HVAC

Heating and Air Conditioning Contractors (HVAC) are the exact type of business that has a unique issues relating to workers compensation insurance. These businesses provide services and installations of heating and air conditioning units. They do work for both commercial and residential clients. The employees must be extremely knowledgeable about their craft in relation to both installation and repair of  both duct and vent work, the different types of fuel sources for heating equipment, which can be natural or LP gas, electric, steam, solid fuel, coal, or fuel oil. Many contractors also install, service, and repair air conditioners. While air conditioning units are normally electric-powered, they are charged with different coolants, some of which may be hazardous.

Many HVAC Companies are classified as Artisan Contractors for insurance purposes.  There are five main workers comp class codes for HVAC Companies.

Common Workers Compensation Class Codes:

•   5537- Heating, Ventilation, A/C, Refrigeration Systems- Install, Service, Repair

•   8720-Heating and Air Conditioning- Inspection and Outside Sales

•   3726- Boiler Installation or Repair

•   5183- Plumbing- Gas or Water

Now it is important to ensure your business is classified properly within this industry. Depending upon the scope of the work you do, your rate for insurance premium may be dramatically different. Improper classification almost always gets fixed during the end of term audit, but it usually brings with it a headache if you are not properly classified on the front end.

One big difference among a lot of HVAC Companies is how their employees are classified.  Some companies classify their employees as independent contractor while some classify their employees as regular W-2 employees. Depending upon how you manage your employees, your business may be required to carry Workers Compensation Coverage regardless of how you classify your employees. It is important to check with the proper governing agency within your state to determine which classification is best for you and if you are required to carry workers comp coverage. An experienced independent insurance agent can help you with this decision.

Even if your business is not required to carry coverage it is more than likely worth your while to carry this needed coverage. If you are having trouble coming up with the initial lump sum payment, there are flexible payment options that some carriers offer. One such option is Pay as You Go Workers Compensation Insurance. This type of policy will allow you to get coverage in place at a much lower up front cost and it will allow you to pay your payments monthly based upon the previous months actual payroll.

Even if you do not decide to go with a flexible payment option, it is important to sit down and have an extended conversation with your insurance agent. It is especially important to inform your agent if there are certain types of work you do not partake in. There are numerous classification codes for each industry type depending upon the type of work your business does. If your business is classified improperly it can dramatically impact what you pay in premium for a number of commercial insurance policies.