Business insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for an air duct cleaning firm.
This article will discuss the primary insurance coverage for air duct cleaning firms, general liability insurance, as well as additional policies that are appropriate for this industry.
Air Duct Cleaning Companies Need General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
Situations That An Air Duct Cleaning Company’s General Liability Insurance May Cover
Example 1: When one of your salesmen makes false and disparaging remarks about a competition, the firm sues for defamation. General liability insurance would cover your legal bills as well as any settlement amounts.
Example 2: At a work site, a client suffers a brain injury after stumbling over your equipment and falling down the stairs. The customer’s medical expenditures would be covered by general liability insurance.
Example 3: While delivering goods, a vendor unintentionally smashes a heavy stack of HVAC supplies over his head and requires quick medical attention. In the case of a lawsuit, general liability insurance would pay the vendor’s medical expenses as well as your legal fees.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
The typical American air duct cleaning firm pays between $500 and $1,500 per year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Types of Coverage Required by Air Duct Cleaning Companies
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that every air duct cleaning firms should have include:
Insurance for Commercial Vehicles
In the case of a collision, any truck or van you use mainly for work needs commercial car insurance to cover the vehicle, driver, and others on the road. Choose a policy that not only covers accident-related vehicle repair expenses and medical care for anybody harmed, but also provides enough coverage for any specific equipment you transport to work locations in your cars.
Insurance for Professional Liability
If a consumer claims that your services caused them harm and files a lawsuit, professional liability insurance will cover your legal bills as well as any settlement amounts.
Types of Insurance That Some Air Duct Cleaning Companies May Require
In addition to the insurance listed above, your air duct cleaning firm may need other forms of coverage based on particular parts of your operations. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Insurance for Commercial Property
If you own the building where you do business, you are liable for any business-related property that is held there in the case of a fire, burglary, or natural catastrophe. After an accident, commercial property insurance would cover the expense of rebuilding your equipment and supplies, allowing you to recover fast.
Insurance for Home-Based Businesses
If you work out of your home office or garage, check with your homes insurance provider to be sure your coverage covers you for business-related incidents. If not, consider adding home-based business coverage to your current home insurance policy or your business owner policy (BOP).
Umbrella Insurance for Businesses
While most claims are covered by your general liability insurance policy, certain incidents or lawsuits may be so severe that they threaten to deplete the limits of your main coverage. Commercial umbrella insurance protects you from having to pay for legal expenses and awarded damages that exceed the limits of your main policy out of pocket.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.