AIRE SERV

The 2025 Aire Serv franchise agreement requires general liability at $1,000,000 per occurrence and $2,000,000 aggregate, auto liability up to $2,000,000 combined single limit per vehicle, workers' compensation at state minimum limits, and cyber liability at $500,000 per claim and aggregate. All liability policies must name Aire Serv SPV LLC and all Neighborly parent and affiliate entities as additional insureds. Waiver of subrogation and primary and non-contributory language must appear on every policy.

Start with the exact entity name. Aire Serv SPV LLC and all Neighborly parent and affiliate companies must appear as additional insureds on your general liability and auto liability policies. Your general liability must be an occurrence form policy — not a claims-made form. Your additional insured endorsement must cover both ongoing operations and completed operations. Waiver of subrogation and primary and non-contributory language must appear on the policy forms — not just a verbal confirmation from your agent.

Your legal business entity — your LLC, corporation, or doing-business-as name — is the named insured on your policy and your certificate of insurance. Aire Serv SPV LLC is the additional insured. These are two different roles on the same document. The named insured is the entity the policy covers. The additional insured is the franchisor, who receives protection from your policy for claims arising from your operations.

Refrigerant is excluded under the absolute pollution exclusion in most standard general liability policies. R-410A, R-22, and other common refrigerants qualify as pollutants under that exclusion. Bodily injury or property damage from a refrigerant release — during service, installation, or recovery — is not covered by your standard general liability policy. Contractors pollution liability covers this gap.

Bodily injury and property damage from a gas line failure can be covered by your completed operations general liability coverage — unless the carrier cites the pollution exclusion for natural gas fumes. In some states and under some carrier filings, natural gas is treated as a pollutant, which removes coverage for claims arising from the gas release itself. Contractors pollution liability covers the gap. If your technicians connect gas lines as part of HVAC installation, that coverage belongs on your program.

Contractors pollution liability is what should have responded. The standard general liability policy excludes bodily injury and property damage caused by the release of pollutants and refrigerant qualifies as a pollutant under that exclusion. When a refrigerant release during service, installation, or recovery produces a bodily injury or property damage claim, the standard policy steps back. Contractors pollution liability is built specifically to fill that gap. For HVAC franchises handling refrigerant on every call, it is the coverage your general liability policy was never designed to provide.

Yes if your general liability policy is written on an occurrence form. Occurrence form covers claims arising from work performed during the policy period, regardless of when the claim is reported. A system installed in spring can fail in fall. A gas line connection made in January can develop a leak in December. Completed operations coverage within your occurrence form policy responds to those claims as long as the original work was done while the policy was active.

The primary NCCI classification code for HVAC technicians is 5537 Heating, Cooling and Refrigeration. That code should appear on your workers' compensation declarations page. Gas line commissioning work may trigger additional classification review in some states. Confirm with your agent at policy inception if your technicians perform gas line connections as part of standard HVAC installation.

Your workers' compensation carrier audits your actual payroll at the end of every policy year. If you added technicians during peak season and their payroll was not reflected in your original policy estimate, you will receive an audit bill for the additional premium. Update your payroll estimate mid-year if your staffing grows significantly. The audit adjustment is smaller when the estimate stays current.

Most states require HVAC contractors to hold a state license separate from, and in addition to, your franchise insurance coverage. Licensing requirements vary by state and by the type of work performed. Insurance satisfies Aire Serv's franchise agreement requirement. It does not satisfy your state licensing board's requirement. Both are required to operate legally.

Yes. EPA Section 608 certification is required for any technician who purchases or handles refrigerants. This is a federal requirement that applies regardless of insurance coverage or franchise status. Technicians without current certification create a legal exposure that insurance cannot address federal fines for refrigerant handling violations are separate from any coverage outcome.

Commercial HVAC jobs often require higher general liability limits than the $1,000,000 per occurrence your franchise agreement specifies. A commercial building owner may require $2,000,000 per occurrence or higher on the certificate of insurance before allowing work to begin. If your policy is at the franchise agreement minimum, you cannot satisfy those commercial requirements. An umbrella policy which layers additional limits on top of your primary general liability, auto, and workers' compensation policies is how most commercial-capable HVAC franchisees meet higher certificate requirements without restructuring their entire primary program.