HVAC contractors need general liability with strong completed operations coverage, commercial auto for service vans, inland marine for tools and stock, and workers' compensation for employees. During furnace season, the biggest risks are fire, carbon monoxide, and water damage claims tied to installs and repairs.
Once it gets cold in Indiana, Illinois, and Michigan, HVAC phones start ringing nonstop. No heat calls, furnace replacements, and tune-ups pile up fast. More jobs means more revenue, but it also means more chances for something to go wrong. Here's what we make sure our HVAC clients have in place.
Am I covered if a furnace install causes a fire or CO leak?
That's exactly what general liability insurance is for. If your work causes a fire, a carbon monoxide incident, or damage to a customer's home, general liability covers the property damage, medical bills, and legal costs. For HVAC, those claims can be large, so make sure your limits are high enough. Many contractors carry an umbrella policy on top for extra protection.
What is completed operations coverage?
Completed operations coverage protects you after the job is done. If a furnace you installed in October fails in January and causes damage, the claim falls under completed operations. It's usually part of your general liability policy, but check the limit and make sure it isn't reduced or excluded for certain types of work.
Are my tools and van stock covered?
Not by general liability or commercial auto. Inland marine or tools and equipment coverage protects your gauges, vacuum pumps, and other tools, plus parts and equipment stocked in your vans. Van break-ins are common, and replacing tools and a furnace in the back can get expensive fast.
Do I need commercial auto for my service vans?
Yes. Commercial auto insurance covers your fleet, your drivers, and your liability on the road. If techs drive company vans home or use their own vehicles for calls, talk to your agent about how that's handled. Hired and non-owned auto coverage can fill gaps when employees use personal cars.
Do I need workers' comp for my techs?
Almost certainly. HVAC work involves ladders, attics, crawl spaces, electrical systems, and heavy equipment. Workers' compensation covers medical bills and lost wages if a tech gets hurt. Indiana, Illinois, and Michigan each have their own requirements, but most HVAC companies with employees will need it.
What about professional liability?
If you design systems, do load calculations, or give energy efficiency recommendations, professional liability (errors and omissions) can cover claims that your advice or design was wrong. It's not always required, but it's worth considering for larger commercial work.
Let's Get You Through the Busy Season
Furnace season is your chance to have a great year, and the right coverage means one bad job doesn't undo it. Our team has helped contractors across Indiana, Illinois, and Michigan for generations. Reach out and we'll make sure your policy fits how your business actually runs.
Disclaimer: This article is provided by Shurr Insurance Agency for general informational purposes only and does not constitute insurance, legal, or financial advice. Coverage availability, terms, and requirements vary by carrier and state. Please contact Shurr Insurance Agency to discuss your specific situation.