How Much Does HVAC Business Insurance Cost?

HVAC Business owners discussing the costs of Insurances

Are you an HVAC business owner and want to know how much your business insurance might cost you? In this article, we provide detailed information and pricing for all the necessary aspects of HVAC business insurance.

Why is HVAC Business Insurance so important?

The very first thing that could come to mind is stability. Statistics say that over 40% of small businesses are likely to experience a property or liability loss in the next 10 years. The most common are burglary and theft. Imagine all your HVAC goods are gone and a single lawsuit costs thousands of dollars!

This is the reason why many HVAC businesses that do not have insurance face financial difficulties and may even shut down. To avoid unexpected events, HVAC business insurance protects against the industry’s threats.

Get Exclusive Roofing Leads Today

Contact us

Types and Costs of HVAC Business Insurances

  1. General Liability Insurance
  2. Commercial Property Insurance
  3. Worker’s Compensation Insurance
  4. Auto insurance
  5. Cyber insurance

1. General Liability Insurance

This is the most important item on the list provided above. General responsibility protects your HVAC business against all legal claims caused by accidents. This type of insurance is often a prerequisite for securing loans, commercial leases, or contracts, highlighting its significance in business operations. The legal claims are mostly made by third parties, such as customers, clients, or other individuals.

General Liability Insurance covers a range of situations, including three most common case scenarios:

Property Damage – Your company damages property owned by others.

Advertising Injury – Your business is accused of copyright violations or false advertising.

Physical Harm – Injury happens on your property.

💰 Average Costs

  • Small HVAC Businesses $300-$1600/yr
  • Medium-sized HVAC Businesses $2000-$6500/yr
  • Large HVAC Businesses $7000-$20,000/yr or more

2. Commercial Property Insurance

Commercial Property Insurance covers the physical assets of your HVAC business. Thefts and vandalism or even fire damage, earthquakes and flooding – you don’t have to worry, under this insurance, everything will be covered accordingly.

Commercial Property Insurance covers:

Buildings – any real estate that your HVAC company owns or leases, such as your office or warehouse.

Business Personal Property – anything that is necessary for running your HVAC company, such as furniture, tools, inventory and equipment.

Income Loss – lost income and ongoing expenses during the repair process.

💰 Average Costs

  • Small HVAC Businesses $500-$1200/yr
  • Medium-sized HVAC Businesses $5000-$2000/yr
  • Large HVAC Businesses $20,000/yr or more

3. Worker’s Compensation Insurance

Despite strict safety measures and protocols, the nature of HVAC work carries several risks. If an employee gets injured while performing their duties at work, Worker’s Compensation Insurance provides essential coverage to address their medical needs and protect both the employee and the employer. Workers receive necessary medical treatment, rehabilitation, surgery costs and financial support.

Employees have access to benefits under the no-fault system, which intends to simplify the injured worker’s claim as it removes the need to prove that someone else’s negligence caused their illness or injuries. So, no matter who was responsible for the injury, the employee still gets all the benefits covered by the insurance.

💰 Average Costs

  • Small HVAC Businesses $1100-$2000/yr
  • Medium-sized HVAC Businesses $8000-$15,000/yr
  • Large HVAC Businesses $20000/yr or more

4. Auto insurance

The daily operations of HVAC businesses rely on vehicles. They ensure timely service delivery and efficient equipment transportation. Unfortunately, accidents do happen. Auto insurance provides essential protection to HVAC companies from financial harm caused by vehicle-related incidents.

Auto Insurance covers repair or replacement costs for vehicles in case of accidents, natural damage or theft, as well as medical expenses for the driver and a passenger.

💰 Average Costs

  • Any-size HVAC Business Insurance Cost $1270-$4300/yr

5. Cyber insurance for HVAC Businesses

According to IBM (International Business Machines Corporation), the global average cost of a data breach is $4.45 million. This number says it all – how big a financial impact cyber incidents can have on businesses and HVAC business is also not an exception. Investing in cybersecurity and insurance is crucial for a company’s financial health and data protection.

Cyber Insurance helps your HVAC business avoid all the unpleasant situations caused by hackers. You will no longer be worried about someone stealing card details or sending phishing emails to your customers and intentionally damaging your business reputation.

Insurance offers support and financial protection in several important areas. It covers the expenses associated with data credit monitoring services, conducting forensic investigations, breach responses and many other aspects.

💰 Average Costs

Small to Large-size HVAC Businesses $1000-$6000/yr or more

Which Type Of Insurance Do I Need The Most For My HVAC Business?

When considering insurance options for your HVAC business, one type stands out as the most crucial: General Liability Insurance. This insurance guarantees that you will not be overwhelmed by huge legal fees or settlements. It also preserves your reputation by covering PR costs.

Although Liability Insurance is necessary for protecting your HVAC company from lawsuits and financial problems, you shouldn’t undervalue the importance of other insurance policies as well.


In this report, we provided insights about the benefits and average costs of common insurance for HVAC businesses, presenting how each insurance helps protect different aspects of the business. It’s important to note that HVAC Business Insurance costs can vary based on the size and complexity of the company.

However, regardless of these factors, the choice of insurance depends on your specific focus at the moment. Whether it’s staying financially secure, avoiding lawsuits, keeping your stuff safe, or taking care of your workers, insurance helps you do it. They support you in keeping your HVAC business running smoothly and worry-free.