Any HVAC business owner knows the importance of staying on top of costs. Whether its for your equipment, property, payroll, or any other expense, knowing what you are paying and what you are getting for your money are crucial pieces of information to understand. However, with that being said, there are still many hvac businesses owners that aren’t aware of how much their business insurance is costing them and what they are actually getting for the price they pay. That’s why we’ve come up with this guide to help you know how much HVAC business insurance costs in PA, and make sure that you are getting the most out of your policy.
What Are The Different Insurance Costs That PA HVAC Businesses Face?
While some business owners would wish to not pay for insurance at all, there are minimum levels of coverage for HVAC businesses in our state. Below are the required coverage that each business needs and the average costs behind them:
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Worker’s Compensation Insurance: Even HVAC businesses with only 1 employee are required to have workers’ comp insurance. The minimum coverage is typically two-thirds the employees’ salary plus the cost of some medical benefits. Workers’ compensation insurance can start at $15/month, with plans more commonly costing around $70-$90 a month for small HVAC businesses
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General Liability Insurance: HVAC businesses are required to carry liability insurance to cover any damage to property or personal injury. At least $50,000 in coverage for property damage and $50,000 for bodily injury. This can start at as low as $35/month but averages around $75-$100/month.
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Commercial Auto Insurance: If your HVAC business has only 1 vehicle or a fleet of 50, each vehicle needs commercial auto coverage. Each vehicle must have coverage for $15,000 in bodily injury per person, $30,000 in bodily injury per accident, and $5,000 in property damage. For the most basic coverage, businesses can expect the insurance cost to be around $100-$200/month. On an average range, HVAC business owners can expect to pay around $200-$350/month.
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Tools & Equipment Insurance: HVAC businesses rely heavily on expensive tools and equipment that are often stored in trucks or transported between job sites. Standard policies typically do not fully cover these items if they are lost, stolen, or damaged. Depending on the value of your equipment, this coverage can range from $25–$75/month.
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Errors & Omissions (E&O) Insurance: Many HVAC business owners assume all work-related issues are covered under general liability, but that is not always the case. HVAC errors and omissions insurance protects your business from claims related to design mistakes or installation errors that lead to system failure. Policies can vary widely, but most small HVAC companies can expect to pay between $40–$100/month depending on risk and coverage limits.
The Average Cost Of Insurance For HVAC Businesses In PA
If you put all of these coverages together, most PA HVAC businesses could expect to pay anywhere from $450-650/month for all of their business insurance. While this figure definitely depends on a few variables like company size, number of employees, risk level, amount of equipment, and more; it gives HVAC business owners a place to start.
Let Strickler Help You Find The HVAC Business Coverage That You Need At A Cost That Works
Strickler Insurance is an independent agency that is here to find the best coverage for our customers. We work with a number of different HVAC businesses, helping them stay protected against the unexpected costs without breaking the budget each month. Whether you need commercial auto insurance, workers’ compensation insurance, general liability insurance, or other HVAC business insurance, Strickler is the team you can turn to.
Don’t get overwhelmed with the cost of insurance for HVAC businesses in PA. Get In touch with Strickler Insurance to find the right policy for your business and keep moving towards your business’s goals. Contact us today to get started.
