Business insurance • Tennessee HVAC contractors
Tennessee HVAC Contractor Insurance: CMC-C License and Liability Minimums
Tennessee requires a contractor license with the HVAC (CMC-C) classification before bidding or contracting HVAC work of $25,000 or more. Applicants pass the business and law exam and the CMC-C trade exam and submit a financial statement. The license requires general liability tied to its monetary limit, plus workers’ compensation or proof of exemption.
This guide covers Tennessee HVAC licensing, required coverage, and typical costs. Blake Insurance Group is an independent agency licensed in Tennessee, and a licensed agent can compare quotes for your HVAC business.
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Tennessee CMC-C license
- Prime contractors and HVAC subcontractors need a license once the HVAC work is $25,000 or more.
- Applicants pass the open-book business and law exam and the CMC-C trade exam, pay a $250 application fee, and submit a reviewed or audited financial statement. Starting July 1, 2026, a bond of at least 50% of the monetary limit can replace the statement.
- The monetary limit is 10 times the lesser of working capital or net worth (Tennessee Board for Licensing Contractors).
Tennessee liability minimums
| License monetary limit | General liability minimum |
|---|---|
| Up to $500,000 | $100,000 |
| $500,001 to $1,500,000 | $500,000 |
| Over $1,500,000 | $1,000,000 |
Sources: Tennessee Board for Licensing Contractors, Contractor License Requirements (Tennessee contractor guide).
Tennessee workers’ compensation
The contractor board requires workers’ compensation coverage or proof of exemption before it issues a license (Tennessee Board for Licensing Contractors).
Coverage most Tennessee HVAC contractors carry
- General liability: third-party injuries and property damage, such as a condensate leak that ruins a customer’s ceiling or a furnace install that starts a fire.
- Business owner’s policy: general liability bundled with property coverage for your shop, parts, and equipment stock.
- Workers’ compensation: medical bills and lost wages if an employee is hurt, including falls from roofs and attics, burns, and lifting injuries.
- Commercial auto: service vans and trucks that carry technicians, units, and refrigerant.
- Tools and equipment (inland marine): gauges, recovery machines, vacuum pumps, and brazing kits on job sites or in transit.
- Commercial umbrella: extra limits on top of general liability and auto, often required on commercial jobs.
What Tennessee HVAC contractors pay
| Policy | Monthly | Annual |
|---|---|---|
| General liability | $101 | $1,213 |
| Business owner’s policy | $139 | $1,664 |
| Workers’ compensation | $182 | $2,189 |
| Commercial auto | $286 | $3,438 |
| Tools and equipment | $41 | $495 |
| Commercial umbrella | $81 | $968 |
Median costs for HVAC businesses that got quotes through Insureon, mostly businesses with fewer than five employees. Your price depends on payroll, the work you do, claims history, and location.
Tennessee HVAC insurance FAQs
When does a Tennessee HVAC contractor need a license?
When the HVAC work on a job is $25,000 or more. The classification is CMC-C.
How much general liability does Tennessee require?
$100,000 for limits up to $500,000, $500,000 for limits up to $1.5 million, and $1 million above that.
Do Tennessee HVAC contractors need workers’ comp?
The board requires workers’ compensation coverage or proof of exemption.
Related guides
Important information
Compensation. The link in the partner quote box near the top of this page is sponsored, and Blake Insurance Group may be paid if you make a purchase. Sponsored placement does not affect the other information on this page.
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Cost figures. Published averages and ranges are cited from the sources named, as of the dates shown. They are not quotes and may not reflect your price, which depends on the insurer, your state, your payroll, the work you do, and your claims history.
Availability. Coverage, prices, discounts, and eligibility vary by insurer, state, and applicant, and are subject to underwriting. The issued policy controls.
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