Most homes and businesses are outfitted with heating, ventilation and air conditioning (HVAC) systems—systems that require the care of specialized technicians for service. As an HVAC contractor, you are tasked with managing a variety of risks every time you perform maintenance or an installation on behalf of your clients.
Just one incident involving the use of electrical equipment, worker injury or property damage can lead to costs for your business. What’s more, exposures related to equipment breakdown, crime and environmental liability are prevalent for HVAC contractors, compounding risks for your business. The list below provides an overview of these risks and more—helping you identify potential blind spots in your risk management and insurance programs.
Automobile Exposures
Because HVAC contractors usually own a fleet of vehicles and employees travel to and from job sites on a frequent basis, automobile exposures can be significant. Specifically, any time a contractor transports tools or visits a client, the risk for accidents increases. And, just one accident can be extremely costly for your business, as expenses related to vehicle repairs and bodily injuries can add up quickly. What’s more, if employees use their own vehicle for work, standard commercial auto policies are often not enough.
Property
Property—including your tools, equipment, supplies, signage and similar items—plays a key role for your organization. And, in the event of a loss caused by fires, theft or vandalism, your business can suffer major financial consequences. Exposures can come from malfunctioning electrical equipment, flammable materials, weather and natural disasters. What’s more, a single incident can affect multiple aspects of your property, compounding costs and downtime for your business.
Equipment Breakdown
HVAC contractors depend on a variety of different equipment to complete work on commercial or residential property, potentially creating significant equipment breakdown exposures as a result. Contractors have very specific tools when it comes to installing and repairing HVAC systems, and any losses or breakdowns can lead to business interruptions, costly repairs or even lost contracts.
Completed Operations
Once a job has been completed, HVAC contractors can be held liable if their work product causes bodily injury or property damage. While claims of smaller problems can often be resolved with a repair, larger issues may result in legal action. For instance, should heating and cooling systems be installed improperly, they could leak or catch fire, causing significant damage to a client’s home. Completed operations coverage can help protect a contractor should these kinds of claims arise.
Inland Marine
HVAC contractors regularly transport equipment, tools and supplies to and from worksites. As such, any property that’s unique or valuable, in transit, in your temporary care, stored at fixed (but movable) locations or used to transfer information represents inland marine exposures. Materials and tools can be damaged in transit from shifting loads or traffic collisions; at the worksite from collision, being dropped or poor weather conditions; or lost from theft, potentially creating costly losses.
Crime
HVAC contractors face several crime exposures, particularly if valuable equipment or tools are used at the worksite, which may attract thieves or vandals. Thieves (including your employees) can rob an office or worksite at any time, targeting cash or valuable supplies. What’s more, with worksite locations changing on a regular basis, the level of risk a contractor faces is in constant flux.
Environmental Liabilities
Because HVAC contractors store and handle refrigerants and other volatile chemicals as part of their business, environmental liabilities can be substantial. If disposed of improperly or following an accidental spill, these materials can create pollution, which can lead to insurance claims or even regulatory fines. Environmental incidents are particularly concerning because they can cause harm to the surrounding community, involve costly cleanup and often cause damage to a business’s reputation.
Workers Compensation
Any time one of your employees is injured on the job, your organization could be subjected to a workers’ compensation claim. Common sources of on-the-job accidents for HVAC contractors include cuts, scrapes, burns from hot equipment, respiratory Illnesses from inhaling insulation and musculoskeletal injuries caused by repetitive tasks, twisting, lifting, sprains and strains. Normal, everyday tasks related to working under sinks or carrying equipment can lead to accidents and, in turn, increased costs for your business.
