As an HVAC contractor in Michigan, having proper insurance coverage is essential for protecting your business, meeting state requirements, and securing contracts. Our comprehensive guide breaks down costs and coverage options based on our analysis of over 1,100 HVAC contractor quotes from leading carriers across Michigan.
Review important HVAC project insurance requirements in our comprehensive guide.
General Liability Insurance for Michigan HVAC
Based on our analysis of HVAC contractor quotes in Michigan, here are the typical general liability insurance costs:
| Revenue Size | Average Premium | % of Revenue | Favorable Rate | Potential Savings |
|---|---|---|---|---|
| $150K | $2,100 | 1.4% | $500 | 76% |
| $500K | $6,400 | 1.3% | $2,300 | 64% |
| $1M | $12,300 | 1.2% | $3,700 | 70% |
These premiums assume:
- Clean claims history
- Standard $1M/$2M coverage limits
- Mix of residential and commercial HVAC work
- Approximately 10% subcontractor costs
Key coverages include:
- Property damage during HVAC installation and service
- Bodily injury protection
- Products and completed operations
- Equipment installation coverage
Worker’s Compensation Insurance for Michigan HVAC
Michigan requires workers’ compensation insurance for HVAC contractors with employees. Based on our data, Michigan HVAC contractors pay approximately $3,250 per $100K of payroll for workers’ compensation coverage.
Key factors affecting premiums:
- Job classification codes (primarily HVAC code 5537)
- Total payroll
- Claims history
- Safety programs
- Experience modifier rating
Average annual cost per HVAC employee: $1,972
Additional Business Insurance for HVAC in Michigan
1. Tools & Equipment Insurance
- Annual premiums range from $200-$2,000
- Coverage limits typically $5,000-$15,000+
- Protects HVAC tools during transit and at job sites
- Covers both owned and rented equipment
- Most policies have per-item limits of $5,000
2. Commercial Auto Insurance
- Costs between $1,500-$3,050 per vehicle annually
- Standard limits of $100K per person/$300K per accident
- Required for all work vehicles
- Personal auto policies don’t cover business use
- Higher limits ($500K-$1M) recommended for comprehensive protection
3. Contractor’s E&O Insurance
- Annual premiums range from $50-$500
- Coverage limits from $10,000 up to $1M+
- Protects against faulty workmanship claims
- Covers professional negligence claims
- Includes legal defense costs and judgments
4. Commercial Property Insurance
- Annual costs range from $1,000-$5,000
- Protects workshops, warehouses, and offices
- Covers business equipment and inventory
- Protection against fire, theft, and weather damage
- Premium based on property value and location risks
5. Business Owner’s Policy (BOP)
- Ideal for HVAC contractors with physical locations
- Bundles general liability and property coverage
- Typically lower premiums than separate policies
- Includes business interruption coverage
- Customizable with additional endorsements
Get Michigan HVAC Liability with ContractorNerd
ContractorNerd makes HVAC insurance simple and data-driven through:
- Instant online quotes from top carriers
- Side-by-side coverage comparisons
- HVAC-specific expertise
- Streamlined application process
- Ongoing policy management
- Claims advocacy support
Our team of HVAC insurance specialists helps you:
- Find competitive rates through our carrier network
- Optimize coverage for your specific needs
- Bundle policies for maximum savings
- Ensure compliance with Michigan regulations
Visit our online quote tool or speak with an HVAC insurance specialist today to get started with tailored coverage for your Michigan HVAC business.