Benefits of Inland Marine Coverage for HVAC Contractors

Heating, ventilation, and air conditioning (HVAC) contractors are some of the most in-demand systems specialists out there. With responsibility for keeping our homes and businesses comfortable and safe, their work is important.

Installing and repairing these critical systems means traveling to residential areas and businesses with the tools needed to do the job.

With so many component parts, HVAC systems can also be costly. Moving expensive systems and the tools needed to install and maintain them introduces risk. Tools can be lost, parts of systems can be stolen, and with transport, there’s always a chance of damage while they are being moved.

Because HVAC contractors do so much of their work with travel, it is important for them to know what their insurance covers, whether in the office or on the road.

What is inland marine coverage?

Originally designed to protect goods moved on ships, inland marine coverage is now a general term for insurance protection for property, goods, and materials during overland transportation.

Essentially, inland marine coverage is designed to protect property that is being moved. For HVAC contractors, that means if equipment and tools are lost, stolen, or damaged when they are out on the job, inland marine coverage will cover the loss.

General inland marine coverage protects items during transport, and most businesses will need additional coverage to protect their property when it is being stored.

What doesn’t inland marine insurance cover?

Because inland marine coverage is designed to protect property under specific conditions, it is an added policy and does not cover damage that happens outside of transport.

Inland marine insurance does not cover damage from standard wear and tear, so if a tool breaks and the cause was either its age or a lack of maintenance, it won’t be covered.

Damage or theft that occurs at a location where tools and equipment are typically stored, such as a warehouse or business headquarters, wouldn’t be covered by inland marine insurance either.

What types of insurance coverage do HVAC contractors need?

Inland marine coverage is very important for HVAC contractors, but it is just one type of insurance that HVAC contractors may need. Here are some additional policies to consider:

• General liability coverage – This protects your HVAC business from third-party liability claims, like injuries or property damage that can happen at a work site.
• Worker’s compensation insurance – This coverage is required in virtually every state to protect workers who are injured on the job.
• Commercial vehicle insurance – HVAC contractors are on the road frequently, to get to and from work sites. If you have company vehicles, you’ll need commercial auto coverage to protect your vehicles from accidents and theft, as inland marine coverage protects tools, equipment, and materials.
• Commercial property insurance – This coverage protects your business property. If your business’s headquarters and equipment are damaged in a fire or storm, or if your office is broken into and robbed, commercial property insurance is there to get you back up and running.
• Errors & Omissions (also called professional liability) coverage – This policy protects your business against claims of poor workmanship or professional negligence.
• Cyber Liability – This type of insurance protection is becoming increasingly important, no matter the size or type of business. For example, an HVAC business would most likely store customers’ home addresses, forms of payment used, and phone numbers. In the event of a data breach, cyber liability insurance coverage protects a business from the legal losses associated with this form of crime.

How much does inland marine coverage for HVAC contractors cost?

Like most forms of insurance, many factors can impact the cost of your premiums. Things like your business’s location and size, annual revenues, the quantity and value of your tools, and the number of employees are all considered. And, if you’ve ever had to make a claim before, that’s taken into account as well.

Monthly premium costs for inland marine coverage for HVAC contractors can be highly variable, so it is best to talk to someone who specializes in commercial HVAC insurance coverage.

The experts at Rate Insurance can help. With access to commercial insurers, they can help you to find the right coverage for your HVAC business, at the right price.

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