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Refrigeration Contractors

Typically, a refrigeration contractor is required to be licensed if they work on any project that exceeds $500. Since this threshold is so low, almost any commercial job will require a licensed contractor, which is a good thing. The licensing for the refrigeration contractor benefits the customer because of the requirements set forth by the state. There are exams that must be passed and insurance and bond requirements – all of which benefits the consumer.

According to the California Licensing Board, a refrigeration contractor constructs, fabricates, erects, installs, maintains, services and repairs refrigerators, refrigerated rooms, and insulated refrigerated spaces, temperature insulation, air-conditioning units, ducts, blowers, registers, humidity and thermostatic controls for the control of air, liquid, and/or gas temperatures below fifty degrees Fahrenheit (50 ), or ten degrees Celsius (10 ).

Since all of this activity is going to require special tools and equipment that can be hazardous, there is a significant risk for liability resulting from bodily injury or property damage to a third party. Moreover, there is credible risk to employees at the jobsite for work-related injuries.

Fairbanks Insurance Brokers maintains a package of insurance coverages that will provide the financial protection needed for refrigeration contractors.

Here is What We Recommend:

General Liability


Although this coverage is required by the state licensing board, contractors who understand the ongoing risks at a jobsite certainly want to be protected for bodily injury liability, property damage liability, defense costs, and in many cases, products completed operations. These coverages are the foundation of a solid package of protection.

Workers' Comp


Workers’ Comp will protect your employees in the event they are injured or become ill from a job related incident. This state required policy will help pay for medical expenses, lost wages, and some funeral expenses. The state you work in will define the minimum required coverage limits for your refrigeration contracting business in order for your business to become licensed. It’s important to note that there are severe penalties and fines in place to penalize contractors who fail to provide continuous workers comp coverage.

Surety Bonds


Most states require that refrigeration contractors be bonded before they can begin operating their business. This bond provides a financial guarantee to your customers and the state licensing board that you will complete the job according to your bid and that all subcontractors and venders will be paid when the job is completed.

Commercial Auto


Refrigeration contractors that use vehicles for business, including transporting tools, equipment, and construction supplies need to have commercial auto insurance in order to have the appropriate protection if a vehicle is involved in an at-fault accident, damaged in an accident, stolen or vandalized Your commercial auto policy will have no limit on the number of vehicles or drivers that need to be covered.

Tool Coverage


Refrigeration contractors are going to need various tools and equipment while working at the job site. Making sure this valuable equipment is covered in the event of damage or loss is the best way to protect your business from the cost of replacing this equipment. Your tool coverage (Inland Marine Insurance) will provide protection while your tools and equipment are at the job site, in transit, or in storage.

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