Common Mistakes HVAC Contractors Make When Buying Insurance
- Nate Jones, CPCU, ARM, CLCS, AU
- 6 days ago
- 2 min read
Insurance is essential for HVAC contractors, but mistakes in purchasing coverage can leave heating and air businesses vulnerable to lawsuits, claims, and financial loss. Understanding common pitfalls helps contractors secure the right protection while avoiding unnecessary costs.
This guide highlights frequent errors HVAC contractors make when buying insurance and shows how Wexford Insurance helps contractors get proper coverage the first time.
1. Only Purchasing General Liability Insurance
While general liability protects against third-party injuries and property damage, it does not cover everything HVAC contractors need. Many contractors mistakenly:
Skip workers’ compensation insurance
Avoid commercial auto coverage
Neglect tools and equipment protection
Full HVAC business insurance coverage includes liability, workers’ comp, commercial auto, and optional policies like professional liability and umbrella coverage.
2. Underestimating Coverage Limits
Choosing low coverage limits to save money is a common mistake. If a claim exceeds your policy limits, your business may be personally liable. Contractors often underestimate:
Property damage exposure
Medical costs for third-party injuries
Legal defense expenses
Higher limits may cost more upfront but can protect your business from catastrophic losses.
3. Misclassifying Employees or Services
Insurance rates depend on accurate employee and service classifications. Mistakes include:
Listing technicians as administrative staff
Not reporting subcontractors
Misclassifying residential vs commercial HVAC work
Incorrect classifications can invalidate claims or result in denied coverage when you need it most.
4. Failing to Maintain Continuous Coverage
Gaps in insurance coverage can be disastrous. Common issues include:
Letting policies lapse between jobs
Switching carriers without overlap
Assuming previous coverage still applies
Continuous coverage protects your business from retroactive claims and ensures licensing compliance.
5. Not Reviewing Contracts for Insurance Requirements
Many HVAC contractors get caught off guard when a client or general contractor requires:
Higher liability limits
Certificates of insurance (COIs)
Additional insured endorsements
Waivers of subrogation
Failing to meet contract requirements can delay or cancel jobs.
6. Shopping for Price Alone
While affordability is important, basing decisions solely on price is risky. Low-cost policies may:
Have inadequate coverage limits
Exclude high-risk operations
Lack claims support or industry expertise
Working with a specialized contractor insurance agency ensures the policy matches your HVAC business needs.
How Wexford Insurance Helps HVAC Contractors Avoid Mistakes
Wexford Insurance specializes in contractor business insurance and helps heating and air professionals:
Identify coverage gaps in current policies
Tailor policies to match HVAC services and risks
Ensure proper employee, vehicle, and subcontractor classifications
Issue Certificates of Insurance quickly for client contracts
Compare multiple carriers for cost-effective, comprehensive coverage
Conclusion
Buying HVAC contractor business insurance without proper guidance can lead to coverage gaps, contract issues, and unnecessary costs. From relying solely on general liability to misclassifying employees, the stakes are high.
Partnering with Wexford Insurance ensures HVAC contractors secure comprehensive, compliant, and cost-effective coverage, protecting your heating and air business and giving you peace of mind.