How to Get the Best HVAC Business Insurance
Depending on the scope of your HVAC work, you may be required to purchase several types of insurance. General liability and workers’ compensation are the most popular types of policies, but other types of policies may be necessary as well. Here are some details about the costs of each type of policy and the coverage they provide. Read on to learn more about HVAC business insurance. But before you buy any insurance for your business, consider whether it is right for you.
Cost of general liability insurance for HVAC contractors
For an HVAC contractor, general liability insurance is a vital asset. It protects the business from a wide range of legal claims, ranging from a few hundred dollars to millions. Depending on the extent of the damage, this insurance can be very expensive. It costs from $398 to $1,204 per year for a standard policy. It can cost even more, though, if the policy limit exceeds the costs of claims.
One of the first things to keep in mind when determining the cost of general liability insurance for HVAC contractors is the age of the company. Companies with clean accident records will pay less than those with a history of accidents. A good score is better than a bad one, but even a high one will not guarantee you a low price. Companies with low scores are considered higher risks, and insurers may charge higher rates if the risk is high.
Other types of hvac business insurance
If you’re running a HVAC business, you’ll want to have other types of coverage, like General Liability insurance and pollution liability insurance. This coverage pays for damages that you cause to others based on your work, including finished operations or completed jobs. You can also get workers’ compensation insurance to cover lost wages and medical expenses if an employee is injured at work. Generally, you’ll need to purchase this insurance when you hire your first employee, but some states require that you get it even before you get a license to work in this industry.
General liability insurance protects your business from third-party claims for property damage and bodily injury. This type of insurance covers your company in case an employee causes injury to a third-party while working on a customer’s property. It also covers legal expenses that may arise from the work performed by your employees. These types of policies are an essential part of your business and are often required by state law. When you’re starting a new business, it’s important to understand what kind of coverage you’ll need and how much it will cost.
Coverage provided by each type of policy
The type of insurance you need depends on your HVAC business. There are three main types of insurance: general liability, professional liability, and property. General liability insurance covers bodily injury, property damage, and advertising injury. Commercial auto insurance covers vehicles that are commonly used by HVAC contractors. Property coverage covers damaged or destroyed buildings or personal property. Business interruption coverage helps you get through tough times when your HVAC business is out of service.
Commercial auto insurance protects your company’s vehicles. This policy covers you and your employees if an accident or theft occurs while they are working on a client’s property. Commercial auto insurance typically costs $398 to $1,204 per year for an HVAC service technician. If you own a van or other equipment for your business, you will likely want to purchase an auto insurance policy. In addition to protecting your business and employees, this insurance will also protect your equipment and inventory.
Cost of workers’ compensation insurance for HVAC contractors
If you are running an HVAC business, you need to consider getting workers’ compensation insurance. This type of insurance protects you against lawsuits and medical expenses if your employees are injured while working for you. Workers’ compensation insurance costs between $300,000 and $2 million per year, depending on the policy you choose. In the case of an injury, the insurance will pay for the employee’s medical bills and lost wages. It also provides coverage for any time lost while an employee is recovering.
Another common reason to purchase workers’ compensation insurance is to protect yourself against injuries. Workers’ compensation insurance covers medical recovery costs and temporary disability stipends. Temporary disability covers a worker’s ability to work in the same profession, while permanent disability covers the cost of learning a different trade. The policy may also pay for vocational rehabilitation if the worker can no longer work, such as an apprenticeship.