Question 1

What is a common misconception about General Liability for HVAC Contractors?

Accepted Answer

HVAC techs think GL covers refrigerant releases. Standard CGL has an absolute pollution exclusion that blocks refrigerant claims — you need a separate refrigerant pollution endorsement.

Question 2

What happens if hvac contractors don't have General Liability?

Accepted Answer

Your service tech overcharges a system; the high-side ruptures, releasing 20 lbs of R-410A and damaging a $35K compressor. Without a refrigerant pollution endorsement, GL denies. With it, the property damage is paid up to the sub-limit.

Question 3

What is a common misconception about Workers' Compensation for HVAC Contractors?

Accepted Answer

Service-only HVAC firms think they're low-risk. Roof access, ladder use, and confined-space attic work make HVAC service among the higher WC class rates in mechanical trades.

Question 4

What happens if hvac contractors don't have Workers' Compensation?

Accepted Answer

A tech falls 18 feet from a rooftop unit — broken pelvis, surgery, 8 months out — $230K medical, $40K wage replacement. WC handles it. Without WC, you're personally liable AND the tech's employment lawyer can sue you for negligence.

Question 5

What is a common misconception about Commercial Auto for HVAC Contractors?

Accepted Answer

HVAC firms think because their van 'just carries tools' it's low-risk. Carriers price by gross weight and cargo — a fully loaded service van rear-ending another vehicle creates higher injury severity than a sedan.

Question 6

What happens if hvac contractors don't have Commercial Auto?

Accepted Answer

Your install truck pulling a trailer with a 5-ton RTU jackknifes on a wet ramp, totaling another vehicle and injuring two people. The combined claim is $310K. Commercial auto with a $1M CSL pays. Personal auto would have denied for commercial use.

Question 7

What is a common misconception about Pollution Liability for HVAC Contractors?

Accepted Answer

Many HVAC contractors carry GL alone, not realizing refrigerant is treated as a 'pollutant' under CGL — and EPA enforcement actions for refrigerant violations have real teeth (up to $44K per day per violation under the Clean Air Act).

Question 8

What happens if hvac contractors don't have Pollution Liability?

Accepted Answer

A retrofit you did vents combustion gases improperly. Two months later, the homeowner is hospitalized for CO poisoning. Medical claims and bodily injury suit total $520K. CGL excludes pollution; your pollution policy covers the BI portion. Without it, your business closes.

Question 9

What is a common misconception about Inland Marine (Tools & Equipment) for HVAC Contractors?

Accepted Answer

HVAC firms underestimate equipment value. A fully equipped service van can hold $25K–$50K in tools.

Question 10

What happens if hvac contractors don't have Inland Marine (Tools & Equipment)?

Accepted Answer

A van break-in nets the thieves $18K of recovery equipment, gauges, and a leak detector. Without inland marine, you're replacing everything before tomorrow's calls.

Question 11

What is a common misconception about Commercial Umbrella for HVAC Contractors?

Accepted Answer

Owners think umbrella is for big firms. A single CO claim can exceed primary limits regardless of company size.

Question 12

What happens if hvac contractors don't have Commercial Umbrella?

Accepted Answer

A CO incident in a residence sends a family to the hospital — $1.8M in medical and pain/suffering claims. $1M GL pays its limit. The umbrella covers the rest.

HVAC Contractors Insurance Coverage Guide | RISKX