Insurance for HVAC contractors in California

General liability (GL) is the policy that responds when your work injures another person or damages property you do not own. HVAC puts you in attics, crawlspaces and on roofs with gas, flame and water all in play. Here is where trouble usually starts:

• Carbon monoxide. A furnace or water heater flue left disconnected, sized too small or pitched the wrong way can fill a home with carbon monoxide. No other HVAC risk hurts people as badly.
• Brazing. Open flame on refrigerant lines next to studs or insulation can start a fire you do not see until it spreads.
• Condensate water. A drain line that clogs or was never glued, a cracked pan or a missing float switch can ruin drywall, floors and cabinets.
• Rooftop equipment. A crane pick that goes wrong, a curb set badly or a unit left loose can let water pour into the business below.
• Inside the customer's home. Someone trips on your hose, a ceiling cracks while you pull duct, or furniture gets damaged on the way to the closet.

GL generally pays for third-party bodily injury and property damage caused by your operations, and for completed operations when the policy includes it. It does not pay for injuries to your own employees, your gauges and tools, your service van, or the cost of redoing faulty work.

Before a GC or property manager lets you start, plan on handing over:

• A certificate of insurance (COI) showing GL limits of $1M per occurrence and $2M aggregate, the limits GCs usually ask for.
• Additional insured status for the GC or building owner. Being listed as certificate holder does not give them that. Many contracts add primary and non-contributory wording and a waiver of subrogation.
• Proof of workers' comp. A C-20 cannot skip this, as the CSLB section below explains.
• An updated COI each year on maintenance agreements. Property managers often hold payment until the new certificate is on file.

Our certificate of insurance guide walks through each item.

Two HVAC quotes can look the same on the first page and pay a claim very differently. Read the exclusions and endorsements for:

• Pollution. Find out how the pollution exclusion handles carbon monoxide, refrigerant releases and fumes. Some forms give back limited coverage for a short accidental release. Others give back nothing.
• Hot work rules. Some policies pay a torch fire only if you followed set steps, such as an extinguisher on hand or a fire watch.
• Roofs and height. A form written for residential service may limit work above a certain number of stories or leave out commercial roof work.
• Mold and slow leaks. A fungi or mold exclusion can shrink a condensate claim that was found late.
• Design work. If you size systems or do design-build, look for a professional services exclusion.
• Class fit. The policy has to match what you really do. If you also do plumbing or electrical work, answer the questions that way.

Each quote on your board lists what it includes and excludes, so you can compare side by side.

General information from the CSLB, not legal advice.

• Workers' comp with or without a crew. Under B&P Code §7125, C-20 is one of the classes that must carry workers' comp even with no employees, so a one-person HVAC shop cannot file the exemption other trades can. We quote workers' comp online from your license number, the same way as GL. More in our workers' comp guide.
• LLC licenses. An LLC must carry liability insurance with an aggregate limit of at least $1,000,000 when 5 or fewer people are on the personnel of record. Details on the LLC insurance requirement page.
• Sole owners, partnerships and corporations. CSLB does not require GL by law, but strongly recommends it. GCs and property managers usually require it in the contract.
• Service and repair contracts. A great deal of HVAC work is service and repair. Those contracts, like home improvement contracts, must carry a "Commercial General Liability Insurance (CGL)" notice with your insurer and its phone number, or another statement the law allows, such as that you carry no CGL (B&P §7159 / §7159.10).
• The $25,000 license bond. Every licensee carries it, and it is not insurance. See bond vs insurance.

1. Type your CSLB license number. We pull your business from the CSLB public record and match it to A-rated insurance companies that write C-20.
2. Confirm you own the business with your name, mobile number and email.
3. Tap through about a minute of questions: homes or businesses, service or new construction, sales, payroll, subs, crew size, years in business, claims and current insurance.
4. Your quote board shops A-rated programs live. Each price shows its deductible, limits and what is in and out. We text and email you the link too.
5. Pick one and tap "Submit for approval." A licensed agent reviews it, usually within 30 minutes to 4 hours depending on the carrier, and emails the final quote for you to sign.

Nothing is bound until you sign. When coverage starts, we send your GC the certificate. Price depends on your sales, payroll, the mix of service and new installs, homes versus commercial, subs, years and claims, so the only real number is the one you see on your board. Our cost guide explains the drivers. Commercial auto, umbrella and bonds are handled by phone. Call or text a licensed agent at (877) 940-4313, in English or Spanish. CalRisk Insurance Center, CA Lic. 0K97400, 713 W Duarte Rd, Suite G747, Arcadia, CA 91007. Looking for another trade? See insurance by trade.