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HVAC & Mechanical Engineer Insurance: PI & Liability Cover

Get customised insurance that covers your real risks as HVAC and mechanical services engineers — from design errors and system failures to bodily injury on site and project delays.

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AU Owned

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Typical Turnaround

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Understanding Your Cover

What is HVAC & Mechanical Engineer Insurance?

This specialist insurance is coverage designed for professionals who provide technical services, advice, or design for building systems. While Professional Indemnity (PI) is the core policy, this cover is often referred to simply as "HVAC Insurance" and typically includes essential policies like Public Liability.

It's essential for sole traders, partnerships, and incorporated engineering firms working on commercial, industrial, or high-end residential projects across Australia.

Covered Disciplines

Specialist coverage for HVAC and mechanical professionals

Our policies are tailored for engineers working across heating, ventilation, cooling, and mechanical building systems.

HVAC Engineers
Mechanical Services
Hydraulic Engineers
Refrigeration Designers
Fire Protection Systems

HVAC Engineer

Complex Systems. Complex Liabilities.

Essential Coverage

What Insurance Does an HVAC & Mechanical Services Engineer Need?

For most HVAC and mechanical engineers, two policies form the foundation of your risk management. These are almost always required by contracts.

PI Essential for Design & Advice

Professional Indemnity (PI)

Protects you if a client claims your design, advice, or supervision was wrong and caused them financial loss (e.g., an undersized air-conditioning system leads to high energy bills or mould issues).

PL Essential for Site Access

Public & Products Liability

Covers third-party bodily injury or property damage caused by your operations (e.g., a refrigerant leak damages a floor) or the goods you supply (e.g., a fan blade detaches).

Additional Protection

Other Insurances to Consider

Beyond the core policies, these covers address specific operational risks for your business.

Workers' Compensation

Mandatory if you have employees.

Commercial Motor

For work utes, vans, or trailers.

Tools & Equipment

Testing gear, laptops, and tools.

Cyber Insurance

Protect client data and building plans.

Protecting Your Firm

Why HVAC Insurance is Essential

A single design mistake in a hospital, data centre, or high-rise can lead to claims costing millions.

Australian courts and certification bodies (NER, RPEQ, VBA) expect engineers to hold adequate PI. Without the right policy, you risk personal bankruptcy and loss of registration.

High-Value Systems

HVAC engineers work on critical infrastructure where failures can cascade into major property damage or business interruption claims.

Professional registration bodies increasingly scrutinise insurance adequacy.

Real-World Claims

Claim Scenarios for HVAC Engineers

These scenarios illustrate why comprehensive Professional Indemnity and Public Liability coverage is essential.

01 +

Smoke Extraction Failure

A mechanical firm designed an undersized smoke-extraction system which resulted in increased fire damage during an incident. The building owner pursued a significant claim for the additional losses attributed to the design flaw.

02 +

Refrigerant Error

A refrigeration consultant specified the wrong refrigerant, leading to premature compressor failures across a supermarket chain. The client sought recovery of the substantial replacement and business interruption costs.

03 +

Mould Remediation

An HVAC engineer installed incorrect duct sizing which caused persistent condensation and mould growth in a school. The resulting remediation and temporary relocation costs led to a major claim.

04 +

Project Delays

Late drawings from the mechanical engineer delayed handover on a commercial development, resulting in a liquidated damages claim from the developer for the extended project timeline.

Design Defects

Design defects in HVAC, refrigeration, or fire systems.

Faulty Specifications

Faulty specifications leading to energy inefficiency claims.

Bodily Injury Extensions

Bodily injury from falling ductwork or leaks (via extensions).

Defence Costs

Defence costs, even if the claim is groundless.

Project Delays

Project delays caused by your error (via extensions).

Prior Knowledge

Known defects or omissions you were aware of before taking the policy.

Asbestos Claims

Asbestos-related claims are typically excluded.

Gradual Pollution

Gradual pollution or contamination events.

Fines & Penalties

Fines, penalties, or punitive damages.

Wear & Tear

Wear and tear or faulty workmanship (unless Contract Works is included).

Claim Scenarios & FAQs

Real-world examples and common questions

Claims alleging a financial loss due to a "failure to design to specification," such as an undersized system, are typically the primary function of Professional Indemnity (PI) insurance. Your policy would usually appoint a defence team to assess the claim and cover eligible costs.
Yes. Peer review, value engineering, and due-diligence work all involve providing professional advice and opinions, which carries a significant risk of professional negligence exposure. If your review misses an error that causes a subsequent loss, you could be held liable.
The claim for bodily injury would typically be managed under your Public Liability policy. However, if the injury resulted directly from a failure in your design, your PI policy may also need to respond. It's essential to notify both insurers promptly.
It's increasingly recommended. Many firms now use cloud-based BMS design software and hold sensitive client building data. Given the increasing regularity of ransomware attacks, a dedicated Cyber policy is a prudent business measure to protect your operations.
Most PI policies written strictly for consultancy firms contain an exclusion for "Contracting" or "Installation" work. You must contact us to rewrite or endorse your policy before you sign your first D&C contract to ensure you're properly covered.
Mechanical engineer inspecting boiler pressure gauge and thermal systems in commercial plant room for compliance certification

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Protect your HVAC or mechanical engineering business with a tailored insurance package. Call us on 02 9000 1155 or request a quote online.

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