Do I need HVAC insurance?

3 minute read  

Canadians rely on HVAC contractors to keep them cool in summertime and warm in wintertime. But it’s complex, intricate work that requires technical expertise — which means it comes with its own set of challenges.

Whether you’re an HVAC contractor, HVAC repair technician, HVAC subcontractor, business owner, your clients rely on you to install, repair, or maintain their HVAC systems. While you focus on keeping your clients stay comfortable, it’s essential to protect your business from potential risks like property damage and on-site injuries. That’s where HVAC insurance comes in – it helps you safeguard your business so you can continue providing excellent service with peace of mind.

Why do HVAC contractor and business owners need insurance?

Proof of insurance for clients

Clients often require proof of insurance before hiring you for a job to ensure any potential mishaps, like property damage or injuries, are covered. Having the right insurance isn’t just a formality – it’s a way to provide peace of mind for both you and your clients, build trust and credibility, and it protects your business from financial losses.

Increased risk on job sites

Working at residential or commercial sites increases your exposure to accidents. For example, if a technician accidentally drops a heavy tool from a ladder, it could injure someone or damage the client’s property. Insurance helps cover these kinds of liability claims, protecting you and your clients.

Hazardous materials and injury risks

HVAC contractors often work with potentially hazardous materials like sealants, refrigerants, and insulation. Some of these materials can produce toxic fumes or contain acidic chemicals that can cause burns. Any lapse in safety precautions could lead to injuries. Insurance helps protect against these risks, ensuring both you and your clients are covered.

Expensive specialized tools

As an HVAC contractor, you depend on specialized tools like psychrometers, nitrogen regulators, and thermal imaging tools, many of which can be costly to replace or repair if lost, stolen, or damaged. Delays in getting these highly specialized or custom-designed tools fixed or replaced can impact your productivity and ability to meet deadlines. Insurance helps cover these risks, ensuring you can keep your projects on track.

Risk of equipment malfunction

Equipment malfunction can pose a liability hazard like an electrical issue or a fire. Even after completing a job, you could face professional liability if a client accuses you of negligence, such as a fire or a water heater causing a leak. Insurance helps cover these liability claims, protecting you from potential lawsuits and financial losses. 

Vehicle risks

As an HVAC contractor or owner, you likely rely on your vehicle or fleet to transport technicians and equipment to jobsites. That means you’re at risk of collisions, tool theft, and other vehicle-related hazards. If you use a personal vehicle for work or let employees use it, you face significant risk since personal vehicles usually aren’t typically covered by a commercial auto policy. Insurance helps protect against these vehicle-related hazards, ensuring your business stays on the move.

Types of insurance for HVAC contractors and business owners

Working in the HVAC industry comes with its own set of risks, including liability claims, lawsuits, out-of-pocket costs, business interruptions, productivity loss, and reputational damage. That’s why having a customized HVAC insurance policy is crucial. Here are some key types of insurance to consider:

Commercial General Liability (CGL) insurance: This insurance helps protect your business from claims of property damage or bodily injury to a third party when working on a jobsite.
Commercial Property insurance: This insurance protects your office and its contents, including tools and equipment, from natural hazards, theft, and vandalism.
Tools and Equipment insurance: This covers the costs of replacing or repairing tools and equipment that are lost, stolen, or damaged while you’re in transit or on a jobsite.
Business Interruption insurance: This insurance helps cover your business expenses, such as rent and payroll, if you can’t work due to a covered loss.
Commercial Auto insurance: Whether you use a personal vehicle for work or own a fleet of vehicles, this insurance protects you, your employees, and any passengers. It can cover medical expenses, lost wages, and replacement car coverage if you or your employed drivers were involved in an accident.
Installation Floater insurance: This insurance protects your business if the equipment or appliance you’re installing is damaged before or during installation. This is especially useful for tricky HVAC installations.
Professional Liability coverage: This is also known as errors and omissions (E&O) insurance. This coverage protects your business against claims of errors, professional negligence, failure to meet deadlines, and breach of contracts.
Pollution Liability coverage: This insurance helps cover environmental damage and clean-up costs, which is important for HVAC contractors who work with toxic or semi-toxic materials.

Protect your business with HVAC insurance

Even with the best precautions, unexpected issues like equipment malfunctions, office floods, or accidental property damage on a jobsite can still occur. Protect yourself and your business from these risks with HVAC insurance. To learn more, visit our HVAC contractor insurance page today!

This blog is provided for information only and is not a substitute for professional advice. We make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information.