HVAC business insurance costs vary significantly based on coverage type, helping you plan your budget effectively. MoneyGeek's analysis shows monthly premiums range from $63 for workers' compensation to $361 for business owner's policy (BOP) coverage.
Updated: August 21, 2025
Advertising & Editorial Disclosure
Key Takeaways
HVAC business insurance costs range from $63 to $361 monthly, with workers' compensation being the most affordable and business owner's policies the most expensive.
Your HVAC insurance premiums depend on location, claims history, property types serviced and employee count.
Shop multiple insurers, bundle policies, increase deductibles and pay annually to find affordable HVAC business insurance costs.
Average HVAC Business Insurance Cost Overall
| BOP | $361 |
| General Liability | $246 |
| Professional Liability (E&O) | $81 |
| Workers' Comp | $63 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
HVAC Business Insurance Cost for General Liability Coverage by State
Your HVAC business insurance cost for general liability coverage depends on where you operate. Maine offers the most savings at $214 monthly (versus the $247 national average), while New York costs $287 monthly.
| Alabama | $241 |
| Alaska | $219 |
| Arizona | $233 |
| Arkansas | $236 |
| California | $275 |
| Colorado | $244 |
| Connecticut | $268 |
| Delaware | $265 |
| Florida | $267 |
| Georgia | $250 |
| Hawaii | $257 |
| Idaho | $234 |
| Illinois | $271 |
| Indiana | $240 |
| Iowa | $235 |
| Kansas | $239 |
| Kentucky | $228 |
| Louisiana | $282 |
| Maine | $214 |
| Maryland | $235 |
| Massachusetts | $259 |
| Michigan | $233 |
| Minnesota | $231 |
| Mississippi | $248 |
| Missouri | $243 |
| Montana | $245 |
| Nebraska | $233 |
| Nevada | $279 |
| New Hampshire | $245 |
| New Jersey | $279 |
| New Mexico | $248 |
| New York | $287 |
| North Carolina | $214 |
| North Dakota | $214 |
| Ohio | $229 |
| Oklahoma | $235 |
| Oregon | $229 |
| Pennsylvania | $284 |
| Rhode Island | $271 |
| South Carolina | $254 |
| South Dakota | $230 |
| Tennessee | $240 |
| Texas | $249 |
| Utah | $234 |
| Vermont | $237 |
| Virginia | $224 |
| Washington | $280 |
| West Virginia | $259 |
| Wisconsin | $242 |
| Wyoming | $228 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
HVAC Business Insurance Cost for Workers’ Compensation Coverage by State
Your HVAC business's cost for workers' compensation varies by state. Maine offers the lowest rates at $54 monthly and New York the highest at $73 monthly. Our analysis reveals how state regulations and claim histories create these 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 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Workers' compensation requirements vary by state and are mandated by state regulations. Survey results reflect limited sample data and may not represent all available rates in your area.
HVAC Business Insurance Cost for Professional Liability Coverage by State
Like other types of coverage, your cost for professional liability varies by state. The national average is $82 monthly, with North Dakota offering the lowest rates at $71 for E&O insurance, while Pennsylvania has the 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 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
HVAC Business Insurance Cost for BOP Coverage by State
Business owner's policy rates show significant state-by-state variation in HVAC business insurance costs. Monthly premiums range from $311 in North Dakota to $422 in New York.
| 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 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on BOP coverage. Survey results reflect limited sample data and may not represent all available rates in your area.
Factors Affecting HVAC Business Insurance Cost
Insurance companies look at several factors to determine your HVAC business insurance costs. Understanding these pricing elements helps you create more accurate budget forecasts. Here's how different variables affect your rates.
Geographic location
Your business location affects workers' compensation rates due to local regulations and claim frequencies. HVAC businesses in regions with extreme temperatures or severe weather face higher risk exposure, while state-specific building codes and licensing requirements create substantial premium variations.
Safety record and claims history
Previous claims impact future premiums, often for three to five years. A single property damage claim from faulty HVAC installation can substantially increase your general liability rates at renewal.
Types of properties serviced
Commercial buildings and industrial facilities carry higher liability risks than residential properties. Working in hospitals requires specialized safety protocols, while servicing older buildings increases risk exposure due to existing system complications and potential hazardous materials.
Employee count and payroll
Insurers calculate workers' comp premiums based on your total payroll and job classifications. Adding HVAC technicians increases your payroll costs, directly impacting your workers' compensation premiums since insurers calculate your rates per dollar of wages paid.
Services offered
Installation, repair and maintenance services carry different risk levels. Commercial refrigeration work involves additional liability exposure compared to residential AC maintenance, while industrial HVAC system installation requires higher coverage limits than basic repairs.
Business size and revenue
Higher annual revenue typically means higher premiums since insurers view larger operations as having greater exposure to claims. A small residential HVAC company earning $200,000 annually pays less than a commercial HVAC contractor with $2 million in revenue.
Coverage limits
Higher coverage limits provide better protection but cost more monthly. Choosing between different coverage amounts directly affects your premium, with higher limits increasing costs proportionally.
Equipment and vehicle values
More expensive HVAC equipment and service vehicles require higher coverage limits, increasing your premiums. A company using advanced diagnostic tools and multiple service trucks needs more coverage than one with basic equipment and a single vehicle.
Credit score and financial stability
In most states, insurers can consider your business credit score when setting rates. A strong credit score can reduce premiums, while poor credit often increases costs substantially.
How to Get Cheap HVAC Business Insurance
Smart HVAC business owners can reduce their insurance costs through strategic coverage shopping and risk management practices, and we've outlined proven methods below to help lower your premiums both now and in the future.
- 1
Choose the right coverage types for your business
Understanding what types of business insurance your HVAC company needs prevents overpaying for unnecessary coverage. General liability protects against customer injuries and property damage, while workers compensation covers employee injuries. Commercial property insurance safeguards your tools and equipment.
- 2
Shop multiple insurance companies
Insurance rates can vary significantly between providers for the same coverage. Request quotes from at least three companies to find the best rates. Consider working with an independent agent who can handle quote comparisons for you.
- 3
Bundle your coverage types
Insurance companies offer substantial discounts when you bundle multiple policies together. Combining general liability, commercial property and commercial auto insurance with one provider typically costs less than separate policies from different insurers.
- 4
Increase your deductibles
Choosing higher deductibles reduces your monthly premium costs. This means you'll pay more out of pocket for small claims, but your regular insurance payments will be lower.
- 5
Pay annually instead of monthly
Monthly payment processing fees can add up quickly. Paying your premium annually often eliminates these fees and may qualify you for additional discounts from your insurer.
- 6
Review and adjust your coverage annually
Your insurance needs change as your business grows. Review your policies yearly to ensure coverage matches your current operations. Remove unnecessary coverage and adjust limits based on your business size and services.
Insurance for HVAC Business Cost: Bottom Line
HVAC business insurance costs range from $63 to $361 monthly, with your location, claims history and business size driving your actual premium. Getting quotes from multiple insurers, bundling your policies, choosing higher deductibles and paying annually instead of monthly helps you find more affordable rates.
HVAC Business Insurance Cost: FAQ
Business owners frequently ask about HVAC business insurance costs, so we gathered straightforward answers to the most common questions below.
What is the cheapest type of HVAC business insurance?
Workers' compensation insurance costs $63 monthly, but only covers workplace injuries. Most HVAC businesses need general liability coverage to protect against customer accidents and property damage claims.
How much can I save by bundling my HVAC business insurance policies?
Bundling policies through a BOP offers significant savings. Many insurers provide discounts when combining multiple coverages like general liability and property insurance under one plan.
What factors make my HVAC business insurance more expensive?
Factors that could make HVAC business insurance expensive include the types of services offered, size of business, number of employees, equipment and tools used.
Should I choose a $500 or $2,500 deductible for my HVAC business insurance?
Higher deductibles mean lower monthly premiums, but require more cash when filing claims. Choose based on your financial stability and claim frequency.
How much does workers' compensation cost for HVAC businesses by state?
Workers' compensation costs for HVAC businesses vary by state, ranging from $54 monthly in Maine to $73 monthly in New York, with most states falling between $58 and $65 monthly.
Is business owner's policy (BOP) worth the extra cost for HVAC companies?
A business owner's policy costs $361 per month on average and bundles general liability, commercial property and business interruption coverage. This package deal offers significant savings versus purchasing policies separately.
How often should I shop around for HVAC business insurance quotes?
Compare quotes from multiple insurance providers annually during renewal time. You can find significant cost savings, particularly after business changes like hiring new staff or offering additional services.
How We Determined HVAC Business Insurance Costs
We collected hvac business insurance quotes from companies across different states. For consistent comparisons, every quote used the same business setup:
- Two employees (three people total, including the owner)
- $150,000 annual payroll
- $300,000 annual revenue
- Already insured status
- $1 million per occurrence and $2 million total per year for all coverage except BOP, which includes the same limits plus $5,000 business property coverage
This profile represents small hvac businesses requiring comprehensive insurance coverage in most states. We chose companies offering broad national coverage and online quote capabilities, focusing on insurers that actively 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!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.