Every small business is different and therefore has different needs when it comes to getting the right insurance coverage. Owning a HVAC and/or plumbing business is no different. We’re here to walk you through the essentials that will protect your business as well as additional options to consider that may also be a good fit for your investment.
General Business Insurance
For any small business, there are some policies that are essential and a good place to start when identifying the package that is right for you. These policies will put you on the right track and give you a foundation to build from for coverage that works best.
General Liability
This essential coverage protects against lawsuits and other expenses that you may incur as a result of accidents or mishaps. Additionally, you often must show proof of general liability insurance to get your required contractor licenses.
Commercial Auto
Any work vehicle should have this coverage which will cover costs related to accidents, such as property damage and medical expenses. This includes vehicles that travel to job sites as well as vehicles that transport materials. Additionally, this can protect you if a vehicle is stolen with important equipment or is vandalized in any way. Traditional auto insurance will not apply to many of these scenarios.
Workers Compensation
Businesses dealing with dangerous equipment, entering the homes of clients with unknown hazards, or just generally dealing with unpredictable scenarios can protect their employees with this coverage. It covers medical costs and a portion of lost wages for employees who become ill or injured at work. It is required in many states as well if you have employees.
Additional HVAC & Plumbing Business Coverage
Once you’ve got your essential coverage picked out, there are additional options that may be a good fit based on your business needs. The following policies are common additions to ensure all parts of your business are covered.
Business Owners Policy (BOP)
This coverage acts as an extension of general liability insurance for your commercial building or personal property. This coverage is beneficial for small to medium-sized businesses that rent or own property.
Tools & Equipment
When your business requires a lot of equipment, having this coverage protects you by providing repair and replacement options for damaged or stolen gear that you need to get your job done.
Commercial Property
This coverage will protect an office space, equipment, tools, storage, and inventory by covering the value of the business equipment and the building. This would be relevant if there was damage to the property by fire, disaster, or theft.
Protect Your Customers With Surety Bonds
Protecting your business is essential, however there are also options to help protect your clients that give you additional credibility and allow you to care for customers that trust you with their business.
Surety Bonds
While these are not technically insurance, it’s another option to consider that protects your customers and adds value to your work. These bonds act as a reassurance that the work you perform will meet professional construction standards and give your clients peace of mind. Several states require a minimum surety bond for HVAC contractors.
Final Thoughts on HVAC & Plumbing Insurance
Building the right insurance package for your business is important to protect your investment. As you begin to research what is best for your business, taking inventory of some key information will help guide you to the coverage that is the right fit for your budget and needs. Factors that impact rates include:
- Number of employees
- Technical and business experience
- Company revenue
- Location and size of your service area
There is a lot to consider, however having some basic information put together about your business and needs will enable you and your insurance professional to identify the right package for you.
HVAC & Plumbing Insurance with Ianniello Agency
American National is a proud member of The Air Conditioning Contractors of Ohio and the Plumbing-Heating-Cooling Contractors of Ohio (ACCO/PHCC) Association. As an American National Agency, we have extensive knowledge of the industry and understand how to help you create a policy that fits your specific business needs. Give us a call today to discuss further, or request a quote online.
