Insurance for HVAC contractors
As an HVAC contractor, your clients depend on your expertise to provide them with thermal comfort and clean air. In an industry that works extensively on ventilation systems inside different residential and commercial properties, each project presents a varying risk level.
Accidents causing property damages or injuries can spark lawsuits against your business, quickly disrupting your operations. Having the proper risk management strategy in place is essential for your business’s survival.
At Zensurance, our mission is to make insurance as accessible as possible. We wrote this guide to help you navigate the basics of getting insurance for your HVAC business.
What is HVAC insurance?
HVAC contractors offer different heating and cooling services, which is why it is crucial to get insurance coverage designed for your business’s specific needs.
HVAC Insurance is a policy package that provides financial coverage for the common risks associated with operating as an HVAC technician, such as third-party injury or property damage.
What does it cover?
A comprehensive HVAC insurance program should typically include the following coverages:
- Commercial General Liability Insurance (CGL) is essential insurance coverage that every HVAC contractor should carry. CGL is a policy that can provide financial protection against lawsuit claims resulting from third-party property damage or bodily injury. For example, your ventilation services caused moisture issues in a client’s home, and they sue you for property damages. CGL may cover your business’s legal expenses and repair costs associated with the accident.
- Important note: your policy’s coverage limit may only apply to all full-time employees, not each individual. If you require the same amount of coverage for each employee, consider increasing your policy coverage limit.
- Tools and Equipment Insurance, also known as HVAC equipment insurance, is additional insurance coverage that protects your business’s tools and equipment. If your tools or equipment is stolen, lost, or damaged, this policy may cover the repair or replacement costs. Anything valued at less than $1,500 is considered a tool, whereas anything above is considered equipment.
- Pollution Liability Insurance is a policy that provides legal expense coverage against pollution-related accidents that resulted in third-party injury or property damage. HVAC technicians are responsible for the quality of the air at a client’s property. Installation mistakes can produce mold infestations that can cause severe illness or property damages. A Pollution Liability Insurance policy could cover these types of environmental liabilities.
Who needs it?
Any contractor that provides installation, repairs, or maintenance services to HVAC systems should protect themselves with a tailored insurance policy package.
Having the proper insurance coverage for your business could provide the financial protection you need in the event of a lawsuit. Additionally, most property owners will be expecting their HVAC contractors to be adequately insured. Having a certificate of insurance may help you secure contracts on projects that require liability coverage.
We’ve insured more than 1,000 contractors. Some services provided by our clients include:
- Air Duct Cleaning
- Boiler Maintenance/Replacement
- Furnace Repair/Installation
- Gas Line Installation
- Refrigeration Repair
- Water Heating Services
Coverage requirements may vary depending on your specific profession. Speak with an insurance broker about customizing your policy to suit your business needs.
How much does it cost?
HVAC Insurance typically starts at $540 for Commercial General Liability Insurance with a $2M coverage limit.
Different factors are considered when finding your business’s perfect coverage, including:
- Number of Employees (Independent Contractor/Technician vs. Large Business)
- Project type (Commercial vs. Residential)
- Training and Years of Experience
- Tools and Equipment Owned
- Annual and Projected Revenue
We’ve partnered with Canada’s leading insurance providers to offer the most exclusive HVAC business insurance rates.
Common claims scenarios
Frequently asked questions
Other contractor trades we can provide coverage for: