What Insurance Do HVAC Contractors Need?

Working with heating, ventilation and air conditioning (HVAC) systems can be a complicated and risk-filled business venture. Despite your experience, diligence and skill, you and your staff must be prepared for situations that potentially go awry. Accidents, errors and situations beyond your control can significantly impact your business’s finances and reputation, despite your best efforts. Understanding insurance needs is critical.

Why Is Insurance Important?

Whether you’re installing a new system or conducting maintenance for a client, you and your employees are likely to be working with complicated machinery. Even slight oversights or isolated accidents could incur heavy costs. Having sufficient HVAC contractors insurance can establish a fiscal buffer, potentially limiting out-of-pocket losses that might otherwise destabilize your company’s finances, derail its operations and even threaten insolvency.

Are Any Types Required?

Formal requirements regarding insurance can be a nuanced matter and may vary depending on your business’s unique circumstances. In many cases, HVAC contractors may be subject to certain mandates. Consider the following possibilities:

• Commercial auto insurance is legally required in most states, including Texas. This means that if you use motor vehicles for your HVAC contracting business, even your personal truck or van, you’ll need a commercial policy or potentially face fines and penalties.
• Workers’ compensation insurance is often required by law, although Texas does not have sweeping laws for private sector businesses. Still, if HVAC contractors want to be eligible for government jobs, they’ll need to retain this type of coverage.
• Professional liability insurance may not be legally required, but many clients may refuse to do business with contractors who lack a suitable policy.

What Other Insurance Should HVAC Contractors Have?

In addition to fulfilling formal obligations, HVAC contractors’ operations often make the following types of insurance essential:

• General liability insurance
• Commercial property insurance
• Inland marine insurance
• Business interruption insurance
• Tools and equipment insurance
• Commercial umbrella insurance

How to Find the Right Coverage Near Me

At Associated Insurance, we can help HVAC contractors in and around Weatherford, TX assess and address their coverage needs. Contact one of our knowledgeable team members today to start a dialogue or compare personalized quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.