Trade coverage
Refrigerant, gas, and carbon monoxide hazards combined with water and electrical work create severe injury and property exposures. A venting or refrigerant error can injure occupants of a home or building.
General liability responds to two different things for your trade. The first is injury or damage caused while you are working, which for hvac contractor work is a carbon monoxide leak from an improperly vented furnace. The second is a claim that surfaces after you have finished, known as completed operations, and it is the half of the policy most often missing from a cheap quote.
Commonly admitted for residential service and replacement; commercial and industrial mechanical work often moves to surplus lines because of severity and limit requirements.
These are the loss scenarios that drive claims for this trade, in the order we see them.
Each of these changes what the policy actually pays. Request them at quote stage.
General liability on its own leaves gaps that show up as denied claims rather than as missing coverage.
$1M per occurrence / $2M aggregate is standard; commercial mechanical contractors often carry $2M/$4M or higher. That is the limit, not the premium. The premium depends on your payroll, your state, your subcontractor use and your claims history, and it moves most with the hazard of the trade itself, which for hvac contractor is high.
Commonly admitted for residential service and replacement; commercial and industrial mechanical work often moves to surplus lines because of severity and limit requirements.
In order of how often we see them: A carbon monoxide leak from an improperly vented furnace; A refrigerant release injuring an occupant or contaminating a space; Water damage from a failed condensate line, coil, or drain pan.
These four come up repeatedly: Pollution coverage for refrigerant; Additional insured with completed operations; Waiver of subrogation; Per-project aggregate. Get them written into the quote rather than requested after binding, because that is where the delays come from.
Alongside general liability: Commercial auto; Inland marine for tools; Workers compensation; Pollution liability and umbrella.
Yes. Their policy defends them, not you. If your work causes damage, their carrier can pay the claim and then pursue you to recover it.
Classification and carrier appetite differ by trade, so it is worth seeing how yours compares.
Tell us your payroll, state and what your contract requires.
