HVAC Resources: Insurance Requirements for an HVAC License in MD

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HVAC Resources: Insurance Requirements for an HVAC License in MD

When operating a business in Maryland it is very likely you will need some sort of license from the state to do so. Heating, Ventilation, Air Conditioning, and Refrigeration (HVAC) contractors are no exception to this rule, and to obtain your license to operate in the state there are some requirements that need to be met.  

 We will briefly cover the insurance requirements needed for your HVAC contractor application to be approved. While we will list the minimum requirements, it is highly advised to speak with an independent insurance agent about your business to ensure that it is properly protected beyond the minimum guidelines.  

What Insurance Policies Are Required For an HVAC License in Maryland? 

Per the Maryland Department of Labor, all master, master restricted, and limited contractor candidates must have property damage and general liability insurance if they will be signing or approving contracts to install or service HVACR systems.  

These two requirements are usually included in your standard General Liability policy. You can find out more about General Liability and its coverages by checking out our Business Insurance 101: General Liability article

How Much General Liability Coverage is Required for an HVAC License in Maryland? 

The requirements in coverage amount are fairly low in the state of Maryland. The Department of Labor breaks down its requirement for licensing as the following: 

  • Your General Liability coverage must be at least $300,000 
  • Your Property Damage Liability must be at least $100,000 
  • Or have a combined amount of General Liability & Property Damage of $400,000 

These are the absolute minimums in coverage to be considered for an active license. 

Requirements Vs. Protecting Your Business Adequately 

In order to guarantee that every business has some form of coverage in place, the state has put in place coverage requirements. These specifications shouldn’t, however, be used as a benchmark for the level of insurance coverage your company needs to offer adequate protections. The basic requirements won’t account for your business’s employees, vehicles used for work, or thousands of dollars worth of items you need to successfully run your business. 

Here is when dealing with a seasoned insurance expert with knowledge in the HVAC industry comes into play. An experienced agent will be able to examine your company in detail, go over your operation’s exposure to financial loss in detail, and show you how to properly protect yourself from it. Important information like this will give your company long-term security and enable you to run and expand without fear of any future claims scenario. 

No matter if you are just starting out or you would like to have an insurance agent who specializes in your field and you would like to have a  more in-depth discussion about your HVAC insurance, contact The Staples Agency today.  

We have a team of specialists in the HVAC insurance field and we would be delighted to discuss your options.  

For more information about protecting your HVAC business, check out these articles below. Each one provides specific insights into insurance for HVAC contractors. 

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