Everything an HVAC Professional Needs To Know About Their Insurance Needs

HVAC contractors are in high demand and when it is hot outside, the demand is even higher.  When you get a call, it is an emergency.  Unfortunately, clients can throw some unexpected twists and turns your way..but if you have the right coverage for the job, you have that extra confidence that helps you through every challenge.  

HVAC professionals deal with the liability exposure of working with dangerous gas, excess water, and the stress of combining it with the systems that keep a home cool or warm.  HVAC professionals fight against injury and damage to clients property and both could lead to large financial loss if you don’t have the right HVAD insurance coverage.  

Let’s look at coverages you need as an HVAC professional

General Liability Insurance

General Liability Insurance will pay for bodily injury and property damage that arrises from your business. Policies also provides protection for advertising injury and coverage for damages after the job is completed.

Commercial Auto

You have vehicles that get your tools, materials and your team to the job site in one piece.  Maybe you have cargo van’s, box trucks, or even trailers to help haul your supplies and you need protection from accidents, vandalism and theft.  

Workers Compensation Insurance

Workers Compensation is crucial to protect your team members. Workers Compensation helps  with medical costs and payroll costs if a team member is injured while working for you.  

Workers Comp helps to get your team members back to work after an accident
Workers Compensation help injured team members get back to work quickly.

Business Owner’s Policy

Most HVAC professionals will get a Business Owner’s Policy or a BOP which will have the General Liability, Business property insurance and business interruption. A BOP is common for most business owners, but for an HVAC professional, it is the foundation of your business needs. 

Business Property and Equipment Insurance

A large part of your revenue is spent with your very expensive and very specialized tools and equipment. The Business Property and Equipment Insurance coverage protects your business property so that if it is damaged, stolen or destroyed, you can replace it without excessive cost to your business.  

Your tools are a large part of your investment in your business. Business Property and Equipment Insurance will protect them.
HVAC tools are expensive. Make sure they are protected with business property coverage.

Professional Liability Insurance

When one or more of the contractors you hire make a mistake on the job, it can cost your business revenue and put a big dent in your reputation.  Professional Liability Insurance provides protection for you and your team and it allows you to recover and move forward after an incident occurs by covering your legal fees, attorney costs and judgements awarded against you – up to the limits of the policy.  

Umbrella Liability Insurance

All policies will cover you up to the limit of the policy..but what happens if the claim is above that amount?  That is where a professional umbrella policy adds coverage above and beyond the limits of the professional liability insurance policy.  

HVAC Inland Marine Coverage Policy

An Inland Marine Policy covers your tools, equipment and those heating and air-conditioning units while in transit and protects them from damage related to accidents, theft and other covered losses.  

Surety Bonds for HVAC Contractors

Surety bonds are different from insurance, but they are required to run your HVAC business.  A Surety bond guarantees your work and protects customers investments in your work.

Need a surety bond? We can help you secure one quickly and efficiently through our online portal. Click HERE to access our online surety bond center.

Wonder What Types Of Coverages You Need? We Have You Covered!

Texas Department of Licensing and Regulation Air Conditioning and Refrigeration Contractor Insurance

75.40. Contractor Insurance Requirements.

(a) Class A licensees must maintain commercial general liability insurance at all times during a license period:

(1) of at least $300,000 per occurrence (combined for property damage and bodily injury);

(2) of at least $600,000 aggregate (total amount the policy will pay for property damage and bodily injury coverage); and

(3) of at least $300,000 aggregate for products and completed operations.

(b) Class B licensees must maintain commercial liability insurance at all times during a license period:

(1) of at least $100,000 per occurrence (combined for property damage and bodily injury);

(2) of at least $200,000 aggregate (total amount the policy will pay for property damage and bodily injury coverage); and

(3) of at least $100,000 aggregate for products and completed operations.

(c) Insurance must be obtained from an insurance provider authorized to sell liability insurance in Texas pursuant to the Texas Insurance Code.

(d) A license applicant or licensee must file with the department a completed certificate of insurance or other evidence satisfactory to the department when applying for an initial license, changing a business name or affiliation, and upon request of the department.

(e) Requests to waive the insurance requirements because the license holder does not contract with the public must:

(1) be submitted in writing to the department; and

(2) contain a detailed explanation of the conditions under which the waiver is requested.

(f) A licensee who has received a waiver of insurance cannot perform or offer to perform air conditioning and refrigeration contracting under his license with the general public.

(g) A licensee or an air conditioning and refrigeration contracting company must furnish the name of the insurance carrier, policy number, name, address, and telephone number of the insurance agent with whom the licensee or company is insured to any customer who requests it.

Would You Like Us To Review Your Policies?

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Are you ready to save time, aggravation, and money? The team at The Sterling Insurance Group is here and ready to make the process as painless as possible. We look forward to meeting you!

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