One of the most significant annual budget line items for an HVACR firm is the cost associated with insuring business. Insurance is a critical component to accomplishing two of these primary goals: protecting a business’s health and assuring the well-being of your employees. Designing proper coverage and having a complete awareness of the direct costs associated with each of these objectives can go a long way toward improving a company’s bottom line. In my years as a consultant and HVAC company executive, I have uncovered many areas of hidden insurance costs that can be reduced, and sometimes eliminated, if managed properly. It’s equally, and potentially even more important for you as a manager or owner to have a clear understanding of the gaps or exclusions in your insurance program so you are aware of and prepared for any potential uncovered claims as a result of these exclusions.
Rating Errors — Insurance companies frequently make rating errors in policies. I have often found errors based on the insurance company’s use of incorrect classification codes chosen to rate and charge premiums. Big savings can also be realized in areas that are in plain sight, but many policy holders neglect to scrutinize such as the location of where your company vehicles are stored and/or driven. No business is identical to the next, yet insurance carriers often use a cookie-cutter approach to our industry and, as a result, apply unnecessary charges to your program.