Insurance Curator When an HVAC contractor in the USA (for example in Houston, TX; Los Angeles, CA; or Chicago, IL) goes to market for insurance, an organized RFP (Request for Proposal) separates competitive, compliant offers from quotes that look good on price but expose you to gaps or surprise costs. Below is a practical, SEO-optimized RFP template and detailed list of what to ask brokers, carriers, and online marketplaces so you can compare apples-to-apples proposals and pick the right partner for your HVAC business.
Table of contents
- Why a structured RFP matters
- What information to include in your RFP (sample template)
- Key questions to ask brokers vs carriers vs marketplaces
- Coverage lines, limits, endorsements, and state specifics
- Pricing benchmarks and sample carrier comparisons
- How to evaluate responses (claims service, financial strength, audits)
- Next steps / sample timeline
Why a structured RFP matters
A clear RFP:
- Forces consistent data from bidders (payroll, receipts, payroll classification, subcontractor use)
- Helps you compare coverage forms and exclusions, not just premium
- Surfaces service differences: claims handling, loss control, audits, and certificates
- Reduces renewal surprises (audit premium adjustments, cancellation for misclassification)
What to include in every HVAC insurance RFP
Provide this company information up front so brokers/carriers can quote accurately:
- Company name, FEIN, business address(es) (list locations in Houston, Los Angeles, Chicago as applicable)
- Operations description (service/installation/maintenance split; % residential vs commercial)
- Years in business and number of employees (FT & PT)
- Current insurance carrier(s), policy numbers, expiration date, and current premiums
- Five-year loss history with reserves, paid loss, and total incurred per claim
- Payroll by classification and annual subcontractor costs
- Vehicle list (year, make, model, VIN, business use)
- Desired effective date and policy term
- Certificate holder and additional insured wording requirements
- Any union work, prevailing wage, or government contract exposures
Sample RFP header (copy-paste)
Company:
FEIN:
Address(es):
Operations summary:
Desired effective date:
Requested response date: (e.g., 7–10 business days)
Attachments required: current policies, 5-year loss runs, payroll detail, vehicle list
What to request on the quote page (coverage schedule)
Ask bidders to provide line-item pricing for:
- Commercial General Liability (CGL): limits (e.g., $1M/2M; $2M/4M), per occurrence and aggregate
- Commercial Auto Liability & Physical Damage: per vehicle and fleet pricing
- Workers’ Compensation: by state with policy rate detail and estimated payroll
- Employers’ Liability: limits and deductible (e.g., $500K / $1M)
- Inland Marine / Tools & Equipment
- Builder’s Risk or Installation Floater (if doing new installs)
- Professional / Technology / Service Liability (for HVAC service contracts)
- Business Auto Hired/Non-Owned Auto
- Pollution Liability / HVAC-specific pollutant endorsements (for refrigerants, coolant)
- Umbrella or Excess Liability: limits and attachment points
- Bonding (if required for public contracts)
Key questions to ask brokers
- Are you an independent agent, captive agent, or wholesale broker? (see differences)
- Ask for a direct contact for underwriting vs brokerage desk.
- Which carriers do you place HVAC risks with in [Houston | Los Angeles | Chicago]?
- Can you provide 3-year premium and loss trend analysis and a placement strategy?
- What's your fee structure? Commission + broker fee — provide exact dollar/percentage.
- Do you provide certificate issuance and online access for COIs and endorsements?
- How do you support claims advocacy? Will you provide a dedicated claims advocate?
- Do you provide loss control/site inspections and safety program support? Any upfront credits?
- Do you manage pay-as-you-go payroll reporting for workers’ comp audits?
Internal resources:
- How to Choose the Right Insurance Broker for Your HVAC Contractor Business
- Independent Agent vs Captive Broker: Which is Best for HVAC Contractor Insurance?
Key questions to ask carriers / underwriters
- Provide the specific ISO or carrier policy forms and endorsements you intend to bind.
- Are there HVAC-specific exclusions (e.g., refrigerant handling, mold, pollution)?
- What are the rating factors and class codes you’ll use? (ask for exact WC class codes and rates)
- How is payroll estimated and audited? Is pay-as-you-go available to avoid large audits?
- What experience mod (X-Mod) assumptions apply and will you accept historical X-Mod?
- For fleet exposures: what telematics / safety credits are available?
- What deductible or retention structures are available for WC and GL?
- Please provide the carrier’s claims turnaround SLA and a contact for claims escalation.
- Provide AM Best/S&P rating and recent loss ratio data for similar HVAC accounts.
External resources on claims/financial strength:
Coverage details and endorsements to watch for (HVAC-specific)
- Refrigerant/pollution sublimit: ensure coolant/refrigerant claims are not excluded or are covered with adequate sublimits.
- Installation floater wording vs “on premises” property—confirm coverage for equipment in transit and during installation.
- Service contract / performance liability exclusions—ask for professional liability if you provide system design or control programming.
- Lead time and retroactive dates for claims-made policies (esp. pollution and professional liability).
- Additional insured wording required by general contractors — request ISO CG 20 10 or equivalent; verify primary/ non-contributory wording.
- Waiver of subrogation endorsements for subcontractors and general contractors where required.
Pricing benchmarks & sample carrier comparisons
Expect wide ranges by state, payroll, fleet size, claims history, and X-Mod. Typical small-to-mid HVAC contractor ranges (national examples):
| Coverage | Representative annual range (small contractor) | Sources |
|---|---|---|
| General Liability (GL) $1M/$2M | $700 – $3,500 | Next Insurance, Insureon |
| Workers’ Compensation (small crew) | $2,500 – $15,000 (varies by state & payroll) | The Hartford, Insureon |
| Commercial Auto (per vehicle) | $800 – $4,000 | Next Insurance |
Notes:
- Next Insurance (online carriers) advertise many small HVAC GL policies starting under $1,000/yr depending on state and exposures: https://www.nextinsurance.com/hvac-insurance/
- Insureon provides market-based averages and guidance for HVAC contractors: https://www.insureon.com/small-business-insurance/hvac-contractor/
- Larger regional carriers (The Hartford, Travelers) may price higher but can offer deeper risk control and large account handling: https://www.thehartford.com/business-insurance/hvac-contractor
Be explicit in your RFP about desired limits and request a breakdown of premium by coverage so comparisons are consistent.
Quick comparison: Broker types & market channels
| Channel | Pros | Cons |
|---|---|---|
| Independent Broker | Access to many carriers, can advocate claims, custom programs | Broker fees; variability in service quality |
| Captive Broker | Simplified placement, possible discounts from captive carrier | Limited carrier choice, potential coverage gaps |
| Online Marketplace / Insurtech | Fast quotes, transparent pricing, streamlined bind | May lack bespoke endorsements, variable claims advocacy |
Read: How to Use Online Marketplaces to Compare HVAC Contractor Insurance Quotes Safely
How to evaluate RFP responses
- Confirm identical limits, deductibles, and ISO forms used in each quote.
- Verify endorsements/limitations on refrigerant, pollution, and professional exposures.
- Check carrier financial strength (AM Best rating — ask the carrier to disclose).
- Ask for references: other HVAC clients in your city (Houston/LA/Chicago) — ask for recent claim examples handled.
- Review audit processes and ask for sample audit adjustment calculations.
- Compare total cost of ownership: premium + projected audit risk + broker fees + potential deductible exposure.
Further reading:
- Evaluating Insurer Financial Strength and Claims Service When Buying HVAC Coverage
- Negotiating Policy Terms, Endorsements and Rates with HVAC Insurance Carriers
Sample RFP closing checklist (send with proposal)
- Requested response date and submission email
- Include: current policies, 5-year loss runs, payroll schedules, vehicle list
- Confirm binding authority, submission of COI, and sample policy forms
- Ask for a written statement of fees, commission, and any contingency commissions
Quick timeline (recommended)
- Day 0: Issue RFP to selected brokers/carriers
- Day 7–10: Receive initial quotes and clarify gaps
- Day 10–14: Underwriting site visits / follow-up requests
- Day 14–21: Final best-and-final offers and selection
- Day 21–30: Bind policies and schedule onboarding (COIs, certificates, safety planning)
References and sources
- Next Insurance — HVAC insurance product & pricing examples: https://www.nextinsurance.com/hvac-insurance/
- Insureon — HVAC contractor insurance overview and cost guidance: https://www.insureon.com/small-business-insurance/hvac-contractor/
- The Hartford — HVAC contractor insurance resources: https://www.thehartford.com/business-insurance/hvac-contractor
Use this RFP template and checklist to force clarity in responses, protect your business from hidden exclusions, and improve negotiating leverage so your HVAC business in Houston, Los Angeles, Chicago (or any U.S. market) gets the right coverage at the right total cost.