Why HVAC Contractors in Lubbock Should Call Their Insurance Agent Before Signing a Contract

For heating and air conditioning contractors in Lubbock and across Texas, landing a new job can feel like a win. The numbers look good, the schedule works, and the opportunity is there.

Then comes the contract.

Buried in that agreement is often a requirement for a certificate of insurance (COI) – and that’s where many contractors unknowingly take on risk that can cost far more than the job is worth.

If you are an HVAC contractor in Lubbock, TX, one step can protect your business before the job ever begins.

The Most Important Step: Call Before You Sign

Before signing any contract that requires a certificate of insurance, call your insurance agent.

Not after. Not once the job starts. Do it before you sign.

Because once your name is on that contract, you are agreeing to insurance requirements that may:

• Go beyond your current coverage
• Require policies you do not carry
• Or require coverage your current insurer may not even provide

A Certificate of Insurance Is Not Protection

Many HVAC contractors assume that if they can provide a certificate of insurance, they are covered.

That is not the case.

A certificate of insurance:

• Does not change your policy
• Does not guarantee compliance with contract requirements
• Does not protect you from uninsured obligations

Also see our HVAC Contractor Insurance page. And, this link to an example of a Texas certificate of insurance.

Common HVAC Contractors Insurance Requirements

Many HVAC contracts in Texas include insurance provisions that can significantly change your risk and cost structure.

These often include:

• Workers’ compensation requirements
• Additional insured endorsements
• Waivers of subrogation
• Primary and noncontributory wording
• Increased liability limits
• Job-specific endorsements

Each of these can carry cost, limitations, or availability issues.

Workers’ Compensation Can Change the Entire Job

Texas is unique. Workers’ compensation is not required for many contractors.

However, many contracts override that reality.

A contract may require workers’ compensation—even if you do not currently carry it.

Some agreements may also include language that attempts to extend protection involving owners or upstream parties. These provisions should be reviewed carefully before signing.

Adding workers’ compensation for one job can:

• Significantly increase your cost
• Require changes to your business structure
• Impact your profitability

To better understand this coverage, see: Workers’ Compensation Insurance Explained

Liability Limits May Eliminate HVAC Contractors Profit

It is common for contracts to require higher liability limits than your current policy provides.

To meet these requirements, you may need:

• Higher general liability limits
• An umbrella liability policy
• Additional endorsements

All of these come with added premium.

In many cases, HVAC contractors in Lubbock find that the added insurance cost can reduce – or even eliminate – the profit from the job.

Some Requirements May Not Be Available

Not every contract requirement can be met.

Your insurance company may:

• Restrict certain endorsements
• Limit additional insured wording
• Decline to match specific contract language

If you sign the contract anyway, you may be agreeing to provide coverage that does not exist.

That creates uninsured exposure.

HVAC Contractors Insurance Requirements in Texas

Contractors in Texas face a unique challenge.

While Texas does not require most private employers to carry workers’ compensation, many job contracts do.

This creates a gap between:

• What the law requires
• What the contract requires

For HVAC contractors in Lubbock Texas, this means:

• You may need to add coverage just to take a job
• You may need to meet requirements your current policy does not support
• You must evaluate whether the job still makes financial sense

The Smart Approach for Lubbock HVAC Contractors

Before signing any contract requiring a certificate of insurance:

1. Send the contract to your insurance agent
2. Have the insurance requirements reviewed
3. Understand what is covered and what is not
4. Identify any additional cost
5. Confirm whether the requirements can even be met

You may also want to review your overall protection strategy here: Commercial Insurance for Contractors

Why This Guidance Matters (Experience & Expertise)

With over 46 years of experience in the insurance industry, we have seen contractors take on jobs that looked profitable—only to discover later that the insurance requirements:

• Were more expensive than expected
• Could not be met by their current policy
• Or created uncovered liability

These situations are avoidable.

A short review before signing can help you make a clear, informed decision.

Call Hettler Insurance Before You Sign

If you are an HVAC contractor in Lubbock, TX and have a contract in hand, do not guess about your insurance coverage.

* Click to Call Hettler Insurance Agency at (806) 798-7800 before you sign.
Mon-Fri 8:30am-5pm (lunch closed Noon-1pm)
A five-minute call today can prevent a costly mistake tomorrow.

We will:

• Review your contract
• Explain what is required
• Identify coverage gaps
• Help you understand the true cost of the job

You can also contact us online at Hettler Insurance Agency

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Frequently Asked Questions ? (FAQ’s)

Q ? : Why should HVAC contractors call an insurance agent before signing a contract?

A: Because the contract may require insurance that goes beyond current coverage. This can increase costs, create uncovered risk, or require policies that may not be available.

Q ? : Does a certificate of insurance guarantee contract compliance?

A: No. A certificate of insurance only shows that coverage exists at a point in time. It does not change your policy or guarantee that all contract requirements are met.

Q ? : Can a contract require workers’ compensation if I do not currently carry it in Texas?

A: Yes. Even though Texas does not require workers’ compensation in many cases, contracts often do. The cost and feasibility should be evaluated before signing.

Q ? : What if the insurance requirements make the job unprofitable?

A: Then the job may not make financial sense. HVAC contractors should always evaluate insurance costs before committing to a contract.

Got More Questions?  See our FAQ’s and SAQ’s pages!

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About the Author

Ronald J. Hettler, CIC is a Certified Insurance Counselor (CIC) with over 46 years of real-world experience in the insurance industry. He is the owner/president of Hettler Insurance Agency in Lubbock, Texas and is licensed by the Texas Department of Insurance (License #666862). (Why Trust Hettler Insurance Agency? It’s a Local Independent insurance agency representing multiple carriers. Local expertise in Lubbock Texas and West Texas risks. Focused on clarity before a claim occurs.)
Ron specializes in helping individuals, families, and small business owners understand complex insurance concepts in clear, practical terms so they can make informed decisions about their coverage. He specializes in helping individuals and families understand coverage gaps, deductible structures, and real-world claim outcomes before a loss occurs. Ron helps you to understand how insurance policies respond in real-world claim situations.
License verification available through the Texas Department of Insurance.