Every HVAC business has exposure to lawsuits and claims that threaten to cripple or bankrupt it. That’s why having insurance to safeguard your business is critical. Even though insurance helps protect your business, the safest and most profitable way to operate is to be hands-on in avoiding situations that cause claims. The best insurance claims are the ones that never happen.
Shielding your HVAC business from insurance claims is intelligent management. An HVAC system sits at the mechanical heart of the buildings it serves. Through design, installation, and operation, the HVAC system intersects with architects, contractors, subcontractors, manufacturers, building owners, management, occupants, and visitors. That makes for many and varied constituents who can potentially file claims against your HVAC business directly or whose actions can pull your business into legal jeopardy despite that your company is not solely responsible for claims of damage or losses.
Types of Insurance Claims an HVAC Company Faces
Property damage claims resulting from burst pipes, fires, or theft are the most common. Liability claims from incidents of bodily injury, personal injury, or wrongful death are the next most common threat to your business via insurance claims.
While those broad categories are most likely, many other internal and external things expose your business to NJ HVAC insurance claims. For a more in-depth review of the coverages, your business requires, please see our blog post, What Insurance Do HVAC Contractors Need?
Actions, Reactions, and Attitude Avoid Lawsuits.
It’s not always faulty equipment or poor installation techniques that cause lawsuits. Misunderstandings, hurt feelings, and misplaced blame can lead to unnecessary legal actions. Actions you take in your business make a difference. Well-trained employees who understand the value of a job well done and how to be courteous and professional with clients are where to start.
How well and quickly you react to customer complaints is crucial. A quick response sends the first signal you are invested in resolving your customer’s complaints and inquiries. Owning mistakes where your business is at fault with a sincere apology and your assurance to fix the problem fast will head off many lawsuits.
Follow Plans and Procedures
When you have plans or job orders specifying installing or repairing HVAC systems, follow them as closely as possible. If there are discrepancies, bring them up and keep a paper trail of your findings and recommendations. Your professionalism sets a tone on how you conduct your business. Lead by example to get and expect the best results from clients, employees, subs, partners, and suppliers.
Never skimp or skip on legal requirements. For example, pulling permits on time is essential to conduct your business legally and professionally. Besides keeping you in compliance with the procedures and the timeline for them that you are following, it demonstrates you are trustworthy. Your good reputation will benefit you when decisions come down that affect your business and are otherwise out of your control.
Communications Are Critical
For safety and common courtesy reasons, it is imperative to provide adequate and clear warnings to all persons who your work might expose to chemicals known to cause potential health issues to them.
The importance of employee communication is paramount to avoiding lawsuits. Set clear expectations with employees and train them to do so proactively with your customers. Publish an employee manual that thoroughly provides exact information on expected conduct, hours, time off, and so forth. Provide in writing your expectations for how your employees interact with each other and your customers. Require a signed acknowledgment from your employees.
When you define clear expectations and train your employees to follow your procedures, it gives them a professional example to set proper expectations with your customers and each other.
Get Professional, Experienced Insurance Advice
The best way to avoid claims is to know all the risks your business faces and which of them are insurable. Dickstein Associates Agency’s professional HVAC insurance specialists are eager to provide clients with practical advice on their NJ HVAC Insurance needs. Our team reviews a client’s potential exposures and uses its expertise to offer solutions to mitigate the risks of claims through best practices. Protecting your business from small claims and disastrous ones is our goal with the HVAC insurance coverage we offer. Our agents are at your service and ready to provide a comprehensive, competitively priced program specific to your HVAC operation’s needs and exposures.
About Dickstein Associates Agency
Dickstein Associates Agency has distinguished itself as a leading provider of personal and business insurance in the tri-state area for over 55 years. We pride ourselves on being advocates for our clients and providing them with quality and affordable coverages. As Trusted Choice™ independent insurance agency, we partner with various national and regional carriers, allowing for flexible and unbiased coverage for each client’s unique circumstances. For more information on how you can leverage all of your insurance to work best for you, and how we can secure the best insurance in the marketplace based on your specific needs and business objectives, contact us today at (800) 862-6662.
