HVAC contractors like you install heating and cooling systems so people can comfortably remain inside buildings. You might also work with cold storages. However, this job falls usually falls on the shoulders of refrigeration engineers.
HVAC contractor insurance protects you against heating, ventilation, and air conditioning work risks that will drastically affect income. You’ll find general liability, contractors errors and omissions, commercial auto, commercial property, and workers compensation insurance useful, which are policies that electricians, concrete contractors, and others also need.
Insurance isn’t only a protection but might also be a licensing requirement. Plus, it provides great protection when you’re just starting out as an HVAC contractor. Read this guide to know:
How much insurance HVAC contractors need
The functions of different kinds of insurance for HVAC contractors
The cost of premiums
The recommended companies for HVAC contractor insurance
Commercial HVAC contractors need to have $5 million general liability insurance. Residential HVAC contractors, on the other hand, get $1 million-$2 million general liability insurance.
Get general liability insurance to have a shield against claims for bodily injuries or property damage that clients, independent contractors, passerbys, and other third parties might file. These are situations where you’ll find HVAC contractor liability insurance useful:
You messed up the wiring of an HVAC unit during installation. As a result, the HVAC’s motor started smoking and got busted.
You and a client are carrying an HVAC unit to a building’s second floor. You lost grip by accident, and the client’s foot got crushed. A claim is filed asking compensation for medical treatment, pain, and suffering
You refilled the HVAC unit with the wrong refrigerant, and it got busted. The client asks for refund
You and an employee are fixing a solder leak without taking the pressure out. An explosion happened, injuring the client and damaging the building.
You can use HVAC general liability insurance to cover these costs each time a third party files a claim:
First aid treatment, surgery, and other medical treatment expenses
Reimbursement for financial losses due to property damage
Attorney fees, court filing fees, investigation fees, and other defense costs
Similar to the general liability insurance for tile contractors and paving contractors, general liability insurance for HVAC contractors is underwritten as a broad-form policy. And so, it provides further protection against these risks:
Advertising Injuries And Defamation
General liability insurance protects HVAC contractors like you against claims for copyright infringement, slander, libel, invasion of privacy, and breach of confidentiality.
Your general liability insurance can have contractual liability coverage, which takes care of costs if the liabilities you assume in a project contract occur.
Liability Over Products And Completed Operations
General liability insurance has products and completed operations coverage. This is helpful if a client files a claim for bodily injury or property damage after you installed, cleaned, or repaired an HVAC unit.
Liability Over Damage To Rented Premises
Your HVAC business’s general liability insurance comes with rented premises liability coverage. And so, the policy can indemnify the losses of the landlord if his commercial space gets damaged by fire because of your fault.
Non-Owned/Hired Auto Accidents
General liability insurance with non-owned/hired auto liability coverage can take care of medical treatments or refunds for damaged properties if a vehicle you hired or borrowed causes a vehicular accident.
Most HVAC contractors get $1 million-$2 million professional liability insurance. This HVAC business insurance covers claims filed due to misdeeds you committed while installing or maintaining an HVAC unit. Professional liability insurance is useful when:
A client accuses you of installing an HVAC unit hastily resulting in leaks or damaged ductworks
A client accuses you of lying about your credentials and portfolio to get a project
You inflated the cost of your services to get a higher commission
You allegedly used substandard ducts, pipes, or even switched the original unit with a cheaper one
A client claims you hired the wrong subcontractors for an HVAC service
Your advice about HVAC installation and maintenance resulted in financial losses for a client
Professional liability insurance takes care of settlements, defense costs, and court judgments each time you face a claim for missed deadlines, violation of fair dealing, inaccurate advice, or negligence.
You can find a professional liability policy for HVAC contractors that also provides a $25,000 cost reimbursement for legal actions taken against your business by OSHA and other professional regulatory bodies.
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Screwdrivers, pliers, drills, ladders, flashlights, headlamps, gauges, and other equipment you use for HVAC work are costly.
Protect yourself against equipment loss or damage with HVAC contractors equipment insurance. As an HVAC contractor, you need at least $5,000-$15,000 of this HVAC installation insurance.
HVAC contractors equipment insurance will pay the repair or replacement of the tools and equipment you use for work. Coverage applies when loss or damage is caused by:
You must know that some insurance companies offer commercial HVAC equipment insurance as an optional coverage in general liability insurance.
It’s impossible to work efficiently in the HVAC business without a pickup truck, cargo van, flatbed truck, or other commercial vehicles that are useful for transporting personnel, equipment, and HVAC units.
Consider adding commercial auto insurance to your HVAC installer insurance plan. Commercial auto insurance offers the following shields for your business:
Auto Liability Coverage
Auto liability coverage is the primary protection included in the terms of commercial auto insurance. This will pay for the medical costs and indemnify the losses of victims if your HVAC business’s vehicle is liable for a vehicular accident.
Your HVAC service business must conform with state requirements. For example, if you’re in New York, your commercial auto insurance must have $25,000/$50,000/$10,000 auto liability coverage.
Physical Damage Coverage
Commercial auto insurance helps you pay for the cost of repairing or replacing the damaged parts of your commercial vehicle through its physical damage coverage. Physical damage coverage is sold as a collision policy or comprehensive policy.
Collision physical damage coverage will cover parts repair or replacement after your commercial vehicle crashed into something.
On the other hand, comprehensive physical damage coverage will cover parts repair or replacement if your commercial vehicle got damaged because of fire, theft, vandalism, hail, snow, and other covered perils.
Rental Reimbursement Coverage
If you need to hire another vehicle because the one that your business owns is being repaired, rental reimbursement coverage will refund the expenditures for vehicle rental. Note that some insurance companies underwriting this will require you to rent from a specific vehicle rental company for coverage to take effect.
Uninsured/Underinsured Motorist Coverage
Uninsured/underinsured motorist coverage will provide the money you can use to cover costs if your HVAC business’s commercial vehicle got involved in a crash and the driver, who caused the accident, isn’t insured or doesn’t have enough insurance.
You need an HVAC insurance policy that will protect the office and the valuable inside. Commercial property insurance satisfies this purpose well.
Commercial property insurance will allow you to account for repair or reconstruction costs by reimbursing losses if the office is damaged or destroyed by:
This type of HVAC insurance coverage will also reimburse the replacement cost of furniture, important documents, money, credit cards, computers, HVAC equipment, and other valuables that get damaged or lost due to the perils above.
Remember that commercial property insurance doesn’t provide help if business property gets lost or damaged while in transit. Moreover, it doesn’t cover building damage or loss as caused by flood, earthquakes, mudslides, landslides, or war.
This kind of business insurance hvac contractors might come with employee dishonesty coverage, which is useful for recovering losses in case an employee commits forgery, misrepresentation, embezzlement, theft, and other fraudulent crimes against your business.
As we said earlier, commercial property insurance doesn’t cover HVAC equipment that gets lost or damaged while in transit. Purchasing inland marine insurance will solve this problem.
Inland marine insurance reimburses the value of HVAC equipment that gets lost or damaged while in transit.
Coverage applies to items you already own or about to own. Inland marine insurance is available as a stand-alone policy. However, most insurance companies offer this as a commercial HVAC insurance floater.
Similar to the employees of siding and plumbing businesses, the workers of HVAC businesses face a lot of perils. And so, the law requires a worker's compensation policy to be added to commercial heating and cooling insurance programs.
When an employee of your HVAC service business sustains an occupational injury or disease, workers' compensation insurance takes care of these resulting expenses:
HVAC installation and maintenance is very perilous. Accidents are common. An employee can fall from a height, get electrocuted, or sustain burns. In connection, if a work-related accident happens and an employee gets injured, workers' compensation insurance will cover ambulance fees, surgeries, therapies, and other medical expenses.
By purchasing workers' compensation insurance, your business can cover the hospitalization of an employee if he or she experiences a severe work-related injury or disease and needs to be admitted for days, weeks, or months.
Workers' compensation insurance can be claimed so that your business can buy prescription medicines that the employee needs without incurring any losses.
Any employee that needs rehab to recover/adapt from a permanent impairment or temporary impairment is covered by workers' compensation insurance. Particular costs covered are rehab equipment and therapist fees.
Workers' compensation insurance covers the lost wages of an employee of your HVAC business who can’t work due to a work-related injury or disease. This inclusion in commercial HVAC insurance provides a weekly allowance equal to two-thirds or 67% of the average weekly wage.
Accidents at work can result in death. Workers' compensation insurance covers the resulting costs on behalf of your HVAC business in such a situation. Particularly, it will pay for the dead employee’s funeral. Workers' compensation insurance will also give an allowance to dependents.
Employer’s liability insurance covers settlements, defense costs, and court judgments if an employee holds your business liable for his or her occupational injury or disease. As an HVAC contractor, you need an employer’s liability insurance providing $500,000 coverage for each employee's injury by accident or disease.
The HVAC business insurance cost differs for each policyholder. For one, pricing is heavily dependent on which insurance policy you decide to get.
Each type of insurance for HVAC contractors has its own rate. This table shows the HVAC insurance cost based on this factor:
|Cost per Month||Cost per Year|
|General liability insurance||$37||$444|
|Commercial property insurance||$39||$468|
|Business Owner’s Policy||$44.16||$529.92|
|Commercial auto insurance||$63||$756|
|Workers compensation insurance||$70.25||$843|
Expect to pay $37 per month or $444 per year for a $1 million general liability insurance policy. This HVAC liability insurance cost estimate assumes that you have 5 employees and generate $500,000-$750,000 revenue per year.
To know more about HVAC contractor insurance cost, we suggest you take a look at this second table that shows the rates of the best companies:
|Cost per Month||Cost per Year||Best for|
|NEXT||$26.75||$321||Best overall; Fastest general liability insurance for HVAC contractors|
|CoverWallet||$28.50||$342||Custom HVAC contractor insurance and quotes comparison online|
|Tivly||$30.68||$368.16||Comparing HVAC contractor insurance quotes over the phone|
|Hiscox||$32.23||$386.76||General liability insurance for HVAC contractors with worldwide coverage|
|Thimble||$34.92||$419.04||HVAC contractor insurance by the year, month, week, day, or hour|
|State Farm HVAC Insurance||State Farm doesn’t state the average cost of its HVAC contractor insurance.||State Farm doesn’t state the average cost of its HVAC contractor insurance.||HVAC contractors looking for installation floater and garage keepers coverage|
Don’t forget to compare quotes to get a more accurate picture of your premiums. By doing so, you can see the actual cost of each carrier. Furthermore, you’ll see how their perks differ from one another. Click the “Get Quotes” button to start.
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Read the reviews below to know the pros, cons, and pricing of the best HVAC insurance companies for a $1 million general liability insurance.
Get an online proof of insurance and send as a text message, email, or social media post
Fastest general liability insurance for HVAC contractors
Great customer service and reputation
Issues an online proof of insurance instantly
Outstanding value for money
Bundle two or more HVAC contractor insurance policies and get a 10% discount
Couldn’t find any
NEXT’s HVAC contractor insurance offers general liability, workers compensation, and commercial property insurance. Commercial auto and inland marine insurance are excluded from the policy but you might get these through an endorsement. Note that NEXT’s general liability insurance for HVAC contractors has professional liability insurance included on its terms, which is very convenient. Also, equipment insurance can be added at a meager $13 per month.
Best for: Best overall; Fastest general liability insurance for HVAC contractors
Average cost: $26.75 per month
Our rating: 10/10
Sells a custom HVAC contractor insurance plan
General liability insurance is already added with products and completed operations coverage
You can add terrorism coverage to your HVAC contractor insurance
Free online certificate of insurance
Not an insurance company but an insurance broker
CoverWallet is an insurance broker that sells an HVAC contractor insurance plan made out of the policies underwritten by its partners such as Liberty Mutual, CNA, and Chubb. You have four options to choose from:
General liability only
General liability with professional liability
General liability bundled with professional liability and workers compensation insurance
In the custom HVAC contractor insurance plan, you can choose to avail as many other policies as you want. Additional policies you can buy through the custom plan are commercial property insurance, inland marine insurance, commercial auto insurance, fiduciary liability insurance, and more.
Best for: Custom HVAC contractor insurance and quotes comparison online
Average cost: $28.50 per month
Our rating: 10/10
Compare HVAC contractor insurance quotes over the phone
Responsive customer service
Provides coverage regardless of business type or industry
You have to speak with an agent to get a quote
Tivly (formerly CommercialInsurance.NET) underwrites its own HVAC contractor insurance that offers workers' compensation, general liability, commercial property, commercial auto, BOP, and business hazard insurance. Note that Tivly allows you to apply for a quote online. However, you can only get a copy once you’ve talked to a representative.
Call Tivly now and compare HVAC contractor insurance quotes over the phone.
Best for: Comparing HVAC contractor insurance quotes over the phone
Average cost: $30.68 per month
Our rating: 10/10
Get covered for the year, month, week, day, or hour
ACORD 25 certificate of insurance
Gives a refund if you cancel your policy
Doesn’t sell commercial auto insurance for HVAC contractors
Thimble provides an HVAC contractor insurance quote in less than 60 seconds. All you have to do is provide a zip code and give specific information about the HVAC services you offer. Another thing, Thimble’s HVAC contractor insurance is available as an hourly, daily, monthly, or annual policy.
Thimble’s annual HVAC insurance plan offers general liability insurance and workers compensation insurance. Note that the general liability insurance in this option comes with equipment coverage. Also, the policy limit is set at $1 million-$2 million with no deductibles.
If you go for an hourly or daily option, you’ll only enjoy a general liability policy with no optional equipment insurance. But still, one good thing to note is that same day coverage will be provided.
A monthly option is also available. In this one, your HVAC contractor insurance offers a general liability policy. This can be paused or canceled anytime for a full refund.
Best for: HVAC contractor insurance by the year, month, week, day, or hour
Average cost: $34.92 per month
Our rating: 9/10
Provides coverage whether or not you provide a specialized HVAC services that are highly perilous
Seamless claims filing
Majority of customers complain that Hiscox did a lot of back and forths to approve a claim
This company’s HVAC contractor insurance only offers a general liability insurance policy. Nonetheless, try Hiscox because it provides worldwide coverage. Meaning that your insurance provides protection even if you’re working abroad.
Best for: General liability insurance for HVAC contractors with worldwide coverage
Average cost: $32.23 per month
Our rating: 8/10
Online claims filing
Excellent reputation among customers
You need to work with an agent to get insured
State Farm’s HVAC contractor insurance also offers the policies the carriers above offer. What makes it special is that installation floater and garage keepers insurance is also included. Installation floater allows you to protect any AC or heating units to be transported and installed to a client’s building. On the other hand, garage keepers insurance covers costs if the property of third parties is damaged or lost under your custody.
Best for: HVAC contractors looking for installation floater and garage keepers coverage
Average cost: State Farm doesn’t state the average cost of its HVAC contractor insurance
Our rating: 8/10
Lonnie Bell Insuranker
Policy Type: Business Insurance
Company name: Employers Insurance
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!