HVAC business insurance averages $188 monthly, with costs ranging from $54 to $422 based on coverage types and location.
Get matched with cheap HVAC business insurance below.
Updated: October 13, 2025
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HVAC business insurance costs range from $652 to $5,064 annually on average, depending on your coverage type, state and sub-industry.
Your HVAC insurance premiums depend on location, claims history, property types serviced and employee count when insurers calculate your rates.
Shop multiple business insurers, bundle policies, increase deductibles and pay annually to find affordable HVAC business insurance costs.
We found average business insurance costs for HVAC companies for commonly needed coverage are as follows:
| BOP | $361 | $4,337 |
| General Liability | $246 | $2,956 |
| Professional Liability (E&O) | $81 | $977 |
| Workers' Comp | $63 | $755 |
Note: We based these rates on small businesses with two employees across 79 major industries, focusing on four coverage types: general liability, professional liability/errors and omissions (E&O), workers' comp and business owner's policy. Your actual rates will vary based on your specific business factors and location.
Select your industry and state to get a customized quote.
Your HVAC business insurance cost for general liability insurance varies by location. Maine offers the best value at $213 monthly compared to the $246 national average, while New York costs $287 monthly.
| Alabama | $241 | $2,898 |
| Alaska | $219 | $2,634 |
| Arizona | $233 | $2,794 |
| Arkansas | $236 | $2,837 |
| California | $275 | $3,295 |
| Colorado | $244 | $2,933 |
| Connecticut | $268 | $3,214 |
| Delaware | $265 | $3,175 |
| Florida | $267 | $3,202 |
| Georgia | $250 | $3,005 |
| Hawaii | $257 | $3,084 |
| Idaho | $234 | $2,804 |
| Illinois | $271 | $3,247 |
| Indiana | $240 | $2,885 |
| Iowa | $235 | $2,816 |
| Kansas | $239 | $2,873 |
| Kentucky | $228 | $2,737 |
| Louisiana | $282 | $3,381 |
| Maine | $214 | $2,563 |
| Maryland | $235 | $2,822 |
| Massachusetts | $259 | $3,103 |
| Michigan | $233 | $2,801 |
| Minnesota | $231 | $2,774 |
| Mississippi | $248 | $2,972 |
| Missouri | $243 | $2,922 |
| Montana | $245 | $2,945 |
| Nebraska | $233 | $2,798 |
| Nevada | $279 | $3,343 |
| New Hampshire | $245 | $2,942 |
| New Jersey | $279 | $3,352 |
| New Mexico | $248 | $2,975 |
| New York | $287 | $3,442 |
| North Carolina | $214 | $2,563 |
| North Dakota | $214 | $2,572 |
| Ohio | $229 | $2,744 |
| Oklahoma | $235 | $2,821 |
| Oregon | $229 | $2,747 |
| Pennsylvania | $284 | $3,413 |
| Rhode Island | $271 | $3,250 |
| South Carolina | $254 | $3,046 |
| South Dakota | $230 | $2,765 |
| Tennessee | $240 | $2,885 |
| Texas | $249 | $2,984 |
| Utah | $234 | $2,806 |
| Vermont | $237 | $2,840 |
| Virginia | $224 | $2,693 |
| Washington | $280 | $3,364 |
| West Virginia | $259 | $3,103 |
| Wisconsin | $242 | $2,903 |
| Wyoming | $228 | $2,735 |
Note: We based these general liability rates on HVAC businesses with two employees across different states. Your rates will vary based on your services, claims history and the number of employees.
The cost of workers' compensation insurance for your HVAC business differs across states. Maine offers the most affordable monthly rates at $54, while New York charges $73 monthly. Our research shows the state regulations and historical claim patterns drive these pricing differences.
| Alabama | $62 |
| Alaska | $57 |
| Arizona | $59 |
| Arkansas | $60 |
| California | $70 |
| Colorado | $62 |
| Connecticut | $68 |
| Delaware | $68 |
| Florida | $68 |
| Georgia | $64 |
| Hawaii | $66 |
| Idaho | $59 |
| Illinois | $69 |
| Indiana | $61 |
| Iowa | $60 |
| Kansas | $61 |
| Kentucky | $59 |
| Louisiana | $71 |
| Maine | $54 |
| Maryland | $60 |
| Massachusetts | $65 |
| Michigan | $59 |
| Minnesota | $59 |
| Mississippi | $63 |
| Missouri | $61 |
| Montana | $63 |
| Nebraska | $59 |
| Nevada | $71 |
| New Hampshire | $63 |
| New Jersey | $71 |
| New Mexico | $63 |
| New York | $73 |
| North Carolina | $55 |
| Oklahoma | $59 |
| Oregon | $59 |
| Pennsylvania | $73 |
| Rhode Island | $69 |
| South Carolina | $65 |
| South Dakota | $59 |
| Tennessee | $62 |
| Texas | $64 |
| Utah | $60 |
| Vermont | $60 |
| Virginia | $57 |
| West Virginia | $66 |
| Wisconsin | $61 |
Note: We based these workers' comp rates on HVAC businesses with two employees across different states. Your workers' comp requirements and costs will vary by state since each has different regulations.
Your professional liability cost varies by state. Nationwide, this business coverage averages $81 monthly. North Dakota offers the most affordable rates at $71 monthly, while Pennsylvania ranks highest at $95 monthly.
| Alabama | $80 |
| Alaska | $71 |
| Arizona | $78 |
| Arkansas | $77 |
| California | $91 |
| Colorado | $80 |
| Connecticut | $88 |
| Delaware | $88 |
| Florida | $87 |
| Georgia | $83 |
| Hawaii | $82 |
| Idaho | $75 |
| Illinois | $89 |
| Indiana | $81 |
| Iowa | $78 |
| Kansas | $80 |
| Kentucky | $75 |
| Louisiana | $93 |
| Maine | $71 |
| Maryland | $77 |
| Massachusetts | $84 |
| Michigan | $78 |
| Minnesota | $77 |
| Mississippi | $81 |
| Missouri | $81 |
| Montana | $82 |
| Nebraska | $78 |
| Nevada | $94 |
| New Hampshire | $80 |
| New Jersey | $91 |
| New Mexico | $83 |
| New York | $94 |
| North Carolina | $71 |
| North Dakota | $71 |
| Ohio | $75 |
| Oklahoma | $76 |
| Oregon | $76 |
| Pennsylvania | $95 |
| Rhode Island | $89 |
| South Carolina | $84 |
| South Dakota | $76 |
| Tennessee | $80 |
| Texas | $83 |
| Utah | $80 |
| Vermont | $77 |
| Virginia | $74 |
| Washington | $93 |
| West Virginia | $86 |
| Wisconsin | $79 |
| Wyoming | $76 |
Note: We based these professional liability rates on HVAC businesses with two employees across different states. Your actual rates will depend on your services offered and location.
Your HVAC business insurance cost will vary most with business owner's policy (BOP) coverage depending on your state. BOP insurance cost ranges from $311 in North Dakota to $422 in New York for identical coverage.
| Alabama | $352 |
| Alaska | $326 |
| Arizona | $345 |
| Arkansas | $346 |
| California | $404 |
| Colorado | $357 |
| Connecticut | $391 |
| Delaware | $394 |
| Florida | $394 |
| Georgia | $371 |
| Hawaii | $370 |
| Idaho | $348 |
| Illinois | $396 |
| Indiana | $347 |
| Iowa | $345 |
| Kansas | $351 |
| Kentucky | $336 |
| Louisiana | $413 |
| Maine | $315 |
| Maryland | $342 |
| Massachusetts | $383 |
| Michigan | $344 |
| Minnesota | $346 |
| Mississippi | $361 |
| Missouri | $358 |
| Montana | $356 |
| Nebraska | $341 |
| Nevada | $406 |
| New Hampshire | $358 |
| New Jersey | $411 |
| New Mexico | $355 |
| New York | $422 |
| North Carolina | $314 |
| North Dakota | $311 |
| Ohio | $342 |
| Oklahoma | $348 |
| Oregon | $335 |
| Pennsylvania | $407 |
| Rhode Island | $398 |
| South Carolina | $375 |
| South Dakota | $343 |
| Tennessee | $351 |
| Texas | $371 |
| Utah | $340 |
| Vermont | $346 |
| Virginia | $331 |
| Washington | $402 |
| West Virginia | $380 |
| Wisconsin | $351 |
| Wyoming | $341 |
Note: We based these BOP rates on HVAC businesses with two employees across different states. Your actual rates will vary based on your business size, location, and coverage needs.
HVAC business insurance costs vary by provider, ranging from $105 to $230 monthly. These price differences reflect each insurer's market focus and strategic priorities, which shift based on profitability and coverage expansion opportunities within specific industry segments.
| Chubb | $230 | $2,758 |
| Coverdash | $205 | $2,456 |
| Hiscox | $227 | $2,729 |
| NEXT Insurance | $206 | $2,475 |
| Nationwide | $178 | $2,139 |
| Progressive Commercial | $209 | $2,510 |
| Simply Business | $182 | $2,181 |
| The Hartford | $163 | $1,961 |
| Thimble | $105 | $1,256 |
| biBERK | $202 | $2,426 |
Several factors affect your HVAC business insurance costs when insurers calculate your premium:
Climate extremes in your service area drive demand and risk exposure. Companies operating in scorching desert regions or freezing northern states handle emergency calls year-round, creating more opportunities for mishaps than businesses in temperate zones.
Past problems stick around longer than you'd like when pricing coverage. Whether it's a refrigerant leak causing property damage or a technician injured in an attic fall, insurers remember these incidents when setting your renewal terms.
Residential service calls present lower stakes than commercial building contracts. Installing rooftop units on apartment complexes or maintaining industrial chillers involves more complexity and liability than replacing home furnaces.
Field technicians face real injury risks working with heavy equipment in tight spaces. Every installer, service tech and apprentice you employ adds to your workers' comp calculation based on their wages and job classification codes.
Sticking to routine maintenance and filter changes keeps risk manageable. Companies that handle refrigerant, install ductwork or work on commercial refrigeration systems need specialized coverage due to environmental and technical hazards involved.
Larger operations juggling multiple crews and projects carry proportionally greater exposure. A one-truck outfit grossing $150,000 faces entirely different premium calculations than a regional contractor billing $2 million annually.
Many commercial clients won't let you bid without substantial liability protection. Meeting those $2 million minimum requirements costs considerably more each month than carrying just enough coverage to satisfy residential customers.
Work trucks loaded with diagnostic tools, refrigerant tanks and replacement parts represent investment. Companies running multiple service vans with expensive equipment need robust property and auto coverage compared to lean startup operations.
Underwriters evaluate your creditworthiness alongside business factors when quoting policies. Strong financial standing can trim your premium noticeably, while credit struggles may result in surcharges that strain already tight margins.
Lowering your HVAC business insurance costs takes a mix of smart shopping and proactive risk management. Follow our practical guide to find affordable business coverage for your HVAC company and strengthen your overall business profile over time.
HVAC businesses need general liability for property damage and injuries, professional liability for installation errors and system failures and completed operations coverage since problems often surface months after installation.
Add commercial auto for service vans, inland marine for expensive diagnostic tools and equipment, workers' compensation for technicians working with refrigerants and electrical systems, and pollution liability for refrigerant releases.
HVAC insurance rates vary based on whether you focus on residential service calls, commercial installations, or industrial refrigeration systems. Contractors-focused carriers better understand EPA licensing requirements and refrigerant handling risks than general insurers.
Combining general liability, professional liability, and commercial auto saves 18% to 26% versus separate policies. Many insurers offer HVAC-specific packages that include tools, equipment and refrigerant liability at reduced bundle rates.
Higher deductibles of $2,500 to $5,000 on equipment coverage can reduce premiums by 22% to 32%, but consider that HVAC diagnostic tools and gauges are expensive to replace. Keep liability deductibles low since refrigerant leaks, carbon monoxide incidents or electrical fires can result in property damage and injury claims.
Monthly installment plans add 6% to 11% in processing fees to HVAC insurance, which, on an $8,000 premium, costs nearly $900 extra annually. Paying upfront eliminates these charges, earning 5% to 9% discounts from most carriers.
Review your policy whenever you hire technicians, add ductwork fabrication or commercial refrigeration services or invest in specialized equipment like thermal imaging cameras or leak detectors.
If you've obtained EPA Section 608 certifications, NATE credentials, or implemented safety protocols, these improvements can qualify you for lower premiums.
HVAC business insurance costs range from $54 to $422 per month, depending on factors like your business size, claims history and location. Comparing quotes from several insurers, combining policies, opting for higher deductibles and paying your premiums annually are all effective ways to secure lower rates.
HVAC business owners commonly ask about insurance costs. We answered the most frequent questions below:
Professional liability coverage is the cheapest at $81 monthly, but it only covers errors in your work. Most HVAC businesses need general liability coverage ($246 monthly) since it protects against customer injuries and property damage lawsuits.
You'll pay more in these states. General liability in California runs $275 monthly (versus $246 national average), and BOP costs $404 monthly (versus $361 average). New York is similar at $287 and $422, respectively.
Bundling delivers greater savings compared to purchasing individual policies. Most insurance companies provide discounts when you package general liability, commercial auto coverage and commercial property insurance with a single provider.
Multiple factors increase premiums: working in high-risk areas, past claims history, using hazardous equipment, larger workforce size, poor credit scores and offering dangerous services like refrigerant handling.
Higher deductibles lower monthly premiums but increase out-of-pocket costs per claim. Consider your available cash reserves and expected claim frequency when deciding.
Workers' compensation costs for HVAC businesses vary by state, spanning from $54 monthly in Maine to $73 monthly in New York for coverage.
Yes, BOP insurance is worth it for HVAC companies. BOP costs $361 monthly and combines general liability, commercial property, and business interruption coverage. This bundled approach saves money compared to purchasing individual policies while offering essential protection.
Shop annually when your policy renews. Compare quotes from at least three insurers to uncover potential savings, especially after adding employees or expanding your service offerings.
We collected HVAC business insurance quotes from companies across different states. For consistent comparisons, every quote used the same business setup:
We used a typical small HVAC business profile requiring comprehensive coverage. We chose companies offering broad national coverage and online quote capabilities, prioritizing insurers that serve the HVAC industry.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
