SERVICE EXPERTS HEATING & AIR

You need commercial general liability on an occurrence form, commercial auto, workers' compensation, and an umbrella policy. Your franchise agreement specifies required limits and the franchisor entity that must appear as additional insured. Confirm those requirements before binding coverage.

The standard general liability policy has a pollution exclusion that treats carbon monoxide as a pollutant. A bodily injury claim involving carbon monoxide from a furnace you serviced may trigger that exclusion. Contractors pollution liability is the policy built to respond to this exposure. Confirm whether your policy includes a pollution buy-back endorsement or whether you carry a separate contractors pollution liability policy.

Refrigerant is typically treated as a pollutant under standard general liability policy language. A refrigerant release that causes bodily injury or property damage is likely excluded under the standard pollution exclusion. Contractors pollution liability removes this gap.

Completed operations coverage on an occurrence-form general liability policy responds to property damage and bodily injury caused by work you completed after the job is done. It does not cover the cost to repair or replace your own work — it covers resulting damage to the customer's property and people.

Your general liability policy covers operations at both residential and commercial locations — but commercial accounts often require higher limits than your franchise agreement minimum. A commercial property manager may require $2,000,000 per occurrence. Confirm your policy limits match the COI requirements of any commercial accounts you service.

A gas line failure resulting in explosion and fire is a completed operations claim. Coverage depends on whether your general liability policy is occurrence form with completed operations included, and whether the policy contains a pollution exclusion that would apply to the gas release itself. This is the scenario where both contractors pollution liability and adequate umbrella limits matter most.

HVAC installation and service work falls under NCCI code 5537. The rate per $100 of payroll varies by state — approximately $2.24 in lower-rate states and $5.14 in states like Florida. Gas line work may trigger a separate classification in some states. Confirm with your carrier at policy inception.

Only if the subcontractor exclusion in your general liability policy has been endorsed to require current certificates. Collect certificates from every 1099 worker before every job. A certificate that was valid at hire and has since lapsed provides no protection at audit or at claim time.

Your workers' compensation carrier audits actual payroll at year end. Payroll for seasonal or temporary employees not included in the original deposit produces an audit adjustment. Report payroll increases to your carrier when they happen — not at year end.

Commercial accounts typically require higher general liability limits and may require additional insured endorsements for the property manager or building owner. Confirm your policy limits match the COI requirements that come back from each commercial account. The franchise agreement minimum and the commercial market minimum are often different numbers.

Completed operations coverage responds when a claim arises from work you performed after the job is finished. For HVAC, that means a system that was installed or serviced and produces a claim — carbon monoxide, heat failure, equipment damage — weeks or months after your tech left the property. This coverage must be on an occurrence-form policy and must be explicitly included.

An occurrence form general liability policy covers events that happen during the policy period, even if the claim is filed later. A claims-made form covers only claims filed while the policy is active. For HVAC franchises with long-tailed completed operations exposure — systems serviced years ago that produce claims today — the occurrence form is the appropriate form type. Claims-made creates a coverage gap for completed operations that stretches beyond the active policy period.