Independent contractors are generally responsible for their own insurance coverage. Many choose to enroll in a general liability policy even when it is not required. This type of independent contractor liability insurance provides coverage for injuries, property damage and related lawsuits. Read more
Just as with any contracting business, the landscaper is subject to a broad variety of potential injuries and risks every day on the job. From accidents to toxic plants to liability for property damage, there are a lot of potential pitfalls to being in the landscaping business. That is why it is vital to carry adequate insurance for your landscaping company. Read more
The terms General Liability and Total Liability sound like exact synonyms. In the insurance industry, they are two completely different things.
Contractors purchasing a policy will definitely need some form of general liability coverage, but they may also want to extend that coverage with a higher policy limit. Total liability coverage adds to the total allowed sum of claims for not just general liability policies, but potentially for other coverage like worker’s compensation and commercial auto insurance. For this reason, total liability policies are often called “umbrella policies” since they increase the amount of coverage for several types of claims at once.
Still confused? Read on to learn more about the specific differences between general liability and total liability coverage. Read more
Trying to find the basic insurance policies you need to run your small business can be a bit like finding a needle in a haystack. Companies may try to sell you a thousand policies at once or focus entirely on one specific coverage but, there are very few basic insurance breakdowns out there. That’s why we decided to put together this list of HVAC contractor policies that you can use to establish a strong insurance foundation.
HVAC Contractor Insurance – The 3 Basic Policies Every HVAC Contractor Needs
1. Contractors General Liability Insurance
General liability insurance is an essential asset for any small business owner (especially if you own a contracting business). In this industry there are more than a handful of ways for you to lose quite a large sum of money in a very short period of time. General liability insurance is designed to reduce that peril. Defined as an insurance policy that offers protection against third-party claims of property damage, injury or bodily harm, loss of life or limb, or negligence, general liability insurance has the stopping power you need to protect your business from lawsuit-induced financial loss. It is also required by law in most states which is why we would consider this the most important HVAC contractor insurance policy on this list.
2. Contractors Workers Compensation Insurance
Well, workers compensation insurance may give general liability a run for its’ money (at least in terms of importance). Like the aforementioned policy, workers comp is required by law in most states (except for Texas) making it an essential component of HVAC contractor insurance. It is designed to cover everything from injury or loss of limb, repetitive motion injuries, medical treatment and lost wages to death and emphysema. Needless to say it covers a lot (a lot more than we can cover in this post), so if you would like more information, please check out our page on workers compensation.
3. Commercial Auto and Truck Insurance
Commercial auto and truck insurance might not have the same legal requirements as general liability insurance or workers comp but, it’s still a necessary piece of HVAC contractor insurance. If you use a vehicle to transport goods, people or perform other business related tasks then you may want to consider acquiring this policy. It will not only protect you (the driver) but the goods and employees you are transporting. Two things that your personal policy will not cover.
As a general contractor you probably oversee, and lead, quite a variety of contractors and specialists. You’ve also probably seen plenty of them leave, or move on to other pursuits which means you may have had to look elsewhere for talented contractors. And when you look elsewhere there’s always a chance that you could end up with a disreputable independent contractor (no matter how careful you are). To protect yourself from the mistakes of your contractors, you may want to consider acquiring contractors protective liability insurance. It could save you a lot of money if you find yourself in a pinch.
Contractors Protective Liability Insurance
Like we said before, contractors protective liability insurance will protect you from any actions (conducted by your contractors or specialists) that results in a liability claim. Without this coverage, that liability claim would fall on you since you are the project leader. And, since the claim lies outside the realm of your commercial general liability policy any fines or litigation associated with that claim will have to be paid by your business. You don’t want that and contractors protective liability insurance will ensure that you are not held responsible for someone else’s actions.
Typically, we see claims on this policy as a result of vicarious liability (which is basically when you are held responsible for the failed actions of one of your employees when they were contractually obligated to complete that action). Think about it like being held responsible for the actions of your children when they make a mistake (except much more expensive). But, contractors protective liability insurance will protect you from all of those costly fees and litigation though there are some limitations. For example, most insurers will require you to purchase additional coverages such as general liability or a business owners policy because this policy does not operate as a stand-alone coverage.