HVAC Business Insurance: Costs, Types, and How to Get It
HVAC contractor insurance protects your business, clients, employees, and your reputation from incidents and accidents that can happen while you’re on the job.
In most states, insurance is a legal requirement for HVAC businesses, and your business can be fined or shut down if you aren’t properly covered.
Choosing the right coverage doesn’t have to be expensive or time-consuming.
Below, Next Insurance provides the information you need to make sure you’re not overpaying for insurance you don’t need. Plus, you can get a free and reliable quote tailored to the HVAC industry.
Do I need HVAC insurance?
The simple answer is, yes. In most states, HVAC business insurance is required to get your license and operate your business. No matter if you plan on working in commercial sectors or with private homeowners, you need insurance.
HVAC coverage will protect you and your business from any number of things that can go wrong.
For example, general liability would help if you accidentally scrape the hardwood floor of a client’s house while bringing in a new air conditioner.
Workers’ compensation would help pay for some medical expenses if your employee trips over a multimeter and sprains an ankle.
What type of HVAC insurance do I need?
The type of insurance your business needs will vary based on state, city and county requirements, as well as the kinds of work you do.
You’ll want to factor the following in when shopping for policies:
- The structure of your business
- The types of projects you work on
- Where your projects are located
- Your payroll and the kinds of jobs our employees do
- The number and types of vehicles you use at work
Here is a brief overview of the most popular types of insurance:
- General liability insurance covers a wide range of HVAC accidents and risks. You’ll have financial protection if someone other than an employee gets hurt or if you are held responsible for damaging property that doesn’t belong to you.
- Tools and equipment insurance helps protect your gear if it’s damaged or stolen. This type of insurance is an addition to a general liability insurance policy.
- Professional liability can help cover legal costs and damages if you’re accused of making a mistake that results in financial harm to a client. For example, if a client makes a claim that you improperly quoted them for a parts markup. This type of coverage is also known as errors and omissions (E&O) insurance.
- Workers’ compensation can help cover medical bills and lost wages after a workplace injury. Having workers’ comp shows that you’re dedicated to employee safety. Most states require it as soon as you hire your first employee, and you might need coverage before you can get your HVAC license.
- Commercial auto helps pay for injuries and property damage that occur when you or an employee have an accident while driving a business vehicle. Personal auto insurance usually won’t provide coverage if you accidentally side-swipe another vehicle with your work truck.
READ MORE: What business insurance do I need?
When should I get HVAC insurance?
The earlier you insure your HVAC business, the better. Insurance is about protecting your business. If you’re planning to start an HVAC business, use our checklist to make sure you cover all of your bases.
If you’re already in business, get started with a quote ASAP.
READ MORE: HVAC company names to help you start your business
How much does HVAC insurance cost?
HVAC insurance policies can start as low as $29 a month. How much your HVAC insurance policy actually costs depends on the size of your business, where you’re located, how much equipment you have, how many vehicles you own, and what services you offer.
One thing to look out for when buying insurance is to make sure you aren’t paying for coverage you don’t need.
Make sure your insurance provider can tailor the policy to your needs.
Even better, work with companies who are dedicated to small businesses and have experience tailoring insurance policies for other HVAC contractors like yourself. Next Insurance has HVAC policies starting at $29 per month.
The best way to find out how much your coverage will cost is to get a quote.
In about 10 minutes, you can get an instant quote online, select your coverage options and get your certificate of coverage.
If you have questions during the process, Next’s licensed, U.S.-based insurance professionals are just a phone call away.
Once you’re covered, you can instantly share your certificate of insurance to boost your brand and build client trust.
The content and information in this article were provided by Next Insurance.