With advancements in smart home and ventilation technology, the ever-changing labor market and economy, and just the overall cost of goods fluctuating, the only constant seems to be changed in the HVAC industry.
Don’t get me wrong, some of these changes are good. Advancements in technology can make you more efficient and let you get to more job sites in a day, streamline your billing and payment process, and increase revenue. However, some changes can also be seen as a setback. If the labor market hardens, it could be more difficult or expensive to hire good help.
No matter if it is seen as good or bad with these changes, the one thing that successful HVAC contractors always do is adjust. You act and react accordingly to ensure optimal operating conditions.
As you stay busy evaluating these changes on a day-to-day basis, it is common to forget about other opportunities that could be financially damaging to your company which if you spent a little bit of time on could quickly turn into financially rewarding. One that comes to mind is your insurance.
Why You Should Review Your Insurance Portfolio
Insurance is a vital part of your business, protecting it from a catastrophic financial loss at any time, and too often we purchase our insurance protection package, and never really look at it again unless an audit needs to be done or our backs are against the wall with a large rate increase at renewal time which can lead to a frustrating experience and only wanting to deal with insurance in a time of absolute need.
With that being said, this could be the direct result of working with an agency that doesn’t specialize in your field. Working with an insurance agency that understands your industry and knows what is going on will actually allow you to leverage the relationship into a financial windfall.
Reviewing your portfolio at least once a year will keep your coverages up to date and relevant. On top of that, it will help prevent any of those carrier audits from surprising you with a bill for not having an adequate risk profile.
A knowledgeable agent can also assist you in determining whether you need to increase any coverage in light of the industry’s recent changes. Are you dealing with increasingly internet-connected (IoT) smart homes and other devices? If so, your agent ought to suggest getting cyber liability protection for you. Have you recently made a major hiring effort? This will undoubtedly have an impact on your worker’s compensation coverage. All things a good relationship with an experienced agent can provide.
All in all, the advice here is to not only review your insurance annually as an absolute minimum, but you should also be working with a team that knows and understands your business model and the risks associated with it. Anytime there is a big change within your business, you should contact your insurance professional to make sure you have that change and investment protected. There are so many factors that go into a successful business and surrounding yourself with a knowledgeable team of professionals will provide the path of least resistance to your ultimate goal.
If you are looking for a team that knows and understands your HVAC business to have a meaningful conversation with, contact The Staples Agency. Our specialist would be more than happy to chat with you about optimizing your insurance portfolio and provide advice on protecting what you have worked so hard to build.