HVAC contractor insurance in Texas, where the license requires it
Texas licenses air conditioning and refrigeration contractors through TDLR, and the license carries an insurance condition written into rule: general liability of at least $300,000 per occurrence for a Class A contractor and $100,000 for a Class B, with aggregate and products-completed operations minimums alongside, filed by certificate with the application. That makes Texas one of the few places on this site where "do I need insurance" is answered by the state rather than by the client.
The license is required by statute, and the statute hands insurance to TDLR
Texas has no state general contractor license, but it licenses this trade. A person may not engage in air conditioning and refrigeration contracting without a state contractor license, and that license is valid statewide with no separate municipal license needed (Occupations Code 1302.251). The same chapter says the commission shall set insurance requirements for license holders by rule, and lets the executive director waive them only for a licensee who does not contract with the public (1302.102). TDLR's own program page puts it plainly: contractors who install, repair, or maintain air conditioning, refrigeration, or heating systems must hold a TDLR license, and a contracting company must employ a licensed contractor at each permanent location (TDLR, Air Conditioning and Refrigeration Contractors).
16 TAC 75.40: the general liability minimums, by license class
The rule is short and specific (16 TAC 75.40, Contractor Insurance Requirements). A Class A licensee maintains commercial general liability of at least $300,000 per occurrence, combined for property damage and bodily injury; at least $600,000 aggregate; and at least $300,000 aggregate for products and completed operations. A Class B licensee maintains at least $100,000 per occurrence, at least $200,000 aggregate, and at least $100,000 aggregate for products and completed operations. The carrier must be authorized to sell liability insurance in Texas.
The mechanics matter as much as the amounts. A completed certificate of insurance is filed with the initial application, again on any change of business name or affiliation, and whenever TDLR asks. TDLR's certificate form prints the same minimums, states that binders and declarations are not accepted, and asks the carrier to try to give the department 30 days' notice before cancellation or non-renewal (TDLR Form ACR-LIC-009). A waiver has to be requested in writing, and a waivered licensee may not perform or offer contracting to the general public. And any customer may ask a licensee for the carrier's name, the policy number, and the agent's contact details, and the licensee must furnish them. The rule was last amended in 2011, so the amounts are a floor that has not moved in years, not a current read on the exposure.
The class line is capacity. A Class A license covers each endorsed type of contracting on a system of any size; a Class B license is limited to systems of not more than 25 tons cooling capacity and not more than 1.5 million BTU per hour output heating capacity (Occupations Code 1302.253). Which class you hold is the first thing an agent will ask, because it sets the minimum and describes the work.
Beyond the minimum: the refrigerant gap and the workers comp decision
The rule requires general liability and says nothing about what general liability excludes. Standard ISO forms carry a pollution exclusion broad enough to reach a refrigerant release, which is the reason contractors pollution liability is the one coverage an HVAC contractor gets asked for that a handyman does not. Tools, the vans, and the rest of the set are on the HVAC contractor insurance page.
Texas adds its usual twist on payroll: private employers can choose to carry workers compensation, but it is not required in most cases, in the Texas Department of Insurance's own words (TDI). For a shop putting technicians on rooftops in August, non-subscribing is a decision with real costs, including the loss of certain defenses if an injured worker sues, and it deserves a conversation rather than a default. The contrast with the unlicensed end of the Texas market is on our Texas handyman insurance page, or start at the overview.