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Texas HVAC & Appliance Repair Insurance Requirements (2026)

HVAC Contractors

TDLR Air Conditioning and Refrigeration Contractor License — Class A

Texas Department of Licensing and Regulation (TDLR)
General LiabilityRequired

Minimums: $300,000 per occurrence / $600,000 aggregate / $300,000 products-completed operations aggregate

Class A ACR licensees must maintain commercial general liability insurance of at least $300,000 per occurrence and $600,000 aggregate at all times the license is active.[1]

TDLR Air Conditioning and Refrigeration Contractor License — Class B

Texas Department of Licensing and Regulation (TDLR)
General LiabilityRequired

Minimums: $100,000 per occurrence / $200,000 aggregate / $100,000 products-completed operations aggregate

Class B ACR licensees must maintain commercial general liability insurance of at least $100,000 per occurrence and $200,000 aggregate at all times the license is active.[1]

Appliance Repair

Texas does not require a state license for general (plug-in) appliance repair. Work involving electrical wiring for built-in appliances falls under TDLR's Residential Appliance Installer/Contractor licenses, and refrigerant handling requires federal EPA Section 608 certification, but there is no standalone state license or insurance mandate for appliance repair technicians.

Workers' Compensation Threshold

Texas is the only state where workers' compensation is optional for most private employers; however, contractors on state or local government building/construction contracts must provide WC coverage for every employee on the project, and non-subscribing employers must file annual notices with the state.

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Frequently Asked Questions

Does Texas require insurance for HVAC contractors?▾
Yes. TDLR Air Conditioning and Refrigeration Contractor License — Class A (Texas Department of Licensing and Regulation (TDLR)) requires general liability insurance. TDLR Air Conditioning and Refrigeration Contractor License — Class B (Texas Department of Licensing and Regulation (TDLR)) requires general liability insurance.
How much liability insurance does an HVAC contractor need in Texas?▾
TDLR Air Conditioning and Refrigeration Contractor License — Class A: $300,000 per occurrence / $600,000 aggregate / $300,000 products-completed operations aggregate. TDLR Air Conditioning and Refrigeration Contractor License — Class B: $100,000 per occurrence / $200,000 aggregate / $100,000 products-completed operations aggregate.
Do appliance repair businesses need a license or insurance in Texas?▾
Texas does not require a state license for general (plug-in) appliance repair. Work involving electrical wiring for built-in appliances falls under TDLR's Residential Appliance Installer/Contractor licenses, and refrigerant handling requires federal EPA Section 608 certification, but there is no standalone state license or insurance mandate for appliance repair technicians.
When is workers' compensation insurance required in Texas?▾
Texas is the only state where workers' compensation is optional for most private employers; however, contractors on state or local government building/construction contracts must provide WC coverage for every employee on the project, and non-subscribing employers must file annual notices with the state.

Sources

  1. Texas Department of Insurance, Division of Workers' Compensation — Employer resources — Workers' compensation coverage in Texas, accessed 2026-07-15
  2. Texas Legislature (Labor Code) — Texas Labor Code Section 406.096 — Required Coverage for Certain Building or Construction Contractors, accessed 2026-07-15
  3. Texas Department of Licensing and Regulation — Apply for an Air Conditioning and Refrigeration Contractor License — Insurance Requirements, accessed 2026-07-15

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