Everything You Should Know About HVAC Insurance

When you run an HVAC system business, insurance plays a very vital role. An HVAC insurance policy is essential as a business owner, whether you are starting a new firm, expanding your services, or looking for additional coverage to appropriately cover any big losses.

It is not rare for HVAC work to have significant risks, such as a chemical leak, physical damage to a worker, electrical hazards, and respiratory issues too. Insurance for HVAC systems covers medical expenses, legal fees, and repairs. In this blog, we’re discussing all HVAC insurances and why they’re important for every business owner. 

What Types of HVAC Insurance do You Need?

HVAC insurance is an important factor in your business. You need to ensure that your business is secure when accidents happen. When you start a new HVAC business, and you are serious about it, you will want to invest in a proper insurance policy to protect your business from lawsuits, reparations, and other financial damages.

There are many types of insurance coverage that you can provide for your business. It all depends on the size of your business and the risks you’re willing to take! 

1. General Liability Insurance

general liability insurance

As an HVAC company, your biggest concern should be making sure your customers are as safe as possible! A necessary part of this is getting your customers a general liability insurance HVAC business. Although a general liability insurance policy helps protect your business against third-party claims, you should also know a little more about business interruption and property damage insurance.

  • Business interruption insurance helps your business get back on its feet if it is shut down.
  •  Professional liability insurance is very important in the HVAC company. A quality insurance policy will cover you for the legal responsibilities that you have when working on HVAC units.

Finding the proper general liability insurance policy can seem exhausting, especially if you are running your own business. If you’re wondering how to get HVAC  insurance in the best way, talk to professional HVAC contractors. They have plenty of experience with insurance to help you find the right insurance for your business, whether you’re in need of a single policy or multiple HVAC insurance policies. 

2. Commercial Auto Insurance

You can expect to spend a lot of your time on the road when you own HVAC businesses, meaning that you need commercial auto insurance to protect you in case the unexpected happens. These unexpected occurrences can lead to emergency medical expenses you’d rather not pay out of pocket. This is why you need to work with an insurance company that offers quality auto insurance for your business.

The business auto insurance policy is a combination of two parts: commercial auto insurance and business-owned vehicle coverage. Insurance is important for all of us. It’s the sense of security that comes from knowing that if something terrible happens, we will have the money to pay for it. 

3. BOP Insurance

Business owners’ policy is important for any business. If you own a small business, you could be held liable for injuries and property destroyed by dangerous circumstances. This is why BOP insurance is an important facet of business ownership.

A BOP protects business owners from lawsuits and lost wages that can be caused by the negligence of a business owner. The BOP covers a business owner from any losses, but it also helps protect against fraud, accidents, bodily injury, and natural disasters.

4. Workers Compensation

workers compensations

Workers compensation insurance coverage is insurance that protects your business in case one of your workers gets injured at the job site or if you have to pay legal fees to compensate them for lost work time due to an illness or medical costs.

The coverage is required by each state, although the wages and medical benefits differ depending on the state. Workers’ compensation is considered social insurance because it is based on a social contract between management and labor

In exchange for buying workers’ compensation insurance, business owners are protected from lawsuits from workers who get hurt on the job. Each party’s advantage has limits nevertheless. Firms buy workers’ compensation insurance, which is insured by insurance companies and in some areas by publicly sponsored state funds and is paid for by workers.

5. Equipment Insurance

If you are leasing equipment for your small business, or if you have any property damage due to accidents, such as fire or theft, you can be protected. You can also protect your equipment from normal wear and tear. 

For example, it’s common for office equipment to wear over time, as any small parts can break or fall off. You can also protect your equipment from normal wear and tear. 

Read a complete article on HVAC Tools List: 28 Essential Tools You Must Have as HVAC Technicians

6. Umbrella Insurance

umbrella insurance

Finding the right insurance coverage is essential to having peace of mind. Umbrella policies are a great way to do this. An umbrella policy includes purchase coverage when you have assets that you are trying to protect. It takes the place of the personal liability portion of your existing policies as per your policy limits.

A good example of this is if your homeowner’s policy has a limit of $300,000 on it and you have $1,000,000 in assets. You could buy a $1 million umbrella policy to cover your assets. Umbrella insurance coverage is a great investment to protect your future investments.

With the new tax laws in effect, many small business owners are scrambling to figure out how to handle the changes, especially concerning HVAC insurance. There are two main reasons why something like this is necessary:-

First, the businesses that run on more advanced machinery may need to cover a more expensive replacement cost of the machinery. This property or medical expense is something they would have to pay out of their pocket without general liability coverage.

The new tax code is something they might be able to use to their benefit to save money on their taxes. It may be a difficult task to find a policy that fits your exact needs, but it’s worth it to do your best to find a business owner’s policy that covers all of your bases.

7. Commercial Insurance

Commercial property insurance will protect you if any repairs to your building or other premises are necessary due to a major HVAC equipment issue. You cannot take commercial auto coverage for granted. You don’t want to be caught off guard by a damaged system when you have to pay for repairs or legal fees out of your pocket.

Having any of these insurances for HVAC equipment means that you can get the most efficient HVAC equipment for your purposes – 

  • Commercial general liability insurance
  • Commercial property insurance 
  • Workers’ compensation insurance coverage 
  • Commercial auto insurance 
  • Equipment insurance
  • Inland marine insurance
  • Surety bonds
  • Professional liability insurance
  • BOP, and 
  • Umbrella Insurance

Moreover, it also means you’ll get the quality of the HVAC technician or service providers that you deserve. Of course, this depends on the contractor that you choose and the business insurance that you have for your business with your insurance provider.

Who Requires HVAC Insurance?

  1. Landlords

    If you are a landlord, you need Insurance to cover your liability in case one of your tenants is injured because of faulty heating or air conditioning. You can also ensure your HVAC unit and its components for repair or replacement if it breaks down.

  2. Homeowners

    Likewise, homeowners may also want to ensure their HVAC unit and components are against property damage. It provides financial protection against the high repair costs, legal costs, and replacement, as well as protecting you against the loss of your use and enjoyment of your home.

  3. Professionals

    HVAC Contractors, plumbers, electricians, landscapers, and others need commercial auto insurance if they have business-owned vehicles that they use as part of their business. An auto insurance policy is a contract that is signed between the business owner and the auto insurer that covers the damage or loss to the business-owned vehicles.

  4. HVAC business owners

    If you offer air conditioning services in summer and heating services in winter, then you may want to take some time to consider HVAC contractors. HVAC insurance, or heating, ventilation, and air conditioning insurance, can protect your business from certain losses if a catastrophe occurs. As HVAC contractors, you have a lot of valuable property on your hands, so it’s a smart decision to have the right general liability coverage in place.

By having the right HVAC contractor insurance policy, you’re protecting your business from risk and from property damage.

Why is Insurance for HVAC Business Important

1. Protects from expensive damages

A heating and air conditioning unit can be extremely expensive. An HVAC Contractor Insurance policy is necessary for these high-cost assets so that you won’t be stuck paying for the damages or legal fees yourself. This type of insurance is ideal for HVAC contractors and business owners.

2. Easy Replacement

HVAC contractors’ insurance covers the replacement of these systems in the event of a disaster. It also covers most of the items inside the house, such as the fridge, washer, and dryer. Additionally, did you know that it’s mandatory to have insurance for HVAC in your business? 

3. No Professional Liability

An HVAC insurance will protect you from any professional liability. It will keep your business from getting fined or having to pay any other legal fees. It will keep your business from being sued. It will keep HVAC businesses from having their property damaged or losing money in other ways. 

4. Medical Protection

Do you want your HVAC business to keep running well? Well, you should always ensure that your business and the HVAC tech have the right insurance. By doing this, you can ensure that your business and its assets won’t lose money because of medical bills if something bad happens or someone gets hurt.

Make sure you take the time to understand the ins and outs of coverage for your specific business, so you can make the best decision for your employees and your customers. The HVAC business insurance will vary based on what you have and what you have to protect, so it’s important to research to get the protection you need.

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How Much Does HVAC Insurance Cost?

Your annual premium and your deductible for a claim make up your HVAC insurance costs. The average insurance cost ranges between $500-$8000, depending upon the kind of insurance policy you choose. If you have all of the insurance policies that are suggested for HVAC businesses, your annual premiums might be as much as $8,500, and that does not include the deductible that applies to any claims. 

If you wish to grow and protect your business for the long run, you’ll want to invest in a proper insurance policy to protect your business from lawsuits, reparations, and other financial damages! 

There are many types of HVAC insurance coverage that you can provide for your business. It all depends on the size of your business and the risks you’re willing to take! HVAC insurance policy is one of the more expensive coverages needed to run a successful business, depending on the HVAC contractor’s insurance you choose. 


One of the reasons it is so expensive is because HVAC equipment is so expensive itself. That means the HVAC contractors insurance cost is higher to cover millions of dollars worth of business equipment.
The best way to keep the insurance costs down is to avoid claims. The best way to do that is to hire the right people and train them to follow proper procedures. That, in turn, will help keep accidents to a minimum, thus reducing medical bills.
In addition, everyone on your staff must understand what it means to treat the equipment and systems in your facility as they would treat their own home.


The importance of business HVAC insurance cannot be overstated. Air conditioners and other heating units are essential for running a business, much like a business’s financial records if it’s a for-profit entity. The purpose of HVAC business insurance is to protect the business from any financial losses that may arise from an accident, breakdown, or some other kind of covered loss.

HVAC insurance is a must for any HVAC industry that has this kind of equipment. For small HVAC business owners, it’s important to not only have a good HVAC unit but to also take care of your system! The right insurance and right HVAC contractor can help protect your business from various problems.

You also need to make sure that you manage all your business’s daily operations in a single place. FieldCamp is an HVAC scheduling and dispatching software that can help you with job scheduling, dispatching, invoicing, payment management as well as reporting. Not only this will help you keep track of your progress but it will also allow you to choose the perfect insurance plan for you. today and know how this software is helpful for your business. 

Author Bio

Gaurang Bhatt

Gaurang Bhatt is a techie in himself with an ability to solve problems technically and present solutions in the form of a product. He is one of the pioneers to curate FieldCamp with his 15+ years of knowledge and expertise in providing solutions to home service industries. Gaurang aims to overcome challenges faced by service business owners through software solutions and blogs.