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Pikorua Security

HVAC & Mechanical subcontractors

HVAC & Mechanical subcontractor COI requirements

Mechanical contractors bring pollution exposure most COI reviews ignore: refrigerant releases, mold from condensate and duct moisture, Legionella in cooling towers and fumes from equipment start-up. Their packets usually clear the CGL limits but fail on the pollution side, where a total pollution exclusion on the CGL meets no standalone contractors pollution liability policy.

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HVAC & Mechanical audit

Keystone Mechanical LLC

Eastgate Data Center Hall B

Deficient
CGL policy
GL 6618-0350-17
AM Best
A X
Carrier
Northshore Fire & Marine Insurance Co.
  • DeficientCG 21 49

    Total pollution exclusion attached; no CPL policy evidenced.

  • ReviewCG 21 67

    Fungi or bacteria exclusion on a condensate-heavy scope.

  • DeficientFloater

    Installation floater $750,000 against $2,400,000 scheduled equipment.

14 rules checked, 2 deficient. Scanned Oct 12, 2026, 4:51 PM ET. Notice sent to sub and broker.
of HVAC subcontractor COI packets are deficient on first review
67%
of HVAC subcontractor COI packets are deficient on first review
Pikorua Security 2026 Benchmark
trade rank by defect rate, 4 points below the all-trade average
9 of 14
trade rank by defect rate, 4 points below the all-trade average
Pikorua Security 2026 Benchmark
of subcontractor and vendor COIs contain material coverage deficiencies or missing endorsements on first review
71%
of subcontractor and vendor COIs contain material coverage deficiencies or missing endorsements on first review
AGC Risk Committee Audit
of COIs claiming additional insured status fail to attach the CG 20 37 completed operations endorsement
64%
of COIs claiming additional insured status fail to attach the CG 20 37 completed operations endorsement
IRMI Construction Risk Survey

Typical exhibit

Typical HVAC insurance requirements

The limits Pikorua Security's HVAC rule template starts from. Your subcontract exhibit controls; set it once per project and every HVAC certificate is checked against it.
Rules in template
14
Hazard tier
Significant
Typical insurance requirements for HVAC subcontractors
CoverageTypical limitWhat to check
Commercial general liability (CG 00 01, occurrence)$1,000,000 each occurrence / $2,000,000 general aggregatePer-project aggregate through CG 25 03 on multi-phase work.
Products-completed operations aggregate$2,000,000Equipment failures, condensate leaks and mold claims surface after occupancy.
Business auto liability$1,000,000 combined single limitService vans and crane trucks for rooftop unit sets.
Umbrella / excess liability$5,000,000 each occurrence and aggregateRaise for hospitals, labs and cleanrooms where an HVAC failure damages owner property.
Workers compensation / employer's liabilityStatutory / $1,000,000 each accident, $1,000,000 disease each employee, $1,000,000 disease policy limitPipefitters and sheet metal workers often come from union halls; confirm the payroll entity matches the named insured.
Contractors pollution liability$1,000,000 each condition / $2,000,000 aggregateCovers refrigerant releases, mold and Legionella claims the CGL excludes. Occurrence form preferred.
Installation floaterValue of chillers, rooftop units and air handlers until acceptanceHigh-value equipment stored on site before start-up is a frequent theft and damage target.

Endorsement checklist

Forms to see attached, not just checked

A Y in the ADDL INSD column is not an endorsement. Ask for each form below by number and edition, and read the HVAC sub's schedule of forms against it.

Exclusion watchlist

Exclusions that void HVAC coverage

These never appear on an ACORD 25. They sit in the declarations schedule of forms and the endorsement pages, which is where Pikorua Security reads.
  • Red flag

    Total pollution exclusion (CG 21 49, CG 21 55 or CG 21 65)

    Replaces the standard pollution exclusion and removes its contractor carve-backs. CG 21 65 keeps a narrow exception for building heating, cooling and dehumidifying equipment, but it is often limited to bodily injury. Without a contractors pollution liability policy, a refrigerant release or fume claim has nowhere to go.

  • Red flag

    CG 21 67 Fungi or Bacteria Exclusion

    Excludes mold and bacteria claims, including Legionella. Condensate drain failures and wet duct insulation are classic HVAC mold sources, so this exclusion makes a pollution policy mandatory.

  • Red flag

    Hot work exclusion (brazing and welding)

    Some mechanical policies restrict hot work. Brazing copper and welding pipe in occupied or finished spaces is routine for this trade, and a fire caused by it must be covered.

  • Red flag

    CG 22 94 Exclusion, Damage to Work Performed by Subcontractors on Your Behalf

    Mechanical subs routinely let out controls, insulation, balancing and sheet metal. CG 22 94 removes coverage for damage to the completed system caused by those sub-tiers.

    Read the CG 22 94 guide

The pollution gap behind most HVAC packets

The standard CGL pollution exclusion has carve-backs that matter to contractors, including injury inside a building from fumes of materials the contractor brought in, and limited fuel releases from mobile equipment. Many carriers replace it with a total pollution exclusion. CG 21 49 removes every carve-back. CG 21 65 keeps exceptions for hostile fire and for building heating, cooling and dehumidifying equipment, but that equipment exception is narrow and often limited to bodily injury.

For a mechanical sub, pollution is not a remote exposure. Refrigerant leaks during charging, mold from condensate, Legionella from cooling towers and start-up fumes are everyday claim sources. The answer is a contractors pollution liability policy evidenced alongside the CGL, with the GC and owner added as additional insureds on it.

Equipment, start-up and the turnover window

Mechanical work has a long tail. Equipment is set months before start-up, tested and balanced before turnover, and then serviced under warranty. That window is where coverage disputes happen. Before acceptance, a damaged chiller is an installation floater claim. After turnover, a failed coil that floods a tenant floor is a completed operations claim, and the GC needs CG 20 37 to be covered.

Pikorua Security's HVAC rule template checks both sides: an installation floater limit at least equal to the scheduled equipment value you enter, and completed operations additional insured status with an edition that matches the ongoing operations form.

Refrigerant handling and licensed technicians

Technicians who handle refrigerants must hold EPA Section 608 certification, and most states license mechanical contractors separately. Licensing does not appear on a COI, but Pikorua Security stores the license number and expiry with the vendor record and runs the same 60, 30, 15 and 0 day renewal cadence used for policies, so a lapsed license is caught with the same workflow.

How to verify an HVAC sub's COI

A manual review of one COI and its endorsement packet takes 25 to 40 min (CFMA Time Study). These are the six checks, in the order Pikorua Security runs them.

  1. 1

    Match the named insured to the subcontract

    Compare the named insured on the ACORD 25 with the legal entity that signed the HVAC subcontract, including the LLC or Inc. suffix. A trade name or DBA is not the contracting entity, and additional insured coverage follows the policy's named insured.

  2. 2

    Check limits against your HVAC exhibit

    Confirm commercial general liability of $1,000,000 each occurrence / $2,000,000 general aggregate, an umbrella of $5,000,000 that follows form over CGL, auto and employer's liability, and statutory workers compensation. Then confirm contractors pollution liability and installation floater are evidenced, because they do not appear on a standard ACORD 25.

  3. 3

    Read the endorsement pages, not the checkboxes

    A Y in the ADDL INSD or SUBR WVD column is not an endorsement. Confirm CG 20 10, CG 20 37, CG 20 01, CG 24 04, WC 00 03 13, CA 20 48 and CG 25 03 are attached as forms, and that the ongoing and completed operations forms share the same edition date.

  4. 4

    Scan the schedule of forms for HVAC exclusions

    Look for total pollution exclusion, CG 21 67 Fungi or Bacteria Exclusion, hot work exclusion and CG 22 94 Exclusion, Damage to Work Performed by Subcontractors on Your Behalf. None of these appear on the certificate; they sit in the declarations schedule of forms and the endorsement pages.

  5. 5

    Check carrier ratings and policy dates

    Confirm each carrier is rated A- VII or better by AM Best and that no policy expires before the HVAC scope and its completed operations period are finished. Set renewal reminders at 60, 30, 15 and 0 days.

  6. 6

    Hold payment and site access until resolved

    Keep the HVAC sub's pay applications and jobsite badges on hold until every finding is resolved, then file the verified packet so it is ready if you ever need to tender a claim.

Try it

Is this HVAC COI compliant?

Toggle what Keystone Mechanical LLC's packet shows. The verdict updates the way Pikorua Security's HVAC template scores it.

What the packet from Keystone Mechanical LLC shows

  • Matching 04 13 editions

  • CG 21 49 or CG 21 55. Red flag if present.

  • GC named as additional insured

  • Chillers, RTUs, AHUs

  • Applies to the GC and owner

  • Both GL and WC

Switch on = present in the packet. Switch off = missing.

Deficient: 3 findings

  • Total pollution exclusion on the CGL

    Refrigerant and fume claims are excluded from the CGL.

  • Contractors pollution liability evidenced

    No policy responds to pollution or mold claims.

  • Floater covers scheduled equipment value

    Equipment damage before acceptance is underinsured.

Pikorua Security would send a deficiency notice to the sub and its broker citing each item, and hold payment until a corrected endorsement arrives.

Related trades

All 14 trade guides

Questions

HVAC & Mechanical COI questions

Does an HVAC subcontractor need pollution liability insurance?
On most commercial work, yes. Mechanical subs face refrigerant release, mold and Legionella exposures, and many CGL policies carry a total pollution exclusion and a fungi or bacteria exclusion (CG 21 67). A contractors pollution liability policy is the only coverage that reliably responds, and the GC should be an additional insured on it.
What is the difference between CG 21 49 and CG 21 65 for an HVAC contractor?
Both are total pollution exclusions. CG 21 49 removes all exceptions. CG 21 65 keeps a hostile fire exception and an exception for building heating, cooling and dehumidifying equipment, which is helpful but often limited to bodily injury. Neither replaces a contractors pollution liability policy.
When does an HVAC sub's installation floater stop and completed operations start?
Generally at acceptance or when the equipment is put to its intended use, depending on the floater's wording. Before that point, damage to the equipment is an inland marine claim. After it, injury or damage caused by the completed work is a completed operations claim, which is why the GC needs CG 20 37.

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