Sample COI Wording for HVAC Contractors Serving Commercial and Residential Clients

Certificates of Insurance (COI) are a routine but critical part of winning and performing HVAC contracts across the United States. Clear, contract-ready COI wording protects your company, satisfies landlords, general contractors (GCs), property managers, and homeowners, and avoids delays at mobilization. This guide gives HVAC contractors in markets such as Houston, TX; Los Angeles, CA; and Chicago, IL — plus nationwide audiences — practical, legally-sound COI wording, recommended limits, cost benchmarks, and templates you can drop into your insurance requests or issue to clients.

Why precise COI wording matters for HVAC contractors

• Commercial projects (office towers, retail, multifamily complexes) almost always require high limits, Additional Insured endorsements, and Primary & Noncontributory language because owners/GCs want direct coverage from your policy.
• Residential work (single-family homes, small condos) commonly accepts lower limits but may still require Additional Insured and Waiver of Subrogation for HOA-managed jobs.
• Inconsistent or ambiguous COI wording is the top cause of delay at job starts, contract disputes, and denied claims.

For step-by-step guidance on verifying COIs quickly, see: Reading a COI: How HVAC Contractors Verify Coverage Quickly and Accurately.

Recommended coverage and typical cost benchmarks (U.S.)

Below are industry-standard recommended minimums for HVAC contractors and typical annual premium ranges from well-known providers as of 2024. Actual premiums vary by state, payroll, revenue, claims history, and scope of work.

Sources: carrier product pages and marketplace guides — Next Insurance, Insureon, The Hartford:

• https://www.nextinsurance.com/business-insurance/hvac-contractors/
• https://www.insureon.com/hvac-contractor-insurance
• https://www.thehartford.com/business-insurance/hvac-contractors-insurance

Note: For projects in New York City or large institutional jobs in Los Angeles or Chicago, owners often require $2M/$4M limits and detailed endorsements. Always confirm contract minimums.

Core COI wording elements every HVAC contractor must understand

• Named Insured: Exact legal business name (LLC, Inc.). Typos cause problems.
• Policy Numbers: Must match issued policy.
• Coverage Types / Limits: General Liability, Auto, Workers’ Comp, Umbrella.
• Certificate Holder: The party requesting proof (e.g., property owner, GC).
• Additional Insured: Requires an endorsement, not just a COI line.
• Waiver of Subrogation: Prevents carrier from pursuing the certificate holder after paying a claim.
• Primary & Noncontributory: Ensures your policy responds before the owner’s policy.
• Effective/Expiration Dates: Must cover the work period and warranty period if required.

For standard templates and what to avoid, see: COI Templates Every HVAC Contractor Should Use: What to Include and What to Avoid.

Sample COI wording — Commercial clients (GCs, building owners)

Use this wording when a GC or property manager requires Additional Insured and Primary/Noncontributory language. Provide the endorsement form (CG 20 10 or equivalent).

Certificate box entries:

• Named Insured: "ABC Heating & Cooling, LLC"
• Coverage: Commercial General Liability
• Limits: "Each Occurrence $1,000,000 / General Aggregate $2,000,000"
• Certificate Holder: "XYZ Property Management, 123 Main St., Houston, TX 77002"

Endorsement/Remarks (exact sample wording to request on the endorsement — not just the Certificate):

• "The General Liability policy is endorsed to name XYZ Property Management and its subsidiaries and affiliates as Additional Insureds for liability arising out of the operations of the Named Insured, but only with respect to premises leased to the Named Insured or operations performed by or on behalf of the Named Insured. This coverage is primary and noncontributory to any other insurance available to the Additional Insured. Waiver of Subrogation is extended in favor of the Additional Insured where permitted by law."

Key notes:

• Request the actual Additional Insured endorsement form (CG 20 10 or equivalent) attached to the COI.
• For public entities or hospitals, you may be required to accept higher limits (e.g., $2M/$4M) and specific ISO forms.

Sample COI wording — Residential clients (homeowners, HOAs)

For single-family residential or smaller HOA jobs, the ask is often simpler but still should be explicit.

Certificate box entries:

• Named Insured: "ABC Heating & Cooling, LLC"
• Coverage: Commercial General Liability
• Limits: "Each Occurrence $1,000,000 / General Aggregate $2,000,000"
• Certificate Holder: "Maplewood HOA, c/o Community Mgmt Co., 456 Suburb Ln., Naperville, IL 60540"

Endorsement/Remarks:

• "The General Liability policy provides Additional Insured status to Maplewood HOA as respects liability arising out of the Named Insured’s operations performed on HOA property. Waiver of Subrogation applies in favor of the Certificate Holder where permitted by law."

Tip: Many homeowners will accept a simple COI naming them as certificate holder without Additional Insured. For HOA-managed projects, expect to provide Additional Insured and Waiver of Subrogation.

Common endorsement clauses — exact short phrases to include

• Additional Insured: "Additional Insured — Owners, Lessees or Contractors (Form CG 20 10 or equivalent)"
• Primary & Noncontributory: "This insurance is primary and noncontributory with respect to the Additional Insured."
• Waiver of Subrogation: "Waiver of Subrogation applies where permitted by state law."
• Completed Operations: "Completed operations coverage included for the statutory warranty period."

For audit and compliance workflows, see: COI Expiration Tracking and Renewal Workflows for Busy HVAC Businesses.

Quick verification & issuance checklist (before sending a COI)

• Confirm legal business name matches policy.
• Verify policy effective/expiration dates cover the job plus any warranty period.
• Ensure limits meet contract minimums.
• Attach Additional Insured endorsement (don’t rely on a COI remark alone).
• Confirm Waiver of Subrogation if required.
• Verify Primary & Noncontributory language when requested by GC/Owner.
• Keep a copy of the endorsement and policy declarations page (if contract requires).

For a step-by-step verification process, review: Step-by-Step Guide to Verifying Additional Insured Endorsements on a Certificate of Insurance.

When clients ask for unusual endorsements or higher limits

• Request clarification in writing (exact wording and the entity to be named).
• Obtain a written binder or endorsement from your insurer before mobilizing.
• Expect premium increases for:
  • Additional Insured endorsements on umbrella/policy layers.
  • Increased limits (moving from $1M to $2M limits can double or triple premium depending on exposure).
  • Waiver of Subrogation (minor premium effect, varies).
• Example: moving from a $1M/$2M GL to $2M/$4M GL for an HVAC subcontractor in Los Angeles can raise annual premiums by $1,500–$4,000 depending on revenue and loss history (market-based estimate; confirm via carriers).

If you manage many COIs, automation reduces risk and time — see: Automated COI Management Tools for HVAC Firms: Features That Save Time and Reduce Risk.

Final checklist before submission

• Legal name and DBA correct
• Limits meet contract minimums
• Additional Insured endorsement attached
• Primary & Noncontributory and Waiver of Subrogation included where required
• Certificate Holder address matches contract
• Policy dates cover work duration

Sources and further reading

• Next Insurance — HVAC contractor coverage overview: https://www.nextinsurance.com/business-insurance/hvac-contractors/
• Insureon — HVAC contractor insurance guide: https://www.insureon.com/hvac-contractor-insurance
• The Hartford — HVAC contractor insurance (product pages): https://www.thehartford.com/business-insurance/hvac-contractors-insurance

For template variations, audits, and red flags to watch for, see: Common COI Red Flags for HVAC Contractors and How to Fix Them.