As a plumbing contractor you are often in high demand. This is especially true when a heater or air conditioner breaks down on an overwhelmingly hot or cold day.
Although a customer's HVAC emergency is something you are comfortable with and can handle, emergencies that occur in connection with work you have done may be more difficult to navigate.
This is why it is important to have the right type of insurance to run your plumbing business.
Keeping customers' homes warm, cool and safe from leakage or dangerous gas involves significant responsibility.
Customers or HVAC employees can be damaged or property and equipment can malfunction ̵
Do not – Lennox has a recent lawsuit against them, Tucson installer RiteWay did a serious shit job and did not inspect, provide filters or maintain as promised. Costco / Lennox / HVAC company in 3-way collaboration WITH HVAC customers.
– Gal Capone 🌹🐝🌹 (@debpresente) July 8, 2019
This post takes a look at the answer to the question, “What type of insurance do I need to run a plumbing business?
Standard HVAC Insurance Coverage
You need HVAC Contractor Insurance customized to meet your business' exact needs.
This coverage can consist of several different components, including:
Commercial General Liability
A Commercial General Liability Policy protects you from third party damage, third party property damage, installation and repair problems, moisture damage and more.
If an employee damages a customer's home or business while installing a ventilation system, your company is financially responsible for the damage. A commercial general liability policy covers the costs of these damages, freeing you from paying them out of your own pocket.
A commercial real estate insurance policy covers the physical structure of your business and its contents.
If a natural disaster destroys or damages your business property or equipment, commercial real estate insurance helps pay for repairs to your building.
In addition, it helps cover the cost of repairing damaged equipment.
Errors and omissions
Errors and omissions (E&O) insure you and your employees against negligent claims from customers.
Sometimes referred to as professional liability insurance
Learn more about E&O insurance in our latest article: "Business Insurance Policy Highlight: Errors and Omissions"
An E&O insurance will also pay for any settlement that can be awarded from such a lawsuit .
Workers' compensation is coverage that you do not want to be without if you employ a staff.
Workers comp covers your HVAC business from liability related to injuries or illnesses that affect your employees while they work.
If, for example, an employee suffers an injury when installing a ventilation system, compensation for workers would cover the cost of medical care.
While an employee recovers from a work-related injury, the workers' compass helps with missed wages.
Corporate car insurance covers cars used for business purposes.
This includes vehicles for business only, but in some cases your (or an employee's) vehicle may be covered when used for business.
Commercial car insurance has high limits so you can cover your costs if one of the company's vehicles is involved in an accident.
Questions to Ask
Although these are some common options when building an insurance plan for a plumbing business, your specific situation may warrant additional or different coverage.
As the coverage needs vary, the coverage cost will vary depending on location, size, salary, sales and experience.
You want to make sure your HVAC business in Connecticut has insurance coverage that fits your specific needs.
It's about answering a few questions:
- Is the job you do commercially, residential or both?
- Are most of your jobs focused on construction and remodeling, or installation and repairs?
Each contractor's specific services have their own risks, so coverage will vary depending on your answer to these (and other) questions.
At Paradiso Insurance, we are happy to assess your HVAC insurance needs and create custom HVAC insurance plans designed especially for you.
We are a small hometown company and we face the same challenges as other companies do – managing people, delivering good service, finances and of course growth.
As insurance experts, we also understand the important importance of planning and having a solid financial foundation.
We're here to help and would love to hear from you. Contact us today!