Contractors Insurance Minimum Coverage

[Emilio Ramirez]

Any recommendations on minimum insurance coverage for HVAC contractor? I'm thinking 500k, but don't deal with a lot of residential guys. Any input would be appreciated. To enhance the subject, what would you expect to see from your other major trades? Framer? Electrician? Plumber? Roofer?

Do you always request you are added as additional insured?

They'll be demo'ing an old fuel oil furnace and putting in two new gas fired furnaces to serve a two family.

[Dave Barnard]

If you have concerns about your contractor's liability limits, I would assume the worst case senario. Let's assume he burns you're house to the ground. How much would it cost to rebuild? This would be the bare minimum. I'm not sure about your state, but here in Ca, an HVAC contractor is not required to carry liability insurance. Only a small bond of 12,500. Personally I carry 1,000,000. I frequently have to add GC's, insurance companies and aothers as certificate holders in order to do business with them. Depending on you're contractors insurance carrier, it should be very easy and quick to obtain the proof of insurance with you added to the policy. This is great protection for you. Your contractors willingness to provide the insurance, really makes a statement about his confidence and ethics. If he is hesitant to provide you with your request, then you should be hesitant to do business with him.
Dave