HVAC Contractor Insurance: Heating & Cooling Pros
Get tailored and hassle-free HVAC insurance with ContractorNerd
CONTRACTOR-SPECIALIST INSURANCE PROVIDERS
We cover what matters on the job.
Most insurance agents don’t understand the realities of HVAC work. We do. From refrigerant liability to rooftop installations, we know the risks that come with heating and cooling systems and what it takes to protect your business.
General Liability
Covers you when an AC install causes water damage or a client trips over your equipment on site.
Learn more
Worker’s Compensation
When a tech gets hurt hauling a condenser or working in a hot attic, you’re not stuck paying out of pocket.
Learn more
Surety Bonds
Guarantees project owners that you’ll finish the installation and pay your subs, a requirement for HVAC licensing in most states.
Learn more
Commercial Auto
Keeps your service vans and trucks covered so you can get to the next call without worrying about what happens on the road.
Learn more
Builders Risk
Covers your project from materials to completion – because construction comes with enough risks already.
Learn more
HVAC Insurance, Remodeled
HVAC insurance is essential, yet many contractors struggle to find coverage that fits their work. At ContractorNerd, we’ve built a proprietary quote platform specifically designed for heating and cooling professionals like you.
Faster, Simpler, Better
As trades-only specialists focused on HVAC, we’ve rebuilt the insurance experience to be faster, simpler, and more effective.
Compare in one place
Our technology connects directly with insurers who understand the unique risks of HVAC work, from refrigerant handling to system installations, while our specialized agents provide expert guidance throughout the process.
Solutions for Any Size
Whether you’re a solo technician or run a full service department, our platform delivers exactly what you need without the complexity or delays of traditional insurance.
What Is HVAC Insurance?
ContractorNerd has done research to bring you a clear picture of insurance requirements and needs across the United States. Our analysis of over 1,100 HVAC insurance quotes across all 50 states provides unprecedented transparency on what coverage you need and current market rates.
Key Takeaways
What HVAC Insurance Do You Need?
For HVAC professionals, securing the right coverage is crucial and needs change based on the size and stage of your business. Here’s a guideline:
For Solo HVAC Technicians
1-3 Employees
For Small
HVAC Businesses
5+ Employees
For Established HVAC Businesses
Essential Coverage
HVAC Liability Insurance (General Liability)
Your core protection against property damage and bodily injury claims. This is what customers mean when they ask if you’re insured.
Ongoing Operations
Covers damage while you’re working on-site
Completed Operations
Critical protection for issues discovered after you leave, like a refrigerant leak or faulty ductwork causing water damage
Contractor License Bonds
Required in most states for your HVAC license. Pro tip: Buy in 3-year increments when possible to avoid lapses and save money (typically costs a few hundred dollars).
Recommended Additional Coverage
Tools and Equipment Coverage (Inland Marine)
Protects your gauges, recovery machines, and diagnostic tools
Contractor’s Errors & Omissions
Covers claims of faulty workmanship, materials, or products
Commercial Auto
Required if you have a dedicated service vehicle
Workers Compensation
Required when you hire employees (not needed for subcontractors)
Installation Floater
Protects expensive materials in transit or stored at job sites (condensers, furnaces, ductwork)
Commercial Property
Covers your workshop, storage areas, and offices
Umbrella Insurance
Extra liability protection as your revenue and project volume grow
Employment Practices Liability (EPLI)
Protection against employee-related lawsuits
For Solo HVAC Technicians
Essential Coverage
Recommended Additional Coverage
For Small HVAC Businesses
2-3 Employees
All previous coverages, plus:
For Established HVAC Businesses
All previous coverages, plus:
HVAC General Liability Insurance Coverage
If there was a single coverage critical for all HVAC contractors, this is it. General Liability Insurance provides essential protection for HVAC professionals because your work involves many risks every day, from refrigerant handling and gas connections to rooftop units and working in attics and crawl spaces.
Core protection includes
Bodily Injury
A client, visitor or bystander getting hurt due to your work activities or job site hazards.
Property
Damage
Accidental damage to a client’s building, flooring, ceilings, drywall, or existing systems.
Add-On
Completed
Work
Lawsuits over HVAC issues from past completed jobs, such as refrigerant leaks, improper installations, or system failures.
Bodily Injury
A client, visitor or bystander getting hurt due to your work activities or job site hazards.
Property
DamageAccidental damage to a client’s building, flooring, ceilings, drywall, or existing systems.
Add-On
Completed
WorkLawsuits over HVAC issues from past completed jobs, such as refrigerant leaks, improper installations, or system failures.
Liability Limits for HVAC Contractors
Typically, $1 million per occurrence and $2 million aggregate. Experts recommend a minimum of $1 million for adequate protection. Upgrading from $500k to $1M coverage usually slightly increases premiums but provides significantly better defense.
Classification Codes
HVAC contractors typically use class code 95647 for standard work, or 95648 if they install LPG equipment.
Key Factors Influencing Liability Quotes
Revenue

Higher revenue implies more work and higher risk, leading to increased quotes.
Policy Limits

Higher limits for specific projects or contracts may raise quotes.
Claims History

A history of frequent claims can result in higher quotes, similar to auto insurance.
Location

States with stricter regulations may have higher insurance quotes.
Services Offered

Different HVAC services have varying risks, affecting the insurance quote.
How Much Does HVAC Insurance Cost?
Quote Study Findings
Quotes generally amount to 1.3% to 2.6% of annual revenue. Our analysis of over 1,100 General Liability insurance quotes from leading carriers reveals significant variations across different states and business sizes.
We analyzed quotes based on these business profiles
Revenue
$150K
1 owner with ~10% subcontracting and 2+ years operating without claims
Revenue
$500K
1 owner and 2-3 technicians with ~10% subcontracting and 5+ years operating without claims
Revenue
$1M
1 owner and 5+ employees with ~10% subcontracting and 5+ years operating without claims
We analyzed quotes based on these business profiles
Revenue Level
National Average
Favorable Rate
Potential Savings
Low % of Revenue
High % of Revenue
$150,000
$3,140
$860
73%
1.5%
2.5%
$500,000
$9,390
$5,810
38%
1.4%
2.3%
$1,000,000
$18,760
$10,760
43%
1.3%
2.6%
State-by-State Pricing Insights
To help HVAC contractors better understand regional pricing variations, we’ve developed an in-depth resource examining HVAC insurance premiums in every state nationwide. This state-specific analysis reveals how local factors impact your actual costs and identifies opportunities for savings in your market. Explore our comprehensive guide to HVAC insurance cost by state for detailed premium breakdowns.
HVAC Workers Comp Insurance Requirements
Workers’ Compensation Insurance is essential for HVAC contractors, providing coverage for employee injuries or illnesses related to work. The premiums are based on job risk, classified by the National Council on Compensation Insurance (NCCI) into class codes. HVAC contractors typically fall under code 5537, with rates usually between $2.24 to $5.14 per $100 of employee payroll annually.
WC Policy Limits for HVAC Contractors
These are often unlimited but can vary according to state regulations.
WC Rates for HVAC Contractors
Between $2.24 and $5.14 per $100 of payroll.
Key Factors Influencing WC Premiums for HVAC Contractors
Class Codes

Group employees by job type and risk; higher risk means higher premiums. HVAC contractors commonly use code 5537.
State Regulations

States dictate workers’ compensation laws, influencing benefits and baseline rates. Geographic differences in living and healthcare costs also affect premiums.
Experience modifier

Reflects your safety record, starting at 1.0 and adjusting based on claims history. More incidents result in higher modifiers and premiums.
Payroll Size

Calculated as (payroll / $100) * rate * experience modifier, with larger payrolls leading to higher premiums
This insurance is typically mandatory if you have employees. It covers employee medical expenses, rehabilitation, lost wages, and even death benefits in case of job-related injuries or illnesses. For employers, it also provides legal coverage and compensation in case of employee lawsuits related to occupational injuries or illnesses.
If you’d like to learn more and try our calculator, check our guide on Workers Compensation Insurance for HVAC Contractors.
Insurance For HVAC Business That Expands Into Other Trades
If you’re an HVAC contractor who’s branched out into electrical work, plumbing, or appliance repair, your standard HVAC insurance isn’t going to cut it. The work is different, the risks are different, and your coverage needs to reflect that.
Doing electrical work for system hookups? You need coverage that goes beyond refrigerant and ductwork. Panel upgrades, wiring for thermostats, and high-voltage connections require electrical contractor insurance, not just HVAC liability.
Installing water heaters or handling drain lines? Water damage claims, improper connections, and gas line work need plumbing contractor insurance. Your HVAC policy won’t protect you when a water heater install floods a basement.
Handling appliance installations or repairs? Make sure your policy covers the full scope of work. Product liability, improper installation claims, and equipment damage require appliance repair business insurance that extends beyond just the HVAC system.
The bottom line: If you’re doing the work, you need the insurance. Don’t assume your HVAC contractor policy covers these expanded services. A single uncovered claim from electrical, plumbing, or appliance work can wipe out years of profit.
Talk to your insurance provider about adding trade-specific coverage, or you’re gambling every time you take on one of these jobs.
Insurance For HVAC Business That Expands Into Other Trades
Additional HVAC Insurance Coverage Options
As your HVAC contracting business expands, these additional coverage types merit careful consideration beyond your core insurance portfolio:
Tools & Equipment Coverage
(Inland Marine Policy)
Specially designed to protect your refrigerant gauges, recovery machines, vacuum pumps, and specialized HVAC tools whether stored in your service van or deployed at job sites. This coverage addresses theft, accidental damage, or mysterious disappearance.
Professional Liability Insurance
Safeguards your business when clients allege professional mistakes or oversights in your HVAC services. Whether it’s claims of improper system sizing, refrigerant issues, or failed installations, this coverage handles defense costs and damages. Protection includes negligent workmanship allegations, attorney fees, and court awards.
Commercial Auto Coverage
Essential protection for your fleet of service vans and trucks used in daily operations. Standard personal auto coverage excludes commercial HVAC work, leaving dangerous gaps.
HVAC License Bonds
These financial guarantees demonstrate your commitment to quality workmanship while satisfying state licensing boards. Bond requirements commonly range $5,000-$25,000, with annual premiums representing 1-3% of the bond amount. Your credit profile significantly influences pricing:
Quote Summary by Revenue Level
Bond Required
Top-Tier Credit
Standard Credit
Challenged Credit
$5,000
$100-$150
$150-$200
$200-$400
$10,000
$100-$300
$300-$500
$500-$1,000
$15,000
$150-$400
$400-$750
$750-$1,500
$20,000
$180-$500
$500-$1,000
$1,000-$2,000
$25,000
$200-$500
$500-$1,200
$1,200-$2,500
Regulations vary dramatically. California HVAC contractors need $25,000 bonds while Texas imposes no blanket requirement.
Commercial Property and Business Personal Property
Comprehensive coverage securing your workspace and materials (condensers, furnaces, ductwork, refrigerant) from perils including fire, criminal activity, storm damage, and malicious mischief. Vital for operations maintaining supply warehouses, sheet metal shops, or equipment showrooms.
HVAC Contractor Business Package
Intelligently combines liability and property coverages into a streamlined policy. Perfect for established HVAC shops with brick-and-mortar locations, addressing customer accidents, property destruction, equipment loss, and revenue interruptions. Often delivers cost savings versus standalone policies, though customization options become limited.
Excess Liability / Umbrella Coverage
Instead of boosting individual policy limits, this coverage stacks additional protection atop your existing liability, fleet, and workers’ compensation policies. When catastrophic claims exhaust primary coverage, this backup fund activates.
Frequently Asked Questions
How much is insurance for a HVAC company?
Insurance runs 1.3% to 2.6% of your annual revenue for general liability alone. A $500K HVAC business typically pays $9,390 yearly, though shopping around can cut that to $5,810. Add workers comp at $2.24-$5.14 per $100 of payroll, and you’re looking at real money – but way cheaper than one lawsuit.
What is general liability insurance for HVAC business?
It’s your basic protection when you damage a client’s property or someone gets hurt on your job. Covers things like water damage from botched AC installs, or when your ladder takes out a chandelier. Standard limits are $1M per occurrence, $2M aggregate. Most clients won’t let you work without it.
What is the general liability code for HVAC?
HVAC contractors use class code 95647 if you don’t install LPG equipment, or 95648 if you work on everything including propane systems. The code tells insurers what kind of HVAC work you do, which affects your rates. Most residential guys are 95647, commercial contractors often need 95648.
How much is HVAC liability insurance?
For a solo tech making $150K, expect around $3,140 annually, though good rates drop that to $860. Mid-size shops at $500K revenue average $9,390, while million-dollar operations pay about $18,760. That’s roughly 1.3%-2.6% of revenue. State matters too – New York’s brutal, while states like Idaho are way cheaper.
Do HVAC contractors need professional liability?
Yeah, it’s worth grabbing E&O coverage for $50-500 annually. Protects you from “faulty workmanship” claims when systems fail after installation – wrong sizing, bad refrigerant work, whatever. Not legally required like general liability, but one mis-sized unit cooking someone’s server room and you’ll wish you had it.