Pen-and-ink Texas scene: a low commercial building with rooftop air conditioning units, a tall pump jack and a ladder on one side, a windmill and a service truck on the other.

Texas HVAC insurance

HVAC in
Texas? here’s
what you need.

TDLR’s insurance rule, the comp choice and coverage, in plain English.

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MARKETS WE PLACE THROUGH

the short answer

Texas HVAC contractors are licensed by the Texas Department of Licensing and Regulation as air conditioning and refrigeration contractors, Class A or Class B, and the department wants proof of general liability before it issues the license. Workers’ comp is a choice for most private employers, though public work and most GC contracts require it.

what Texas requires.

The rules that come with an HVAC license here.

License: Air conditioning and refrigeration contractor, Class A for any size or Class B up to 25 tons cooling or 1.5 million BTU per hour heating. Endorsed for environmental air, commercial refrigeration, or both.
Insurance requirement: General liability on TDLR’s certificate form before the license issues. Class A: $300,000 each occurrence, $300,000 products and completed operations, $600,000 aggregate. Class B: $100,000, $100,000 and $200,000.
the department’s insurance rule
Workers’ comp: A choice for most private employers. Without it, you report that to the state and give up common-law defenses. Public work generally requires it.
General liability: Required at the class minimums above. Your contracts usually set higher limits.

Sources: Texas Department of Licensing and Regulation, Texas Occupations Code chapter 1302, TDLR forms ACR‑LIC‑002 and ACR‑LIC‑009, Texas Department of Insurance. Last reviewed September 2026.

what your customers will ask for.

Tap a coverage to see what it does on an HVAC job and who asks for it.

What it covers

general liability.

Damage to a customer’s property or injuries to people who aren’t your employees, like a condensate leak that ruins a ceiling.

Who asks: TDLR, before it issues the license. GCs and property managers ask too, usually with additional insured wording.

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what’s different about
HVAC in Texas.

A license in every office.
Texas wants a license holder working full time in each permanent office, assigned to your company, when the contract is signed and when the work is done. We match the policy’s locations to those offices.
Gas piping is plumbing.
The statute says an HVAC license doesn’t cover work defined as plumbing. Gas to the furnace is where the two meet, so we ask who runs it and collect a certificate when a plumbing sub does.

good to know.

Straight answers for Texas HVAC contractors.

What license does an HVAC contractor need in Texas?

An air conditioning and refrigeration contractor license from the Texas Department of Licensing and Regulation. Class A covers equipment of any size, and Class B covers smaller systems within limits the statute sets. Each license carries an endorsement for environmental air conditioning, commercial refrigeration and process cooling or heating, or both. Each permanent office needs a license holder.

Do Texas HVAC contractors need general liability insurance?

Yes. The department requires evidence of general liability before it issues the license, on its own certificate form, with minimums that are higher for Class A than for Class B. Binders and declarations pages aren’t accepted. Those minimums are a floor, and property managers and GCs usually ask for higher limits and additional insured wording.

Do Texas HVAC contractors need workers’ comp?

For most private employers, it’s a choice. Texas lets private employers decide whether to carry workers’ comp, and the licensing agency doesn’t require it for the license. An employer that doesn’t carry it must report that to the state and gives up certain defenses if an injured employee sues. Public work and most GC contracts require it.

Sources: Texas Department of Licensing and Regulation, Texas Occupations Code chapter 1302, Texas Department of Insurance. Last reviewed September 2026.

Insurance words, in plain English: waiver of subrogation · certificate of insurance · additional insured · primary and noncontributory · hold harmless agreement · contractual liability · completed operations · blanket endorsement