Frequently Asked Questions About
Commercial General Liability Insurance
How much does commercial insurance cost?
Costs can vary widely based on industry and are also determined by zip code and often payroll and/or gross sales. Request a free quote to get an exact number.
What kind of business insurance do I need?
Most business owners need General Liability Insurance at the very least. If you have any non-owner employees, you will need workers compensation insurance too.
What is a Certificate of Insurance?
A Certificate of Insurance is proof of coverage. It lists the type and amount of liability coverage you have and other policy information when a third party requests it.
Is business insurance tax deductible?
Yes. you can deduct the cost of commercial insurance premiums. The IRS considers insurance a cost of doing business as long it benefits the business & serves a business purpose.
Air Conditioning Systems Installation Repair Insurance
Air Conditioning Systems Installation Repair Insurance. Air-conditioning contractors install, service, maintain and repair air-conditioning units in residential or commercial buildings, including related duct and vent work. Many air-conditioning contractors service air filtration and ventilation systems, and some may work on heating units. Air-conditioning units are normally electric-powered, but are "charged" with different coolants, some of which may be quite hazardous. There may be installation of anti-theft cages or other security devices. The contractor could provide 24 hour emergency service.
Air conditioning systems installation and repair insurance is a type of commercial insurance that any company that works in the air conditioning industry should have. Running an air conditioning installation and repair business can be very profitable, but those profits can quickly turn into losses if you end up dealing with an injury to a customer, employee or a third party, or if one of your technicians ends up causing damage to the property that he or she is working on. The basic idea behind any kind of air conditioning systems installation repair insurance is that you hope you never have to use it.
Air conditioning systems installation repair insurance protects your HVAC contracting business from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Liability Protection For Your HVAC Business
It's up to every air conditioning business to do everything in their power to ensure their employees are properly trained. Properly trained employees are less likely to make the kinds of mistakes that lead to injuries or property damage. With that being said even a company that takes every conceivable precaution cannot prevent all accidents from happening. That's why you need to have air conditioning systems installation repair insurance.
How Air Conditioning Systems Installation And Repair Insurance Protects You
What happens if one of your technicians, despite their high level of training, messes something up on the job? Well if it's a minor issue then as a business owner your best course of action is probably going to be to try to resolve the problem yourself. You don't want to have a customer anymore upset with you than they already are, so making things right is the smart business move to make. But at some point the damages could become too costly to be able to simply cover yourself.
While it is unlikely there is always the possibility that one of your employees will cause more damage to a property than you an afford to pay for out of pocket. Damages aren't limited to only the air conditioning system they are working on either. When your company is hired to work on the air conditioning system on a property your company is also going to be responsible for any damages they cause.
For example what happens if they end up collapsing part of the roof when an air conditioning unit wasn't installed properly? What happens if during the unit falling it also tears up plumbing or electrical wiring? What happens if the unit falls when nobody is home, damages a gas line, and causes a house fire? While these may seem like unlikely scenarios they are scenarios that could happen. In the worst case scenario you could be looking at hundreds of thousands of dollars in repair costs and punitive damages. If you don't have air conditioning systems installation repair insurance then your company is going to have to pay for that out of pocket. That's the kind of expense that can easily put you out of business.
While property damage claims can be very damaging injury claims can be far worse. If one of your employees accidentally causes an injury to a customer or someone else then your company is also liable for that. With injuries the potential damages are enormous. In a worst case scenario it's possible that one of your employees could cause permanent disability or even death to someone while they are on the job. If that happens it's more than unfortunate, it's downright tragic.
But just because one of your employees is at fault for a terrible accident do you really think that you deserve to lose thousands of dollars or more, and with that loss also suffer the end of your business? Of course not, as long as you were a responsible business owner that ensured your employees were well trained and had the right equipment then you have done your part to help prevent any tragic accidents from happening. Once again this is where air conditioning systems installation repair insurance is so invaluable. It acts as a shield in the very unlikely event that someone is hurt or worse by one of your employees while they are working on a job.
AC Systems Installation & Repair Risks & Exposures
Premises liability exposures at the contractor's office are generally limited due to lack of public access. Retail sales increase the possibility of customers slipping, falling, or tripping. Off-site exposures are extensive. 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.
Installing air conditioning can be invasive and require work throughout a home or business, resulting in a high potential for property damage. The area of operation should be restricted by barriers and proper signage to protect the public from slips and falls over tools, power cords, building materials, and scrap. Welding presents potential for burns or setting the property of others on fire if not conducted safely. If there is work at heights, falling tools or supplies may cause bodily injury or property damage if dropped from ladders, scaffolding, cranes or helicopters.
Completed operations liability exposures can be severe due to improper wiring or grounding. When an air-conditioner malfunctions, it may be difficult to determine the cause since it may be due to faulty system design, faulty manufacture or faulty installation. Significant completed operations exposures may be present in system installations at medical facilities and locations requiring refrigeration of goods. Quality control, including work order documentation, and employee training, background, and experience is important.
Environmental liability exposures may exist if the contractor is responsible for the disposal of old air-conditioning equipment as these may contain PCB's. Disposal procedures must adhere to all EPA and other regulatory standards. Proper written procedures and documentation of both the transportation and disposal process are important.
Workers compensation exposures vary based on the size and nature of the job. Injuries can occur from working with hand tools, slipping or falling, back injuries such as hernias, strains and sprains from lifting, and cuts from the fabrication and installation of sheet metal for ducts and vents. Electrical burns are common; electrocution can occur from the use of high-voltage lines. When work is done on ladders and scaffolds, employees can be injured from falling, being struck by falling objects, or adverse weather conditions.
The use, misuse, maintenance and transport of large, heavy machinery can result in severe injury. Failure to enforce basic safety procedures, such as power shutoff prior to commencing certain operations, may indicate a morale hazard. Employees must be carefully selected, trained and supervised.
Property exposures at the contractor's own location are generally limited to an office and storage for supplies, equipment, and vehicles. The fire exposure is generally light unless there are repair operations involving welding or brazing on premises. Many air-conditioning contractors keep products or parts on premises, increasing the exposure to fire, smoke, water damage, breakage, theft and vandalism.
Crime exposure is primarily from theft. Parts and even entire units are targeted and sold as scrap metal. Precautions should be taken when units are delivered to new construction sites. While in transit the vehicle should be attended at all times. Employee dishonesty is another exposure. Background checks, including criminal history, should be performed on all employees providing services to customers or handling money. All ordering, billing and disbursement should be handled as separate duties with reconciliations occurring regularly. There may be some copper components on premises that could present a theft exposure because copper is valuable when sold at a scrap metal yard.
Inland marine exposures include accounts receivable if the contractor offers credit to customers, computers, contractors' equipment and tools, including ladders and scaffolding, goods in transit, installation floater, and valuable papers and records for customers' and suppliers' information. Contractors' 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.
Contractors may lease, rent or borrow equipment, or may lease out, rent or loan their owned equipment to others, which poses additional risk as the operator may be unfamiliar with operation of the borrowed item. If air-conditioning units are lifted by crane to roof tops for installation or retrofit, or dropped into place by helicopters, the units could be damaged from drops and falls. Since an accident may trigger both the equipment and installation coverages, as well as possible third-party liability, many contractors prefer to hire a crane or helicopter with a licensed operator. Goods in transit consists of tools and equipment as well as products purchased by the customer for installation at the job site.
Air-conditioning units can be of high value and susceptible to damage in transit, requiring expertise in loading to prevent load shift or overturn. There is an installation floater exposure when the units to be installed are delivered to the site in advance of the installation.
Automobile exposures are generally limited to transporting workers, equipment and supplies to and from job sites. MVRs must be run on a regular basis. Random drug and alcohol testing should be conducted. Vehicles must be well maintained with records kept in a central location. Vehicles may have special modifications or built-in equipment such as lifts and hoists. Large air conditioners may be awkward and require special handling and tie-down procedures.
Air Conditioning Systems Installation Repair Insurance
If you think you can't afford the right air conditioning systems installation repair insurance, and think you can go without it, then you are making a huge mistake. Something you are doing to try to save yourself some money could end up ultimately costing you far more money. The bottom line is that a part of being a responsible business owner is ensuring that you have well trained employees, the right equipment, and also the right insurance.
Small Business Economic Data & Insurance Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. Maybe you want to contribute to the economic growth of your community. Whatever the reason is, if you're thinking about starting a small business, it's important to understand pertinent information relating to small businesses in the United States; namely economic information and insurance regulations. After all, if you want your small business to succeed, you have to understand the economic trends organizations of a similar size in your area.
Likewise, you want to ensure that your small business is well protected with the right business insurance and that you are in compliance with the rules and regulations that pertain to commercial insurance in your region.
Read up on economic statistics and insurance information that relates to small business owners in the United States.
Small Business Economic Data In The United States
Here's a look at some information that was compiled by the Small Business Association (SBA) regarding the economic data that pertains to small businesses in the United States:
- In 2015, small businesses in the United States employed an estimated 58.9 million American workers, or 47.5 percent of the nation's private workforce.
- Largest shares = fewer than 100 employees. The small businesses that employed 100 people or less had the largest share of employment amount small businesses.
- Employment increased by nearly 2 percent. In 2018, employment amongst small businesses increased by 1.8 percent, which is an increase of 1 percent from the prior year.
- Increase in proprietors. In 2016, the number of small business proprietors increased by 2.3 percent.
- In 2015, small businesses were responsible for creating 1.9 million net jobs. Organizations that employed 20 people or less had the largest gains, as they added an estimated 1.1 million net jobs.
- There were 5.7 million loans that were value less than $100,000 issued by lenders in the United States in 2016. These loans were issued under the Community Reinvestment Act.
- Small business owners that were self-employed at the incorporated businesses that they owned reported a median income of $50,347 in 2016.
- Small business owners that were self-employed at the unincorporated businesses that they owned reported a median income of $23,060 in 2016.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage. The SBA recommends the following insurance plans for small business owners:
- Commercial Property Insurance: In the case of an unplanned disaster - fire, flood, vandalism, theft, etc. - this type of coverage will help you avoid paying for the damage out of your own pocket. Even if you rent the property, you should still carry commercial property insurance.
- Commercial Liability Insurance: In the event that a legal situation arises - a negligence lawsuit, for example - commercial liability coverage will provide financial protection. It will cover the cost of legal defense fees, court fees, and even moneys that may be awarded.
- Commercial Auto Insurance: If you operate a vehicle for any activities that are related to your business - transporting and/or delivering goods, or meeting with clients - commercial auto insurance is legally required for businesses of all sizes, including small businesses.
Additional Resources For Contractors & Home Improvement Insurance
Learn about small business contractor's insurance, including what it covers, how much it costs - and how commercial insurance can help protect your contracting business from lawsuits.
- Air Conditioning Systems Installation Repair
- Builders Risk
- Cable And Satellite TV Installer
- Chimney Sweep
- Contractor Liability
- Door And Window Installers
- Dryer Vent Cleaning
- Drywall Contractor
- Electrical Contractors
- Environmental Remediation Contractors
- Fence Installation
- Fire Sprinkler Contractors
- Fire & Water Restoration Contractors
- Flooring Contractor
- Garage Door Installer And Repair
- Glass Contractor
- Glazier Insurance
- House Cleaning
- HVAC Contractor
- Insulation Contractor
- Janitorial Cleaning Services
- Lawn Care
- Paperhanging Contractors
- Plastering And Stucco Contractor
- Pressure Washing Contractors
- Propane And Fuel Dealers
- Rug, Upholstery & Carpet Cleaning
- Sandblasting Contractors
- Security Alarm
- Siding Contractor
- Solar Panel Installers
- Snow Plow
- Stone And Tile Installer
- Swimming Pool Contractor
- Tree Surgeon
- Tree Trimming
- Upholstery Shop
- Waste Haulers & Garbage Collection
- Water Well Drilling
- Welding Contractor
- Wildlife & Pest Control
- Window Cleaning
A contractor that wants to begin or stay in business, liability coverage must be obtained for the premises or operations, off-site locations and products/completed operations exposures. These coverages may be included as a part of a businessowners policy (BOP) or purchased in a commercial general liability (CGL) policy. Owners and contractors protective liability and railroad protective liability coverages may also be required in certain cases in order for a contractor to obtain a particular job.
Physical damage coverage for tools, supplies and equipment, both on and off the contractor's premises, is a concern. Liability exposures at the premises of the contractor, and at the premises of the contractor's customer, must be properly addressed along with completed operations. Business insurance is very important as is workers compensation insurance protection for employees.
Contractors may work under a general contractor as a subcontractor in larger construction projects - like a new commercial site or residential subdivision. They can work on smaller projects directly with a home owner, usually specializing in renovations or remodels.
In business insurance speak, often called 'artisan contractors' or 'casual contractors', they are involved in many aspects of construction and contracting work – and include various trades and skills. Carpenters, painters, plumbers, electricians, roofers, tree trimmers, landscaping are just a few examples. They may do roofing, fencing, drywall, tile work and many other trades that involve skilled work with tools at the customer's premises.
An artisan contractor performs a single trade or job, and each has its own specialized liability needs with its own exposures to risk and accidents. Contractors liability insurance can offer coverage for bodily injury, property damage, advertising injury and medical payments.
Most artisan contractors should have commercial general liability at the very least, but many need broader coverages - like an umbrella to increase their limits of liability, inland marine policy to protect their tools, workers compensation if they have employees, and even commercial auto if they use vehicles for business purposes.
Quotes from leading small business insurance carriers including: ACE, AmTrust, Chubb, Cincinnati, CNA, Colony, Employers, Evanston, Fireman's, Foremost, Guard, Hanover, Hiscox, Liberty Mutual, LLoyd's of London, Markel, MSA, Nationwide, Penn America, Philadelphia, Prime, Progressive, Scottsdale, The Hartford, Travelers, USLI, Utica First, Western World, Zurich & others.