Insurance Curator As an HVAC contractor in the United States — whether operating in Houston, Dallas, Los Angeles or Miami — quickly verifying subcontractor insurance prevents costly claim exposure and keeps projects moving. This guide gives a practical, step-by-step process for verifying Certificates of Insurance (COIs), confirming critical endorsements (additional insured, waiver of subrogation, primary & noncontributory), and running fast audits so you can hire subs with confidence.
Why quick verification matters for HVAC contractors
- Immediate risk control: HVAC jobs expose contractors to property damage, bodily injury and costly reputational claims.
- Premium protection: A subcontractor claim can increase your insurance renewal costs. See “How Subcontractor Claims Can Affect Your HVAC Premiums and What to Do About It” for prevention strategies: How Subcontractor Claims Can Affect Your HVAC Premiums and What to Do About It.
- Contract compliance: Owners and general contractors often require specific endorsements — not just a COI — before work begins.
Quick 7-step verification workflow (15–30 minutes per sub)
- Request the COI and copies of key endorsements up front (email or COI upload portal).
- Confirm the named insured matches the subcontractor company on your contract.
- Verify policy numbers, effective/expiration dates, and limits on the COI.
- Check that the carrier is active and rated (AM Best A− or better preferred).
- Ensure required endorsements are present — Additional Insured, Waiver of Subrogation, Primary & Noncontributory — or schedule an addendum.
- Validate limits meet your contract minimums (see minimums below).
- Log the COI on your tracker and set calendar reminders 30 days before expiration.
What to look for on a COI — checklist
- Certificate Holder field: your company name and address are listed.
- Policy effective and expiration dates: currently in force.
- Coverage types and limits:
- General Liability: minimum $1,000,000 each occurrence / $2,000,000 aggregate (common HVAC standard).
- Auto Liability: $1,000,000 combined single limit if subcontractor drives to jobs.
- Workers’ Compensation: state statutory limits (or proof of exemption in Texas).
- Endorsements attached or endorsement numbers referenced.
- Carrier name and NAIC number (for rating lookup).
COI vs Endorsement — quick comparison
| Document | What it shows | What it DOESN’T guarantee |
|---|---|---|
| Certificate of Insurance (COI) | Policy types, limits, effective/exp dates, carrier | That you’re an Additional Insured or that coverage cannot be rescinded |
| Additional Insured Endorsement | Legally extends defense/indemnity to you per policy terms | The exact scope (read endorsement language) |
| Waiver of Subrogation Endorsement | Prevents insurer from pursuing your company for recovery | That it covers all claim types — check if it applies to GL or WC |
Common endorsements HVAC contractors should require
- Additional Insured (AI) — ensures defense/indemnity for covered claims arising out of subcontractor operations.
- Primary & Noncontributory — makes subcontractor policy pay first before your policy contributes.
- Waiver of Subrogation (WOS) — prevents the subcontractor’s insurer from suing you for loss recovery.
- Contractual Liability for Hold Harmless — extends coverage for contractual indemnities you have in your subcontracts.
Tip: Ask for the specific AI endorsement form (ISO or carrier-specific) and confirm whether it applies to ongoing and completed operations.
Minimum insurance limits to require (practical, US-focused guidance)
- General Liability: $1,000,000 each occurrence / $2,000,000 aggregate
- Commercial Auto: $1,000,000 CSL
- Workers’ Compensation: statutory limits (or evidence of exemption in Texas)
- Employers Liability: $500,000 each accident
For more formal guidance on contract minimums, see: Minimum Insurance Requirements to Require From HVAC Subcontractors and Independent Technicians.
Fast carrier verification — 3 practical methods
- Call the carrier: Use the carrier listed on the COI and ask to verify the policy number and endorsements. Ask for a phone confirmation or email. This is the most reliable but can be slower.
- Use COI-management platforms: Services like myCOI allow upload and automatic carrier verification, reducing manual checks (learn more: https://www.mycoi.com/). These tools can cut verification to minutes across multiple subs.
- Online rating & NAIC lookup: Confirm carrier solvency via AM Best or NAIC consumer pages for the carrier’s financial strength.
External reference on COI management tools: myCOI — https://www.mycoi.com/
Auditing tips for ongoing compliance
- Maintain a centralized COI tracker (spreadsheet or software) with these fields: subcontractor name, policy types, limits, carrier, policy #, effective/expiration, endorsements on file, next audit date.
- Automate reminders: set alerts at 30 and 7 days before expiration.
- Random audits: annually select 10–20% of subs and validate carrier confirmation and endorsement language directly with the carrier.
- Escalation: suspend subs from scheduling if missing AI or WOS endorsements until verified.
For platform and process best practices, read: Best Practices for Managing Insurance Certificates and Expirations for Subcontractors.
State-specific considerations
- Texas: employers are not required to carry workers’ compensation — verify state statute compliance or obtain a written exemption. (Texas Dept. of Insurance overview: https://www.tdi.texas.gov/).
- California: stricter regulations and higher claims costs — carriers often charge higher premiums; insist on robust GL/WC coverage for LA-area jobs.
- Florida: hurricane-related exposures may affect property-related coverage and premiums, especially in Miami.
Cost realities — what coverage typically costs
- General liability for a small HVAC subcontractor commonly ranges from $500 to $3,000 per year, depending on payroll, revenue, and claims history. (Insureon general liability cost reference: https://www.insureon.com/small-business-insurance/general-liability/cost)
- Larger firms or those with higher payrolls will pay more for workers’ compensation and employers liability. Carrier pricing examples and online quotes are available from The Hartford and Hiscox:
- The Hartford contractor liability resources: https://www.thehartford.com/
- Hiscox small business insurance: https://www.hiscox.com/
Note: Actual premiums vary by state, payroll, revenue, and class codes. Always request tailored quotes.
Sample quick email to request COI + endorsements
Subject: COI & Endorsements Request — [Project/PO #]
Hi [Subcontractor Name],
Please send a current Certificate of Insurance and copies of these endorsements before starting work on [Project/Address]:
- Additional Insured endorsement naming [Your Company Name] as AI
- Primary & Noncontributory language (if required by contract)
- Waiver of Subrogation for Workers’ Compensation (if required)
- Policy limits: GL $1M/$2M, Auto $1M, WC statutory
Please upload to our portal or send to insurance@yourcompany.com. Work cannot begin until verified.
Thanks,
[Your Name, Title]
Final checklist before you sign a sub
- COI in force with matching named insured ✔
- Required endorsements attached or carrier-verified ✔
- Limits meet contract minimums ✔
- Carrier is active and rated ✔
- Added to COI tracker & expiration reminder set ✔
For deeper contract language and risk-transfer strategies, see: Insurance Language for Subcontractor Agreements That Limits Risk for HVAC Contractors.
Sources
- Insureon — Small business general liability cost guide: https://www.insureon.com/small-business-insurance/general-liability/cost
- The Hartford — Business insurance resources: https://www.thehartford.com/
- myCOI — Certificate management: https://www.mycoi.com/
- Texas Department of Insurance — Workers’ comp overview: https://www.tdi.texas.gov/