What Insurance Do HVAC Contractors Need?

As an HVAC contractor in the $84 billion market, your long-term outlook is excellent. Projections by IBIS World are for the industry growth to reach $94 billion by 2025. Such insights indicate now is a great time to position your business to get its share of future opportunities and also to review your NJ HVAC insurance coverage. 

A leading cause of failure and significant setbacks is the lack of or insufficient insurance coverage to protect the business. Things continuously change within the industry, government regulation, and your company. These changes create potential gaps in coverage or altogether new exposures. Making sure your NJ HVAC business has the protection it needs to grow and prosper for years to come is a smart business decision.

Insurance boils down to two concepts, 1) Protection for unexpected costly losses and events 2) Sharing the risks, so a single entity does not bear the entire business-killing expenses related to significant injury, loss, or damage. A thorough NJ HVAC insurance plan positions your company to benefit from both concepts. 

No matter how carefully you manage your operation, there are inherent risks in contracting to install, service, and repair heating, ventilation & air conditioning systems. Accepting risks is one element of running a business, and tapping risk management services that come as an essential part of obtaining adequate NJ HVAC insurance is another. Being aware of potential problems and lining up the right coverage to insure against them is the best way to protect a business against unforeseen injuries, property damage, and malfunctioning equipment, among other emergencies that always seem to happen when least expected.

Here is a review of the types of risks and the appropriate insurance coverages designed to protect against them for HVAC contractors. Putting a properly allocated NJ HVAC insurance plan in place will keep your business operational and financially sound should insurable events occur.

NJ HVAC Insurance for Contractors

The following types of insurance coverages are required or highly advisable for New Jersey HVAC contractors to carry. 

Commercial General Liability (CGL)

Helps to pay for injuries that occur on job sites, and for property and water damage and HVAC installation glitches. Your CGL policy has provisions to protect the business from bodily injury claims, associated medical costs, and property damage. If a lawsuit to cover damages and repair expenses arises from such claims, your CGL policy may also cover your legal fees for the company. 

Commercial Property

Covers the costs of repairs for insured losses to your property and equipment damaged on your commercial property. For example, a tree falls on your building, causing extensive damage to it and the equipment inside. In this case, your Commercial Property insurance policy kicks in to help pay for repairs to the building and replace equipment.

Business Interruption (BI): If a business is forced to close due to a covered property damage loss such as a fire, this coverage will help cover the loss of income and ongoing expenses.  BI coverage extends to help with operating expenses during a closed business restoration period. Some of the items it helps to pay to include lost net income (based on financial records), mortgage, rent, lease, loan payments, taxes, and payroll. 

Commercial Auto

It is required by state law and protects the vehicle and driver while in service calls. It also protects vehicles against accidents, acts of vandalism, and theft. If an accident causes bodily injury or property damage, the policy helps cover the costs.

Contractors Professional Liability

Also known as Errors and Omissions (E&O) insurance, it protects against claims of negligence that cause financial damage to a client because of a mistake that happens while providing HVAC services work for them. A professional liability policy also covers legal fees, including attorney and court fees, as well as any settlement that may be awarded that relate to the claim.

Inland Marine

Coverage for damage related to accidents, theft, and other covered losses to tools, equipment, heating, and air conditioning units while they are in transit. The types of property covered include:

• Property being transported (Cargo)
• Contractors Equipment (Hand Tools)
• Computer Equipment and Data
• Buildings under construction (Builders’ Risk)

It also covers unique property risks such as accounts receivable data, property under the care, custody, and control of the contractor, cameras, surveying equipment, exhibition property, and equipment dealers property. 

Workers Compensation

As in most states, for New Jersey business owners, it is a requirement for them to carry Workers Comp insurance. Should an employee become ill or get injured while on the job, Workers Comp helps pay the medical costs and payroll costs.

Peace of Mind

Proper NJ HVAC insurance coverage from a competent and experienced agency takes the worry of a disaster from uninsured and underinsured losses away from business owners. The HVAC insurance specialists at Dickstein Associates Agency are eager to earn your business by delivering a comprehensive, competitively priced program specific to your HVAC operation and exposures. 

In many cases, we can combine Property and Liability coverages specifically designed for HVAC contractors into a Business Owners Policy (BOP) that helps to make insuring your business convenient and affordable. We also offer Employee Benefits packages to help companies to attract and retain employees.

About Dickstein Associates Agency

Dickstein Associates Agency has distinguished itself as a leading provider of personal and business insurance in the tri-state area for over 55 years. We pride ourselves on being advocates for our clients and providing them with quality and affordable coverages. As an independent insurance agency, we partner with various carriers, allowing for flexible and unbiased coverage for each client’s unique circumstances. For more information on how you can leverage all of your insurance to work best for you, and how we can secure the best insurance in the marketplace based on your specific needs, contact us today at (800) 862-6662.