What Insurance Do I Need as an HVAC Contractor?

HVAC contractors are constantly in demand, especially when the weather is scorching hot or freezing cold. However, as an HVAC business owner, you don't want your insurance coverage to be as extreme as the weather. It’s why choosing the correct insurance protection is important to safeguard you and your businesses.

Insurance for HVAC contractors is designed to protect your business from potential claims for improper ventilation and resulting leaks, accidents that occur on the client’s premises, damage to your or a third party’s vehicles, and bodily injury to another person.

Without proper coverage, you could be responsible for paying a claim and the legal fees required to defend that claim.

To help ensure you are fully protected, an HVAC contractor should consider the following types of insurance:

  • Business income:
    Insures against the liability exposures of many businesses. Requires that the damages be caused by a covered loss resulting in physical damage to the property.

  • Businessowners policy (BOP):
    A policy that combines property, liability, and business interruption coverages for small- to medium-sized businesses. Coverage is generally less expensive than if purchased through separate insurance policies. A BOP may also provide coverage for your HVAC tools and small equipment.

  • Commercial auto:
    You need a vehicle to transport your tools and equipment to jobsites. Commercial auto insurance covers the cost to repair or replace vehicles (less depreciation) in the event of an accident, as well as the cost to rent a replacement auto so that your business can continue operating.

  • General liability:
    Insures against the liability exposures of many businesses. Coverage can include product liability, completed operations, premises and operations, and independent contractors. This coverage is best obtained through a BOP, which includes other essential coverages for small businesses.

  • Commercial umbrella:
    Provides greater financial protection by increasing the liability limits of certain underlying policies.

  • Employment practices liability:
    Liability coverage for wrongful termination, discrimination, and other violations of employees’ legal rights.

  • Errors and omissions:
    A professional liability policy protecting the policyholder against negligent acts and omissions that may harm their clients.

  • Workers’ compensation:
    Pays for medical care and physical rehabilitation of injured workers and helps to replace lost wages while they are unable to work. Your insurance company may also provide resources designed to assist HVAC contractors in developing safe working habits to help control insurance costs.

If you’re working for a builder or another contractor, you will likely be required to have additional coverage. The two most common are additional insured and waiver of subrogation.

Before deciding which policies are best for your business, be sure to contact a licensed business insurance broker or agent, who can provide more detailed information, help solicit quotes from insurers, and answer any questions you have.

An independent agent can help business owners understand which products can best meet their needs.

* Coverages vary by state and may not be available to all businesses.

The information and descriptions on this site are general in nature. The coverage afforded for a particular loss depends on the specific facts and the terms, exclusions, and limits of the actual policy. Nothing on this site alters the terms or conditions of any policy, as the policy controls coverage. Coverage options, limits, discounts, deductibles, and other features are subject to underwriting criteria, state availability, and effective dates. Coverage provided and underwritten by NJM Insurance Company and its subsidiaries, 301 Sullivan Way, W. Trenton, NJ 08628.

The information contained in this article should not be construed as professional advice, and is not intended to replace official sources. Other resources linked from these pages are maintained by independent providers; therefore, NJM cannot guarantee their accuracy.