Essential Insurance Coverage for Your New Jersey HVAC Business
Dan Levenson November 18, 2019
General Liability Insurance
Although not a requirement, general liability insurance is a good idea for an HVAC business. It covers liability claims for property damage, bodily injury, or other personal injuries that happen at your place of business or your client’s property. It also provides coverage for the cost of defending against or settling actual and fraudulent claims made against your business. It is not intended to be complete coverage for your business, but more of a foundation to start from.
In order to be sure you’re compliant with New Jersey business insurance laws, you’ll also need to consider adding the following insurance coverage to your portfolio:
Commercial Vehicle Insurance
Your company vehicles are an asset and while it’s vital that you protect them, it’s also a state requirement. Whether you have one or several trucks or vans, you’ll need a commercial vehicle insurance policy for each. Commercial auto insurance is designed specifically for commercial use vehicles and covers the vehicle and driver. In the case of an accident that causes bodily injury or property damage, the policy helps cover the costs.
Worker’s Compensation Insurance
Protecting your employees with worker’s compensation insurance is a requirement for employers in New Jersey. But, it’s also a wise business move, potentially saving you thousands of dollars. While HVAC work isn’t a dangerous occupation per se, it’s not without risks. If an employee gets hurt or sick on the job and is unable to work, worker’s compensation insurance helps cover their medical costs and at least a portion of their income.
HVAC professionals in New Jersey are required to obtain a license from the New Jersey Division of Consumer Affairs’ State Board of Examiners of Heating, Ventilating, Air Conditioning and Refrigeration Contractors. In addition, an HVAC license has to be renewed every two years. In order to do so, a $3,000 Surety Bond is required. If, for any reason, you fail to perform your duties according to the regulations, the bond will pay out and you’ll have to compensate the bond for the payout.
Errors & Omissions
Even though you and your employees are highly trained professionals who are experts in HVAC installation, repairs, and maintenance, you’re only human. If you provide advice or recommendations that harm a customer in any way, they can sue you for damages. Likewise, if any of the work that you perform is done incorrectly or causes any damage, you’re liable. An errors & omissions insurance policy will help cover any costs associated with defending your company or settling claims made against your business.
Insurance Helps HVAC Companies Grow
Managing your HVAC business’ finances can be a delicate balancing act between expenses and income. If a customer files a claim against you because of an injury or damage to their property, it can easily disrupt your finances and throw your business into a tailspin. When you have the right business insurance coverage in place, you can pursue growth knowing that you’re protected. Contact us online or call 888-242-4675 to learn more about HVAC business insurance or get a free quote. We’ll help you get the exact coverage you need and answer any questions you have.