Air-Conditioning/ Heating Contractors

generally light unless there are repair operations involving welding or brazing on the premises. If the contractor constructs piping on premises, the potential for fire or explosion increases due to sparks and flames produced by the welding process. Tanks of gases must be stored and handled properly. There should be basic controls such as chained storage of the tanks in a cool area and the separation
of welding operations away from combustibles, either in a separate room or with flash/welding curtains. Many air-conditioning contractors keep products or parts on premises, increasing the exposure to fire, smoke, water damage, breakage, theft and vandalism. Parts that include copper or brass can be targeted by thieves. Appropriate security controls should be taken including alarms, lighting, and physical barriers prohibiting access after-hours.

scaffolding, goods in transit, installation floater, and valuable papers and records for customers’ and suppliers’ information. There may be computers for tracking inventory, goods in transit, or installation exposures, Backup copies of all data should be stored off premises. Contractors’ machinery, tools, or building materials left at job sites are exposed to loss by theft, vandalism, damage from wind and weather, and damage by employees of other contractors. Contractors may lease, rent or borrow equipment, or may lease out, rent or loan their owned equipment to others, which poses additional risk as the operator may be unfamiliar with operation of the borrowed item. Since an accident may trigger both the equipment and installation coverages, as well as possible third-party liability, many contractors prefer to hire a crane or helicopter with a licensed operator to lift air-conditioning units to roof tops for installation or retrofit. The lease contract should specify responsibilities for providing insurance. Units which are dropped into place by helicopters could be damaged from drops and falls. Goods in transit consists of tools and equipment as well as products purchased by the customer for installation at the job site. Air-conditioning units can be of high value and susceptible to damage in transit, requiring expertise in loading to prevent load shift or overturn. There is an installation floater exposure when the units to be installed are delivered to the site in advance of the installation.

should be performed on all employees providing services to customers or handling money. There must be a separation of duties between persons handling deposits and disbursements and reconciling bank statements. If customers pay the plumber at the job site, receipts should be provided.
There may be some copper components on premises that could present a theft exposure
because copper is valuable when sold at a scrap metal yard. Parts and even entire units are
targeted and sold as scrap metal. Precautions should be taken when units are delivered to
new construction sites. While in transit the vehicle should be attended at all times.