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Best HVAC Contractor Insurance of 2022

Bryan Keith

Whether you’re working as an independent contractor or own an HVAC business, it is risky to work with ventilation models every day. If you cause unwanted damage to your customer’s property, you’ll be held liable for the damages caused. HVAC contractor insurance can help cover liabilities, damages, and lawsuits. We’ve evaluated the best HVAC contractor insurance providers based on coverage, financial stability, customer satisfaction, and overall quality.

Covers a wide range of industries

$2,000,000

Coverage Up To

$1,000+

Deductibles

Overview

Coverwallet began its journey in New York City in 2015 operating under the Aon Insurance banner. At Coverwallet, you can access everything you need to keep your company well-protected at an unbeatable price.

What we like

  • A skilled advisor to assist you
  • Free quotes from multiple insurance carriers
  • Covers low risk to even some high risk industries
  • Online account management

What we don't

  • No brick-and-mortar offices
  • Deductible costs

Offers a range of insurance poilicies

$2,000,000

Coverage Up To

$0 - $2,000

Deductibles

Overview

Simply Business provides insurance policies for a range of professions and small businesses.

What we like

  • Various business insurance policies
  • Quotes from multiple providers
  • Fast and easy application
  • Strong customer satisfaction

What we don't

  • Policies are a through a third party
  • Claims must be filed through insurance provider

Customized solution to fit your business needs

$2,000,000

Coverage Up To

$0 - $10,000

Deductibles

Overview

With a 100-year history of insuring businesses, Hiscox is well-known across America and globally. With more than 500,000 small business customers, Hiscox is fully aware and trained in the unique risks a business can face.

What we like

  • Established insurance company
  • Dual auto insurance
  • Customizable insurance for over 180 industries
  • Deductibles starting at $0
  • Affordable rates

What we don't

  • Limited US offices
  • Coverage limited to $2 million online

Flexible coverage by the year, month, day, or by the job

$2,000,000

Coverage Up To

$0 - $10,000

Deductibles

Overview

Thimble provides business insurance that can be tailored to your business by the year, month, day, or even the job. At Thimble, the process to getting the right business insurance is simple, scalable, and flexible.

What we like

  • Scheduled coverage options
  • Coverage by the job available
  • Buy a policy online within minutes
  • No hidden fees
  • Affordable plans
  • Drone insurance

What we don't

  • Not available in New York

Affordable plans and coverage provided within minutes

$2,000,000

Coverage Up To

$0 - $2,000

Deductibles

Overview

Next Insurance leverages AI technology to streamline the process to purchase insurance, track claims, and manage policies at no additional cost.

What we like

  • Affordable insurance plans
  • Customized coverage to fit your business
  • Get covered within minutes
  • Near instant access to proof of insurance
  • Quick and easy to process claims

What we don't

  • Not available in New York

eCommerce-only insurance solution

$2,000,000

Coverage Up To

$0 - $5,000

Deductibles

Overview

Spott will ensure that your policy coverage is tailored to your business while complying with Amazon’s Terms and Conditions. They also track changes to Amazon’s Terms and Conditions to identify potential issues with listings before a suspension.

What we like

  • Tailored eCommerce insurance
  • Liability insurance for Amazon sellers
  • Store Suspension coverage
  • Compares leading insurance carriers
  • Flexible coverage options and payment plans
  • Knowledgeable about Amazon’s rules and policies

What we don't

  • Limited physical offices

What is HVAC contractor insurance?

HVAC contractor insurance has a bundle of policies. This coverage helps you save money for events where you or your business can be held responsible for injuring a third party or causing damage to their property.

Do HVAC contractors need insurance?

Contractors, involved in installing, maintaining, and repairing HVAC models, may purchase an HVAC insurance policy and save themselves from unwanted financial burdens. You receive coverage for handling a lawsuit, safeguarding your employees, and maintaining tools and equipment used in your projects.

The services covered by HVAC insurance include, but are not limited to, cleaning air ducts, water heating, installation of gas lines, repair or installation of a furnace, and installation of a boiler.

What insurance do HVAC contractors need?

Here are the common insurance policies HVAC contractors take out and you should consider, depending on the nature and size of your business:

General liability insurance

Many contractors invest in this type of policy as it protects them from property damages and injuries. For example, your client accidentally tripped over the equipment and sues you for injuries. Another example is while you’re fixing a client’s air conditioner unit, an electrical issue causes a fire which causes property damages. In both cases, general liability insurance will cover you.

Worker’s compensation

You can consider buying worker’s compensation insurance to offer a sense of protection to your employees. If they get injured onsite, it will cover their medical and payroll expenses. In most states, if you have employees, it’s required by law to have workers’ compensation insurance.

Business equipment insurance

HVAC contractors spend massive amounts in buying and maintaining tools and equipment. And if they get stolen or stop working all of a sudden, your business may lose many potential customers. To avoid this situation, you may prefer to get your expensive equipment and tools insured.

Professional liability insurance

This policy also referred to as errors and omissions insurance offers protection to your business against legal cases. This means if a client sues you for unsatisfactory work, you’ll be covered for your attorney expenses and any other monetary losses in case the final decision of the court is not in your favor.

Surety bond

Surety bond involves three parts in the contract: the principal (the contractor), the obligee (the customer), and the surety. If you’re unable to complete a big project for a client, your surety provider will work on your behalf and ensure that your customer recovers the losses. In this case, your customer’s financial interests stay protected, and you don’t have to worry about paying them from your own pocket.

What are the limits of HVAC contractor insurance?

You need to ensure that you are covered against risks and unpleasant incidents every time.

For small and mid-sized businesses, the coverage limit of $1 million should be sufficient, while for large companies, it may vary between $2 million to $3 million.

How much does HVAC contractor insurance cost?

The cost of an HVAC insurance coverage is based on these factors (but not limited to):

  • Number of projects
  • Number of employees
  • Location of your business
  • Iinsurance policies bought
  • Claims history

A typical commercial general liability insurance begins at $400 to $550 annually for a coverage limit of $2 million.

How to choose the best HVAC contractor insurance

You can select the best HVAC contractor based on the following factors:

  • Needs: No business organization works in the same way. While looking for reliable HVAC contractor insurance, you may want to ascertain your specific requirements and see if your prospective provider can confidently meet them.
  • Cost: When you compare different insurance providers, one of the parameters that’ll act as a deal-maker or breaker is the cost. After all, nobody would wants to overpay for receiving the same benefits of an insurance policy. So, choose the provider that promises to give you more services at a reasonable rate.
  • Exclusions: It’s essential to ask your insurance service provider beforehand about the exclusions in the policy. Since this may vary from one insurer to another, it’s a good practice to know about what they offer and what they don’t in the policy.
  • Experience: An insurance company that’s been in the industry for a longer time period may have more expertise and knowledge than a company that’s just launched. So, prioritize knowing about the number of years the company has been in the market and how they have helped other HVAC contractors in having peace of mind.