Before we jump into the benefits of a business property policy for your heating and ventilation company, I just want to say I am floored by the cost of technology and tools it takes for you to successfully operate. Taking your basic necessities like wrenches and pliers out of the equation, some of the HVAC-specific tool cost is extremely pricey and looks like they are only getting more expensive.
When looking at HVAC-specific tools like psychrometers, vacuum pumps, thermal imaging tools, etc. Each running in the hundreds to thousands of dollars you are looking at quite the value in equipment. If you have more than a few technicians the total cost of this equipment could range from the tens to hundreds of thousands and replacing these tools in the event of a loss could pose a huge financial stress on the company. This is where business property insurance comes into play and will protect you.
What is Business Property Insurance?
Business property insurance, also known as commercial property insurance, is designed to repair, replace, and protect the building and/or equipment that you own or rent for your business. This includes tools and equipment, inventories, computers, accounts receivables, etc.
Do I Need Business Property Insurance as an HVAC Contractor?
If you are looking to protect your company’s operational budget, and profits, and quickly get back on your feet after a loss to your equipment, it is highly advised to have business property protections in place. If you happen to finance more expensive pieces of equipment the bank/ lienholder of that equipment may require you to have business property protection until the note is fully paid off. Do you need this specific coverage? Potentially no, but is it a smart business decision to have it? Absolutely.
What are Some Examples of Business Property Claims with HVAC Contractors?
Great question! Here are a couple of recent claims from HVAC contractors where business property came into play:
- One morning, a client came into their shop to find that someone broke into their unit overnight and cleared them out of all their tools. Business property insurance ended up paying $42,000 to replace what was stolen.
- A client’s work van caught fire on the way to a job and completely burned to the ground. While the client’s commercial auto policy paid for the vehicle itself. The business property insurance paid over $15,000 to replace the tools, inventory, and computer that was in the van at the time of the fire.
As evidenced from above, business property coverage can come into play in various forms. With your job depending on getting from site to site in different geographic locations, your risk could change from hour to hour. Properly protecting the valuables that allow you to operate effectively and efficiently is vital.
Working with an experienced independent insurance agency will give you the advantage of optimizing the coverages for your business and finding a rate that will help the profitability of your company.
When you are ready for a more detailed discussion about properly protecting your heating and ventilation company, contact the professionals at The Staples Agency. We have a team of HVAC insurance specialists that will be more than happy to discuss options and advise you to find the best fit for you.