Your Plumbing or HVAC Website May Be Sending the Wrong Message to Your Insurance Carrier

Author, Matt Gorham, Account Executive, Rancho Mesa Insurance Services, Inc.

Most plumbing and HVAC contractors view their website as a sales tool. However, insurance carriers increasingly view it as an underwriting tool. The same website designed to attract customers is at the same time influencing how an underwriter evaluates your business, impacting carrier appetite, available coverage, and, ultimately, the cost of your insurance program.

Insurance carriers typically receive very little information about a contractor from their renewal application. The information submitted can include recent loss history, some details about the contractor’s industry experience, and a generic supplemental application that provides a basic explanation of their operations. While those are central to the underwriting process, with so much information now available online, underwriters commonly rely on a contractor’s website and online presence to gain additional details about their operations, practices, history, and culture. Furthermore, a contractor’s website often serves as an underwriter’s first impression of the business, which will influence the questions that are asked throughout the renewal process.

As rising claim severity continues to drive a hardening market, carriers are closely evaluating which industries and classes of business they want to support. According to market research from Swiss Re and Marathon Strategies, there were 27 verdicts that each exceeded $100 million in 2023, while there were 49 verdicts over $100 million in 2024. With these verdicts significantly impacting carrier profitability, underwriters that remain committed to construction are becoming increasingly selective about the contractors they choose to partner with.

When underwriters see a contractor advertising operations or services that are known as severity loss drivers, they may apply exclusions, increase pricing, or decline the renewal application altogether. This can limit market interest and, weaken a contractor’s position when their broker negotiates their renewal terms.

With carriers applying a higher level of scrutiny on the risk profile of contractors in the current market, here are three things to consider when building or updating your website:

1. Audience

A residential service and repair plumber may have more of a need to advertise a broader range of services than a new construction commercial plumber. Similarly, an HVAC contractor that relies on SEO marketing to drive appointments from residential customers will want to include key search terms, while a mechanical contractor focused on tenant improvement jobs with a limited number of trade partners will not. Think about who will be visiting your website and what they are looking for.

2. Services

It is common to see exhaustive dropdown lists on plumbers’ or HVAC contractors’ websites, advertising things like gas line installation, boilers, medical gases, clean rooms, duct cleaning, excavation, or sewer and water main work. Even with a clear understanding of these operations, many carriers will shy away from these risks due to their potential for severe claims. Review the services advertised on your website, as well as the industries served, to ensure you are only advertising services that are being performed and represent a meaningful part of your operations.

3. Visuals

Pictures can be very effective in conveying information. They can also be effective in misrepresenting your company and operations. HVAC contractors often use pictures of helicopter lifts even when they have never self-performed the placing or removing of larger HVAC units. Have a person knowledgeable about safety review all pictures before they are published on the website or social media to ensure no OSHA violations are shown. Pictures from crane picks or rooftop work can also raise questions about safety controls, like the use of personal protective equipment, fall protection, or hazard analyses. Plumbing contractors frequently use pictures on their websites that show plumbers in trenches, crawl spaces, operating heavy machinery, or near septic tanks. While these types of operations can be eye-catching, if they are an inaccurate reflection of the work you perform, they can create a costly misperception. Consider what pictures, videos, or media are used on your website so that it supports an accurate, constructive representation of your company.

As insurance carriers become increasingly selective about the contractors they want to partner with, every piece of information used during the underwriting process matters. Your website should accurately reflect your operations and showcase your expertise. It should also be a key element that supports the narrative that your company is a disciplined, well-managed risk and a smart long-term investment for the insurance company.

If you would like to review your website for potential concerns or learn how a broker that specializes in plumbing and HVAC contractors can help you develop the right narrative to negotiate your insurance renewal, I can be reached at (619) 486-6554 or mgorham@ranchomesa.com.