Air Conditioning Systems Installation Repair Insurance Policy Information
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.
Below are some answers to commonly asked air conditioning systems installation repair insurance questions:
- What Is Air Conditioning Systems Installation Repair Insurance?
- How Much Does Air Conditioning Systems Installation Repair Insurance Cost?
- Why Do Air Conditioning Systems Contractors Need Insurance?
- What Type Of Insurance Do Air Conditioning Systems Contractors Need?
- What Does Air Conditioning Systems Installation Repair Insurance Cover & Pay For?
What Is Air Conditioning Systems Installation Repair Insurance?
Air conditioning systems installation and repair insurance is a type of insurance that provides coverage for businesses or individuals who install or repair air conditioning systems. This insurance typically covers damages or losses that may occur during the installation or repair process, such as damage to the air conditioning unit or other property, injuries to employees or customers, and liability for any defects in the installation or repair work.
This type of insurance may also cover costs associated with business interruption, such as loss of income or expenses incurred during a temporary shutdown.
How Much Does Air Conditioning Systems Installation Repair Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small air conditioning systems installation and repair businesses ranges from $37 to $49 per month based on location, size, payroll, sales and experience.
Why Do Air Conditioning Systems Contractors Need Insurance?
Air conditioning systems contractors need insurance for several reasons, including:
Protection from liability: Insurance can protect contractors from financial losses if they are found liable for damages or injuries caused by their work.
Coverage for property damage: Insurance can cover the cost of repairs or replacement if the contractor's equipment or vehicles are damaged while on the job.
Protection for employees: Insurance can provide coverage for injuries or illnesses sustained by employees while on the job.
Compliance with laws and regulations: Many states require contractors to have liability insurance to be licensed and operate legally.
Peace of mind: Having air conditioning systems installation repair insurance can give contractors peace of mind knowing that they are protected against potential financial losses.
What Type Of Insurance Do Air Conditioning Systems Contractors Need?
Air conditioning systems contractors typically need a combination of the following types of insurance:
- General Liability: This type of insurance protects the contractor from financial loss if they are found liable for property damage or bodily injury to a third party.
- Workers Compensation: This type of insurance covers medical expenses and lost wages for employees who are injured or become ill as a result of their work.
- Commercial Auto: This type of insurance covers damage or loss to vehicles used for business purposes, as well as any liability for accidents involving those vehicles.
- Professional Liability: Also known as errors and omissions insurance, this type of insurance protects the contractor against claims of professional negligence or malpractice.
- Equipment Breakdown: This type of insurance covers the cost of repairs or replacement of equipment that is damaged or destroyed due to mechanical or electrical failure.
- Pollution Liability: This type of insurance provides protection for claims resulting from pollution, such as damage to the environment or third-party property.
It's important to note that specific insurance requirements may vary depending on the state, so it's always best to consult with a licensed insurance agent for guidance on the specific coverage needs for your business.
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.
What Does Air Conditioning Systems Installation Repair Insurance Cover & Pay For?
Air conditioning systems installation and repair services may be sued for a variety of reasons, including:
- Faulty installation: If an AC system is not installed correctly, it may not function properly and could cause damage or injury to property or people.
- Negligent repair: If an AC system is not repaired properly, it could result in further damage to the system or cause harm to people or property.
- Product liability: If the AC system or any of its components are defective, the installer or repair service could be held liable for any resulting damage or injury.
- Breach of contract: If the installer or repair service fails to uphold the terms of a contract, such as by not completing work as agreed or providing faulty equipment or services, they may be sued for breach of contract.
Insurance can help protect air conditioning systems installation and repair services in the event of a lawsuit. Here's how:
General Liability Insurance: This type of insurance protects against claims of bodily injury or property damage caused by the installer or repair service. If the installer is sued for faulty installation or repair, general liability insurance can help pay for legal defense costs and any damages awarded.
Product Liability Insurance: This type of insurance protects against claims of injury or damage caused by a defective AC system or its components. If the installer or repair service is sued for product liability, this insurance can help cover legal fees and any compensation awarded.
Professional Liability Insurance: Also known as errors and omissions insurance, this type of insurance protects against claims of professional negligence or mistakes made during installation or repair. If the installer or repair service is sued for negligent work, professional liability insurance can help pay for legal defense costs and any damages awarded.
Contractual Liability Insurance: This type of insurance protects against claims arising from a breach of contract. If the installer or repair service is sued for breaching a contract, this insurance can help cover legal fees and any compensation awarded.
In summary, air conditioning systems installation and repair services can be sued for various reasons, and insurance can help protect them by providing coverage for legal defense costs and any damages awarded in a lawsuit.
Commercial Insurance And Business Industry Classification
- SIC CODE: 1711 Plumbing, Heating, Air-Conditioning
- NAICS CODE: 238220 Plumbing, Heating, and Air-Conditioning Contractors
- Suggested Workers Compensation Code(s): 5537 Heating, Ventilation, Air-Conditioning and Refrigeration Systems - Installation, Service and Repair, Shop, Yard & Drivers, 5183 Plumbing NOC & Drivers
Description for 1711: Plumbing, Heating and Air-Conditioning
Division C: Construction | Major Group 17: Construction Special Trade Contractors| Industry Group 171: Plumbing, Heating And Air-conditioning
1711 Plumbing, Heating and Air-Conditioning: Special trade contractors primarily engaged in plumbing, heating, air-conditioning, and similar work. Sheet metal work performed by plumbing, heating, and air-conditioning contractors in conjunction with the installation of plumbing, heating, and air-conditioning equipment is included here, but roofing and sheet metal work contractors are classified in Industry 1761. Special trade contractors primarily engaged in electrical work are classified in Industry 1731.
- Air system balancing and testing-contractors
- Air-conditioning, with or without sheet metal work-contractors
- Boiler erection and installation-contractors
- Drainage system installation, cesspool and septic tank-contractors
- Dry well construction, cesspool-contractors
- Fuel oil burner installation and servicing-contractors
- Furnace repair-contractors
- Gas line hookup-contractors
- Heating equipment installation-contractors
- Heating, with or without sheet metal work-contractors
- Lawn sprinkler system installation-contractors
- Mechanical contractors
- Piping, plumbing-contractors
- Plumbing and heating-contractors
- Plumbing repair-contractors
- Plumbing, with or without sheet metal work-contractors
- Refrigeration and freezer work-contractors
- Sewer hookups and connections for buildings-contractors
- Sheet metal work combined with heating
- Solar heating apparatus-contractors
- Sprinkler system installation-contractors
- Steam fitting-contractors
- Sump pump installation and servicing-contractors
- Ventilating work, with or without sheet metal work-contractors
- Water pump installation and servicing-contractors
- Water system balancing and testing-contractors
Air Conditioning Systems Installation Repair Insurance - The Bottom Line
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.
Part of being a responsible business owner is ensuring that you have well trained employees, the right equipment, and also the right insurance.
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
- Appliance Repair & Service
- Blacksmith & Metal Workers
- Boat Repair & Dry Docks
- Boiler Contractors
- Builders Risk
- Building Cleaning & Maintenance Services
- Cabinet Installer
- Cable And Satellite TV Installer
- Chimney Sweep
- Cistern Contractors
- Contractor Liability
- Curtain Cleaners
- Deck Builders
- 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
- Furniture Repair
- Garage Door Installer And Repair
- General Contractors
- Glass Contractor
- Glazier Insurance
- Gutter Installation And Repair
- House Cleaning
- HVAC Contractor
- Insulation Contractor
- Janitorial Cleaning Services
- Lawn Care
- Lawn Irrigation Sprinkler System Installation
- Oil And Gas Well Drilling Contractors
- Paperhanging Contractors
- Plastering And Stucco Contractor
- Pressure Washing Contractors
- Propane And Fuel Dealers
- Rug, Upholstery & Carpet Cleaning
- Sandblasting Contractors
- Security Alarm
- Septic Tank Cleaning
- Siding Contractor
- Sign Installation & Repair
- Solar Panel Installers
- Snow Plow
- Stone And Tile Installer
- Surety Bonds
- Swimming Pool Contractor
- Swimming Pool Service And Maintenance
- Tank Cleaners
- Tool Grinding And Repair
- Tree Surgeon
- Tree Trimming
- Upholstery Shop
- Waste Haulers & Garbage Collection
- Water Well Drilling
- Welding Contractor
- Wildlife & Pest Control
- Window Cleaning
- Specialty Contractors
The contracting industry is a field that involves a lot of risks, both for the contractor and for the clients they work for. This is why commercial insurance is so important for contractors. Insurance can protect contractors from a variety of potential losses, such as:
Liability: If a contractor causes damage to a client's property or if a client is injured while on a job site, the contractor could be held legally responsible. Liability insurance can cover legal fees and any settlements or judgments that may be awarded.
Property damage: Contractors often use a lot of expensive equipment and tools, and there is always a risk that this equipment could be damaged or stolen. Commercial property insurance can help cover the cost of replacing damaged or stolen equipment.
Business interruption: If a contractor is unable to work due to an unforeseen event, such as a natural disaster, insurance can help cover their lost income during this time.
Workers compensation: If a contractor or one of their employees is injured on the job, worker's comp can help cover medical expenses and lost wages.
Overall, commercial insurance is an important risk management tool for contractors. It can provide financial protection against a wide range of potential losses, helping contractors to stay in business and continue serving their clients.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Contractors' Equipment and Tools, General Liability, Employee Benefits Liability, Umbrella Liability, Automobile Liability and Physical Damage, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Accounts Receivable, Builders Risk, Computers, Goods in Transit, Installation Floater, Valuable Papers and Records, Cyber Liability, Employment-related Practicesand Stop Gap Liability.