The 5 Best HVAC Contractor Insurance Companies

Thang Truong
Thang Truong
Updated on:

There are 333,000 HVAC technicians in the US. People depend on HVAC professionals to keep them warm in the winter and cool in the summer. You are responsible for customers’ comfort in their homes. However, like every small business owner, you need insurance to protect yourself. Here are the five companies we recommend for HVAC insurance. 

The 5 best HVAC insurance companies

After researching several insurance companies, we recommend the following top 5 companies:

  • CoverWallet: Best for comparing several online quotes
  • biBERK: Best for a fast online quote
  • The Hartford: Best for businesses looking for a solid and ethical insurer
  • Hiscox: Best for a flexible payment plan
  • Next: Best for a completely digital experience

CoverWallet: Best for comparing several online quotes

CoverWallet offers most types of business insurance, and they insure most industries. They work with several partners, including:

  • Chubb
  • Progressive
  • Atlas
  • Hiscox
  • Liberty Mutual
  • CNA

And more. They will only return quotes from their partners. Once you’re a CoverWallet client, you get your own personal advisor assigned to you. Keep in mind that CoverWallet is not an insurance company—they are a tech company that matches business owners with insurance companies. 

One problem with CoverWallet is that they usually return 2-3 quotes from their partners, but not always. We got this message when we tried to obtain a quote for an HVAC contractor.  When this happens, it is usually because the business has some complications or they need to validate some of the data and information you submitted in your quote form.

Graphical user interface, text, application

Description automatically generated

If this happens, you’ll have to call them. They will be able to provide several quotes for you to compare after verify the data and information of your business.

biBERK: Best for a fast online quote

biBERK makes it easy to get a quote. They originated in 2015 to address what they saw as a gap in the market: simple and affordable business insurance. They use AI to generate quotes, and quotes are always ready in a matter of minutes. Once you get a quote, you can buy the insurance online and coverage is immediate. And since they’re backed by Berkshire Hathaway, they have excellent financial strength. 

Graphical user interface, website

Description automatically generated

The Hartford: Best for businesses looking for a solid and ethical insurer

The Hartford is one of the oldest companies of any kind in the United States. It’s been offering insurance solutions for more than 200 years and has helped one million plus businesses with their insurance needs, including HVAC contractor coverage. They also offer a wide range of business insurance coverages from general liability insurance, professional liability insurance, business owners policy (BOP), commercial property insurance, commercial auto insurance, to workers compensation insurance. The company takes pride in the fact that the Ethisphere Institute named The Hartford a World’s Most Ethical Company twelve times. The Hartford’s longevity and focus on ethical business practices makes it a company that you can feel good about doing business with.

The Hartford offers online quotes, although you can’t purchase the insurance online—you have to call an agent. But they have a full range of insurance policies for an HVAC contractor business, and their customer reviews are good. They insure over one million small business owners, and they’ve been in business since 1810, so they have a lot of experience. 

Getting a quote online is easy: this is for a general liability policy for an HVAC contractor company with $500,000 in annual revenue. 

Graphical user interface, text, application

Description automatically generated

Hiscox: Best for a flexible payment plan

Hiscox offers flexible payment options with no additional fees, which can be handy as a contractor. They have policies that are tailored to your HVAC contractor business, and you’ll be covered anywhere in the world. 

The website is a little confusing, though. While you can google “HVAC contractor insurance” and Hiscox comes back as one of the top insurers, there is no option for HVAC contractor on the dropdown menu, and Hiscox won’t let you type it in manually. There isn’t even an option for contractors. For this reason, we recommend calling Hiscox to discuss your needs. They work with agents, so you can figure out what business insurance is best for you. 

Next: Best for a completely digital experience

Next has a bright, easy-to-navigate website and online quoting is very user-friendly. You can get a 10% discount if you bundle more than one type of insurance. They insure almost every profession under the sun, and they offer most types of business insurance. They have excellent customer service reviews across all platforms. You can pay for your insurance by the month with no additional fees. 

They don’t insure every state, though (although they say they’re working on that). 

This quote is for an HVAC contractor in Pennsylvania with $500,000 in annual revenue. 

Graphical user interface, text, application

Description automatically generated

What kind of insurance do HVAC contractors need?

Depending on the size of your HVAC contracting business, you might need one or more of the following business insurance coverages.

General liability insurance for HVAC contractors

First, you should get a general liability policy. Since HVAC professionals enter clients’ homes and are in the business of moving heavy equipment, the potential for a third-party injury (in this case, the homeowner) is substantial. Also, since you’re in a customer’s home, it’s possible to accidentally damage some part of their home, and general liability insurance will cover that as well. 

Many states require HVAC contractors have general liability insurance in order to obtain an HVAC license. 

>>MORE: Best General Liability Insurance Companies

Workers compensation insurance for HVAC contractors

If you have any employees, most states require you to have workers compensation insurance. It protects your employees in case they are injured on the job and will cover their medical costs and their lost wages while they are out of work. It also protects you from employee lawsuits. 

>>MORE: Best Workers Compensation Insurance Companies

Commercial auto insurance for HVAC contractors

Since your job as an HVAC contractor involves driving around to customer’s homes, you’ll need business insurance to cover your vehicles, that is commercial auto insurance. Otherwise, if you get into an accident while driving for work, your personal auto insurance will not cover it. This goes for your employees as well. Commercial auto insurance will also cover your business vehicles if they are damaged due to weather or vandalism. 

>>MORE: Best Commercial Auto Insurance Companies

Business Owners Policy (BOP) for HVAC contractors

This combines general liability insurance with commercial property insurance and usually saves you money. Commercial property insurance protects your equipment from loss or damage. BOP is suitable for small businesses of less than $10M in annual revenue or having less than 100 employees. If your HVAC contracting business is qualified for the BOP policy, you should definitely consider it.

>>MORE: Best Business Owners Policy (BOP) Insurance Companies

Inland marine insurance for HVAC contractors

Commercial property insurance covers your property while it’s in your business location. Inland marine covers it while it’s en route somewhere. Since you travel from customer to customer, you’ll need to protect your equipment while it’s in transit. If you often carry your equipment from one location to the other, you will need inland marine insurance coverage.

Professional liability insurance (or E&O) for HVAC contractors

If something goes wrong with work you did for a customer, professional liability insurance will protect you. Obviously, you want to provide excellent service and work for all customers, but sometimes the unexpected happens. Also, some clients may sue you for something that isn’t your fault. Keep in mind that professional liability insurance, or E&O insurance, doesn’t cover any subcontractors you use: they’ll have to provide their own insurance. 

>>MORE: Best Professional Liability Insurance Companies

What is a surety bond and why do HVAC contractors need one?

A surety bond isn’t insurance, but it provides your customers with reassurance that your work will be thorough and professional. You are guaranteeing you will meet professional construction standards and adhere to all state and local regulations. A surety bond is a kind of contract between you, the customer, and the surety bond company. 

You need a surety bond because you can’t get an HVAC license without it. Different states have different licensing requirements, and a few don’t require any license at all, so be sure to check with your state’s regulations. Also, many customers will be reassured that your work is up to standards if you have a surety bond and will be more likely to hire you. 

How much does HVAC insurance cost?

The average cost of HVAC insurance is $62 per month or $732 per year for a Business Owners Policy (BOP). This is one of the most popular insurance policies for HVAC contractors. It is a bundled policy covering both general liability and commercial property.

HVAC contractors may need other coverages. If you add more coverages, your premiums will increase accordingly.

HVAC contracting is considered a higher-risk profession, so you’ll pay more than many other professions for your insurance. Make sure to shop with a few companies or a digital broker like CoverWallet, InsurePro, or Simply Business to compare several quotes to find the cheapest one for you.

Learn more at how much does HVAC contractor insurance cost.

What factors affect HVAC insurance cost?

How much you pay for HVAC insurance will depend on several factors such as:

  • Location and size of your business
  • Annual revenue
  • Number of employees
  • Years of experience in the field
  • How much coverage you get
  • Size of the area you service

How much insurance do HVAC contractors need?

That also depends, but many HVAC contractors get a $1M/$2M policy, which means $1 million in coverage per occurrence and $2 million during the policies lifetime. The policy renews every year, so it’s basically a limit of $2 million a year. 

How can I find cheap HVAC contractor’s insurance?

Shop around is the best and most effective thing you can do to save money on your insurance. And don’t become complacent once you have insurance; you might save money if you switch insurance companies, so it’s important to get quotes every two-three years. 

Make sure you follow safety standards and provide a safe working environment. Some insurance companies will provide risk assessments to make sure you are not leaving yourself vulnerable to accidents. Your workers compensation insurance rates will go down over time if you don’t file any claims and you can do that by ensuring the safety of your employees. 

Last thoughts

Every building, whether commercial or residential, has an HVAC system, making your business essential. You take care to provide the best service possible. However, things can still go wrong, which is why you need business insurance to protect yourself. 

Thang Truong
Thang Truong

Thang Truong covers small business insurance and small business success at BravoPolicy. He is a licensed P&C insurance agent. Previously, he held product leadership positions at realtor.com, Capital One, NerdWallet, and Mulberry Technology. He holds a MBA degree from UC Berkeley - Haas School of Business.

More Stories

Milepost Joins Truckstop: A New Dawn for Commercial Truck Insurance

The trucking industry is about to witness a significant shift in how insurance policies are procured, managed, and serviced. Milepost Insurance Agency LLC, a renowned Berkshire Hathaway enterprise, has recently collaborated with Truckstop, thereby pioneering a new era in trucking insurance for independent owner-operators. Revolutionizing the Insurance Experience The primary aim behind this dynamic partnership […]

Thang Truong
Thang Truong

Navigating Commercial Truck Insurance Premiums in 2023

Commercial truck insurance has become a focal point for many in the transportation sector as we delve deeper into 2023. With premiums seeing significant spikes in recent years, stakeholders are asking: Are we approaching a stabilization or even a decrease in these rates? Insights from industry experts provide clarity on this critical concern. Trends in […]

Thang Truong
Thang Truong

Regulatory Changes and Rising Commercial Truck Insurance Costs in California

In the wake of the passing of California’s AB5 bill, the trucking industry, including drivers and insurers, face unforeseen challenges. The legislation threatens to severely disrupt contractual trucking gigs, leading to rising insurance costs and potential operational changes. AB5 – A Potential Setback for Owner-Operators AB5, signed into law by Governor Gavin Newsom in 2019, […]

Thang Truong
Thang Truong

Finding Balance in Commercial Truck Insurance: Costs, Value, Services, and Long-Term Benefits

Navigating the maze of truck insurance offerings is not just a matter of finding the lowest price. It’s about understanding the nuances of what you’re buying, considering long-term benefits, and ensuring a harmonious relationship with your provider. This article offers a detailed examination of the process, unfolding the aspects of costs, value, services, honesty, and […]

Thang Truong
Thang Truong

New SEC Regulations on Cybersecurity and AI: A Comprehensive Overview

In an era where technology is at the forefront of business operations, the U.S. Securities and Exchange Commission (SEC) is taking decisive steps to ensure transparency and ethical practices. On Wednesday, the SEC was set to introduce new regulations that will impact publicly traded companies in two significant areas: cybersecurity and artificial intelligence (AI). These […]

Thang Truong
Thang Truong

6 Best Malpractice Insurance for Nurse Practitioners for 2023

Nurse practitioners have a great deal of responsibility when it comes to patient care. Many nurse practitioners assume that because they work under a doctor and their employer provides some level of malpractice insurance, they’re covered. It may be worth it to purchase your own policy, however. Employer malpractice insurance is to protect the employer, […]

Thang Truong
Thang Truong

6 Best Warehouse Insurance and Costs for 2023 

In the fast-paced world of logistics and supply chain management, warehouses play a pivotal role. They serve as the backbone of industries, storing a wide variety of goods that are integral to our daily lives. However, with such responsibility comes a multitude of risks. From natural disasters and fires to theft and accidental damage, warehouses […]

Thang Truong
Thang Truong

5 Best Retail Insurance Companies & Costs for 2023 

The retail industry can be an exciting and profitable venture. However, it’s also fraught with risks that could potentially disrupt operations and result in significant losses. This is where retail insurance comes in. 5 best retail insurance companies Simply Business: Best for comparing several quotes from top-tier carriers  Simply Business is a leading online insurance […]

Thang Truong
Thang Truong

How Much Does Daycare Insurance Cost in 2023? 

In the ever-evolving landscape of childcare, ensuring the safety and well-being of the children under your care is paramount. One crucial aspect of this responsibility is securing comprehensive daycare insurance. This coverage not only protects your daycare business from potential liabilities but also provides parents with the assurance that their children are in a safe […]

Thang Truong
Thang Truong

7 Best Film Production Insurance, Cost, & Coverage

The world of film production is thrilling, dynamic, and filled with creativity. However, it also comes with considerable risks ranging from personal injuries and equipment damage to legal issues. To mitigate these risks and protect the investment, having a comprehensive film production insurance is essential. This article aims to provide an understanding of why such […]

Thang Truong
Thang Truong