As an HVAC contractor, you face unique risks every day on the job. From potential injuries to equipment damage, a single incident could put your business in line for a large bill. That’s why having the right insurance is crucial. But with so many options available, what type of insurance does an HVAC contractor actually need?
The Essential Types of Insurance for HVAC Contractors
Every business is going to differ slightly. But below are the types of insurance that every HVAC contractor should have:
- General Liability Insurance: This is your first line of defense against lawsuits related to bodily injury or property damage that occurs as a result of your work. It covers legal fees, settlements, and medical expenses.
- Workers’ Compensation Insurance: If you have employees, this insurance is mandatory in most states. It provides benefits for work-related injuries or illnesses, including medical care and disability payments.
- Commercial Auto Insurance: If you use vehicles for business purposes, this insurance is essential. It covers damages to your vehicle and liability for injuries or property damage caused by an accident.
Types of Insurance That Most HVAC Contractors Should Have:
- Tool and Equipment Insurance: This type of insurance protects your valuable tools and equipment from theft, damage, or loss while they’re in transit or on the job site.
- Professional Liability (Errors & Omissions) Insurance: This covers you in case a client sues for negligence or mistakes in your work that result in financial loss.
- Cyber Liability Insurance: With the increasing reliance on technology, this insurance protects your business from data breaches, hacking, and other cyber threats that could compromise sensitive information.
How much does insurance cost for an HVAC contractor?
The cost of insurance varies widely depending on factors like your business size, annual revenue, location, and claims history. On average, HVAC contractors can pay anywhere from $300 to $9,000 per year in premiums.
The cost of insurance premiums may seem high, but the potential consequences of going without adequate coverage are far greater. A single accident or claim could lead to closing your business.
Best Business Insurance Plans in Harrisburg, PA
While the list above can help you understand the types of insurance you’ll likely need, every situation is going to be different. For example, if you’re going to be working on mostly commercial clients, you might need E&O insurance more than another contractor. If you’re processing billing and taking payments within your website, you’ll certainly need Cyber Liability Insurance.
All of these factors vary from business to business. Give us a quick call at The Kind Insurance to get an insurance plan tailored to your business. We only work with reputable insurers and don’t recommend policies that you don’t actually need.