Installing and servicing HVAC systems is a highly technical and specialized trade that can incur a great of risk. Contractors must coordinate several different systems together in a way that seamlessly provides homeowners comfort at the push of a button.
The technical nature of the trade can make knowledgeable business owners a good deal of profit, especially as their reputation for quality service expands. At the same time, though, their risk increases. HVAC equipment is pretty expensive, and it ties into many other systems within the house. There are many ways an installation can go wrong, and even a minor service checkup could result in allegations of damage to a homeowner’s valuable property.
Here are some of the ways HVAC contractors insurance can protect you against this type of risk and liability:
General Liability Protection
Your biggest concern as a business owner is protecting your company against claims of injury or damage to a client’s property. HVAC’s nature of being entangled within homes creates the potential for many hazards. An electrical malfunction could fry the homeowner’s pricey entertainment system. Leaky ducts could promote an infestation. Improper drainage can create slow, hidden leaks that create extensive water damage and mold growth.
Even if you know with 100 percent certainty that problems like these were not the result of your work, the homeowner can still levy these allegations against you and leave you to either foot the bill or dispute the claims in a lengthy legal process.
Rather than dealing with the hassle, headache and worry, you can have a general liability policy to protect you. You will be able to recompense any alleged damage to a homeowner’s property as well as any potential personal injury your work could have somehow caused. Medical bills are quite expensive, after all. Even better, a large amount of the policy will be dedicated to paying for representation fees in the event your business has to defend itself in court.
Business Property Protection
HVAC servicing and installation equipment can be quite expensive. A single tank of refrigerant can cost hundreds of dollars, and power tools are easily $200-$400 and upwards for quality products. You will want these business assets protected in the event that they get ruined, stolen or somehow destroyed.
Replacement value policies can even help you afford to buy brand new versions of any ruined equipment. The added coverage comes with higher premiums but with the peace of mind knowing that in a worst case scenario you can be back to work quickly.
Perception of Legitimacy
Even if your business is willing to assume all of the risks of HVAC installation and repair, your clients will probably not feel the same way. Informed clients know that allowing an uninsured HVAC contractor onto their property could risk their entire home or worse. They want the security of knowing that if any work were somehow faulty and caused damage, an insurance company can cover the damages with next to no questions asked.
For all of these reasons, a HVAC contractor’s policy is an absolute necessity. It protects your clients, your assets and opens up opportunities for business from clients that demand only the best assurances. Consider getting a business owners policy (BOP) to combine general liability and personal property into one. You can also add an umbrella policy to increase your potential liability coverage to over $1 million, providing the highest level of confidence to customers possible.