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HVAC Insurance

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TechInsurance helps HVAC contractors find business insurance from trusted insurance companies that matches their unique risks. Fill out our easy online application to get started.

6 policies every HVAC contractor should consider

Clients, contracts, or state laws may require insurance for an HVAC business. These heating and cooling insurance policies protect small business owners against common lawsuits and other top risks.

General liability insurance

General liability insurance icon

A general liability policy protects HVAC contractors against legal and medical costs related to client property damage and injuries. It's often required by state laws and contracts.

  • Medical bills from client bodily injuries
  • Damaged customer property
  • Advertising injury and copyright lawsuits

Business owner's policy

Business owner’s policy icon

A BOP bundles commercial property insurance and general liability coverage at a discount. It's often the most cost-effective type of business insurance for an HVAC company.

  • Client slip-and-fall injuries
  • Accidental damage to a client's property
  • Theft and vandalism

Workers' comp insurance

Workers’ compensation insurance icon

Most state laws require businesses with employees to carry workers' compensation insurance to cover workplace injuries. In some states, even sole proprietors who work in construction must carry this policy.

  • Medical expenses from work injuries
  • Disability benefits
  • Lawsuits from workplace accidents

Commercial auto insurance

Commercial auto insurance icon

An HVAC technician with business vehicles must carry a commercial auto policy to comply with state laws. It helps pay for financial losses in an accident, including legal costs and property repairs.

  • Auto accident injuries
  • Auto accident property damage
  • Theft of a construction vehicle

Contractor's tools and equipment

Contractor’s tools and equipment coverage icon

A type of inland marine insurance, this policy covers your HVAC equipment and tools wherever you bring them. That includes items in transit, stored off-site, or used at a job site.

  • Equipment that is less than five years old
  • Items valued at under $10,000
  • Tools that travel to different worksites

Professional liability insurance

Professional liability insurance icon

Professional liability insurance covers legal fees related to a mistake, missed deadline, or other accusation of professional negligence. It's also called errors and omissions insurance (E&O).

  • Project delays and budget overruns
  • Wrong equipment and other mistakes
  • Breach of contract

HVAC contractor insurance costs

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Here's a quick look at the average costs of common construction insurance policies purchased by TechInsurance customers:

General liability: $78 per month
Business owner's policy: $124 per month
Workers' compensation: $223 per month

Factors that can influence your HVAC insurance costs include:

  • Types of HVAC services offered
  • Number of employees you have, including subcontractors
  • Types of insurance purchased
  • Policy limits, deductibles, and other coverage options (e.g., additional insureds)
  • Claims history

Start a free application to see how much insurance will cost for your business.

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Why HVAC contractors choose TechInsurance

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Get insurance fast so you can get started working with clients. Fill out our easy online application, choose a policy, and pay online to start coverage today.

HVAC contractor installing an air conditioner.
Get insured quickly with TechInsurance
Get insurance fast so you can get started working with clients. Fill out our easy online application, choose a policy, and pay online to start coverage today.
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Insurance shows clients your business is reliable, and some contracts even require it. View and print your certificate of insurance anytime with TechInsurance.
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Common questions about HVAC business insurance

Find answers to frequently asked questions about HVAC insurance.

Do HVAC contractors need a license, certification, or bond?

Whether you need a license or not depends on the state you live in. Most states do require HVAC contractors to obtain a license before they can work, but there are some that do not.

For example, Texas requires HVAC contractors to get a license from the Texas Department of Licensing & Regulation. Depending on the size of the HVAC systems you work on, you would either need to obtain either a Class A (any size) or Class B (smaller sizes) license.

On the other hand, HVAC contractors in Illinois do not have any state licensing requirements. For this reason, it's important to check your state laws to see whether you need a license or not.

Even if your state doesn't require a license, you'll still need to obtain an EPA certification to work with coolants. This requires a one-time test. In addition, you may also need a license to bid on certain jobs, sign a client contract, or meet local government requirements.

In addition to licensure, some states may also require you to show proof of bonds. For example, all HVAC contractors in Alabama must have a $15,000 performance bond before they can start working. In addition, client contracts may demand general contractors of all types to obtain bonds, like a surety bond, as an extra safeguard.

What other insurance policies do commercial HVAC contractors need?

Depending on the type of HVAC services you provide, you may have additional insurance coverage requirements and will have greater insurance needs.

Specific coverages to consider include:

  • Builder's risk insurance: Also called course of construction insurance, this policy helps pay the repair costs of damage to a structure in progress and construction materials.
  • Inland marine insurance: Commercial property insurance only covers items at your business address, so you may need inland marine insurance for items in transit (i.e., an air conditioning unit) or at a job site. There are two types of this HVAC equipment coverage: contractor's tools and equipment insurance and installation floater insurance for materials awaiting installation.
  • Commercial umbrella insurance: When your underlying general liability, commercial auto, or employer's liability policy reaches the coverage limit on an insurance claim, an umbrella policy activates to provide additional coverage.

Does installation floater insurance protect HVAC installer equipment?

Yes, installation floater insurance will protect your HVAC installer equipment. This coverage is a type of inland marine insurance and will cover the repair or replacement of your HVAC installer equipment if it's damaged due to a fire, storm, or vandalism.

Since standard commercial property coverage doesn't protect business property in transit or at different job sites, this insurance is especially critical for HVAC contractors who often travel from one worksite to another (like clients' homes or offices) or store equipment off site.

Construction contractors we insure

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