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Arkansas HVAC & Appliance Repair Insurance Requirements (2026)

HVAC Contractors

HVACR Contractor License — Class A, B, D, or E

HVACR Licensing Board, Arkansas Department of Labor and Licensing
General LiabilityRequired

Minimums: $250,000 (individual licensee) or $250,000 per licensed employee (employer-provided policy)

Class A, B, D, or E HVACR license holders must maintain liability insurance of at least $250,000 per individual licensee (or $250,000 per licensed employee under an employer policy), with proof presented to the board at license issuance and renewal.[1][2]

Workers' CompensationConditional

Condition: 3+ employees generally (2+ for building/building-repair work; 1+ if a subcontractor or a contractor who subcontracts part of the job)

HVACR licensees who are employers must carry workers' compensation coverage once Arkansas's statewide construction-trade thresholds are met, per the Workers' Compensation Law.[1][2]

Commercial Contractor License (required in addition, for any construction contract — including HVAC/R — valued at $50,000 or more)

Arkansas Contractors Licensing Board (ACLB)
Surety BondConditional

Condition: only if the applicant does not submit a CPA-reviewed financial statement instead

In lieu of a CPA-reviewed financial statement, ACLB applicants may post a continuous surety bond sized at ten times the required net worth for their license classification.[1]

Workers' CompensationRequired

Contractors licensed or registered by the ACLB must obtain and maintain workers' compensation coverage as a condition of keeping their license.[1]

Appliance Repair

Arkansas's HVACR licensing statute expressly exempts household appliances from licensure (Ark. Code Ann. § 17-33-102(a)(1)), and there is no other state-level license or insurance requirement for general appliance repair. Manufacturers' warranty networks, home warranty companies, and commercial landlords typically require proof of general liability insurance (a certificate of insurance) before authorizing repair work.

Workers' Compensation Threshold

Arkansas generally requires employers with three or more employees to carry workers' compensation insurance, but the threshold drops to two or more employees for building or building-repair work, and to as few as one employee for a subcontractor or for a contractor who subcontracts part of a job; businesses with two or fewer employees outside those construction carve-outs are generally not required to carry it.

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Frequently Asked Questions

Does Arkansas require insurance for HVAC contractors?▾
Yes. HVACR Contractor License — Class A, B, D, or E (HVACR Licensing Board, Arkansas Department of Labor and Licensing) requires general liability insurance, workers' compensation insurance. Commercial Contractor License (required in addition, for any construction contract — including HVAC/R — valued at $50,000 or more) (Arkansas Contractors Licensing Board (ACLB)) requires a surety bond, workers' compensation insurance.
How much liability insurance does an HVAC contractor need in Arkansas?▾
For the HVACR Contractor License — Class A, B, D, or E, the required minimum is $250,000 (individual licensee) or $250,000 per licensed employee (employer-provided policy).
Do appliance repair businesses need a license or insurance in Arkansas?▾
Arkansas's HVACR licensing statute expressly exempts household appliances from licensure (Ark. Code Ann. § 17-33-102(a)(1)), and there is no other state-level license or insurance requirement for general appliance repair. Manufacturers' warranty networks, home warranty companies, and commercial landlords typically require proof of general liability insurance (a certificate of insurance) before authorizing repair work.
When is workers' compensation insurance required in Arkansas?▾
Arkansas generally requires employers with three or more employees to carry workers' compensation insurance, but the threshold drops to two or more employees for building or building-repair work, and to as few as one employee for a subcontractor or for a contractor who subcontracts part of a job; businesses with two or fewer employees outside those construction carve-outs are generally not required to carry it.

Sources

  1. Arkansas Code Annotated (via FindLaw legal database) — Arkansas Code Title 11. Labor and Industrial Relations § 11-9-102 — Definitions (Workers' Compensation), accessed 2026-07-15
  2. Arkansas Workers' Compensation Commission / Arkansas Department of Labor and Licensing — Basic Facts, accessed 2026-07-15
  3. Arkansas HVACR Licensing Board, Arkansas Department of Labor and Licensing — Administrative Rules Pertaining to the Licensing of Heating, Ventilation, Air Conditioning and Refrigeration Contractors (effective June 3, 2022), Section XVIII(4), accessed 2026-07-15
  4. Arkansas Department of Labor and Licensing, HVAC/R Section — HVAC/R Rule Changes and Code Adoption — General Liability Insurance Required with Renewals, accessed 2026-07-15
  5. Arkansas Contractors Licensing Board / Arkansas Department of Labor and Licensing — Arkansas State Licensing Law for Commercial Contractors (Act 150 of 1965, as amended) — Arkansas Code and Rules, Revised January 2025, accessed 2026-07-15

Last verified 2026-07-15. Spot something inaccurate? Report an inaccuracy.