Business insurance • Texas HVAC contractors
Texas HVAC Contractor Insurance: TDLR ACR License and Liability Minimums
Texas licenses HVAC contractors through the Texas Department of Licensing and Regulation (TDLR) as air conditioning and refrigeration (ACR) contractors. A Class A license covers any size unit, and Class B covers cooling up to 25 tons and heating up to 1.5 million Btu an hour. Each class has its own general liability minimum, and the certificate of insurance must be on file with TDLR.
This guide covers Texas ACR license classes, TDLR insurance minimums, workers’ comp choices, and typical costs. Blake Insurance Group is an independent agency licensed in Texas, and a licensed agent can compare quotes for your HVAC business.
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Texas ACR license classes
| Class | Equipment limits |
|---|---|
| Class A | Any size unit |
| Class B | Cooling 25 tons and under; heating 1.5 million Btu/hour and under |
Each license carries one endorsement: environmental air conditioning, commercial refrigeration, or process cooling or heating. Applicants need 48 months of supervised experience in the past 72 months (or 36 months plus a year as a certified technician), must pass the exam, and pay a $115 application fee (Texas Department of Licensing and Regulation).
TDLR insurance minimums
| Coverage | Class A | Class B |
|---|---|---|
| Per occurrence (bodily injury and property damage) | $300,000 | $100,000 |
| Aggregate | $600,000 | $200,000 |
| Products and completed operations aggregate | $300,000 | $100,000 |
Source: 16 Tex. Admin. Code § 75.40. Coverage must stay in force for the whole license period, and one policy meeting Class A minimums covers both classes.
Workers’ comp in Texas
Texas employers that do not carry workers’ compensation must file DWC Form-005 each year, and nonsubscribers with five or more employees must report workplace injuries on DWC Form-007 (Texas Department of Insurance, Division of Workers’ Compensation). Going without coverage can expose you to injury lawsuits, so weigh that choice and check what your clients require.
Coverage most Texas 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 Texas 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.
Texas HVAC insurance FAQs
How much insurance does a Texas HVAC contractor need?
Class A needs $300,000 per occurrence, $600,000 aggregate, and $300,000 completed operations. Class B needs $100,000, $200,000, and $100,000.
What is the difference between Class A and Class B in Texas?
Class A covers any size unit. Class B is limited to 25 tons of cooling and 1.5 million Btu an hour of heating.
Is workers’ comp required for Texas HVAC contractors?
Texas does not require private employers to carry it, but nonsubscribers must file notice with the Texas Department of Insurance.
Related guides
Important information
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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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