Common Exposures for HVAC Businesses

August 17, 2022
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The HVAC industry is practically recession-proof. Everyone needs their heating and cooling systems to work, and your business likely thrives due to massive demand. However, you need insurance coverage that protects your business and prevents problems in the future. 

Do you have enough coverage? Are you aware of the most common exposures for a business like yours? Take a look at these tips to learn where you should bolster or revive your insurance coverage. With seven million small businesses in America, you don’t want to become an unfortunate statistic because you weren’t covered.

HVAC Fleet Liability 

You need a fleet of vehicles if you want to reach all your customers. Your teams are out and about all day, and company vehicles require holistic coverage that takes into account the average value of commercial auto claims. 

In short, you can’t just buy personal auto coverage for each vehicle. A fleet policy covers each vehicle, helps protect against losses, and ensures that all your drivers have personal injury and property protection, as well. Without commercial coverage, your losses could easily outpace your insurance—at your expense. 

HVAC Services and Property Damage 

HVAC systems (on their own) are dangerous. No one wants to make light of the issue, but dealing with pressurized gas, electricity, natural gas lines, and high heat in enclosed spaces isn’t exactly safe. You need property damage coverage in the event that a repair of a job causes damage to the structure. 

HVAC systems can be unpredictable, and that’s why you should consider a robust property damage policy. You may also need umbrella or excess coverage that extends those limits and provides additional coverage, especially if you work in industrial spaces.

Equipment Breakdowns During HVAC Jobs 

The equipment used to complete HVAC services or repairs is both expensive and difficult to replace. As you’re working these devices hard every day, they could break down at any time. However, your business can’t afford to replace every tool at the drop of a hat, and you certainly don’t have time to waste. An equipment breakdown policy pays for these losses, helping you potentially recover rental fees and replace items that are no longer usable.

Work with our team to determine how each tool or machine should be valued. We offer claims support and can guide you through the process of cataloging and insuring every major tool your business owns.

What Are Completed Operations? 

Insurance covering completed operations backs you up once the job is done. You’re expecting your repairs or installations to work properly, but sometimes, circumstances are out of your control. When completed work fails, you can file a claim against your policy to recover losses. 

Completed operations liability coverage is the best way to hedge against losses, especially when you miss issues that cause the work to break down. For example, a water leak is uncovered after the fact. Your customer requires repairs, and you will (and should) complete said repairs free of charge because your team missed the leak. Filing a claim against the policy helps you recover those funds. 

On the other hand, you may purchase coverage for ongoing operations, protecting the site, your parts, tools, materials, and more.

Inland Marine Coverage for HVAC Technicians 

Your tools and parts sit on vehicles all day every day. They are constantly at risk because they could be damaged, lost, or stolen. At times, the parts and tools on your work vehicles are two or three times more valuable than the truck. Why? You have all the tools and parts you keep on hand right there, and your business will suffer a massive loss in the event of an accident, theft, or similar catastrophe. 

Crime Insurance for HVAC Work 

Crime insurance protects you from employee theft or misconduct. You often leave your employees alone with customers, asking them to complete several jobs every day. However, you cannot watch every single employee 24/7. When you purchase crime insurance, you’re protecting your business from accusations of impropriety.

Given the work you do and the number of employees you have, our team can write up a policy that best protects your interests.

Environmental Insurance for HVAC Companies 

Environmental insurance for HVAC contractors is vital to your success. Without coverage such as this, you could be accused of polluting the environment, a property, or cited and fined by the local municipality, state, or EPA with no recourse. You’ll pay out of pocket for all these fines, judgments, or settlements because no other policy type covers environmental losses.

Additionally, environmental insurance protects you when you’re working on environmentally sensitive projects. For example, you may need more robust coverage if you routinely pull oil tanks from the ground—a process that’s heavily regulated by the EPA.

Workers’ Compensation

Workers’ compensation insurance is required under the law. When your employees are hurt on the job, the policy takes over, replacing their wages and paying their medical expenses—eliminating your liability.

With no-fault workers’ comp coverage, you’re in a much better position when sending your staff into the field every day. Accidents are unpredictable, but workers’ comp is forever. 

Contact Us Buren Insurance Group for More Information on Insurance for HVAC Businesses 

Contact our team at Buren Insurance Group when you need one or all of the coverages listed above. Your work as an HVAC technician is a vital resource for the community, but you must protect your operation so that a singular claim doesn’t bankrupt your business.