HVAC Contractors: A Complete Guide to Workers’ Comp & General Liability in Michigan
Posted:
5 days, 2 hours
ago
(0 comments)
If you’re an HVAC contractor in Traverse City, Alpena, Petoskey or anywhere across northern Michigan, you know that staying compliant and protected isn’t just smart — it’s essential. Between tight project deadlines, climbing ladders, and handling costly equipment, accidents can (and do) happen.
In this post, we’ll break down everything HVAC contractors need to know about workers’ compensation and general liability insurance in Michigan — including what’s required, what’s often overlooked, and how much it typically costs.
What Workers’ Comp Covers for HVAC Contractors
Workers’ Compensation Insurance covers medical bills, lost wages, and rehabilitation for employees injured on the job — even if it’s their own fault. For HVAC contractors, this often includes:
-
Falls off ladders or rooftops
-
Cuts from sheet metal or tools
-
Heat exhaustion in attics or crawl spaces
-
Lifting injuries (e.g., compressors, furnaces)
Michigan Workers’ Comp Law for HVAC
In Michigan, you’re required to carry workers’ comp if:
Even if you only hire part-time or seasonal techs, you may still be required to carry coverage.
What General Liability Covers for HVAC Contractors
General Liability Insurance protects your business if someone claims property damage or bodily injury caused by your work. It often covers:
-
Water damage from faulty HVAC installs
-
Cracked floors or walls during equipment transport
-
Customer slip-and-falls in your workspace
-
Legal defense and settlements
Real-World Examples:
-
A Traverse City homeowner sues after condensation from an AC line damages their hardwood floors
-
A tech drops a tool that cracks a granite countertop in Petoskey
-
A customer trips over refrigerant lines during a walk-through in Gaylord
Overlooked Coverage Gaps
Even insured HVAC companies often leave these exposures wide open:
-
Subcontractors not covered: If your subs don’t carry their own insurance, you may be liable for their claims.
-
No waiver of subrogation: Many commercial contracts require this to waive recourse.
-
No completed operations coverage: This protects your business after the job is done — critical for HVAC work.
Real Premium Examples in Michigan
Here’s what HVAC contractors in Michigan are typically paying:
| Business Type |
Payroll |
Workers’ Comp |
General Liability |
| 1-person LLC in Alpena |
$60,000 |
~$1,400/yr |
~$1,000/yr |
| 3-employee HVAC crew in Petoskey |
$150,000 |
~$3,800/yr |
~$1,900/yr |
| 8-person team in Grand Rapids |
$500,000 |
~$11,000/yr |
~$4,500/yr |
Estimates only. Your rate may vary based on experience, class codes, and loss history.
Frequently Asked Questions from HVAC Pros
Do I need coverage for part-time or 1099 workers?
Yes — in most cases, you’re still responsible unless they have their own insurance and provide a certificate.
Can I exclude myself from workers’ comp?
If you’re an owner/officer with more than 10% ownership, Michigan allows you to opt out — but it depends on your entity type and contracts.
What’s the difference between general liability and tools/equipment coverage?
General liability covers third-party damage or injury, not your own equipment. To protect tools, you’ll need Inland Marine coverage.
Local Insight: Don’t Risk Losing Jobs Over Insurance
HVAC contractors in Traverse City, Gaylord, and Grand Rapids are increasingly being asked for certificates of insurance that meet strict commercial job requirements. Lacking coverage — or not having the right endorsements — could disqualify you from bidding.
Get Help from Michigan HVAC Insurance Experts
Need help finding the right insurance for your HVAC business in Michigan?
Whether you're based in Traverse City, Grand Rapids, Alpena, Gaylord, Petoskey, or Harbor Springs, the team at Top O' Michigan can help you get the coverage you need — fast.
If you're ready to start vetting your insurance options, we’re here to help - contact us today or request a quote and we’ll walk you through what makes our agency different.
If you’re looking for and insurance agent in Michigan. You may also like to take a look at these great resources for insurance:
Now you’re either currently investing a lot of money into your insurance policies or getting closer to making this decision. We don’t want you to make any mistakes with a decision of this magnitude. So instead of basing this huge decision on a quoted number on the computer screen or a piece of paper – we thought you’d like to know that you can work with one of the knowledge members of our team so that you can become well educated on your insurance before buying.
For more insurance and risk management guidance or questions about your policy's coverage limits, contact us today.
More Industry News
Want to stay up to date on the latest community and insurance news? You can find more on important topics on our blog.
About the Author
Tyler Bartosh (Connect with me on LinkedIn)
A third-generation insurance agency owner and agent since 2007, Tyler Bartosh is the consummate “insurance geek,” using his passion for business, knowledge of insurance, and advocacy for clients to help serve as the expert buyer of insurance. He helps businesses implement risk management strategies that save both time and money, so those resources can be put towards other initiatives in your company.
Away from his career in insurance, he enjoys spending time with his family & friends, volunteering throughout the community, golf, fishing, snowboarding, hiking and virtually anything outdoors and traveling to see live music. Tyler has a wife Emily (who is also an underwriter in the insurance industry), their dog Lucy and a baby girl, Sophie.
About Top O' Michigan Insurance Solutions:
At Top O’ Michigan Insurance Solutions, we pride ourselves on using our skills to provide clients with competitive pricing, stability and understanding, and peace of mind. With seven locations throughout Michigan and 24/7 client access, our team is your 'expert buyer' of insurance for home, auto, farm, boat, motorcycle, business owners, workers compensation, bonds, life and health, employee benefits and more.
We will provide unparalleled and caring service to our clients through our knowledgeable staff and give back to our employees, agency, industry and our communities. Part of our mission is to give back to the Michigan communities we serve. This is something we take action on through We Care and you can learn more about our community outreach at TOMIA247.com/WeCare.
National Resources, Locally Sourced.
Disclaimer: This Blog/Web Site does not provide insurance or legal advice. This site is for educational purposes only as well as to provide you with general information and a general understanding of insurance, not to provide specific legal advice or specific contract advice. Viewing this site, receipt of information contained on this site, or the transmission of information from or to this site does not constitute a client relationship.
The information on this Blog/Web Site is not intended to be a substitute for professional insurance or legal advice. Always seek the advice of a licensed agent in your state pertaining to insurance and legal issues.
Share on Facebook
Comments
There are currently no comments
New Comment