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GL vs. Warranty

General Liability vs. Manufacturer Warranty

When a system fails, the manufacturer's warranty and your GL cover two completely different failure modes. Here's exactly where that line sits.

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Two Different Failures, Two Different Responsible Parties

An HVAC system fails, and the client wants to know who's paying for it. That answer depends entirely on what actually failed — the equipment itself, or how it was installed — and HVAC contractors who don't understand this distinction going in are often surprised by how a claim gets handled.

What a Manufacturer's Warranty on HVAC Equipment Covers

Compressor failures, parts defects, and factory workmanship issues are typically covered under the manufacturer's warranty — often split between a parts warranty and a separate, usually shorter labor warranty. This has nothing to do with your installation work; it's the manufacturer standing behind their equipment.

What Your GL Actually Covers Instead

Your general liability responds to third-party injury or property damage caused by your installation or service work — a combustion problem from a bad connection, water damage from a condensate line error, a carbon monoxide incident from improper venting. See our GL page for the complete breakdown of what this includes.

The Investigation That Decides Which Policy Responds

When a system fails, the manufacturer typically investigates first to determine whether it's a covered product defect. If they rule it out, the question shifts to whether your installation or service work caused the failure — and that's where your GL and completed operations coverage come in. This investigation period is exactly why documentation matters: startup checklists, refrigerant charge readings, and combustion testing records can support your side if the cause becomes disputed.

Why This Matters More in HVAC Than Most Trades

HVAC equipment is expensive, warranties are common and heavily marketed, and clients often assume "it's under warranty" solves everything — right up until the manufacturer's investigation finds an installation issue instead of a product defect. That gap between what clients expect and what actually gets covered is where a lot of contractor-client disputes start.

Getting Both Sides Covered

A strong manufacturer warranty on the equipment you install doesn't reduce your own need for adequate GL — they protect against entirely different failure modes. Tell us your typical install volume and equipment brands, and our agents will make sure your GL is sized to your actual installation exposure.

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FAQ

Common questions

If a furnace I installed has a 10-year parts warranty, does that cover my liability too?+

No — the manufacturer's warranty covers defects in the equipment itself, not damage or injury caused by your installation work. They're separate protections for separate failure modes.

Who decides whether a system failure is a product defect or an installation issue?+

Typically the manufacturer investigates first; if they rule out a product defect, the question shifts to whether your installation or service work caused the failure, which is where your own documentation becomes important.

Does GL cover a compressor that fails due to a manufacturing defect?+

Generally no — that's the manufacturer's warranty responsibility. GL responds to damage or injury your work causes, not defects in equipment you didn't manufacture.

What should I document to protect myself if a failure's cause is disputed?+

Startup checklists, refrigerant charge readings, and combustion testing records are exactly the kind of documentation that can support your position if a failure's cause becomes a dispute between you and a manufacturer or client.

Do commercial clients or GCs require proof of GL even when equipment carries a manufacturer warranty?+

Yes, almost universally — the warranty and your liability coverage address separate risks, and most contracts require both to be in place independently.

Get GL that covers what the warranty doesn't.

Tell us your typical install volume and equipment brands — our agents will size your GL to your real installation exposure.

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