexpensive insurance quickly with CoverWallet. To acquire immediate approval, go to its simple-to-navigate website and fill out a short online application. When you acquire coverage, you will get an insurance certificate. CoverWallet also has affordable pricing, with basic liability insurance available for as little as $39 per month.
Hiscox
HVAC individual contractors or small enterprises with teams of five or fewer will benefit from Hiscox. Hiscox can keep expenses low by designing plans to match the demands of small company owners. Hiscox’s business owner’s policy (BOP) may be as little as $41.67 per month, with no extra costs for selecting a monthly payment plan.
Travelers
Travelers Insurance is a well-known and financially sound national insurer that provides comprehensive coverage for HVAC contractors. Its BOP not only provides off-premises property insurance, but also includes automatic $25,000 in employee dishonesty coverage. This policy may also cover the theft of a client’s property, making it suitable for HVAC professionals.
Nationwide
Nationwide is a large national insurance company that sells both personal and business insurance. Nationwide works with HVAC contractors and businesses of all sizes, but it specializes in small independent contractors that work on modest residential assignments.
Costs of HVAC Insurance
Your Costs of HVAC Insurance are made up of your annual premium and your deductible during a claim. If you have all the recommended insurance policies for HVAC businesses, you could pay at least $8,500 annually plus the deductible on any claims. A BOP saves money by combining general liability and property coverage.
The amount you must pay as a deductible before your insurance will pay claims is known as your deductible. Furthermore, if your policy limits are insufficient to cover a claim, the opposing party may sue you for the difference. For example, if your general liability coverage covers $500,000 but a $1 million claim is filed, you may be responsible for the remaining $500,000.
HVAC Insurance: The Most Common Types
Certain forms of insurance may be required by your state licensing board for HVAC licenses. HVAC professionals and company owners, for example, can be required to get general liability insurance, which is a sort of contractor’s coverage. Most states require employers to have workers’ compensation insurance, and HVAC professionals with work cars will almost certainly need Insurance for Commercial Vehicles.
General Liability Insurance for Businesses
General Liability Insurance for Businesses insurance covers potential liability for property damage and injuries caused by you or your employees. Installation and repair problems can lead to homeowner injuries or damage to their property. General liability is the most important insurance coverage for HVAC businesses because of their high risk for homeowners’ claims.
The following are some instances of general liability HVAC insurance claims:
- Property damage: If you send a fan through a glass shower door by accident, general liability will cover the costs of the repairs.
- If a customer falls over an air duct that your staff left on their floor, general liability may cover their medical expenses as well as your legal fees if they sue.
- Product-completed operations: If a ventilation hood collapses weeks after you install it, the harm it causes is covered under the products-completed operations coverage in your general liability policy.
General Liability Insurance for Businesses coverage typically costs between $1,500 and $8,000 annually, depending on where you operate your business and who your clients are. Businesses working on large construction jobs, such as hospitals, typically pay more than those working on residential homes.
Insurance for Workers’ Compensation
An HVAC business with employees is required by state law and licensing boards to have Insurance for Workers’ Compensation. It covers your business from liability related to injuries that employees suffer while on the job. This includes coverage for medical bill costs related to these injuries and lost wages during a recovery period.
The cost of workers’ compensation varies depending on the sort of job you do and how many employees you have. Annual rates for coverage up to $1 million per claim might vary from $6,000 to $9,300.
Insurance for Commercial Vehicles
Insurance for Commercial Vehicles covers HVAC vehicles and any employees in the vehicles in case of an accident. A policy is usually required by law if your company owns and operates any vehicles. You can check with your state’s department of motor vehicles to see if commercial auto liability is required.
Insurance for Commercial Vehicles also covers vandalism or theft of the work vehicle but doesn’t cover the tools or supplies in it. The cost of Insurance for Commercial Vehicles varies depending on how many vehicles you have and the driving history of the named drivers. Employees with bad driving records could cause your annual premium to increase. This insurance typically costs between $1,000 and $4,000 annually.
Insurance for your equipment
HVAC Insurance for your equipment is commercial property coverage for the tools, materials, and other equipment required to install and repair HVAC systems. Equipment can be costly for HVAC technicians and is essential for business, yet many HVAC business owners forgo insurance coverage for their equipment.
The cost of insuring your company property is determined by the number of tools and equipment you own. The number of different electric tools and examination equipment soon mounts up. A standard HVAC property insurance coverage with a $500 deductible costs roughly $500 per year.
Marine Insurance (Inland)
Marine Insurance (Inland) is an important policy for HVAC contractors because it covers tools and equipment as it moves from place to place. Commercial property insurance typically only pays for a loss that occurs at or near the address listed on the policy, and commercial auto only covers business-owned vehicles. As a result, business property that’s in transit or stored at worksites is uninsured. Inland marine makes sure that the property is protected.
Bonds of Assurance
To obtain and maintain licensing, most HVAC contractors have to have at least a $15,000 surety bond. Bonds of Assurance are sold in specialty divisions of insurance companies but aren’t insurance. In a claim, the bond issuer pays and then recoups the money from the HVAC technician.
State boards use Bonds of Assurance to protect consumers without creating huge expenses for licensed tradesmen.
Insurance for Professional Liability
Sometimes referred to as errors & omissions (E&O) insurance, Insurance for Professional Liability protects you from any liability related to your work as a professional HVAC technician. For instance, something as small as not properly sealing a duct could lead to mold, causing occupant health problems and building damage requiring expensive remediation.
Professional liability insurance is a good complement to your overall insurance coverage, particularly if you hire additional professionals and aren’t constantly around to supervise their work. Errors and omissions insurance covers your staff and may cost anywhere from $500 to $1,000 per year, depending on the nature of your business.
BOP
BOP is must-have insurance for HVAC company owners and contractors since it combines general liability and commercial property coverage, allowing you to cover the most frequent risks that business owners face at a reduced price. Some HVAC firm owners add business interruption insurance, which protects against hazards that might cause the company to shut down.
It’s important to note that not all companies are eligible for a BOP, since each insurance carrier has its own set of criteria. BOPs are best suited to firms with fewer risks, fewer than 100 workers, less than $1 million in yearly sales, and commercial buildings that they own or rent.
Umbrella Coverage
Umbrella Coverage extends other liability coverages, providing more protection than existing underlying policy limits. Most umbrella policies require minimum limits of at least $250,000 on commercial auto and $1 million on liability for commercial Umbrella Coverage eligibility. For an extra $1 million per claim, Umbrella coverage costs $500 to $6,000 annually.
Getting umbrella insurance makes sense if you already have general liability, workers’ compensation, and commercial car coverage. You may effectively double, if not treble, certain coverage limits for a fraction of the cost of expanding responsibility on all other plans. While having umbrella insurance to cover other carrier policies is viable, it is not cost-effective. Underwriting the full risk, where the umbrella is the greatest limit, is preferred by insurers.
The Advantages of HVAC Insurance
Aside from liability protection against claims, you can’t afford to pay, HVAC insurance has other advantages. Aside from the peace of mind it provides, it also assists you in saving money by allowing you to do the following:
- Protects you against your own and your staff’s mistakes: Dealing with ventilation in homes or businesses comes with its own set of hazards, so having the correct insurance coverage protects you in the event that you or an employee makes a costly error.
- Clients prefer to use licensed and insured enterprises, and they may sometimes want to see your certificate of insurance (COI) before accepting your proposal on a project.
- Gives the confidence to make recommendations: Having Insurance for Professional Liability covers HVAC businesses in case a recommendation is wrong or professional work isn’t performed according to code or safety standards.
Conclusion
HVAC insurance is necessary to safeguard you and your company from financial damage as a result of a mistake or an unforeseeable catastrophe beyond your control. If you have employees, most HVAC company owners will be protected by general liability and workers’ compensation insurance. Those working on huge projects may discover that extra insurance is required to provide complete financial protection.
CoverWallet may assist you in lowering the cost of HVAC company insurance. They may shop your insurance with a variety of reputable companies. Their knowledgeable insurance agents can help you obtain the greatest price and coverage for your HVAC company’s requirements.
