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Site-to-Site Coverage for HVAC Equipment on Large Construction Projects

Large commercial construction projects in the United States—high-rise multifamily in New York City, data centers in Northern Virginia, hospital expansions in Houston, or mixed-use towers in Los Angeles—depend on expensive HVAC equipment that moves between staging yards, supplier warehouses, and multiple job sites. Site-to-site coverage (also called transit, on-hook, or moving coverage within contractors' equipment/inland marine policies) is essential to protect that equipment while it’s being transported, stored temporarily, or relocated across active projects.

This article explains how site-to-site coverage works, real-world cost examples for U.S. regions, policy design best practices for HVAC contractors and subcontractors, and how to coordinate coverage with general contractors and owners on large projects.

Why site-to-site coverage matters for HVAC contractors

  • HVAC systems and components (rooftop units, chillers, boilers, air handlers, ductwork, control systems) can be worth tens to hundreds of thousands of dollars per unit.
  • Equipment frequently moves between:
    • Supplier warehouses and staging yards
    • Fabrication shops and job sites
    • Crane pads, rooftops, and temporary storage
  • Standard builders risk or general liability policies often do not cover tools and mobile equipment in transit or away from the jobsite—creating gaps that site-to-site coverage fills.

Types of coverage relevant to HVAC equipment

  • Contractors’ Equipment / Equipment Floater (Inland Marine): Covers owned, borrowed, or rented equipment (cranes, forklifts, specialized HVAC tools) including transit, on-hook, and storage. Typically covers theft, vandalism, and accidental physical loss.
  • Transit Coverage: Focuses specifically on equipment while being transported (truck, rail). Often included within inland marine or contractors’ equipment policies.
  • Builders Risk: Primarily covers materials and installed work for the project, but coverage limits, named insureds, and geographic limits can restrict equipment not yet installed or while in transit.
  • Scheduled vs Blanket Coverage:
    • Scheduled: Specific items listed with values.
    • Blanket: One aggregate limit covering all scheduled items—useful for multiple pieces of rotating equipment across projects.

See guidance on how these forms interact in: Builders Risk vs Contractors' Equipment: Which Insurance Protects HVAC Materials on a Jobsite?

Typical costs and market pricing (U.S. context)

Insurance pricing varies by region, project size, equipment value, and carrier. The following ranges reflect market norms and published carrier guidance:

  • Builders Risk: Typically 1%–4% of the completed value of the project (total contract value), depending on project type, location, and risk exposures. For a $10 million building, that equates to roughly $100,000–$400,000 for the full-term premium (source: Travelers, Insureon).
    Source: https://www.travelers.com/business-insurance/contractors/builders-risk and https://www.insureon.com/small-business-insurance/articles/builders-risk-insurance-cost
  • Contractors’ Equipment / Inland Marine: Annual premiums often run ~1%–4% of the insured value of the equipment, with transit endorsements and higher limits adding additional cost. For example, protecting $500,000 of HVAC rigging/portable equipment could cost roughly $5,000–$20,000/year depending on territory and deductible (source: industry summaries, Insureon).
  • HVAC Contractor Package (GL + Tools): Modern carrier marketplaces show small HVAC contractors can purchase General Liability + inland marine starting around $30–$150/month for minimal limits; larger firms pay several thousand dollars per year. For example, Next Insurance lists HVAC contractor policies starting at roughly $40–$80/month for basic GL packages, while established carriers like The Hartford or Travelers often quote higher mid-market premiums depending on payroll and subcontractor exposures.
    Source: https://www.nextinsurance.com/business-insurance/hvac-contractor-insurance/ and carrier public pages

Note: These are illustrative ranges. Exact quotes require location-specific underwriting (city, zip), project contract, value of equipment, and claims history.

Site-to-site coverage design — practical components

  1. Define Covered Locations and Movements

    • List all jobsite addresses (e.g., Los Angeles Downtown, Miami-Dade, Manhattan) and off-site storage yards.
    • Specify whether coverage applies during:
      • Transit between sites
      • Temporary storage on-site or off-site
      • Hoisting and on-hook exposures during install

  2. Choose Scheduled vs Blanket Limits

    • Use scheduled coverage for high-value chillers/rooftop units.
    • Use blanket limits for portable tools and general equipment used across many sites.

  3. Add Transit and On-hook Endorsements

    • Transit (truck/rail) and on-hook (crane hoisting) are common sources of loss for HVAC equipment—confirm carriers include them.

  4. Establish Deductibles, Sub-limits, and Agreed Values

    • For high-value custom fabrication, agree on valuation methods (replacement cost vs actual cash value).
    • Consider lower deductibles for high-risk transit operations.

  5. Certificates & Additional Insureds

Example scenarios (cost and coverage)

  • Scenario A — Rooftop Units for a Los Angeles mixed-use tower:
    • HVAC scope value: $2,000,000 (units + rigging)
    • Builders Risk portion (project-level): builders risk premium component prorated across trades — 1% of project value = $20,000 (apportionment varies)
    • Contractors’ equipment/inland marine to cover $400,000 of mobile equipment: premium estimate 1.5% = $6,000/year
  • Scenario B — Multiple HVAC packages moved between Houston hospitals and fabrication yard:
    • Frequent site-to-site transit raises premium; expect transit endorsements to increase inland marine cost by 25–50% over static storage exposures.

Claims, valuation, and settlement options

  • Replacement Cost vs Actual Cash Value: For new HVAC equipment being installed, replacement cost offers faster full-recovery. Carriers may require agreed value endorsements for unique or long-lead items.
  • Soft Costs & Delay: Builders risk can include soft costs/delay coverage when HVAC losses cause project delays; contractors' equipment policies do not typically cover project soft costs. See: Soft Costs, Delay and Debris Removal: Builders Risk Considerations for HVAC Subcontractors
  • Documentation: Keep itemized inventories, serial numbers, photos, shipping bills, and rigging plans to expedite claims.

Carrier examples and where to shop (U.S. market)

Best practices for HVAC contractors on large projects

  • Inventory and schedule: Maintain an up-to-date equipment register and assign agreed values for high-ticket items.
  • Use portable GPS and chain-of-custody documentation for high-value shipments to reduce theft and transit claims.
  • Negotiate Certificate Holder language and Waiver of Subrogation early with the GC and insurers.
  • Add site-to-site transit and on-hook coverage at policy inception—retrofitting mid-project can be costly or denied.
  • Coordinate with the GC’s builders risk policy to avoid duplicate coverage while ensuring full protection for equipment in transit or offsite. See: How to Add HVAC Equipment to a Builders Risk Policy During Installation

Quick comparison table

Coverage Type Primary Use Typical Limits/Structure Common Add-ons
Builders Risk Protects project materials and installed work Project-based policy; premium ~1–4% of completed value Soft costs, delay, debris removal
Contractors’ Equipment / Inland Marine Protect owned/borrowed equipment, transit, on-hook Scheduled or blanket; premium ~1–4% of equipment value Transit, on-hook, agreed value
Transit-only Endorsement Covers equipment while moving Per shipment or annual transit aggregate Marine carriers, higher deductibles

Final checklist before mobilizing HVAC equipment site-to-site

  • Confirm inland marine schedule and transit/on-hook endorsements list all project locations (Houston, Los Angeles, New York City, Miami, etc.).
  • Verify agreed values for long-lead custom chillers and rooftop units.
  • Obtain certificate requirements and Additional Insured/Waiver of Subrogation language from the GC early.
  • Budget for inland marine premiums as a line-item in bids (use the 1–4% guidance for planning).
  • Coordinate with subcontractor and GC policies to eliminate gaps—see: Coordinating Coverage Between GC, Subcontractor and Owner Policies for HVAC Work

For detailed policy placement, regional pricing, and program design for large projects in specific U.S. markets (Los Angeles, Houston, NYC, Miami), consult a specialized construction/inland marine broker and request tailored quotes from multiple carriers. For more on storing and insuring components, see: Best Practices for Storing and Insuring HVAC Components During Long-Term Projects.

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