HVAC contractor insurance in California

What goes wrong on an HVAC job

HVAC work mixes heavy equipment, open flame, gas lines and other people's property. General liability (GL) is the policy that answers when your work hurts someone else or damages something that is not yours. These are the claims HVAC contractors actually face:

• Rooftop units. A crane lift goes wrong, a curb is set badly, or a unit is left unsecured and a roof leak soaks the ceiling and inventory below.
• Brazing and hot work. A torch on refrigerant lines can scorch framing or start a fire in an attic or wall cavity.
• Carbon monoxide and venting. A furnace or water heater flue that is disconnected, undersized or pitched wrong can put carbon monoxide in a home. This is the most serious injury risk in the trade.
• Water damage. A clogged or unglued condensate line, a cracked drain pan or a missing float switch can ruin drywall, flooring and cabinets.
• Service calls. A tenant trips over your hose, a ceiling gets damaged pulling a duct, or a customer's property is damaged while you are in the home.

GL generally covers third-party bodily injury and property damage from your work, including completed operations if your policy includes it. It does not cover your own employees' injuries, your tools and gauges, your van, or the cost to redo faulty work itself.

What GCs, property managers and homeowners ask for

Most HVAC jobs come with an insurance request before you start. Expect these:

• A certificate of insurance (COI) showing GL with $1M per occurrence / $2M aggregate. These are the limits GCs usually ask for.
• Additional insured status for the GC or property owner. Being named a certificate holder is not the same thing. Many contracts also ask for primary and non-contributory wording and a waiver of subrogation.
• Proof of workers' comp. For C-20 licensees this is not optional, as explained below.
• A service agreement insurance clause. Property managers who sign maintenance contracts often require the COI to be renewed every year before they release payment.

Read more about how certificates work on our certificate of insurance guide.

Exclusions to read for in an HVAC policy

Two GL quotes can look alike and pay very differently. Before you pick one, look for these in the exclusions and endorsements:

• Pollution and fumes. Check how the pollution exclusion treats carbon monoxide, refrigerant releases and fumes from your work. Some forms give back limited coverage for short, accidental releases; others do not.
• Hot work conditions. Some policies only pay a torch-related fire claim if you followed listed steps, like a fire watch or an extinguisher on site.
• Roof and height limits. A policy written for residential service may limit work above a set number of stories or exclude roof work on commercial buildings.
• Mold and water. Fungi or mold exclusions can affect condensate leak claims that are discovered late.
• Design work. If you size systems or do design-build, check for a professional services exclusion.
• Classification limits. The policy should match the work you actually do. If you also do plumbing or electrical, say so in the questions.

Every quote on our board lists what is included and excluded, so you can compare before you submit.

CSLB rules for C-20 HVAC contractors

This is general information from the CSLB, not legal advice.

• Workers' comp even with no employees. Under B&P Code §7125, C-20 is one of the classifications that must carry workers' comp even if you have no employees. A solo HVAC contractor cannot file an exemption the way some other trades can. Workers' comp is quoted by phone, not online. See our workers' comp guide.
• GL for an LLC. If your license is held by an LLC, CSLB requires liability insurance with an aggregate limit of at least $1,000,000 when 5 or fewer people are on the personnel of record. See the LLC insurance requirement.
• Not an LLC? CSLB does not require GL by law for sole owners, partnerships or corporations, but strongly recommends it, and most GCs and property managers require it by contract.
• Service and repair contracts. Home improvement and service-and-repair contracts must include a "Commercial General Liability Insurance" notice naming your insurer and its phone number, or stating that you have no CGL (B&P §7159 / §7159.10). Many HVAC calls fall under service and repair.
• License bond. Every licensee carries the $25,000 contractor license bond. A bond is not insurance; see bond vs insurance.

How the online quote works from your license number

1. Enter your CSLB license number. We find your business in the CSLB public record and show how many A-rated insurance companies write C-20.
2. Confirm you are the owner with your name, mobile and email.
3. Answer about a minute of tap-to-answer questions: homes or businesses, new construction or service, sales, payroll, subs, crew size, years in business, claims and current insurance.
4. Your quote board shops A-rated programs live. Prices arrive one by one with the deductible, limits, and what is included and excluded. We also text and email you the link.
5. Tap "Submit for approval" on the one you want. A licensed agent reviews it. Approval usually takes 30 minutes to 4 hours depending on the carrier, and the final quote is emailed to you to sign.

Nothing is bound until you sign. Once you are covered, we send the certificate to your GC. Prefer to talk? Call or text a licensed agent at (877) 940-4313, in English or Spanish. You can also browse other trades on our insurance by trade page.

What changes your HVAC price

We do not publish prices because yours depends on your business. The main drivers for HVAC are your annual sales, payroll, how much is new construction versus service, residential versus commercial, how much you sub out, your years in business and your claims history. Rooftop and commercial work usually rates differently from residential service. The fastest way to know is to enter your license number and see your real price. More on this in our cost guide.