You Break It, You Buy It: Are Your Techs Covered If
They Damage a Customer’s HVAC System?

Spoiler: Not always—and definitely not if it’s in their “care, custody, or control.”

Let’s say your tech is doing everything right… until they aren’t. They’re replacing a condenser, they bump a line, and suddenly the customer’s $4,000 system is fried. Yikes. The homeowner looks at you. You look at your insurance policy. Your insurance policy says: “Nope.”

Wait—what?

In insurance lingo, this is the clause that could cause you a major headache.

If your team damages property that’s in your care, custody, or control—meaning it’s something you’re actively working on, installing, or repairing—it may not be covered by your general liability policy.

So if a tech accidentally:

• Damages a unit during installation,

• Drops a water heater down the stairs,

• Or cracks a part while repairing it…

…you may be stuck footing the bill.

General liability usually covers:

• Damage to other property (e.g. water damage to flooring caused by a burst pipe),

• Bodily injury to non-employees (like the homeowner slipping in that water),

• Legal defense for covered claims.

But the actual equipment you’re working on? That’s the catch.

1. Contractors Equipment or Installation Floater
These can protect you from accidental damage to equipment during install or transport.

2. Tools and Equipment Coverage (Inland Marine)
This covers your tools and gear, but can sometimes be expanded to include expensive units you’re installing.

3. “CCC” (Care, Custody, Control) Endorsement
Some insurers offer policy add-ons that do cover property in your control. If you’re handling high-value systems, it’s worth every penny.

• Review your general liability exclusions. Don’t assume—it’s not a friend group text.

• Ask about CCC endorsements. Many business owners don’t even know they exist.

• Call your agent before the customer calls their attorney.