HVAC Contractor Insurance in Ontario

The appropriate insurance program will depend on your services, equipment, vehicles and contracts. The following coverages may be relevant when arranging HVAC contractor insurance in Ontario.

Commercial general liability insurance may respond to covered claims alleging that your business caused third-party bodily injury or property damage.

Examples of potential claims could include:

• A customer tripping over tools or materials at a job site
• Accidental damage to flooring, walls or furnishings during a service call
• Water damage allegedly caused by an HVAC installation
• Property damage allegedly arising from completed work

A CGL policy may also provide legal defence for covered claims. Coverage remains subject to the policy terms, limits and exclusions.

Products and completed operations coverage is commonly included within commercial general liability insurance.

It may respond to certain covered bodily injury or property damage claims that arise after an HVAC installation or repair has been completed. It does not automatically pay to correct defective workmanship or replace the contractor’s own work.

The coverage should be reviewed carefully when a contractor’s completed work could lead to a claim months or years after the original project.

HVAC contractors often carry valuable tools and mobile equipment, including:

• Refrigerant gauges
• Vacuum pumps
• Recovery machines
• Leak detectors
• Combustion analyzers
• Brazing and welding equipment
• Hand and power tools
• Ladders and portable equipment
• Equipment leased or rented from others

Commercial property coverage may not provide the necessary protection for every tool or piece of equipment while it is in transit, left in a vehicle or located at a job site.

Tools and equipment coverage may be arranged for insured property used away from the contractor’s premises. Available protection depends on the policy, storage arrangements, security measures, limits and cause of loss.

An installation floater is different from tools and equipment coverage.

It may help protect insured materials and equipment intended to become a permanent part of a project, such as:

• Furnaces
• Air-conditioning units
• Heat pumps
• Boilers
• Rooftop units
• Refrigeration equipment
• Ductwork and related components
• Controls and building automation equipment

Depending on the policy, coverage may apply while insured property is in transit, temporarily stored, awaiting installation or being installed.

Testing and commissioning exposures should be discussed with the All-Risks Insurance Brokers Kitchener team because coverage may be restricted, excluded or require an endorsement.

Refrigerants and other substances used in HVAC operations may create environmental exposures.

Commercial general liability policies can contain pollution exclusions or restrictions. Contractors pollution liability may be considered for certain claims involving releases arising from covered contracting operations.

Depending on the policy, coverage may address certain third-party claims involving:

• Bodily injury
• Property damage
• Cleanup expenses
• Emergency response expenses
• Pollution conditions arising from covered work

Pollution liability does not automatically cover every refrigerant leak or environmental event. The substances handled, work performed, policy definition of a pollutant and circumstances of the release can all affect coverage.

HVAC contractors frequently depend on service vans, pickup trucks and other vehicles to transport workers, tools, parts and equipment.

Commercial auto insurance may be required for:

• Service vans
• Pickup trucks
• Fleet vehicles
• Vehicles carrying tools and materials
• Trailers used for business
• Vehicles owned or leased by the company

The drivers, travel area, vehicle use, trailers and equipment carried should be accurately disclosed.

Personal auto insurance may not be appropriate for a vehicle owned by or regularly used in the operations of an HVAC business.

Commercial property insurance may help protect insured property at the contractor’s office, shop or warehouse.

Depending on the policy, this could include:

• Office contents
• Shop equipment
• Inventory and replacement parts
• Computers and business records
• Tenant improvements
• Buildings owned by the business

Coverage for property away from the premises, in transit or awaiting installation should be reviewed separately.

Business interruption insurance may help replace certain lost business income when operations are interrupted because of insured physical loss or damage.

Extra expense coverage may help with certain additional costs incurred to continue operating or reduce the length of the interruption.

For example, coverage may be relevant when insured fire damage prevents an HVAC contractor from operating from its shop. It would not automatically cover every decline in revenue, scheduling delay or interruption.

The indemnity period, waiting period, income calculation and applicable causes of loss should all be reviewed by your broker at the Kitchener branch of All-Risks Insurance Brokers.

Professional liability insurance may be relevant when an HVAC contractor provides services such as:

• System design
• Engineering or design-build services
• Technical specifications
• Energy-efficiency consulting
• Equipment-selection advice
• Building automation design
• Project-management services

Professional liability and commercial general liability address different types of claims.

Tell our team about any design, consulting or advisory services your business provides so we can determine whether professional liability options should be considered.

Equipment breakdown insurance may be useful when an HVAC business owns mechanical, electrical or pressure equipment at its office, warehouse or shop.

Depending on the property and policy, it may help address certain sudden mechanical or electrical breakdown losses that are not insured under standard commercial property coverage.

This is different from coverage for HVAC units being installed at a customer’s property.