What Kind of Insurance Do I Need to Run an HVAC Business in Ohio?
When someone’s heater or air conditioner malfunctions on an unbearably hot or cold day, an HVAC contractor is a priceless resource. In high demand even on days with mild temperatures, as an HVAC contractor you are essential in keeping homes and businesses safe and comfortable. While a client’s HVAC emergency is something you’re comfortable and capable of dealing with, emergencies that occur related to work you’ve done can be more difficult to navigate. This is why having the right kind of insurance to run your HVAC business is essential.
Keeping customers’ homes warm, cool, and safe from leaks or dangerous gas involves significant liability. Customers or HVAC employees can become injured or property damaged, and equipment can malfunction – all of which can result in expensive lawsuits.
This post takes a look at the answer to the question, “What kind of insurance do I need to run an HVAC business?”
Common HVAC Insurance Coverage
HVAC contractor insurance coverage can be made up of several different types of insurance. Because every HVAC business is a little different, you need insurance customized to meet your business’ exact needs. Some common HVAC insurance coverage policies include:
Commercial General Liability: A commercial general liability policy safeguards you from third-party injuries, third-party property damage, installation and repair problems, moisture damage, and more. If an employee damages a client’s home or business while installing a ventilation system, your business is financially responsible for the damages. A commercial general liability policy covers the cost of these damages, which frees you from having to pay them out of your own pocket.
Commercial Property: A commercial property insurance policy covers the physical structure of your business as well as the contents inside. If a natural disaster destroys or damages your business property or equipment, a commercial property insurance policy assists in paying for repairs to your building. Additionally, it assists in covering the replacement cost for any damaged equipment.
Errors and Omissions: Errors and omissions (E&O) insurance protects you and your employees against negligent claims made by clients. Sometimes called professional liability insurance, E&O covers legal fees, including attorney and court fees, in the event a client files a lawsuit against you claiming negligence. An E&O policy will also pay for any settlement that may be awarded from such a lawsuit.
Workers Comp: If you employee a staff, you don’t want to be without workers compensation coverage. Workers comp covers your HVAC business from liability related to injuries or illnesses that befall your employees while they’re working. If an employee sustains an injury while installing a ventilation system, for example, workers compensation would cover the cost of medical care. While an employee is recovering from a work related injury, workers’ comp assists with missed wages.
Commercial Auto: Commercial auto insurance provides coverage for automobiles used for businesses purposes. While this includes business-only vehicles, your policy may also include your (or an employee’s) vehicle when in use for business. Commercial auto insurance policies have high limits, ensuring you can cover your costs if one of your business’ vehicles gets into an accident.
Questions to Ask
These are some of the most common coverage choices when it comes to insuring your HVAC business. Keep in mind your particular situation may warrant additional or different coverage. Because coverage needs vary, coverage cost will vary based on location, size, payroll, sales, and experience.
You want to be sure your Ohio HVAC business has insurance coverage that fits your specific needs. This involves answering a few questions. For example: Is the work you do commercial, residential, or both? Are most of your jobs focused on construction and remodeling, or installation and repairs? Each contractor’s specific services come with their own set of risks, so coverage will vary depending on your answer to those (and other) questions.
At Malhotra Insurance, we are happy to assess your HVAC insurance needs and create customized HVAC insurance plans designed specifically for you. Our independent insurance agency has been delivering quality insurance policies to individuals and businesses in Ohio, West Virginia, and Indiana since 1985. Our friendly staff works with you on a one-on-one basis, paying special attention to detail, to create the perfect policy for you. We’re here to help, and would love to hear from you. Contact us today!