Coverage Limits
Combustion and refrigerant severity push this conversation earlier in HVAC than it comes up for most trades. Here's what each layer actually does.
Most contractor trades don't think about umbrella coverage until their business is fairly large. HVAC is different, because the severity ceiling on a single claim is different. A carbon monoxide incident is a bodily injury claim, sometimes a catastrophic one, and catastrophic bodily injury claims are exactly the kind of loss that can exceed even a solid GL limit. That's why the umbrella conversation tends to start earlier here than it does for trades that mostly face property damage exposure.
A typical general liability policy caps out at $1M per occurrence and $2M aggregate, or $2M/$4M for contractors carrying higher limits by choice or by contract requirement. Those limits apply per claim and in total across a policy year — and once a single severe claim approaches that ceiling, whatever's left over is what you're personally exposed to.
An umbrella or excess liability policy sits on top of your GL and extends your total available limit once the underlying policy is exhausted. It doesn't change what's covered — it extends how much is available for the same covered claim. For a trade where a single CO incident can plausibly reach seven figures in damages and legal costs, that extra layer isn't a luxury add-on, it's a direct response to the severity ceiling this trade actually carries.
It's not just about revenue size, though larger operations do tend to carry it. It's about exposure: contractors doing higher volumes of combustion and refrigerant work, commercial mechanical projects, or work in occupied multi-unit buildings all carry more severity exposure per job. If your GC contracts already push you toward $2M/$4M GL limits, that's often a signal you're in the range where an umbrella is worth pricing too.
Umbrella policies are generally inexpensive relative to the additional limit they provide, since they only respond after your underlying GL is exhausted — a claim large enough to reach the umbrella layer is statistically rare, which keeps the premium reasonable. It's one of the more efficient ways to add real protection against the specific worst-case scenario this trade carries, without dramatically increasing your annual premium.
The right way to evaluate this isn't GL alone or umbrella alone — it's your total available limit against your actual exposure. Tell us your revenue, your combustion and refrigerant mix, and your contract requirements, and we'll show you what GL alone costs versus GL with an umbrella layered on top. See our cost breakdown for where your base GL premium is likely to land first.
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Related Coverage
FAQ
Generally no — it extends the limit on the same covered claim rather than adding new categories of coverage. It's about having more total limit available, not different coverage.
It varies by carrier and your underlying limits, but umbrella policies are generally inexpensive relative to the additional protection, since they only respond after your GL is exhausted.
On larger commercial mechanical projects, yes — some contracts specify a combined limit that effectively requires an umbrella layered on top of standard GL limits.
Company size matters less than exposure. A smaller contractor doing heavy commercial mechanical or combustion-intensive work can carry more severity risk per job than a larger residential-only operation.
Usually GL limits come first, since umbrella sits on top of your underlying policy. Tell us your full risk picture and we'll price both together to find the most efficient combination.
We'll show you GL alone and GL with umbrella layered on top, side by side.