It’s a scorching afternoon in July, and your team just wrapped up an install on a brand-new residential system. The homeowner is thrilled. The air is cool. The invoice is paid. Another job well done.
Then, two weeks later, your phone rings.
There’s a leak. The attic unit you installed has caused water damage in the ceiling below. What looked like a perfect job now comes with a five-figure repair bill. The client expects you to cover it.
That’s where the right insurance makes all the difference.
At Rollo Insurance, we know how fast things can change in the HVAC world. One faulty wire or refrigerant leak can threaten years of hard work. We’re here to help you stay ahead of those risks with a plan that protects your tools, your team, and your reputation.
What Makes HVAC Work So Risky?
You don’t just fix broken AC units or install ductwork. You climb ladders, handle chemicals, interpret blueprints, and troubleshoot live electrical systems — often all in the same day. The risks are real, and they don’t end when you leave the job site.
Let’s break down a few of the biggest exposures.
Post-Job Liability
Many HVAC claims happen after the job is complete. An improperly sealed vent leads to mold. A loose connection sparks a fire weeks later. You can be held liable long after your crew has packed up and moved on.
Chemical and Refrigerant Hazards
If refrigerants like R-22 or Freon leak, it’s not just a cleanup issue. It’s a regulatory one. Improper handling or disposal can lead to environmental claims that a standard policy won’t cover.
Job Site Accidents
Every home or commercial site presents new risks. A client trips over a cord. A tool slips and breaks a flat-screen TV. A surge from your install damages expensive electronics.
Tool Theft and Equipment Loss
Your gear is valuable and portable. Diagnostic tools, vacuum pumps, and welding equipment are all easy targets for theft from vans or job sites. If they’re not insured, you’re paying out of pocket.
That’s why basic coverage isn’t enough. You need a policy tailored to the reality of your work.
What Coverage Do HVAC Contractors Need in Texas?
Whether you’re a solo contractor or running a full crew, certain policies are essential and, in some cases, legally required.
Commercial General Liability (CGL)
This one is non-negotiable if you’re licensed in Texas. The state requires CGL insurance to obtain and maintain your HVAC license.
What it covers:
- Injuries to others on the job site
- Damage to a client’s property
- Problems that show up after the job is done (known as completed operations)
Real-life example: A gas furnace you installed develops a leak. CGL covers the injury or damage that results, even if it happens weeks later.
Commercial Auto Insurance
You depend on your truck or van every day. But if you’re using it for business, your personal policy won’t cover you.
What it covers:
- Liability and damage in business-related auto accidents
- Repairs for collisions, hail, or theft of your work vehicle
If your business name is on the side of your van, your coverage should match.
Workers Compensation Insurance
Texas doesn’t require it for most private employers, but it’s still one of the smartest investments you can make.
Why it matters:
HVAC work comes with a high injury rate including slips, cuts, strains, and burns. Workers comp pays for medical bills and lost wages. It also helps shield your business from costly lawsuits.
Specialty Coverages That Make a Big Difference
Once the basics are in place, it’s worth looking at a few add-ons that can really save you in a pinch.
Professional Liability (Errors and Omissions)
Not every mistake is physical. Sometimes you do everything right, except the math.
Real-life example: You install a system based on blueprints, but it’s undersized. Now the building isn’t cooling properly and the client wants compensation. This policy helps cover claims tied to your advice, design, or planning.
Inland Marine (Tools and Equipment)
Despite the name, this has nothing to do with boats. Inland Marine is the go-to coverage for contractors who carry tools from job to job.
What it covers:
- Theft, damage, or loss of tools and equipment
- Portable equipment and diagnostic gear in your vehicle
If it moves with you, this policy helps protect it.
Contractor’s Pollution Liability
Your general liability policy probably excludes pollution-related claims. This coverage fills that gap.
What it covers:
- Accidental spills of refrigerants or chemicals
- Cleanup costs and legal claims tied to environmental exposure
Equipment Breakdown
A compressor in your workshop shorts out overnight. Or your office HVAC system fries during a power surge. This policy helps with repair or replacement and keeps your team working.
Business Interruption Insurance
If a fire, storm, or covered event shuts you down for a week, this policy helps cover your lost income and ongoing expenses. That way, you’re not scrambling to make payroll during a downtime you couldn’t prevent.
Umbrella Insurance
Big lawsuits don’t always stop at your policy limits. An umbrella policy gives you extra coverage when your general liability or auto insurance runs out. It’s a safeguard for worst-case scenarios.
How Much Does HVAC Insurance Cost in Texas?
Insurance costs vary based on your revenue, crew size, vehicles, and claims history. But here’s a general idea of what small to mid-size HVAC contractors in Texas can expect:
| Coverage Type | Typical Monthly Cost | Annual Range | Notes |
|---|---|---|---|
| General Liability | $65 – $105 | $780 – $1,260 | Required for licensing |
| Workers Compensation | $150 – $280 | $1,800 – $3,360 | Depends on payroll and job risk |
| Commercial Auto (per vehicle) | $150 – $250 | $1,800 – $3,000 | Varies by vehicle and driver |
| Tools and Equipment | $15 – $65 | $180 – $780 | Based on value of gear |
| Professional Liability | $55 – $125 | $660 – $1,500 | Important for design and consulting work |
Estimated total: A full package for a small HVAC business in Texas typically runs between $5,000 and $8,000 per year. Larger companies or those with higher exposure will pay more.
You Handle the Heat. We’ll Handle the Risk.
You’ve got enough on your plate running a business, managing your crew, and keeping customers comfortable. You shouldn’t have to worry about whether your insurance will hold up when things go sideways.
At Rollo Insurance, we work with Texas contractors every day. We know what’s required for your license and what’s necessary to protect your livelihood. Let’s build a policy that fits your operation and keeps your business moving forward, no matter the temperature outside.
Ready to talk? Reach out to your local Rollo office and let’s get started.
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