HVAC Contractor Insurance: Cost & Quotes From $11

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HVAC contractors make homes habitable. In the unfortunate event that an AC gives out in the middle of a heatwave, an HVAC professional can swoop in and save the day. The same case applies to a homeowner with a broken heater in the dead of winter.

Although HVAC contractors train for years before obtaining a license, sometimes things go south. One slight mistake could lead to a disaster, leaving you on the hook for thousands of dollars in damages. Taking adequate HVAC insurance ensures you're fully protected against all possible risks.

Dig in as we explore some of the best HVAC contractor insurance you need to grow your business and trounce the competition.

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HVAC General Liability Insurance

Property damage and bodily injuries are some potential risks you need to head off while running an HVAC business. This type of HVAC contractor liability insurance covers your business for any potential liability for injuries and property damage while on the job.  

A homeowner or their loved one could trip over your equipment and sustain serious injuries. General liability included in heating and cooling insurance protects your HVAC business from any claims a homeowner makes against your business.

Claims covered by general liability insurance for HVAC contractors include:

• Property damage: If you accidentally drop an AC unit and damage a client's flooring or the unit itself, general liability insurance  will provide reimbursements for damaged property

• Bodily injuries: If your client trips over cables or an air duct lying on the floor, general liability covers their medical bills and your legal bills if the client decides to take legal action 

• Product-completed operations: If a ventilation hood comes off weeks following the installation, the products and completed operations coverage in the general liability insurance pays for the resultant damage.

• Advertising injuries: Advertising injury claims may result if another business sues you for copyright infringement, libel, or slander. Liability insurance protects you from accidental advertising injuries.

HVAC installation insurance safeguards your business reputation while protecting your cash flow. It assures your clients that you're covered against any eventualities while undertaking a contract. HVAC installer insurance may help you secure more jobs since most clients insist on proof of coverage when signing a contract.

Professional Liability Insurance for HVAC Contractors

Installing an HVAC is a very intricate task. No matter how well trained, you or an employee can still commit mistakes. Such mistakes might result in damage to the HVAC unit.  Also, suppose a technician fails to seal a duct properly, leading to a mold infestation. The infestation could trigger health problems in the household and require expensive remediation to fix the problem. Professional liability insurance for HVAC contractors covers the costs of fixing the damage and legal fees if the client sues. It covers the following perils aside from  your liability for errors committed when installing an HVAC for a client:

• Negligence

• Misrepresentation

• Violation of good faith

• Violation of confidentiality

• Other acts constituting errors and omissions

Commercial Property Insurance for HVAC Contractors

HVAC contractors like you own or rent a commercial building that serves as an office space and storehouse for equipment and HVAC units. A lot will be lost if the commercial building and the items stored inside become lost or damaged. This is why it’s not bad if you invest in commercial property insurance that shields against:

Building Destruction	Building Damage
The building you’re using as an office and storage for valuable supplies and HVAC installation equipment will be destroyed by fire or extreme weather. Commercial property insurance ensures that such an event won’t be the end of your business. It will provide reimbursement equal to the actual cash value or replacement cost of the destroyed building so that you can pay for reconstruction	If not destruction, then fire or extreme weather as well as theft, vandalism, and other covered perils will damage your commercial building. Commercial property insurance helps you revert the building to its pristine condition by reimbursing losses based on the actual cash value or replacement cost of damaged structures

The protection commercial property insurance provides doesn’t end with coverage for building destruction or damage. It has the following inclusions that will protect your business’s documents, equipment, and other valuable items. 

Stocks and Contents Coverage	Business Equipment and Tools Coverage
Commercial property insurance includes stocks and contents coverage and will reimburse your losses if office computers, CCTV cameras, documents, and other valuable items become damaged or lost due to fire, theft, vandalism, extreme weather, and other covered perils	You invested a lot in HVAC service equipment such as drills, electric multimeters, step ladders, reciprocating saws, caulking guns, wrenches, tubing cutters, manifold gauges, vacuum pumps, and more. Commercial property insurance will reimburse your losses if these become lost or damaged due to fire, theft, and other covered perils

Worker's Compensation Insurance for HVAC Contractors 

State laws and licensing boards require HVAC businesses to have worker's compensation insurance coverage. Similar to what it does for CCTV installers and fire alarm installers, the coverage shields your HVAC business from potential liability when an employee is injured while on the job. In practice, workers' compensation insurance provides coverage for the following:

Coverage	Function
Employee Treatment/Medical Procedure	An employee might fall from an elevated spot, experience muscle pains due to fatigue, get electrocuted, and have his or her hand cut or lacerated by work tools or equipment. You’re responsible for the treatment/medical procedure of the employee. In connection, workers compensation insurance assumes this responsibility on your behalf by providing money the employee can use for surgeries and other medical procedures/treatments
Hospitalization	HVAC accidents result in major injuries that require intensive care at the hospital. Hospital bills are never cheap and we’re sure that you don’t want to pay for them yourself. Workers' compensation insurance is useful for your business because it will take care of the employee’s hospital bills until he or she is discharged
Medication	Your employee will need medicines to heal faster. For example, anti-inflammatory or antibiotic meds will be required to prevent deep wounds from getting infected.  Workers' compensation insurance ensures that you don’t spend a dime when covering an injured employee's medication
Rehabilitation	Fractures and other related injuries will result in the impairment of specific bodily functions. Of course, your employee will need rehabilitation to recover or at least adapt to his or her impairment. Workers' compensation insurance also functions to cover payments for rehabilitation
Lost Income Compensation	After experiencing an injury, your employee might request a leave to heal. But even so, the law mandates that you compensate the employee’s lost income. Workers' compensation insurance will do this for you. It will give the employee a weekly allowance equal to two-thirds or 67% of the average weekly wage. So if you’re employee earns $1,423 per week, the compensation for lost income workers comp insurance provides will be $953.41
Death Benefits	Your employee might die after falling from a height, getting electrocuted, or because of other work-related accidents. Workers' compensation insurance is very useful in this situation. It provides death benefits such as funeral payments and allowance to the deceased’s dependents

How Common are HVAC Work-Related Accidents?

Accidents are very common when installing or maintaining HVACs. There are a lot of incidents the Occupational Safety and Health Administration recorded. Here are some examples:

HVAC Contractor Commercial Auto Insurance

Commercial auto insurance covers the vehicle you use for work and the employees traveling in it. The policy is a business requirement for any company-owned vehicle in many states. Commercial auto insurance provides the following protections:

Coverage	Function
Auto Liability Coverage	While on the way to a client or going back to the office, your commercial vehicle might injure others or damage property in an accident. It’s your job to take care of medical expenses and reimbursements for damaged property. Commercial auto insurance’s auto liability coverage will take care of these expenses for you
Physical Damage Coverage	Physical damage coverage is an inclusion to commercial property insurance that ensures you don’t spend money for repair or replacement if the commercial vehicle becomes damaged. This has two forms - collision and comprehensive.  Comprehensive physical damage coverage will pay for parts repair or replacement if your commercial vehicle incurred damage due to fire, theft, hail, wind, and other covered perils. On the other hand, collision physical damage coverage will pay for parts repair or replacement if your HVAC business’s vehicle got damaged after colliding with an object or another vehicle on the road. Note that comprehensive and collision physical damage coverage doesn’t take care of aftermarket parts
Emergency Roadside Assistance	The commercial vehicle you’re using for HVAC installation services might suddenly experience issues during the trip. Of course, you have to shoulder out-of-pocket expenses for roadside assistance services. Otherwise, you’ll not make it to the client, get back to the office, or be forced to leave the vehicle vulnerable on the road. Commercial auto insurance comes with emergency roadside assistance coverage. What it does is reimburse your expenditures for battery delivery or replacement, gas delivery, tire repair, tire delivery and replacement, jump start service, and others
MedPay/Personal Injury Protection	MedPay/personal injury protection are essential coverages in commercial auto insurance. MedPay and personal injury protection will cover the medical treatment of the driver and the passengers who got injured in an accident your commercial vehicle caused or another vehicle caused.

What is Commercial Fleet Insurance for HVAC Contractors?

Another type of HVAC insurance is commercial fleet insurance. Commercial fleet insurance is basically commercial auto insurance that provides coverage for three or more vehicles. Its cost is significantly cheaper than when you decide to insure multiple vehicles with separate commercial auto insurance policies. 

Commercial HVAC Equipment Insurance

HVAC contractors must invest in specialty tools and equipment to service their clients. Without these tools, your business can’t provide services well. Commercial HVAC equipment coverage protects your business equipment against theft, damage, or destruction while it’s being used on the project site. The coverage ensures continuity in case of a mishap by handling the repair or replacement cost. This HVAC insurance policy protects your cash flow by shielding you from crippling replacement costs.

Other Insurance Policies for HVAC Contractors

You can never carry too much coverage when running an HVAC business. The insurance policies we discussed above cover the most common exposures you might face. But you still have other options such as: 

Inland Marine Insurance

Running an HVAC business requires traveling to your clients, which places your expensive tools and equipment at risk. Your tools of trade aren't covered by the commercial property insurance while in transit. The policy only compensates you for losses at or near the address listed on the policy. An inland marine insurance coverage steps up to fill this gap. The policy covers your business property while in transit or stored at worksites.

HVAC Contractor Business Owner’s Policy

A business owner’s policy is a very cost-effective option for insuring your business because it offers commercial property insurance and general liability insurance under one roof. This basically means that a business owner’s policy saves you time and money.

Depending on which carrier you get it, a business owner’s policy will also include one or more additional insurance products in its terms. For example, CoverWallet’s business owner’s policy includes workers' compensation insurance aside from general liability and commercial property insurance. On the other hand, The Hartford business owner’s policy has additional cyber liability insurance, business interruption insurance, rented/owned auto insurance, and more. 

Employer’s Liability Insurance

Employer’s liability insurance will cover expenses if an employee sues you for negligence after experiencing a work-related injury. 

HVAC Business Insurance Cost

HVAC contractor insurance cost depends on your insurer and your specific needs. Significant variables that influence HVAC liability insurance cost include:

• The kind of service you provide

• Location

• Size of your business

• Coverage required

• Your hiring procedures

• Claim history

On average, HVAC businesses in the US spend $56.21 per month or $674.52 a year for a $1 million general liability insurance coverage. Your HVAC insurance cost will rise if you need commercial property insurance and worker's compensation insurance. Therefore, it's advisable to opt for a Business Owner's Policy BOP. 

To get more idea about the cost, we’ve made a table showing the pricing of the best insurance companies for HVAC contractors and other related businesses:

The ideal commercial general liability insurance carries a coverage limit of $1 million per occurrence and $2 million aggregate. Deductibles vary between insurance companies, but you can lower the cost by shopping around for the best rates.