5 Costly Risks Of Overlooking HVAC Insurance And How To Avoid Them

For heating, ventilation and air conditioning contractors operating in Ireland, comprehensive HVAC insurance is crucial.

Overlooking or underestimating this essential safety net can expose your business to major financial setbacks if a claim arises.

From avoiding financial loss to ensuring regulatory compliance, let’s explore five reasons why a tailored HVAC insurance policy will protect your business and livelihood.

 

What should HVAC insurance include?

 

Contractors’ all risks (CAR) insurance

Contractors’ all risks covers damage to tools, materials, and works in progress—both on-site and in transit.

 

Employers’ liability insurance

Employers’ liability insurance protects you if an employee is injured or becomes ill due to their work..

 

Public liability insurance

Public liability insurance covers costs if a third party is injured or their property is damaged during your operations.

 

Professional indemnity insurance

Professional indemnity (PI) insurance defends your business from claims of negligence, error, or poor advice..

 

Each of the above elements plays an essential role within a HVAC policy, and must not be side-stepped in favour of cheaper premiums.

 

5 reasons why overlooking HVAC insurance is a costly mistake

 

#1. If your equipment fails, your project is delayed

As a HVAC contractor, you rely on specialised tools and vehicles to carry out your work. Equipment failure or vehicle issues can halt job progress, disrupt timelines, and strain client relationships.

Without vital cover in the form of contractors’ all risks, replacing or repairing equipment under financial and time pressure can lead to contract delays and lost income through business interruption.

Expert advice: Secure a tailored contractors’ all risks policy that is aligned to the scale of your project, to protect property, materials and tools against accidental damage, theft or loss.

 

#2. Your employees face the risk of on-site injury

From continuous lifting and bending to fixing complex systems and carrying tools, there are numerous HVAC hazards that specialists must avoid to stay safe while working.

Without vital cover in the form of employers’ liability insurance, claims and Health and Safety Authority (HSA) scrutiny can quickly lead to fines, compensation costs and project disruption.

Expert advice: Confirm that your employers’ liability insurance is sufficient to cover your actual workforce, their daily activities and their unique risk exposure.

 

 

#3. Your work has the potential to cause injury to a third party

If someone sustains an injury or their property is damaged due to your work on a client’s premises, you are automatically exposed to a claim and potentially significant financial loss.

Without vital cover in the form of public liability insurance, a single claim resulting from something like a slip or accidental damage could leave you legally liable for hefty compensation.

Expert advice: Liaise with an expert insurance provider to ensure your public liability policy is based on suitable limits and terms that match your workload across construction, retail or other sectors.

 

#4. You or your team may make mistakes when working

Even meticulous work can lead to mistakes, whether personal or team-based. Errors, from improper duct placement to refrigerant mishandling, can cause significant damage and client complaints.

Without adequate professional indemnity insurance, these issues could trigger costly rectifications, legal action, or even pollution-related liability.

Expert advice: Consult with a specialist insurance broker to ensure your PI policy matches your services, so that you are fully protected against errors or omissions in design, installation or advice.

 

#5. You may experience post-project issues

Given the nature of the job, environmental liabilities and completed operations claims can arise after a project is completed. These may be due to damaged property, injured occupants, or regulatory violations resulting from your work.

Without vital cover that incorporates latent defect insurance to protect against faulty work or any pollution or environmental liability relevant to HVAC materials and refrigerants, you may remain vulnerable to claims for six years after the date on which the cause of action occurred.

Expert advice: Find a broker who can provide latent defect insurance as part of your policy, which will cover you for up to 12 years if any claims crop up well after the project has been completed.

 

 

ERM: specialists in insurance for HVAC contractors

Given the risks associated with the job, a HVAC insurance policy should be practical, tailored and responsive. This is made possible with specialist commercial insurance from ERM Financial Services.

With over 30 years of experience supporting Irish businesses, we have established ourselves as a trusted insurance provider to numerous contractors.

We translate risks into clear, customised cover and communicate with insurers on your behalf, ensuring swift claims handling. We also review your policy annually, making sure nothing is left to chance.

Talk to us today for expert advice and HVAC insurance solutions that keep your business protected and future-ready.