Heat Pump Business Insurance: Is Your Cover Keeping Pace with Growth?

As the Heat Pump market grows, is your insurance keeping pace?

The UK heat pump market continues to grow. HPA UK figures show more than 125,000 heat pumps were sold in 2025, up 27% on the previous year. Growth was seen across different technologies, including a 26% increase in air-to-water monobloc sales and a 32% increase in ground and water source heat pumps.

At the same time, government policy continues to support increased deployment, with the Warm Homes Plan setting an ambition of 450,000 heat pump installations a year by 2030.

For businesses already operating in the sector, that changing market presents opportunities. As demand grows, many businesses are finding that their business insurance needs have changed alongside their services.

Different work, different risks

Whether your business works with air source or ground source heat pumps, installing these systems can involve valuable equipment, specialist tools, work at customers' properties and potential liability if something goes wrong.

The risk profile can also vary according to the type and scope of project.

Ground source installations may involve groundwork such as excavation, drilling, boreholes and working around existing underground services. Air source projects may involve work on existing properties, new-build developments or sites where several contractors are operating alongside each other.

Insurance therefore needs to reflect what your business actually does rather than simply the fact that you operate within the heat pump sector.

When the scope of your work changes

It's particularly important to review insurance when the services you provide change.

Perhaps your business previously concentrated on installation but now also provides design, specification or technical advice. You may have started taking on higher-value contracts, introduced maintenance services, expanded your workforce or made greater use of subcontractors.

Changes like these can alter the risks your business faces and potentially the insurance protection you need.

For example, responsibility for design, specification or technical advice brings different considerations from installation alone and may increase the importance of suitable professional indemnity insurance. Likewise, if your work involves visits to customers' premises, installations on-site or work alongside other contractors, it's worth checking that your public liability insurance accurately reflects the activities you undertake. Similarly, increases in contract values, the equipment you use or the scale of projects you undertake can mean the cover originally arranged for your business no longer reflects its current activities.

Insurance considerations beyond the heat pump itself

Specialist tools and equipment can represent a substantial investment, while heat pumps, components and other materials may need to be stored in vehicles or on site before installation. There is also the potential for accidental damage to customers' or third-party property during work.

For businesses undertaking ground source work, excavation and drilling are additional activities that should be accurately disclosed and reflected in insurance arrangements.

The important thing is to understand both what is covered and what isn't before an incident occurs.

Is it time for an insurance health check?

Insurance shouldn't be viewed solely as a requirement of a contract or something to revisit at renewal. As the market changes, it makes sense to periodically check that your protection remains appropriate for your business.

Some useful questions to consider include:

• Does your heat pump business insurance policy accurately describe all the work you undertake?
• Does it reflect any design, specification or consultancy services you provide?
• Have the size or value of your contracts changed?
• Are your tools, equipment and materials adequately covered, including when in vehicles or on site?
• Does your insurer understand any excavation, drilling or groundworks you undertake?
• Has your workforce or use of subcontractors changed?

As the heat pump sector evolves, the risks facing businesses can evolve too.

Regularly reviewing your insurance helps ensure your protection remains aligned to the work you undertake, the contracts you accept and the services you provide.

Depending on the work you undertake, this may include public liability insurance, employers' liability insurance, professional indemnity cover for design or consultancy work, and protection for tools, equipment and stock.

For HPA UK members, a conversation with an insurance broker who understands the sector can help identify where changes to your activities could have implications for your cover.

Premierline can help HPA UK members review their business insurance and assess whether their cover still reflects the work they undertake, the contracts they accept and the services they provide.

For further information, contact Premierline on 07854 319439 or visit Business Insurance for HPA UK members