HVAC Contractors Coverage Guide
HVAC techs handle refrigerants regulated under the Clean Air Act, work on rooftops, and install systems whose failure can cause property damage and indoor air quality claims. The pollution exclusion in standard GL is a real gap.
Critical Coverage
General Liability
Covers third-party bodily injury and property damage claims
What it covers
Third-party damage from system leaks (water, refrigerant), CO incidents, completed-operations from failed installations, and on-site injuries. Includes commercial rooftop work liability.
Common misconception
HVAC techs think GL covers refrigerant releases. Standard CGL has an absolute pollution exclusion that blocks refrigerant claims — you need a separate refrigerant pollution endorsement.
What it does NOT cover
Refrigerant pollution (without endorsement). Damage to your installed system. Mold from condensate leaks. Defective design.
The gap — what happens without it
Your service tech overcharges a system; the high-side ruptures, releasing 20 lbs of R-410A and damaging a $35K compressor. Without a refrigerant pollution endorsement, GL denies. With it, the property damage is paid up to the sub-limit.
What drives your premium
Annual revenue, residential/commercial mix, rooftop work %, install vs. service, claims history, technician certifications
Endorsements to ask about
Refrigerant pollution endorsement (critical). Indoor air quality coverage. Additional insured for property owners.
Workers' Compensation
Covers employee injuries and illnesses on the job
What it covers
Burn injuries from torch work, falls from rooftops/ladders, repetitive injuries from heavy unit lifting, electrical injuries on service calls.
Common misconception
Service-only HVAC firms think they're low-risk. Roof access, ladder use, and confined-space attic work make HVAC service among the higher WC class rates in mechanical trades.
What it does NOT cover
Owner exclusions. 1099s with valid WC. Drug/alcohol injuries.
The gap — what happens without it
A tech falls 18 feet from a rooftop unit — broken pelvis, surgery, 8 months out — $230K medical, $40K wage replacement. WC handles it. Without WC, you're personally liable AND the tech's employment lawyer can sue you for negligence.
What drives your premium
Payroll, class code (5537 HVAC install higher than 5190 service), state, height of work, claims
Endorsements to ask about
Voluntary comp for owners. All-states coverage.
Commercial Auto
Covers vehicles used for business purposes
What it covers
Service vans, install trucks, and box trucks hauling RTUs. HVAC fleets often haul heavy equipment that increases crash severity.
Common misconception
HVAC firms think because their van 'just carries tools' it's low-risk. Carriers price by gross weight and cargo — a fully loaded service van rear-ending another vehicle creates higher injury severity than a sedan.
What it does NOT cover
Vehicles off-policy. Hired/rental vehicles. Cargo (need motor truck cargo or inland marine).
The gap — what happens without it
Your install truck pulling a trailer with a 5-ton RTU jackknifes on a wet ramp, totaling another vehicle and injuring two people. The combined claim is $310K. Commercial auto with a $1M CSL pays. Personal auto would have denied for commercial use.
What drives your premium
Number/weight of vehicles, driver MVRs, radius of operation, claims history
Endorsements to ask about
Hired/non-owned auto. Trailer interchange (if you swap trailers with suppliers). Broadened pollution for refrigerant in vehicles.
Important Coverage
Commercial Umbrella
Extends limits above your primary policies
What it covers
Excess over GL/auto/EL. Severe claims (CO injury, rooftop fall lawsuits from third parties, fleet accidents) regularly exceed primary $1M limits.
Common misconception
Owners think umbrella is for big firms. A single CO claim can exceed primary limits regardless of company size.
What it does NOT cover
Pollution unless underlying. Punitive damages (some states). Professional services unless underlying E&O.
The gap — what happens without it
A CO incident in a residence sends a family to the hospital — $1.8M in medical and pain/suffering claims. $1M GL pays its limit. The umbrella covers the rest.
What drives your premium
Underlying, fleet size, commercial work %, claims history
Endorsements to ask about
Follow-form over GL/auto/EL. Pollution follow if underlying pollution policy.
Inland Marine (Tools & Equipment)
Covers tools, equipment, and materials in transit or at job sites
What it covers
Diagnostic tools (manifold gauges, leak detectors, recovery machines, vacuum pumps) and installed materials in transit/on site.
Common misconception
HVAC firms underestimate equipment value. A fully equipped service van can hold $25K–$50K in tools.
What it does NOT cover
Mechanical breakdown. Tools left in unlocked vehicles overnight. Mysterious disappearance.
The gap — what happens without it
A van break-in nets the thieves $18K of recovery equipment, gauges, and a leak detector. Without inland marine, you're replacing everything before tomorrow's calls.
What drives your premium
Tool inventory, scheduled high-value items, locking measures, claims
Endorsements to ask about
Installation floater for ductwork/equipment in transit. Rented equipment. Employees' tools.
Pollution Liability
Covers environmental contamination claims excluded by GL
What it covers
Refrigerant releases (specifically excluded by CGL), CO leaks from poorly vented combustion equipment, and indoor air quality claims.
Common misconception
Many HVAC contractors carry GL alone, not realizing refrigerant is treated as a 'pollutant' under CGL — and EPA enforcement actions for refrigerant violations have real teeth (up to $44K per day per violation under the Clean Air Act).
What it does NOT cover
Pre-existing contamination. Intentional discharge. Knowingly violated EPA regs. Mold (often sub-limited).
The gap — what happens without it
A retrofit you did vents combustion gases improperly. Two months later, the homeowner is hospitalized for CO poisoning. Medical claims and bodily injury suit total $520K. CGL excludes pollution; your pollution policy covers the BI portion. Without it, your business closes.
What drives your premium
Refrigerant types handled, presence of EPA 608 certifications, commercial vs. residential, prior incidents
Endorsements to ask about
Refrigerant-specific endorsement on CGL (cheaper option for low-risk firms). IAQ/mold sub-limit. Transportation pollution.
Not sure what you need?
Text us your trade and state — we'll tell you exactly what coverages apply to your business and shop the market for the best rate.