HVAC Contractor’s Insurance

Why do I need HVAC Contractor’s Insurance?

• Protection for property, tool, supply and equipment losses due to fire, vandalism, theft and more
• Protection for equipment breakdowns
• Protection for liability losses due to injury or third-party property damage
• Protection for errors and omissions
• Protection for loss of income due to business interruption and more
• Protection for automobile losses due to accidents and vandalism
• Protection for cyber losses due to data loss, credit card breach and other digital threats

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HVAC Contractor’s face unique risks

As an HVAC contractor the risks you face are unique to you and your insurance should reflect that. HVAC Contractor’s Insurance will provide coverage for anything from property damage and injury to theft or vandalism.

Property Exposures:

• Property exposures at the HVAC contractor’s own location are generally limited to those of an office, shop, and storage of materials, equipment, and vehicles. Operations may also include retail sales. The fire exposure is generally light unless repair operations involving welding take place on premises. Welding involves the use of tanks of gases that must be stored and handled properly to avoid loss.

Inland Marine Exposures:

• Inland marine exposures include contractors’ tools and equipment, including ladders and scaffolding, hoists, and portable welders, the transport of materials, and installation floater. Goods in transit consists of tools and equipment as well as products purchased by the customer for installation at the job site.
• Heating and Air Conditioning units can be of high value and susceptible to damage in transit; they frequently require expertise in loading to prevent load shift or overturn.
• The installation floater exposure exists when the units to be installed are delivered to the site in advance of the installation. Machinery, tools, or building materials left at job sites are exposed to loss by theft, vandalism, damage from wind and weather, and damage by employees of other contractors.
• If large or suspended HVAC units are lifted by cranes to roof tops for installation or dropped into place by helicopters, the units could be damaged from drops and falls.

Occupier’s Liability Exposure

• Occupier’s Liability exposures at the contractor’s office or shop are generally limited due to lack of public access to the premises. Retail sales increase the possibility of customers slipping, falling, or tripping.
• During installation, electrical voltage must be turned off at the job site in order to reduce the risk of electrical burns or electrocution to others entering the area, and turned back on after work stops, all while minimizing any disruption of electrical service to other homes or businesses in the vicinity.
• Welding presents potential for burns or setting the property of others on fire if not conducted safely. The contractor’s employees can cause damage to the client’s other property or bodily injury to members of the household, the public, or employees of other contractors.
• Tools, power cords, and scrap all pose trip hazards even when not in use. If there is work at heights, falling tools or supplies may cause damage and injury if dropped from ladders, scaffolding, cranes or helicopters.
• Pressure-testing of boilers and other pressure vessels can result in explosions or fire.

Completed Operations Liability Exposures

• Completed operations liability exposures can be severe due to improper wiring or grounding. When a heating unit malfunctions, the cause may be difficult to determine. Specialists may have to be hired to determine whether it arose from improper operation and maintenance, faulty system design, faulty manufacture or faulty installation.
• Boiler work, LP gas units, and wood burning units have high products liability exposures. Improperly installed heating units pose potential injury to tenants and their customers within buildings due to exposure to carbon monoxide and other fumes or gases.

Environmental Impairment Liability Exposures

• Environmental impairment exposures may exist if the contractor is responsible for the disposal of old insulation and the use, transportation, and disposal of fuels and related pollutants.

Automobile Exposures

• Automobile exposures are generally limited to transporting workers, equipment and supplies to and from job sites. Hazards depend on the type and use of vehicles and radius of operation with the main hazards being upsets. Vehicles may have special modifications or built-in equipment such as lifts and hoists.
• Large heating systems may be awkward and require special handling and tie-down procedures.

Workplace safety exposures

• Workplace safety exposures vary based on the size and nature of the job. Both residential and commercial work involves lifting, work with hand tools, wiring, and piping. Cuts from the fabrication and installation of sheet metal for ducts and vents are common. Lifting injuries such as hernias, strains and sprains plus back injuries may occur.
• Electrical burns are common; electrocution can occur from the use of high-voltage lines. Any time work is done above ground, injury or death from falls and being struck by falling objects can occur. Slips and falls, foreign object in eyes, major and minor burns, and inhalation of fumes are all potential hazards.
• Complications from the large, heavy machinery and their use, misuse, maintenance, and transport have unique hazards.
• Welding may be done in confined spaces; proper ventilation and fire protection are essential to prevent injury to workers.
• In repair and re-installation operations, workers may come in contact with old insulation to be removed, some of which may include “friable” (easily crumbled) asbestos. Procedures must be in place to identify and handle this exposure.
• Careful consideration must be given to the type of boilers, the fuel used and the services the insured provides. Pressurized vessels present unique hazards with potentially severe losses.
• Overall, the residential air-conditioning contractor does not present unusual exposures. However, the commercial contractor may become more of a specialist, dealing with customers demanding a higher degree of precision in filtration systems. As precision and specialization increase, so does the exposure to loss.

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HVAC Contractors we cover include:

• Self-Employed HVAC Contractors
• Commercial HVAC Contractors
• Home/Residential HVAC Contractors