Whether you do full HVAC or focus solely on AC installation, repair and maintenance, businesses and homeowners rely on your expertise to get them comfortably through all four seasons, no matter the weather.
AC installation means entering people’s homes and businesses with tools and equipment and working on several of their building’s vital systems – which exposes you to several liability risks. Our AC installation Insurance packages are customized to meet your company’s exact business needs to help protect from those risks.
AC Installation Insurance – How it can protect you
Basic AC installation insurance generally includes:
Commercial General Liability Insurance – Commercial general liability insurance is the insurance policy that protects most businesses from their liability to bodily injury or property damage they could cause to third parties while operating their business.
It can cover your AC installation business for the costs associated with injuries to third parties and property damage that your service would otherwise be liable for.
Example: During a service call, you or one of your technicians accidentally overloads the circuit causing extensive damage to the building’s electrical panel and they are forced to hire an electrician to repair the damage. Your CGL policy will likely respond and cover the repair costs.
Commercial general liability insurance can also cover your AC installation company for lawyer’s fees, defence costs, settlements and judgements against you for lawsuits alleging personal injuries, property damage, false advertising, libel and slander.
Example: An HVAC system your company improperly installed causes a buildup of condensation which leads to mold growth and respiratory illnesses in the family years after the install. You’re served with a lawsuit for the costs of removing the old system, mold remediation, installation costs for a new HVAC system, healthcare expenses, hotel bills and general damages.
A CGL policy could cover your legal expenses including out-of-court settlements and awards for damages.
Other Insurance Coverages Your AC Installation Company May Need
Property Insurance – covers the structures on your property (which in some cases can cover tools, equipment and/or inventory for your home-based business) and contents within such as tools, equipment, machinery, tenant improvements, supplies, etc., in case of fires, floods, windstorms, sewage backups and other perils.
Coverage can also include your AC installation tools and equipment while in transit or on the jobsite.
Commercial Auto Insurance / Commercial Vehicle Insurance – we can provide individual and fleet coverage for your trucks, vans and any other vehicles owned by your AC installation company that require insurance coverage.
Why is Insurance Important for HVAC Contractors?
Insurance is important for HVAC contractors because as you work on installing, repairing, and maintaining the air conditioning systems of your clients, you are entering their personal or commercial property.
Each project poses varying levels of risk because often, you need to rework the structures of the HVAC system, carry the HVAC system components into your client’s property, use specialized equipment, and more to get the job done.
Because you are making alterations and installations to some of your clients’ most vital building structures, there is a lot of potential for liability risks and third-party claims arising from faulty service, property damage, injury, and more.
Having insurance can provide your business with protection in the event of a third-party liability claim. Insurance can also provide coverage for the costs associated with legal defenses, property repairs, and more.
How Much Does Insurance for HVAC Contractors Cost?
The cost of insurance for HVAC contractors varies significantly depending on your coverage requirements, claims history, business structure, and type of HVAC work.
Some of the factors that impact your air conditioning repair company insurance cost include:
- How big your air conditioning repair company is and how many employees you have.
- Whether you work on air conditioning repairs in commercial or residential properties.
- The location of your air conditioning and repair company.
- How many claims your business has had.
- The amount of revenue you generate per year as the more work the more risk.
For commercial general liability insurance, rates typically start around $540 to $550 a year for a basic coverage limit of $2,000,000. However, you can always buy more coverage as needed.
What is Covered Under the HVAC Contractors Liability Policy?
HVAC contractor’s liability insurance, also called commercial general liability insurance, is required by contractors doing air conditioning repair work to protect themselves from claims and financial liability.
Regardless if you are doing work inside a residential or commercial property, HVAC contractors typically carry a minimum of $2,000,000 of commercial general liability insurance. It provides coverage for:
- Legal expenses resulting from out-of-court settlements, awards for damages, lawyers, and defense costs.
- Medical costs if someone is injured because of your air conditioning repair work.
- Property damage caused by your air conditioning repair work, for example, water damage from leaks.
- Injuries to a third party caused by your air conditioning repair work.
- Repair or replacement costs caused to other building systems or structures as a result of your air conditioning repair work.
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