What You Need to Know About HVAC Business Insurance
Homeowners and commercial properties rely on HVAC contractors to maintain their heating, ventilation and air conditioning systems in order to remain comfortable all year long. When HVAC businesses, contractors and subcontractors work on these intricate ventilation systems, they must have insurance coverage to protect them from the varying risks as they present themselves.
Installing, repairing and maintaining HVAC systems is complex and technical work. And as with any job, there are risks, such as on-site injuries, property damage and lawsuits, that can be costly for your business. Thus, having comprehensive HVAC business insurance that’s tailored to fit your business needs can save you time, money and even your livelihood.
Insurance Coverage Options
Each HVAC job you take on will come with new risks. Whether you are a contractor, subcontractor or the owner of a large HVAC company, business insurance safeguards your HVAC business from legal liabilities and unforeseen events.
With Insurance Hero, finding HVAC insurance in Ontario is effortless. We know how costly setbacks can be and also that insurance can be, too. Our expert insurance brokers are prepared to go above and beyond your expectations by finding you the best insurance policies for your business at a great price.
What is HVAC contractor insurance?
HVAC contractor insurance is insurance that has been uniquely designed for HVAC businesses, contractors and subcontractors to protect them from the various risks they face throughout their day-to-day operations. It provides financial coverage should you find yourself facing a liability claim against your business due to a third-party injury or property damage.
Who needs HVAC contractor insurance?
Whether you’re an individual HVAC contractor or you own a business with employees, all HVAC businesses need HVAC insurance coverage.
What types of insurance do HVAC contractors need?
Commercial General Liability Insurance
All contractors are required in Ontario to have commercial general liability insurance. This insurance policy protects you, your business and your employees from legal liability against third-party bodily injury or property damage claims that occurred at the job site. It covers the costs of medical bills, legal fees, and repairs or replacements. This insurance policy also protects you should the above occur on your company’s premises or any advertising and reputational injuries (e.g., slander, libel, copyright infringement).
Commercial Auto Insurance
Should you or your employees use any vehicles for work-related purposes, such as transportation of tools and materials or getting to and from job sites, you must have commercial auto insurance, as personal auto insurance will not cover vehicles used for work. This includes the following:
Third-party liability: covers legal fees, repairs and medical expenses if found to be at fault in an accident that leads to a third party’s property damage or injury/death.
Accident benefits: covers the driver, passengers, or pedestrians if injured in a vehicle accident, regardless of who’s at fault.
Uninsured automobile coverage: covers medical expenses, lost wages and more in the event of an accident with an underinsured at-fault motorist or a hit-and-run driver
Direct compensation-property damage: covers the cost of repairs or replacement of your vehicle, its contents and a rental if not at fault.
What does HVAC insurance cover?
HVAC contractor insurance starts with mandatory commercial general liability, followed by commercial auto if you have any commercial vehicles. You can then add additional policies as needed. We strongly recommend the following types of coverage for your comprehensive HVAC insurance policy:
Commercial Property Insurance
If you have a brick-and-mortar office, this policy protects it and the contents inside by covering your financial loss from such perils as:
Property damage due to natural disasters, flood, fire, vandalism or theft.
Property damage or theft of electronics, equipment, company documents or employees’ personal belongings.
Inventory theft by employees.
Commercial property insurance can also include business interruption, which protects your business should you be unable to work due to an illness or injury and have to shut it down temporarily. This helps offset ongoing costs from income losses, such as bills, employee wages, etc.
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, protects your business and employees against the total cost of customer claims of negligence or inadequate work. Any company that provides a service should strongly consider having a professional liability insurance policy. It covers:
Errors, mistakes and oversights
Failure to meet deadlines
Failure to deliver your product to a customer
Failure to meet a standard of care
Breach of contract
Pollution Liability Insurance
With today’s environmental regulations, contractors need coverage to protect them against claims of pollution caused by their operations. So even if the pollution risk is low, this insurance is required for contractors for many jobs.
Pollution liability protects you in the event of sudden and gradual environmental damage occurring at the job site that results in third-party bodily injury or property damage. It includes:
Transportation exposures during loading and unloading
Environmental damage and clean-up costs
Emergency response costs
Civil fines, penalties and assessments
How much does HVAC insurance cost?
Like any business, the cost of HVAC insurance will vary. Here are just some of the factors that will be considered when calculating the cost of your HVAC business’ insurance premium:
The type of coverage you want
What kind of business you operate
Your claims history
The associated risk level of your business
Where your business is located
The policy limits you opt for
How much you’re willing to pay for your deductible
The insurance company you choose
If the cost of HVAC business insurance in Ontario is something you’re concerned with, working with a broker can help you find the best policies for your unique needs as a business owner while considering your budget. By shopping around for the ideal solutions between some of Canada’s top insurance providers, you can feel confident that the coverage you opt for adequately protects your interests and assets moving forward.
There’s nothing more essential to a contractor than their tools and equipment. Without them, you cannot complete your job. Equipment and tools insurance covers reimbursement costs for tools and equipment that need repairs or to be replaced if lost, stolen or damaged due to theft, vandalism, fire or flood. This policy includes tools and equipment owned, leased or rented and provides coverage whether in storage, in transit, or left at a job site.
Installation Floater Insurance
This insurance policy protects only the materials and tools that you need for the HVAC job. It protects them during transit as well as while they’re being stored on-site before installation. Should your tools or materials be stolen, this policy will cover replacement costs.
Let our award-winning team of insurance heroes review your business’s specific wants and needs to help you get the best insurance possible!
Get an HVAC Business Insurance Quote Today
The type of HVAC contractor insurance you need depends on several variables. Let Insurance Hero help manage your risk and insurance costs by conducting a full commercial insurance policy review to determine what kind of coverage is best for you and your business!
For reliable, affordable Ontario HVAC contractor insurance, please request a quote online or give us a call at 1-855-777-4376.