Why insurance matters when you’re installing a heat pump
A heat pump install might look straightforward, but it still involves electrical work, refrigerant handling, penetration through walls or ceilings, and sometimes work at height or in cramped roof spaces. If something goes wrong, the cost can quickly land on the homeowner unless the tradesperson has the right insurance and credentials.
For New Zealand homeowners, insurance is not just a “nice to have”. It helps protect you from:
- accidental damage to your home during the job - injury to someone on site - losses caused by a faulty installation - problems if the installer is uninsured, underinsured, or not properly qualified
It’s also a good sign of professionalism. A tradesperson who can clearly explain their cover, licence status, and process for managing risk is usually more likely to run a tidy, compliant job.
The main types of insurance a heat pump installer should carry
Not every installer will hold every type of policy themselves, but at minimum you should expect to see cover that matches the work they do. The most relevant policies are below.
| Insurance type | What it covers | Why it matters to you | |---|---|---| | Public liability insurance | Injury to third parties and accidental damage to property | Protects your home if the installer damages walls, flooring, ceilings, or neighbouring property | | Contract works insurance | The job while it is in progress, including materials and installed components | Helps if materials are stolen, damaged, or affected by an incident before handover | | Professional indemnity insurance | Advice, design, or specification errors | Useful if the installer recommends an unsuitable system or makes a design mistake | | Employers’ liability / workers’ compensation cover | Injuries to the installer’s employees | Reduces the risk of a claim being directed at you as the property owner | | Vehicle and tool cover | Transported equipment, tools, and vans | Not your direct risk, but a sign the business is properly insured and less likely to suffer delays after theft or damage |
Public liability insurance: the key one to ask about
For most homeowners, public liability insurance is the most important policy to confirm. It covers accidental damage or injury caused to other people or their property while the installer is working.
Examples include:
- a drill cutting through an unexpected pipe or cable - damage to plasterboard, paint, tiles, or flooring during the install - a ladder slip that damages windows or a neighbour’s fence - a visitor or household member being injured by site activity
Ask for the level of cover, not just a yes/no answer. A $1 million policy may be enough for very small jobs, but many NZ tradespeople carry $2 million, $5 million, or more depending on the work they do. Higher cover is generally reassuring, especially for larger homes, multi-storey installs, or jobs where expensive finishes are at risk.
Contract works insurance: important for the job itself
Contract works insurance covers the work while it is underway. That can include materials, labour already spent, and sometimes temporary works or site fixtures.
This matters because heat pump installation often involves a mix of equipment and trades. If a unit is damaged before it is fully installed, or if a storm, theft, or accidental event affects the site, contract works cover can help limit the financial fallout.
Not all small installers carry their own contract works policy, so ask how risk is managed until handover. If they rely on your house insurance once the equipment is on-site, confirm exactly when responsibility changes and get that in writing.
Professional indemnity insurance: relevant if the installer advises on system design
Professional indemnity insurance covers mistakes in advice, plans, or specifications. It’s especially relevant if the installer is helping determine:
- the size of the heat pump - where the indoor and outdoor units should go - whether the chosen unit will suit the room and insulation level - whether additional electrical or structural work is needed
You may not need this on a very basic replacement of an existing unit, but it is useful when there is design input or advice beyond simple installation.
Employers’ liability and worker injury cover
If the installer has staff, ask how their workers are covered. In New Zealand, ACC covers personal injury, but a business should still have appropriate arrangements for employer-related risk and health and safety management.
This matters to you because an uninsured or poorly managed crew can increase the chances of claims or disputes after an incident. A professional installer should be able to explain their health and safety practices, training, and who is responsible on site.
What insurance does for you as the homeowner
Insurance is about more than protecting the installer’s business. It can make a real difference to you if something goes wrong.
It may protect you from:
- paying for accidental damage caused during installation - being left to sort out injury-related issues on your property - delays if the installer needs to replace damaged materials or equipment - disputes about who should repair a mistake or finish the job
It also helps show the installer has thought about risk before arriving at your home. That usually goes hand in hand with proper planning, correct tools, and compliance with NZ regulations.
Insurance is not the same as competence or compliance
This is an important point: being insured does not automatically mean the installer is qualified, licensed, or compliant.
For heat pump work in New Zealand, check the right credentials as well as insurance:
- **Electrical work** must be carried out by, or under the supervision of, a suitably registered electrician. The Electrical Workers Registration Board (EWRB) regulates electrical work. - **Refrigerant handling** may require the installer to be properly authorised and competent for work on the refrigeration circuit. - **Gasfitting** is restricted work under the Plumbers, Gasfitters and Drainlayers Board (PGDB). If any gasfitting is involved, the person doing it must hold the right authorisation. - **Building or structural work** may require consent from your local council, especially if the install changes the structure, affects weather-tightness, or involves significant external alterations.
If the job includes a new circuit, switchboard changes, wall penetrations, or mounting work, ask who is doing each part and what licence or registration applies.
How to confirm an installer’s insurance before you hire
You do not need to be an insurance expert to check cover. A reliable installer should be able to provide proof quickly.
Ask for these documents
Request:
- a certificate of currency for public liability insurance - evidence of contract works cover, if relevant to the job - business details that match the insurer’s documents - licence or registration information for electrical or other restricted work - a written quote that states who is responsible for each part of the job
Check the details carefully
Make sure the insurance document shows:
- the legal name of the business - policy type - policy number - expiry date - level of cover - insurer name
Then check whether the policy still covers the type of work you need. A general handyman policy is not the same as cover for a qualified heat pump installer.
Confirm who is actually doing the work
Sometimes the person quoting is not the person installing. If a subcontractor is used, ask whether:
- they are covered under the main contractor’s insurance - they hold their own insurance - they have the right qualifications and registrations
Do not assume the quote covers everyone on site. Confirm it.
Questions to ask before you accept a quote
A few practical questions can save a lot of grief later.
- What insurance do you carry, and what is the cover limit? - Can I see a current certificate of currency? - Does your insurance cover subcontractors? - Are you responsible for electrical work, or is another registered person doing that? - Do you handle any refrigerant or gasfitting, and are you authorised to do so? - What happens if the wall, ceiling, or exterior cladding is damaged during installation? - Will you provide a compliance certificate or record for the work completed? - Is any council consent needed for this job?
A good installer will answer these questions without getting defensive.
Red flags that suggest you should walk away
Be cautious if a tradesperson:
- says they are “fully covered” but won’t show proof - cannot explain what their insurance actually covers - gives only a verbal quote with no scope or exclusions - asks you to accept responsibility for all damage on your property - offers to do electrical or gas work without confirming the required registration - pressures you to pay a large deposit before providing documents - dismisses the need for compliance paperwork or council checks
If the quote is cheaper because the installer has cut corners on insurance or compliance, that is not a saving. It can become a very expensive problem later.
What to do if damage happens during the install
Even with a careful installer, accidents can happen. If you notice damage:
1. Stop the work if needed and make the site safe. 2. Photograph the damage straight away. 3. Get the installer to acknowledge it in writing. 4. Ask for their insurance details and claims process. 5. Notify your own insurer if the damage affects your home insurance policy.
If the issue involves defective electrical work, safety concerns, or unauthorised restricted work, keep records and contact the relevant authority or a qualified independent tradesperson for advice.
How insurance fits with the rest of a smart hiring process
Insurance is one part of hiring well. It should sit alongside:
- getting at least two or three written quotes - checking Trade Mech, EWRB, PGDB, and company registration details where relevant - confirming the exact make and model of the heat pump - understanding what is included in the price, such as wall brackets, pipe cover, switchboard upgrades, or disposal of the old unit - checking whether the installer offers a workmanship guarantee - asking about lead times, especially during winter when demand in New Zealand spikes
A winter heat pump install can be urgent, but don’t rush past checks just because the nights are cold. A few extra minutes spent verifying insurance and credentials can save you from much bigger costs.
The bottom line for NZ homeowners
Yes — your heat pump installer should be insured, and ideally covered for the real risks involved in the job. Public liability insurance is the main policy to confirm, with contract works and professional indemnity also important in the right circumstances.
But insurance alone is not enough. Make sure the installer is properly licensed or registered for the work they are doing, and check whether any council consent is needed. Ask for written quotes, current proof of cover, and clear scope before you book.
If a tradesperson is professional, they’ll expect these questions. If they’re not comfortable answering them, that’s a strong sign to keep looking.