Proper business insurance allows your HVAC business to continue to operate properly. In every situation, companies should have insurance in place from the start of operations. However, this is not a static policy. In other words, you need to update it over time to ensure it continues to meet the types of risks your company faces. Here’s how to update your policy.
Consider Your Assets
Many HVAC companies grow substantially in their first few years. As they do, they add more assets to their options. This includes more trucks, more equipment, and more tools. It also may mean additional locations. As your assets grow, you need to be sure your property insurance grows to match it. This means extending the value of your business insurance policy to match the amount, type, and value of the equipment you own right now. As you grow to new locations, consider adding separate, though similar, policies for those jurisdictions.
What Claims Occurred in the Previous 12 Months?
The next step is to consider the claims filed over the previous 12 months. For HVAC companies, this includes claims from customers, visitors and employees. Work with your business insurance agent to determine if you have the right amount of coverage. Do you have enough to meet future claims? Perhaps you have too much? Specifically, consider liability losses here.
Update Your Worker’s Compensation
Workers' compensation protects you from employee injuries and losses. Have you filed claims in the last 12 months? If so, now is a good time to examine why this happened. Use this information to help you form new training programs and changes to your business model to minimize future risks. Because worker injuries are sometimes common in HVAC work, you need to be sure your policy matches all potential losses.
Focus on the Future
One key thing to consider is your future. You are building a business now. And, you are at the heart of it. Your presence may be very valuable to your HVAC company. Now may be the time to add key person injury coverage. It helps provide a life insurance policy on you that pays out to the business. It can help keep your business operational even if you are not there to do so.
Each of these steps is critical. Work with your business insurance agent to gain insight into all your options for updates and changes. Sometimes, adjustments can save you money. However, the goal is always to make sure you have protection.