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Texas licenses HVAC at the state level and prices the insurance by licence class. TDLR rule 16 TAC § 75.40 requires commercial general liability at all times during the licence period: Class A contractors carry $300,000 per occurrence / $600,000 aggregate / $300,000 products & completed operations; Class B carries $100,000 / $200,000 / $100,000. The certificate is filed with TDLR at licensure.
One policy, priced for a Texas HVAC business
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What Texas Actually Requires
| Requirement | Texas rule |
|---|---|
| Class A (unlimited tonnage) | $300,000 per occurrence / $600,000 aggregate / $300,000 products & completed ops — 16 TAC § 75.40 |
| Class B (≤25 tons cooling / ≤1.5M BTU heating) | $100,000 / $200,000 / $100,000 — same rule |
| Customer disclosure | Licensees must furnish carrier, policy number and agent details to any customer who asks |
The Class Decides Your Premium Floor — and Your Bids
The A/B split matters twice. The obvious cost: Class A’s tripled limits price higher. The less obvious one: the products & completed operations aggregate is the HVAC-specific line — it is what responds when an install fails months after you left the site, and Texas is one of the few states whose licensing rule names it explicitly. A policy quoted without completed-ops coverage does not satisfy § 75.40.
The certificate is filed with TDLR when you apply, when the business name or affiliation changes, and whenever the department asks. A waiver exists only for licensees who do not contract with the public — and it removes the right to do public work entirely.
The Coverages Every HVAC Contractor Carries Regardless
- General liability with products & completed operations. The ladder through the window is the small claim; the install that fails months later — a condensate leak into a finished ceiling, a miswired condenser — is the one HVAC businesses are actually judged on, and it lives in the completed-ops line.
- Commercial auto for the van or box truck — a personal auto policy excludes business use, and the vehicle full of tools is most shops’ single largest asset.
- Workers’ compensation once you employ staff.
- Tools & equipment (inland marine) — recovery machines, gauges, brazing rigs and the theft-from-vehicle claim that GL never covers.
GCs ask for your COI before you’re on site. So do licensing boards.
A certificate of insurance answers the bid packet and the licensing file in one page. Quotes are free and don’t require a phone call.
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Frequently Asked Questions
How much liability insurance does a Texas HVAC contractor need?
Class A licensees need $300,000 per occurrence, $600,000 aggregate, and $300,000 products & completed operations aggregate; Class B needs $100,000 / $200,000 / $100,000 — required at all times under 16 TAC § 75.40, with the certificate filed with TDLR.
Does Texas require a bond for an HVAC licence?
Not at the state level — TDLR’s requirement is the commercial general liability policy. Some municipalities add their own bond requirements for local permits.
Comparing states? See HVAC insurance requirements in every state, or the full guide to starting an HVAC business in Texas.
Sources
| Source | What it confirms |
|---|---|
| 16 TAC § 75.40 | Class A and Class B insurance amounts and filing requirements |
| TDLR — ACR contractor program | Licensing agency for air conditioning and refrigeration contractors |
