Keep cool with the right Air Conditioning and Refrigeration Insurance
Getting the right foundations in place is essential for a business and a tailored insurance policy is part of this process. When you couple large losses with inadequate or poorly advised cover, this can cause your business to be left with expensive bills to rectify the damage.
To protect your business from these unpredictable events, you need the right Air Conditioning and Refrigeration Insurance in place.
What risks does the Air Conditioning and Refrigeration industry face?
This industry is susceptible to a wide range of specific risks, which other businesses wouldn’t necessarily face. This includes substantial losses arising from escapes of cooling fluids/ deterioration of stock following system failure and overheating of computer systems, not to mention fires started using welding equipment onsite. The characteristics of Plumbers and Air Conditioning / Refrigeration Engineers are inherently different.
How much will my Air Conditioning and Refrigeration Insurance cost?
The price you are paying is influenced by lots of factors but using a specialist broker can save you a considerable amount on your premium.
With the right people by your side, you can be sure that you’re dealing with someone with a sufficient understanding of your industry as well as specific knowledge of the right insurance markets. This means that you are more likely to get the right policy at the best price.
What will happen if my business doesn’t have the right insurance?
Without the right insurance in place, your cover could be rendered void should you need to make a claim.
At Cool Cover, we know there can be a perception that insurers will try to absolve themselves of liability and claims pay-outs where possible. Yet, by taking out the wrong cover or on the wrong basis you are leaving yourself vulnerable to an insurer reducing or walking away from potential claims payments. This means that your business could be left to foot expensive bills for damages caused.
It is not uncommon for a business to be folded after a catastrophic loss because the insurance payout was either insufficient or a delay with the payment crippled the business cash flow. For some, the damage is done through loss of contracts and reputational damage.
What makes a good Air Conditioning and Refrigeration Insurance policy?
An insurance policy is a legal contract made up of several distinct and significant sections. Although it is not expected that you should understand this contract, it is crucial that your broker fully understands how a policy is made up. Only this, combined with an understanding of your business will ensure you’re properly protected in the event of a loss arising.
The key areas of a policy are
The Operative Clause – Sets out when the policy will work – and as far as most of you are concerned what the policy covers. A key part of this would be the trade description. For example, if you are listed as an Air Conditioning Installation Engineer – this is a narrow description and will potentially not cover any work servicing an existing air conditioning system or other works such as fixing a faulty refrigerator in a pub.
Exclusions – Every policy has exclusions and it’s essential that you’re aware of these. These can include a cover for work on airports, quarries, petrochemical plants and power stations through a Hazardous Locations Clause. On some policies, the use of heat equipment is excluded, including welding.
Conditions / Warranties / Clauses – As well as the policy wording, each policy has a policy schedule that lists the covers as well as the conditions and warranties restricting the cover; breaching these will potentially invalidate the cover.
A typical example of a condition could be a Height Limit “All liability is excluded if the policyholder is working at a height above 10 metres”. For most Air Conditioning Contractors, a policy including this condition would not be suitable.
To talk more about what cover your policy needs to include to keep your business properly protected, get in touch with Cool Cover on 0207 101 4941.
