You Deserve General Liability Insurance That Actually
Protects Your HVAC Business
Stop worrying about property damage claims, customer lawsuits, and accidents that could bankrupt your Plano HVAC business.
At Neill Insurance Brokers, you get honest advice on the right general liability coverage—with transparent pricing and real protection.
Average cost: $1,200–$2,500/year for $1M/$2M coverage.
When a $12,000 Mistake Almost Cost Mike His Best Customer
Mike's HVAC company had been servicing the same commercial property management company in Legacy West for 8 years. They trusted him with 47 properties. Then came the AC replacement that changed everything.
During a rooftop unit installation, Mike's technician accidentally dropped a 250-pound condensing unit. It crashed through the building's skylight, landed on a conference table, and destroyed $12,00 worth of equipment and furniture.
The property manager called Mike immediately. "We need this fixed today, or we're finding a new HVAC contractor."
Mike called his insurance agent. His general liability policy covered everything—the skylight, the furniture, the equipment, and even the emergency repairs.
The claim was paid within 10 days. Mike kept his best customer. His 8-year relationship survived because he had the right coverage.
Here's what makes us different: We empower and educate HVAC contractors on exactly what general liability covers, what it doesn't, and how much you actually need—with full transparency and no confusing fine print.
What is General Liability Insurance for HVAC Contractors?
General liability insurance protects your HVAC business from:
• Property damage you cause to customer property
• Bodily injury to customers or third parties
• Personal and advertising injury (libel, slander, copyright infringement)
• Medical payments for minor injuries (regardless of fault)
• Legal defense costs if you're sued
Think of it as: Protection against accidents that happen while you're doing HVAC work.
What Does General Liability Cover for HVAC Contractors?
Property Damage You Cause
What it covers:
• Dropping equipment that damages customer property
• Damaging walls, ceilings, or floors during installation
• Breaking windows, skylights, or doors
• Damaging landscaping with your equipment
• Water damage from disconnected lines
Real examples:
• Condensing unit drops through skylight: $12,000 (covered)
• Technician damages hardwood floors moving equipment: $4,500 (covered)
• Ladder falls and breaks customer's window: $800 (covered)
• Refrigerant line leak damages drywall: $2,200 (covered)
Bodily Injury to Customers or Third Parties
What it covers:
• Customer trips over your tools or equipment
• Customer is injured by falling debris during work
• Third party is hurt on the job site due to your work
• Customer is injured accessing the work area you created
Real examples:
• Customer trips over your vacuum pump, breaks wrist: $18,000 medical bills (covered)
• Homeowner slips on water from disconnected drain line: $12,000 (covered)
• Pedestrian injured by falling debris during rooftop work: $35,000 (covered)
Completed Operations Coverage
What it covers:
• Damage or injury that occurs AFTER you finish the job and leave
• Faulty installation that causes property damage
• Work that fails and causes injury
Real examples:
• AC unit you installed falls from wall mount months later, damages furniture: $8,500
(covered)
• Improperly secured ductwork falls and injures homeowner: $45,000 (covered)
• Condensate drain you installed leaks, causes $15,000 water damage: Depends on policy
(see "What's NOT Covered" below)Important: Make sure your policy includes completed operations. Most do, but verify.
Personal and Advertising Injury
What it covers:
• Libel or slander claims
• Copyright or trademark infringement
• Invasion of privacy
• False advertising
Real examples:
• Competitor claims you slandered them in online review: Legal defense costs (covered)
• Customer claims you violated privacy by posting job photos: $5,000 settlement
(covered)
Medical Payments (Med Pay)
What it covers:
• Minor injuries to customers or third parties
• Paid regardless of fault
• Typically $5,000-$10,000 limit
Real examples:
• Customer cuts hand on sharp metal ductwork: $1,200 ER visit (covered)
• Homeowner bumps head on low-hanging ductwork you installed: $800 urgent care
(covered)
Why it matters: Paying small medical bills quickly can prevent lawsuits.
Legal Defense Costs
What it covers:
• Attorney fees
• Court costs
• Settlement or judgment costs (up to your policy limit)
Real example:
• Customer sues for $250,000 claiming your installation caused property damage
• Legal defense costs: $85,000
• Settlement: $120,000
• Total covered by GL: $205,000 (within $1M limit)
Important: Defense costs are covered EVEN IF the claim is groundless
What General Liability Does NOT Cover
We believe in honest education. Here's what general liability won't cover:
Pollution (Including Refrigerant Releases)
Not covered:
• Refrigerant spills or releases
• Cleanup costs for refrigerant
• EPA fines
• Environmental contamination
Why: General liability policies specifically exclude pollution.
What you need: Pollution Liability Insurance → ($800-$2,000/year)
Real example: Refrigerant leak causes $, cleanup. General liability denies claim.
Pollution liability would have covered it.
Employee Injuries
Not covered:
• Your employees getting injured on the job
• Medical bills for employee injuries
• Lost wages for injured employees
Why: That's what workers compensation covers.
What you need: Workers Compensation Insurance → ($18,000-$35,000/year for 5-person
crew)
Damage to Your Own Tools or Equipment
Not covered:
• Theft of your tools
• Damage to your equipment
• Loss of your tools or equipment
Why: That's commercial property or inland marine coverage.
What you need: Tools & Equipment Insurance → ($500-$1,200,/year)
Vehicle Accidents
Not covered:
• Auto accidents involving your work vehicles
• Damage to your vehicles
• Injuries from vehicle accidents
Why: That's what commercial auto insurance covers.
What you need: Commercial Auto Insurance → ($1,800-3,500$,/year per vehicle)
Professional Errors (Design Mistakes)
Not covered:
• Errors in HVAC system design
• Improper load calculations
• Specification mistakes
Why: That's professional liability (E&O) coverage.
What you need: Professional Liability Insurance ($800-$2,000/year)
Faulty Workmanship (Sometimes)
It depends:
• Damage caused BY faulty work: Usually covered
• Cost to FIX the faulty work: Usually NOT covered
Example:
• You install an AC unit improperly
• It falls and damages the customer's deck
• Deck damage: Covered by GL
• Cost to reinstall the AC unit correctly: NOT covered by GL
How Much Does General Liability Insurance Cost for HVAC
Contractors in Plano?
We believe in transparent pricing. Here are real numbers:
Average Costs by Business Size
| Business Size | Annual Revenue | Annual Cost | Monthly Cost |
|---|---|---|---|
| Solo + 1 Helper | $150,000–$300,000 | $1,200–$1,600 | $100–$135 |
| Small Crew (3–5) | $500,000–$1M | $1,600–$2,200 | $135–$185 |
| Medium Crew (6–10) | $1M–$3M | $2,200–$2,800 | $185–$235 |
| Large Crew (10+) | $3M+ | $2,800–$4,000+ | $235–$335+ |
Cost by Coverage Limits
| Coverage Limits | Annual Cost | When You Need It |
|---|---|---|
| $300K / $600K | $800–$1,200 | Residential only, small jobs |
| $1M / $1M | $1,200–$2,500 | Standard (most common) |
| $2M / $2M | $1,800–$3,500 | Required by many GCs |
| $5M / $5M | $2,400–$4,500 | Large commercial projects |
Note: First number is "per occurrence" (per claim), second is "aggregate" (total per year)
What Affects Your General Liability Cost?
8factors that determine your premium:
1. Annual Revenue Higher revenue = more exposure = higher premium
2. Type of Work
• Residential HVAC: Lower rates
• Commercial HVAC: Higher rates
• Industrial HVAC: Highest rates
3. Number of Employees More employees = more exposure = higher premium
4. Coverage Limits $M/$M costs % more than $1M/$2M
5. Claims History Previous claims increase your rates by 20-50%
6. Years in Business New businesses pay 15-25% more than established businesses
7. Location Plano rates are slightly higher than rural Texas, slightly lower than Dallas
8. Deductible $1,000 deductible costs less than $ deductible
How Much General Liability Coverage Do HVAC
Contractors Need?
Standard Coverage: $1M / $2M
What it means:
• $1 million per occurrence (per claim)
• $2 million aggregate (total per year)
Who needs it:
• Most residential HVAC contractors
• Small commercial work
• Subcontractors on smaller projects
Cost: $1,200-$2,500/year
Enhanced Coverage: $2M / $4M
What it means:
• $2 million per occurrence
• $4 million aggregate
Who needs it:
• Commercial HVAC contractors
• Subcontractors for most general contractors
• Larger residential projects
Cost: $1,800-$3,500/year
Why: Most Plano general contractors require $2M/$4M minimum.
High Coverage: $3M / $6M or Higher
What it means:
• $3+ million per occurrence
• $6+ million aggregate
Who needs it:
• Large commercial projects
• Industrial HVAC work
• Government contracts
Cost: $2,400-$4,500/year
Note: Often achieved with $M/$M GL + $M-$M umbrella policy.
What Do Plano General Contractors Require?
If you work as a subcontractor, here's what general contractors typically require:Minimum Requirements
Coverage Limits:
• $1M per occurrence / $2M aggregate (minimum)
• $2M per occurrence / $4M aggregate (preferred)
Additional Insured:
• General contractor must be named as additional insured
• Primary and non-contributory basis
Completed Operations:
• Must be included (usually is by default)
Certificate of Insurance:
• Provided within - hours
• No coverage lapses
Top Plano General Contractors & Their GL Requirements
Hillwood Development (Legacy West, Alliance)
• $2M / $4M minimum
• Additional insured required
• Umbrella policy required for projects over $1M
Balfour Beatty Construction
• $2M / $4M minimum
• Waiver of subrogation required
• Additional insured on primary basis
Manhattan Construction
• $1M / $2M (standard projects)
• $2M / $4M (large projects)
• Additional insured required
Beck Group
• $2M / $4M minimum
• Additional insured required
• Umbrella policy required for major projects
Hensel Phelps
• $2M / $4M minimum
• Additional insured required
• Certificate within hours
How to Lower Your General Liability Costs
Strategy #1: Shop Multiple Carriers
Why it matters: GL rates vary by -% between carriers.
Example:
• Carrier A: $2,400/year
• Carrier B: $1,800/year (same coverage)
• Savings: $600/year
Our solution: We shop + carriers for you automatically.
Strategy #2: Bundle Policies
What it means: Buy GL + workers comp + auto from the same carrier.
Typical savings: 15-20% on GL
Example:
• GL alone: $2,200/year
• GL bundled: $1,760/year
• Savings: $440/year
Strategy #3: Increase Your Deductible
How it works:
• $0 deductible: $2,200/year
• $1,000 deductible: $1,870/year
• $2,500 deductible: $1,650/year
Savings: $330-$550/year
When it makes sense: If you rarely file small claims
Strategy #4: Improve Your Claims History
How it works:
• No claims for years: 10-15% discount
• claim in 3 years: Standard rates
• + claims in years: 20-30% surcharge
Strategy: Don't file small claims under $5,000. Pay out of pocket to protect your claims
history.
Strategy #5: Get Safety Certified
What it is: OSHA 10 or OSHA 30 certification
Savings: 5-10% on GL
Cost: $50-$200 for certification
ROI: Pays for itself in year one
Common General Liability Mistakes HVAC Contractors
Make
Mistake #1: Assuming "Completed Operations" is Included
The problem: Some policies don't include completed operations, or it's limited.
The risk: Damage that occurs after you leave isn't covered.
The fix: Verify your policy includes completed operations with adequate limits.
Mistake #2: Not Understanding Aggregate Limits
The problem: Aggregate limit is the TOTAL the policy will pay in one year.
Example:
• Your policy: $1M per occurrence / $2M aggregate
• Claim #1: $800,000
• Claim #2: $900,000
• You're covered for: $1.7.M total ($800K + $900K)
• You pay out of pocket: $100,000
The fix: Consider higher aggregate limits if you do high-risk work.
Mistake #3: Not Adding General Contractors as Additional Insured
The problem: GC requires you to add them as additional insured, but you forget.
The consequence: You can't work on the project.
The fix: We handle this for you automatically when you request certificates.
Mistake #4: Letting Coverage Lapse
The problem: Miss a payment, coverage lapses for even one day.
The consequence:
• Claims during lapse aren't covered
• Future insurance costs -% more
• General contractors won't hire you
The fix: Set up automatic payments or work with us for payment reminders.
Mistake #5: Thinking GL Covers Everything
The problem: Assuming GL covers pollution, employee injuries, and vehicle accidents.
The reality: GL only covers property damage and bodily injury to third parties.
The fix: Understand what GL covers and what requires separate policies.
General Liability vs. Other HVAC Insurance
General Liability vs. Pollution Liability
| Coverage | General Liability | Pollution Liability |
|---|---|---|
| Property damage | ✅ Yes | ✅ Yes (pollution-related) |
| Bodily injury | ✅ Yes | ✅ Yes (pollution-related) |
| Refrigerant releases | ❌ No | ✅ Yes |
| EPA fines | ❌ No | ✅ Yes |
| Cleanup costs | ❌ No (if pollution) | ✅ Yes |
| Cost | $800–$1,200 / year | $1,200–$2,000 / year |
Bottom line: You need both if you work with refrigerants.
General Liability vs. Workers Compensation
| Coverage | General Liability | Workers Comp |
|---|---|---|
| Customer injuries | ✅ Yes | ❌ No |
| Employee injuries | ❌ No | ✅ Yes |
| Third-party injuries | ✅ Yes | ❌ No |
| Medical bills | ✅ Yes (customers) | ✅ Yes (employees) |
| Lost wages | ❌ No | ✅ Yes (employees) |
| Cost (employees) | $800–$1,200 / year | $1,000–$2,000 / year |
Bottom line: GL protects customers, workers comp protects employees.
General Liability vs. Professional Liability (E&O)
| Coverage | General Liability | Professional Liability |
|---|---|---|
| Property damage | ✅ Yes | ❌ No |
| Bodily injury | ✅ Yes | ❌ No |
| Design errors | ❌ No | ✅ Yes |
| Load calculation mistakes | ❌ No | ✅ Yes |
| Specification errors | ❌ No | ✅ Yes |
| Cost | $800–$1,200 / year | $1,000–$2,000 / year |
Bottom line: GL covers physical damage, E&O covers professional mistakes.
How to Get General Liability Insurance for Your HVAC
Business
Our Simple -Step Process
Step 1: Tell Us About Your Business ( Minutes)
We need to know:
• Annual revenue
• Number of employees
• Type of work (residential, commercial, industrial)
• Current coverage (if any)
• Claims history
Get Your Free Quote →
Step 2: We Shop 20+ Carriers (We Do the Work)
We compare:
• Carriers specializing in HVAC contractors
• Coverage options and limits
• Pricing and discounts
• Certificate turnaround times
Most agents quote 2-3 carriers. We shop 20+.
Step : You Compare and Choose ( Minutes)
We present:
• 3-5 competitive quotes
• Side-by-side coverage comparison
• Our honest recommendation
• Transparent pricing
You choose what's right for your business.
Why HVAC Contractors in Plano Choose Neill Insurance
We Specialize in HVAC Contractors
We understand:
• What general contractors in Plano require
• How to structure coverage for HVAC work
• The difference between residential and commercial needs
• How to bundle policies for maximum savings
Most agents don't.
We Shop + Carriers (Not Just -)
Why it matters: GL rates vary by -% between carriers.
You get: 3-5 competitive quotes, not one "take it or leave it" option.
Average savings: 20-25% compared to captive agents.
We Issue Certificates in 2-4 Hours
The problem: Most agents take 3-5 days.
Why it matters: You can't start work without a certificate. Delays cost you contracts.
Our solution: 2-4 hour turnaround, unlimited certificates at no charge.
We Care About Genuine Connections
We're not a call center. We're a local independent agency that takes the time to
understand your business, educate you on your options, and build a relationship that lasts.
Our retention rate: 91.4% (vs. 70% industry average)
Frequently Asked Questions
Q: Is general liability insurance required for HVAC contractors in Texas?
A: No, it’s not legally required in Texas. However, most contractors need it to operate because general contractors require proof of coverage, customers expect it, and one uninsured lawsuit can bankrupt your business.
Bottom line: Not legally required—but practically essential.
Q: How much general liability insurance do I need?
A:
Minimum: $1M per occurrence / $2M aggregate (residential)
Standard: $2M per occurrence / $4M aggregate (commercial)
High: $3M+ per occurrence (large commercial/industrial)
Recommendation: Start with $1M/$2M if you do mostly residential. Upgrade to $2M/$4M for general contractor work.
Q: Does general liability cover refrigerant releases?
A: No. General liability excludes pollution, including refrigerant leaks.
You’ll need Pollution Liability Insurance (about $400–$800/year).
Example: A refrigerant leak causes $5,000 in cleanup costs — GL denies the claim, but pollution liability would have covered it.
Q: Does general liability cover my employees?
A: No. General liability covers only third-party injuries (customers, bystanders).
You’ll need Workers Compensation Insurance to cover employee injuries and lost wages.
Q: What’s the difference between “per occurrence” and “aggregate”?
A:
Per occurrence – The maximum the policy pays for one claim.
Aggregate – The total the policy pays for all claims in a year.
Example: $1M per occurrence / $2M aggregate
• One $1.2M claim → Policy pays $1M, you pay $200K
• Two $900K claims → Policy pays $1.8M total, you pay $0
• Three $900K claims → Policy pays $2M total, you pay $700K after reaching the limit
Q: How quickly can I get a certificate of insurance?
A:
With Neill Insurance: usually within 1–2 hours.
With most agents: 1–3 business days.
Why it matters: General contractors often need certificates immediately. Delays can cost you contracts.
Q: Can I add a general contractor as additional insured?
A: Yes. It’s a common request and usually free of charge.
When requesting a certificate, just provide the GC’s name and we’ll add them as an additional insured.
Turnaround: 1–2 hours.
Q: What if I have a claim?
A:
1. Call us immediately (682-237-7975).
2. We contact your carrier and open the claim.
3. An adjuster reaches out within 24–48 hours.
4. We follow up until your claim is resolved.
We’re with you every step of the way.
Q: Does general liability cover faulty workmanship?
A: It depends.
Damage caused by faulty work – Covered.
Cost to fix faulty work – Not covered.
Example: You install an AC incorrectly, it falls and damages the customer’s deck. Deck damage = covered; reinstalling the AC = not covered.
Q: How do I lower my general liability costs?
A:
1. Shop multiple carriers (save 10–20%)
2. Bundle policies (save 10–15%)
3. Increase deductible (save 5–10%)
4. Maintain a clean claims record (save 10–20%)
5. Get safety certified (save 5–10%)
Neill Insurance helps with all of these options.
Ready to Protect Your HVAC Business?
You deserve general liability insurance that actually protects your business — not confusing policies that leave you vulnerable.
Get honest advice, competitive rates, and real protection from an independent broker who cares about your success.
Neill Insurance Brokers
101 N Oak St, Roanoke, TX 76262
Lewisville, The Colony, Little Elm, Prosper, Celina, and all of North Texas.
Related Resources:
• HVAC Contractor Insurance in Plano (Main Guide) →
• Workers Compensation Insurance for HVAC Contractors →
• Commercial Auto Insurance for HVAC Contractors →
• Pollution Liability Insurance for HVAC Contractors →
• Business Owners Policy for HVAC Contractors →
• How Much Does HVAC Insurance Cost? →