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Michigan HVAC & Appliance Repair Insurance Requirements (2026)

HVAC Contractors

Mechanical Contractor's License (all work classifications: HVAC equipment, hydronic heating/cooling, limited/unlimited heating service, limited/unlimited refrigeration & A/C service, fire suppression, and specialty classes)

Michigan Department of Licensing and Regulatory Affairs (LARA), Bureau of Construction Codes, Board of Mechanical Rules
General LiabilityNot Required

Michigan's Skilled Trades Regulation Act (2016 PA 407, Article 8) does not require mechanical/HVAC contractors to carry general liability insurance to obtain or renew a license — licensure is based only on experience and passing a work-classification exam.[1][2][3]

Surety BondNot Required

No state-mandated surety bond is required to obtain a Michigan mechanical contractor's license; Article 8 of the Skilled Trades Regulation Act contains no bond provision for this license (unlike the state's separate security alarm contractor registration, which does require a bond under a different act).[1][2][3]

Workers' CompensationConditional

Condition: Employer regularly employs 3+ workers at one time, or 1 worker for 35+ hours/week for 13+ consecutive weeks in the preceding 52 weeks (Michigan's general employer threshold, not specific to mechanical contractors)

Workers' comp is not a licensure condition itself, but mechanical contractors that meet Michigan's general employer threshold must carry it, and must disclose their workers' comp carrier (or exemption reason) when applying for a residential building permit.[1][2]

Appliance Repair

Michigan has no state license or insurance requirement for general appliance repair. Only work that crosses into a regulated trade (e.g., gas line, electrical, or HVAC/mechanical work) triggers Michigan's Skilled Trades Regulation Act licensing. Manufacturers' warranty networks, home warranty companies, and commercial landlords typically require proof of general liability insurance (COI) regardless of the lack of a state mandate.

Workers' Compensation Threshold

Under the Michigan Workers' Disability Compensation Act (MCL 418.115), private employers (non-agricultural) must carry workers' comp once they regularly employ 3 or more workers at one time, or employ just 1 worker for 35+ hours/week for 13 or more consecutive weeks within the preceding 52 weeks; there is no blanket exemption for construction/trade businesses, and the statute does not carve out an explicit sole-proprietor or partner exclusion (a true one-person shop with zero employees simply never reaches the 3-employee/hours threshold). Mechanical contractors must also disclose their WC carrier or claim an exemption when applying for a residential building permit under MCL 125.1510.

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Frequently Asked Questions

Does Michigan require insurance for HVAC contractors?▾
Yes. Mechanical Contractor's License (all work classifications: HVAC equipment, hydronic heating/cooling, limited/unlimited heating service, limited/unlimited refrigeration & A/C service, fire suppression, and specialty classes) (Michigan Department of Licensing and Regulatory Affairs (LARA), Bureau of Construction Codes, Board of Mechanical Rules) requires workers' compensation insurance.
Do appliance repair businesses need a license or insurance in Michigan?▾
Michigan has no state license or insurance requirement for general appliance repair. Only work that crosses into a regulated trade (e.g., gas line, electrical, or HVAC/mechanical work) triggers Michigan's Skilled Trades Regulation Act licensing. Manufacturers' warranty networks, home warranty companies, and commercial landlords typically require proof of general liability insurance (COI) regardless of the lack of a state mandate.
When is workers' compensation insurance required in Michigan?▾
Under the Michigan Workers' Disability Compensation Act (MCL 418.115), private employers (non-agricultural) must carry workers' comp once they regularly employ 3 or more workers at one time, or employ just 1 worker for 35+ hours/week for 13 or more consecutive weeks within the preceding 52 weeks; there is no blanket exemption for construction/trade businesses, and the statute does not carve out an explicit sole-proprietor or partner exclusion (a true one-person shop with zero employees simply never reaches the 3-employee/hours threshold). Mechanical contractors must also disclose their WC carrier or claim an exemption when applying for a residential building permit under MCL 125.1510.

Sources

  1. Michigan Legislature — MCL 418.115 — Workers' Disability Compensation Act, employers subject to act, accessed 2026-07-15
  2. Michigan Legislature — MCL 125.1510 — Stille-DeRossett-Hale Single State Construction Code Act, building permit application requirements (occupational license and workers' disability compensation insurance disclosure), accessed 2026-07-15
  3. Michigan Legislature — MCL 339.5807 — Work classification examination; eligibility; classifications, accessed 2026-07-15
  4. Michigan Legislature — MCL 339.5809 — Installations, alterations, or servicing; license required; contractor of record, accessed 2026-07-15
  5. Michigan LARA, Bureau of Construction Codes — Mechanical Examination, Licensing/Registration & Application Information, accessed 2026-07-15
  6. Michigan Legislature — MCL 339.5813 — Work classification examination fee; initial and per-year license fee, accessed 2026-07-15

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