Policies Available for HVAC Contractor Insurance:

• General liability insurance
• Workers compensation insurance

Benefits:

• It can protect your business from certain claims.
• It can cover accidents & damages caused by your negligence.
• Proof of insurance can help customers feel good about your work.
• It may be legally required where you’re located.

What Type of Insurance Do I Need for My HVAC Contractor Business?

The components of your HVAC contractor insurance will depend on your business’s needs. Below are the core policies we recommend for the best HVAC insurance:

Commercial General Liability Insurance

With commercial general liability (GL) insurance, HVAC contractors are covered for any costs that result from situations like accidents that cause third-party property damage or bodily injury.

General liability insurance is essential for HVAC contractors for many reasons, with the most important being that without it, you’d be responsible for covering these costs yourself. With the average claim for property damage or accidents for small businesses being around $30,000, paying for these claims with your hard-earned money can be devastating.

Even if you’re the most cautious HVAC contractor in your area, accidents can still happen. For example, let’s say one of your employees was carrying an AC unit into a customer’s house and didn’t realize the storm door was closed. He walked right into the door, which shattered the whole thing completely. General liability insurance could cover the damages to the broken door.

Without HVAC contractor liability insurance, you’d have to pay all associated costs yourself. Lucky for you, your policy will cover your customer’s repair bills, along with any other fees (like if they hire a lawyer and sue you).

So what could a general liability policy cover? Here’s a quick look:

• Bodily injury to another person
• Third-party property damage
• Personal and advertising injury
• Medical expenses
• And more

Now here’s what general liability insurance usually doesn’t cover:

• Damage to your own property
• Professional services
• Workers compensation or injury to your employees
• Damage to your work
• Automobiles while in business use
• Expected or intentional injury or damage
• And more

Workers Compensation Insurance

For the majority of states, if you have any employees — temporary, part-time, or full-time — you’re required to carry workers compensation insurance. This insurance, also known as workers comp, protects your business if your employees get injured or sick while working.

Carrying workers compensation insurance is a responsible thing for HVAC contractors to do. No matter how careful you are, accidents can happen. In fact, in 2018, skilled laborers had the highest number of injuries and illnesses among private-industry occupations.

Workers compensation insurance for HVAC contractors can cover:

• Medical payments
• Lost wages
• Rehabilitation expenses
• Death benefits

Why Should I Get Insurance for My HVAC Contractor Business?

You’re juggling new customers, emergency calls, and seasonal prep, all while trying to create a profitable business. The last thing you want to think about is paying for HVAC contractors insurance.

Here’s the reality: The amount you spend on insurance is a fraction of what you could potentially spend on work-related incidents. Covering the cost of an employee’s medical bills if they get hurt on the job or paying the fees associated with a lawsuit could be damaging to an HVAC contractor business, especially if you’re just getting started.

Just how much would it cost you? Consider the average costs that small business owners are at the risk of paying without proper insurance:

• Reputational harm: $50,000
• Customer injury or damage: $30,000
• Customer slip and fall: $20,000
• Burglary and theft: $8,000

Not only are accidents expensive to pay out-of-pocket, but so are lawsuits. The average cost for a business liability lawsuit starts at around $54,000, which could be a significant expense for a small business.

It’s important to note that you don’t have to do anything wrong to be sued by a customer. You could do everything right from start to finish and provide the best services, but if your customer decides to sue you, you’re responsible for paying those fees out of pocket. Plus, you may have to hire a lawyer, which adds up quickly!

But with the right insurance, you won’t have to worry about a single fee.

In addition to protecting your business, having insurance does more than keep you protected. Carrying proof of insurance can be the difference between hitting major milestones with your HVAC contractor business, such as:

• Acquiring more vehicles for your fleet
• Recruiting other HVAC contractors to work with you
• Earning customers’ confidence and trust
• Expanding your service area
• And more!

When you purchase your insurance policy through Simply Business, you’ll receive a certificate of insurance (COI), so you can start providing proof of coverage.

HVAC Insurance FAQs

Why Choose Simply Business?

Simply Business is one of the fastest-growing online providers of small business insurance. We make it easy to compare and purchase business insurance policies from top providers. Thousands of small business owners trust us for protection so they can keep doing what they do best — growing their businesses.

But why choose us? The answer is simple:

We’re fast and affordable. You don’t have time to worry about your insurance, and that’s OK. We’ll make sure you’re equipped with the right policy from the get-go.

We’re flexible with coverage. Need to make a change to your policy? We’re ready to help when you need it.

We understand your business. The world doesn’t need another one-size-fits-all insurance policy. Get the complete protection your HVAC business needs from day one.

You’ve worked hard to build your HVAC business, so you should have insurance coverage that works just as hard.