Arkansas HVACR NewsMagazine January 2023

News Magazine Reprint

FEATURE STORY

their insurance on mistakes made on their facilities. You are not required to carry your own General Liability Insurance

General Liability Insurance

The HVACR Licensing Board determined that contractors doing business with the public should have a modicum of general liability of insurance. Proof of general liability is now required to renew a license. The following should outline the requirement: • General Liability protects the homeowner in case the contractor makes a mistake and does harm to the property. • General Liability also protects the contractor in that mistakes can be very expensive. Without insurance, the contractor could be forced into bankruptcy. • You work as a registrant for your HVACR employer but you have a license. If you do not perform any HVACR work outside your employer, you are not required to carry General Liability as you are covered by your employer for work done under the umbrella of his or her license. • You have a license but work in maintenance for a firm; i.e., real estate management on their own property or a local factory. You are covered by What is it? Who has to have General Liability? All “A”, “B”, “C”, “D”, and “E” licensees with the following exceptions:

How Much is Required?

• $250,000 Many, if not most, light commercial jobs require a million dollars in coverage. It was the intent of the Board to require coverage for the smaller claims. Claims above $250,000 would be paid by the contractor so it would be wise to investigate a larger policy. Of course, a claim on a residence could also exceed the required coverage.

Where can I buy General Liability Insurance?

• General Liability Insurance is readily available through your present commercial carrier that already covers your vehicle and workers’ compensation.

How much will it cost? •

Depends on where you get it.

• A small General Liability Insurance policy is generally not very expensive. • The licensing program does not determine the cost or source of coverage. How do I prove that I have General Liability insurance when I renew my license? Send in your General Liability Declarations coverage page when you renew your license. The entire policy is not necessary. •