With all the new construction projects going on in Ontario, Canada there really has never been a better time to be a HVAC technician. Not only are there ample business opportunities available, but also the field itself is very exciting. You will literally never see two jobs that are completely the same. Sure, they are going to be similar, but you will be dealing with different individuals and different types of equipment. That being said, before you get your business off the ground, you are going to need business insurance in order to get licensed and meet contractual agreements. Insurance is by no means inexpensive or easy to understand and this guide will break down the annual costs along with the types of insurance available to protect your heating and air business.
We would recommend starting off by watching Dean Casey’s video about insurance and permits that hvac techs should know about. This video will also simplify the insurance wording for you so you can better understand the content.
How Much Will General Liability Insurance for HVAC Technician Cost?
General liability insurance might be one of the most basic types of policies available to the heating and air company, but it also one of the most important. Why is it one of the most important? Heating and air general liability insurance has the power to protect you and your employees in the event that while on the job you cause bodily harm or property damage to the customer. For instance, heating and air techs oftentimes have to lift and move heavy pieces of equipment. If you are putting in a new piece of equipment and drop it or damage it in any manner, general liability insurance will cover to replace the new equipment.
It will also cover any medical expense if you harm the customer. Maybe you drop a tape measure from a ladder and hit a customer. General liability insurance will cover any of the dental expenses. Hvac technician insurance also protects you from lawsuits. When rectifying the situation by repairing damages or paying for medical expenses aren’t enough, the customer has the option of taking legal action. This policy will cover any of the lawyer fees and court costs that you experience throughout the whole ordeal. Experts in the industry would recommend acquiring at least a $1,000,000, which could run anywhere from $398 to $1,204 annually.
Factors That Impact Your General Liability Insurance Costs
Just keep in mind that the aforementioned numbers are just a basic estimate for most average heating and air companies in the Ontario area. There really is a number of factors that can impact your costs and your company mind wind up paying less or more. Some of these factors can be your company’s size, the amount of money you make on each job, the number of years you’ve been in business, the amount of claims that you have made in the past, and the number of jobs that you do on a daily basis
How Much Will Commercial Auto Insurance Costs?
What would a HVAC tech be without his van or truck? The company vehicle is an essential tool for any heating and air tech. Not only does it serve as a means of transporting your tools from location to location, but when you paint your logo and contact information on the side, it literally becomes a rolling billboard. That being said, in order to turn this vehicle into a rolling billboard you are going to need what is known as commercial auto insurance. This special insurance can protect you and your employees in a variety of ways.
Commercial auto insurance will pay for repair damages or medical expenses in the event that you or one of your techs hit someone. It will also pay for property damages in the event that you or one of your techs backs into a porch, statue, or mailbox. These policies can even cover damages that are incurred by tools that fall off the back of the truck, which happens more than you might imagine. Most average businesses in the Ontario heating and air contractors will pay anywhere from $1,267 to $4,199 annually for this type of coverage according to insureon.
Factors That Impact Commercial Auto Insurance Costs
Once again, these numbers are just a basic estimation of what you might pay. Some of the factors that can change your total costs are the number of employees driving, the number of company vehicles, employees past driving record, your own past driving record, and the number of claims that you have made.
How Much Will Workers Compensation Insurance Cost?
You will find that just about every province in Canada, especially wsib in Ontario, requires businesses with employees to carry workers compensation insurance. Even if the law did not require this, it would still be a good ideal to pick up a policy. This is a type of insurance that was specifically designed to protect your employees. HVAC techs are exposed to many risks on a daily basis. They have to crawl through muck, work in asbestos and insulated filled attics. And, this is not to even mention all of the lifting. It would be extremely easy for one of your employees to get injured at any given time.
Workers compensation protects your employees in these exact situations. If an employee is injured on the job, this policy will kick in and offer the protection you need. It will cover the employee’s medical expenses, their time off work, and in some cases it will cover death and disability claims. Most average Ontario heating and air contractors are paying anywhere from $391 to $9,061 a year for this type of insurance.
Factors That May Impact Workers Compensation Insurance Costs
While the above numbers are just a basic estimation, there are several key factors that will impact your business’s overall costs for workers compensation. Some of these factors are the number of employees your have, your current safety record, and the number of claims that you have made in the past.
The Importance Of Bundling
You probably already know that insurance is a necessity, but it is necessary to ensure the protection of any heating and air company in the Ontario area. This is why bundling is important. Not only does bundling allow you to design insurance policies that will protect you against your specific risks, but also it will help lower your annual and monthly premiums.