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GL Insurance for HVAC, Airconditioning & Refrigeration Contractors


In Texas, a Certificate of Insurance is required when an initial application for license is submitted and when there is a change in license assignment like a name change upon the request of the department. The insurance Acord form is acceptable proof of insurance as long it provides the following information: licensee name and number, A/C company name with address, policy number and effective/expiration dates, limits of coverage, insurance company name and contact information, and signature of authorized insurance representative.


Requirements and Exceptions

To get licensed, an HVAC or Air Conditioning/Refrigeration license applicant should have at least 48 months of practical experience in air conditioning and refrigeration related work under the supervision of a licensed HVAC or Air Conditioning/Refrigeration contractor. If the HVAC or Air Conditioning/Refrigeration license applicant has a technician certification for the past 12 months and has at least 36 months of practical experience in air-conditioning and refrigeration-related work under the supervision of a licensed air conditioning and refrigeration contractor in the past 48 months, then he or she is eligible. There are exceptions to the requirements mentioned earlier that are given to degree or certificate holders in air-conditioning and refrigeration. A licensed engineer or someone who has a degree in mechanical engineering are also exempted. Those that have military training in air-conditioning and refrigeration can also be exempted. Lastly, those that are employed by an industrial operation performing process cooling or heating work for the operation can apply for exemption as well. After passing the licensing exam, the HVAC or Air Conditioning/Refrigeration contractors must submit a Certificate of Insurance, which includes the license holder name and business name to the Department. The HVAC or Air Conditioning/Refrigeration contractors may submit the documents to customer service by email or regular mail to the state contractor licensing department.

Insurance Requirement

The HVAC or Air Conditioning/Refrigeration contractors must maintain commercial general liability insurance at all times while their license is active. Insurance must be obtained from an insurance provider authorized to sell liability insurance in the state. An HVAC and Air Conditioning and Refrigeration Contractor License requires general liability coverage with minimum limits below: The Class B license allows an HVAC or Air Conditioning/Refrigeration contractors to work on cooling systems of 25 tons and under, and heating systems of 1.5 million BTUs/hour and under.

  • $100,000 per occurrence combined for property damage and bodily injury

  • $100,000 aggregate for products and completed operations

  • $200,000 aggregate (total amount the policy will pay for property damage and bodily injury coverage).

The Class A license allows an HVAC or Air Conditioning/Refrigeration contractors to work on any size unit.

  • $300,000 per occurrence (combined for property damage and bodily injury);

  • $300,000 aggregate for products and completed operations;

  • $600,000 aggregate total amount the policy will pay for property damage and bodily injury coverage.

Even if the state requires less than $1,000,000 coverage, we always advice our clients to maintain the standard limit of insurance of at least $1,000,000 each occurrence.

What Does HVAC, AC, & Refrigeration Liability Insurance Cover?

Coverage A: Bodily Insurance and Property Damage Liability The insurance company will pay for the damaged the HVAC or Air Conditioning/Refrigeration contractor is legally obligated to pay because of bodily injury or property damage to which the coverage applies. The insurance company has the right to defend the HVAC or Air Conditioning/Refrigeration contractor against any lawsuit seeking those damages for covered cause of losses. The insurance company usually investigates any filed claim against the HVAC or Air Conditioning/Refrigeration contractor and his/her business so the insurance company has the discretion to settle claims before it goes further to a more expensive lawsuit. For the loss to be covered, the bodily injury or property damage should have taken place in the coverage territory during the policy period and the insured has no prior knowledge of the claim before starting the policy. The damages because of bodily injury include damages claimed by any person or organization against the HVAC or Air Conditioning/Refrigeration contractor for care, loss of services or death resulting at any time from the bodily injury. Coverage B: Personal and Advertising Injury Liability The insurance company will pay for those sums the HVAC or Air Conditioning/Refrigeration contractor becomes legally obligated to pay because of personal and advertising injury. It usually includes lawsuit or claims related to invasion of privacy, copyright infringement, libel, and slander. Common exclusions under this coverage are intentional violation of the third party's rights, criminal acts, breach of contract, and wrong description of prices. Coverage C: Medical Payments The insurance company will pay for medical expenses for bodily injury caused by an accident on the HVAC or Air Conditioning/Refrigeration contractor’s business premises including the jobsite of the HVAC or Air Conditioning/Refrigeration contractor. The accident should have taken place in the covered territory and during the policy period. The medical expenses should have been incurred and reported within one year of the date of the accident and the injured person submits to examination at the expense of the insurance company by their chosen physician if required. The limit will pay for first aid administered at the time of the accident, necessary medical, surgical, X-ray and dental services. It will also pay for prosthetic devices and necessary ambulance, hospital, professional nursing and funeral services

How Much Does HVAC, AC, & Refrigeration Contractor Insurance Cost?

The general liability insurance cost for a HVAC or Air Conditioning/Refrigeration contractor depends on the size of the business, the number of employees, amount of subcontracting cost, type of projects the HVAC or Air Conditioning/Refrigeration contractor usually deals with and history of claims for the past three years. An owner operated HVAC or Air Conditioning/Refrigeration business should not exceed two thousand dollars a year in premium. At Robinsons Insurance Agency LLC, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (832) 843-2888. You can also request a free quote by clicking the button below. Coverage discussed in this article is not guaranteed. Please contact our agents to help you understand your coverage. We are happy to help you!


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