Insurance for Air Conditioning Contractors
Air-conditioning contractors install and repair air-conditioning units, and perform duct and vent work, in either residential or commercial buildings. In some cases, air-conditioning contractors may also be involved in air filtration and ventilation systems, and heating units. Air-conditioning units and heating units can have various fuel sources. These can be natural or LPG, electric, steam, solid fuel, coal, or fuel oil. The fuel source of the heating unit to be installed is important, as each type of fuel source poses its own unique set of hazards.
At Business Insurance Service, we understand not just the insurance industry, but the commercial sector too. Our brokers have years of experience and expertise in finding tradespeople from across all disciplines the right kind of Contractors’ All Risks and Contract Works insurance cover for tradespeople, giving both sole traders, SMEs, and large building contractors the protection they need.
What Insurance does an Air Conditioning Contractor need?
There are certain liability insurance covers that every trades and construction company should have, or are legally required to have. Tradespeople insurance policies provide you with essential covers, such as Public Liability, Employers Liability, Contract Works and Tool Cover.
Minimum recommended cover on a Contractors Combined policy would include Machinery and Contents, Employee Dishonesty, Book Debts, Contractors Plant and Equipment, Contract Works, Goods in Transit, Public/Product Liability, Employers’ Liability
Other covers to consider could be Buildings, Business Interruption with Increased Expenditure, Computers, Employment Practices Liability, Environmental Impairment Liability, Excess of Loss/Difference in Cover Liability, Commercial Vehicle or Motor Fleet.
Property exposures at the contractor’s own location usually consist of an office operation, product, material, equipment, and vehicle storage. The fire exposure is generally light unless repair operations involving welding take place on premises. Many air-conditioning contractors keep product on the premises. This exposure must be reviewed based on the amount kept on hand.
Premises liability is minimal unless retail sales are taking place. The major exposure is off site where items may fall, welding may cause fires, and employees will interact with other contractors. If the contractor is working on existing systems, consider the potential exposure of waste disposal.
Completed operations are another major area of potential high loss exposure. Should a unit malfunction; is it a result of faulty manufacture or faulty installation? Quality control, training, background, and experience of all workers are important. ‘Sick building’ exposures, where air is not properly circulated or filtered, have also become a problem in completed operations losses. Therefore, contractors must be aware of potential places of stagnant air.
Commercial Vehicle / Motor Fleet
Motor liability depends on the radius of operation. Age, training, experience, and drivers’ records, as well as the age, condition, and maintenance of the vehicles, are all important items to consider.
Employers’ liability exposures are varied. Any time work is done above ground, injury or death from falls and being struck by falling objects can occur. Complications from the large, heavy machinery and their use, misuse, maintenance, and transport have unique hazards that need review. Cuts from the fabrication and installation of sheet metal for ducts and vents are common, as well as the above ground exposure during installation.
Overall, the residential air-conditioning contractor does not present unusual exposures. However, the commercial contractor may become more of a specialist, dealing with customers demanding a higher degree of precision in filtration systems. As precision and specialisation increase, so does the exposure to loss.
What other risks does an Air Conditioning Contractor face?
Other exposures include the transport of product from the location to the job site, along with the contractor’s plant and equipment. Many contractors will lease, rent or borrow equipment rather than purchase. Those who do purchase may lease out, rent or loan equipment to others.
In commercial work, air-conditioning or heating units are often lifted by crane to rooftops for installation or retrofit. Is the equipment’s load capacity routinely exceeded? Equipment or air-conditioning and heating units may be subject to drop and fall from heights. If equipment, machinery, tools, or supplies are left at job sites, what types of crime and vandalism protection are in place? What controls are used?
Air Conditioning Contractors Employee Safety Manual
A customisable Employee Safety Manual for contractors in the plumbing, heating and air conditioning industry featuring safety policies and procedures that support a safety-conscious work environment. Please ask us for a Word copy or download your customised version from our HR & Legal Portal.
While the proper risk management practices can reduce certain exposures, no system is 100 per cent effective in ensuring an incident-free workplace. As a result, it’s all the more crucial to work with a qualified insurance broker to not only assess your exposures, but secure the appropriate cover as well. To learn more, contact Business Insurance Service today.
How can Business Insurance Service help Air Conditioning Contractors?
Whether you’re a sole trader or a small to large company, your insurance portfolio has to be up to date and provide you and your business with the right level of protection. Rather than trying to find Contract Works Insurance or tradesperson insurance by hunting through countless websites, let us or our website do it for you.
We’re members of the British Insurance Brokers Association (BIBA) and work with some of the largest and best-known insurance providers in the UK, including Lloyds of London for larger, more complex and high-risk customers. We’re fully regulated and committed to delivering a premium quality, trustworthy and reliable service to all our customers, regardless of size.
As preferred brokers working with some of the largest insurance providers in the UK, we have immediate access to a huge range of policies for businesses, tradespeople and construction companies. We provide our customers with a bespoke or package service, creating insurance portfolios that are specifically tailored to your individual needs, and your budget.