A Guide to Insurance for HVAC Companies
June 1, 2024
In this guide, we cover the basics of insurance for HVAC businesses. This guide will teach you the most common insurance policies you should consider so you can make sure your business stays on track even when the unexpected happens.
The Four Insurance Policies HVAC Companies Should Consider
General Liability Insurance
General liability insurance is the foundational policy for most businesses. This covers you against third-party claims for bodily injury or property damage. Imagine damaging previously installed ductwork in a customer’s home. This policy would help pay for the necessary repairs for your customer and any legal fees that may arise from the incident.
Commercial Property Insurance
This policy protects your physical assets including your building, equipment, and inventory. So if a pipe bursts in your company office this policy will pay for the repairs to get you back on your feed quickly.
Workers’ Compensation Insurance
If you have employees, Louisiana requires you to have workers’ compensation insurance. This covers medical bills and lost wages for employees who get injured on the job. For example, if a worker falls off a ladder and breaks their arm while at a customer’s home, workers’ compensation insurance will step in to cover the claim.
Commercial Auto Insurance
Most HVAC companies have company vehicles for service calls and equipment transportation. This insurance protects your business if there is an accident or damage to a company vehicle.
Bonus: Other Policies to Consider
Three other insurance policies HVAC companies should consider are Errors and Omissions Insurance (E&O) and Business Interruption Insurance. E&O Insurance, also known as professional liability insurance, protects you from claims of faulty workmanship. While Business Interruption Insurance helps businesses financially recover from lost income due to a temporary closure caused by a covered event.
Another important policy to consider is an Installation floater. This covers your materials and other commercial property while being transported and installed on a job site or other temporary location.
The specific insurance policies and limits your HVAC company needs will depend on a number of factors. Consulting with a qualified independent insurance agency, like Lewis Mohr, is vital to ensure you have the correct coverage in place. If you have questions about the insurance needs for your Louisiana business, please give us a call or reach out via our website!
