HVAC Contractor Insurance Cost

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From property damage and equipment failure to injuries and illnesses, HVAC contractors face several unique risks that can result in major financial losses if they are not covered by the right insurance policy.

HVAC contractor insurance can cover you and your business in the event that a customer or employee makes a claim against you. Instead of paying with your personal or business assets, the insurance will cover the costs.

Read below to learn more about the cost of HVAC contractor insurance, what it is, what is covered, and more.

What We’ll Cover

  • What is HVAC contractor insurance
  • Cost of HVAC contractor insurance
  • What does it cover?
  • Benefits
  • Tips for buying
  • Types of insurance HVAC contractors may need
  • FAQ

What Is It?

HVAC contractor insurance includes policies such as general liability, professional liability, workers’ compensation, and commercial property, all of which are designed to protect contractors against many of the risks they face on a day-to-day basis.

With a comprehensive HVAC contractor insurance package, your business will be financially protected if an employee or customer makes a claim against you due to damages caused by your services.

What Does it Cover?

While your coverage will depend on your specific policy, a typical HVAC contractor insurance policy package will cover:

  • Property damage
  • Personal or bodily injury
  • Commercial property damage
  • Medical costs and missed wages for employees injured on the job
  • Failure to perform services
  • Damage resulting from faulty advice

Depending on your business, you may need more or less coverage than described above. To ensure you are sufficiently covered, be sure to carefully evaluate your needs and review your insurance policy to understand what is and is not covered.

Benefits

Benefits of HVAC contractor insurance include:

Financial Protection: HVAC contractor insurance can financially protect you and your company in case an employee or customer makes a claim against you.

Professionalism: HVAC contractor insurance doesn’t only protect you, it also protects your customers. Having the right coverage will help customers feel more protected and more confident in your services.

Comply with State Laws: Certain policies, like workers’ compensation, are often required depending on your state. HVAC contractor insurance can help you comply with your state and local laws.

Cost of HVAC Contractor Insurance

The cost of HVAC contractor insurance depends on several factors, including your claim history, the size of your business, hiring procedures, coverage required, etc.

You can expect the cost of HVAC contractor insurance to start at:

  • $39/month for General Liability
  • $89/month for General Liability + Professional Liability
  • $89/month for General Liability + Professional Liability + Workers’ Compensation

Types of Insurance HVAC Contractors May Need

To ensure you are completely covered, HVAC contractors should consider taking out the following types of insurance:

General Liability: Covers costs resulting from property damage, personal injury, or third-party injury that occur while performing services.

Workers’ Compensation Insurance: Pays for missed wages, medical costs, and rehabilitation that result from an employee being injured or becoming ill on the job.

Commercial Property Insurance: Covers costs that arise when commercial property or equipment is stolen or damaged.

Professional Liability: Pays for legal costs when a contractor fails to perform services or offers professional advice that results in damages for the client. Also known as Errors & Omissions insurance.

Tips for Buying

Follow these tips to help you find the right HVAC contractor insurance policy for your company:

1. Compare quotes: Insurance rates can vary greatly, so it’s important to compare HVAC contractor insurance rates from three to five companies to find the best offer available.

2. Fill in the gaps: A standard insurance policy will cover many common risks, but may leave some important gaps to fill. Be sure to review your policy to determine what additional policies you may need to protect you and your business.

3. Know your state laws: When determining which policies you need, be sure to review your local and state laws to find out if there are any required policies, such as workers’ compensation insurance.

FAQ

Why do HVAC contractors need insurance?
HVAC contractors face a number of risks that can result in damage to a client’s property or the injury of an employee or customer. Without insurance, these incidents can leave your business vulnerable to costly lawsuits.

What does a surety bond cover?
A surety bond is a contract between the principal (the contractor), the obligee (the client), and the surety (the insurance company). Surety bonds guarantee that the principal will fulfill their obligations to the obligee. If not, the customer can make a claim to recover losses resulting from the contractor’s failure to perform services.

What risks do HVAC contractors face?
HVAC contractors face several unique risks. This can include:

  • A faulty diagnosis that causes the HVAC system to break down.
  • An employee being injured while performing maintenance.
  • A contractor failing to complete a task.

Summary

HVAC contractor insurance can protect you and your company from risks that you may face while performing your services. Without this protection, your business is vulnerable to income loss or bankruptcy if an employee or customer makes a claim against you.

As the cost of HVAC contractor insurance is typically very affordable, it is a very worthwhile and cost-effective investment for contractors to make.