Why HVAC Contractors Need Umbrella Insurance
As an HVAC contractor, you face unique risks every day—from potential property damage and injury on a job site, to lawsuits that can threaten your livelihood. That’s where **Umbrella Insurance** steps in. It’s more than just an add-on policy; it’s peace of mind in an unpredictable world.
Whether you're working on a large commercial project or a small residential system, umbrella coverage offers an extra layer of financial protection on top of your existing liability policies. Think of it as your **financial safety net** for when the unexpected happens.
At Mike Lively Agency LLC, we specialize in helping HVAC professionals protect what matters most—their business, reputation, and future. Let’s break down why this type of policy is critical to your success in the field.
What Is Umbrella Insurance for HVAC Contractors?
**Umbrella insurance** is a type of liability coverage that goes above and beyond your standard business insurance policies. It kicks in when your underlying policy limits (like general liability, commercial auto, or employer’s liability) have been reached. For HVAC contractors, this can be the difference between closing your doors or staying open after a costly claim.
Consider this: you accidentally damage a client’s $200,000 custom duct system during installation, or worse, a bystander gets seriously injured by a falling unit. If your general liability only covers $1 million, and the total damages and legal costs amount to $1.5 million, umbrella insurance covers that remaining $500,000.
Top Reasons HVAC Businesses Choose Umbrella Insurance
- High-risk job environments: Working on rooftops, in tight crawlspaces, or handling combustible refrigerants.
- Expensive equipment and tools: Accidents and lawsuits involving high-value assets can escalate quickly.
- Third-party injury potential: Job sites often involve multiple contractors, increasing exposure to liability.
- Fleet vehicles: Many HVAC businesses operate vans or trucks, which carry their own set of risks and liability limits.
What’s Covered Under an HVAC Umbrella Policy?
Your **umbrella insurance policy** is designed to supplement several of your existing coverages, including:
Real-World Risk: HVAC Lawsuits Happen
HVAC contractors operate in complex environments with high potential for error, oversight, or accident. According to industry data, the **average liability claim in construction trades** can exceed $200,000. That doesn’t include legal fees, which often pile on tens of thousands more.
| Type of Incident | Average Claim Cost | Can Umbrella Insurance Help? |
|---|---|---|
| Customer Injury on Site | $150,000+ | Yes |
| Vehicle Accident with Bodily Injury | $250,000+ | Yes |
| Faulty Installation Lawsuit | $180,000+ | Yes |
| Employee Injury Lawsuit | $220,000+ | Yes |
How Much Coverage Do You Need?
The amount of umbrella insurance you need depends on your business size, number of employees, average job cost, and assets at risk. Most HVAC businesses start with **$1 million** in umbrella coverage, but policies can extend up to $5 million or more depending on your risk tolerance and growth goals.
We’ll work with you at Mike Lively Agency LLC to tailor a policy that fits your budget and gives you peace of mind—so you can focus on doing the job right without looking over your shoulder.