Alabama HVAC license and insurance requirements

Alabama HVAC license and insurance requirements

Jessica Crosby
By Jessica Crosby
Jan 9, 2025
1 min read
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Alabama residents rely on their air conditioners, so HVAC contractors are always in demand in the state. If you want to pursue a trade in Alabama, working in the HVAC industry is a great move.

You must hold an HVACR license in Alabama to work on air conditioners and other HVAC systems. To get the license, you must fulfill all the requirements and pass an exam. Read ahead to find out how to get an HVAC license in Alabama, including reciprocity options and the renewal requirements:

Do you need a license to be an Alabama HVAC contractor?

You need a license to be an HVAC contractor in Alabama. You can apply for one through the Alabama Board of Heating, Air Conditioning, and Refrigeration Contractors (HACR).

Alabama offers two types of HVAC licenses: HVAC Contractor (active or inactive) and
Refrigeration Contractor (active or inactive). They also offer a Duct Air Tightness Contractor license.

EPA Certification

To work with refrigerants in HVAC systems, you must earn the EPA 608 certification. This federal requirement ensures the safe handling of ozone-depleting substances. The certification comes in four types: Type I (small appliances), Type II (high-pressure systems), Type III (low-pressure systems), and Universal (all systems).

To get certified, pass an exam covering safe refrigerant practices, environmental regulations and leak detection. Exams are offered by approved testing organizations, with study guides available. There is no renewal requirement, so once certified, it lasts a lifetime.

Bond and insurance requirements for an Alabama HVAC license

HVAC contractor insurance helps to protect your business. While some of these business insurance policies are not legally mandated for licensure in Alabama, they are commonly purchased by business owners. Here are some typical options for small business coverage.

Contractor license bond

Alabama requires HVAC contractors to have a surety bond. These bonds help provide financial protection if a contractor fails to finish a job. In Alabama, you must get a bond for $20,000 to hold an HVAC license (exempted if applying for an inactive license).

Workers’ Compensation insurance

Alabama requires employers with five or more employees to have workers’ compensation insurance. The policy helps cover medical expenses for workplace injuries or occupational illnesses and partial wage replacement for those unable to work.

Learn more about workers’ compensation for contractors.

General Liability insurance

General liability insurance helps cover your business from common risks and mishaps, such as property damage to someone else’s property or the medical expenses around injury to non-employees. It can also help protect against personal and advertising injuries.

Learn more about general liability insurance for contractors.

Commercial Property insurance

Commercial property insurance helps cover your work property, including the structure and its materials. Whether you rent or own your property, this coverage helps protect against mishaps such as fire or theft.

Business Owner’s Policy

A business owner’s policy, or BOP insurance, provides broad coverage of general liability and commercial property policies combined in a single, more cost-efficient bundle. It helps cover damage that you or your employees may inadvertently cause to another person’s property and helps protect your business inventory in the event of a fire or other covered event.

Tools and Equipment insurance

When working in HVAC, your most valuable assets are your tools, equipment and parts. Tools and equipment insurance can help cover stolen, damaged or lost work equipment.

Commercial Auto insurance

Your work vehicle can be covered with commercial auto insurance. It helps cover accident-related costs like repairs and towing.

In Alabama, coverage minimums are:

  • $25,000 bodily injury per person
  • $50,000 combined bodily injury per accident
  • $25,000 property damage per accident

How to get an HVAC license in Alabama

It takes at least 3,000 hours of documented training or supervision to get your Alabama HVAC license. Your time may vary based on your ability to pass and take the exams.

Experience and education requirements are the same for both refrigeration contractor licenses and HVAC contractor licenses. However, of course, the questions on the refrigeration exam will skew toward refrigeration systems.

To qualify for the license, you have two paths:

  • Complete 3,000 coursework hours or experience in HVAC training and submit signed and notarized affidavits from your employer regarding your work experience; OR
  • Submit proof of graduation from an approved heating and air conditioning & refrigeration curriculum.

You can get your HVAC license in Alabama by applying online. Here’s what’s involved:

  • Complete the Heating and Air Conditioning Contractors Exam
  • Pay $175 examination fee
  • Proof of citizenship
  • Show proof of bond for at least $20,000
  • Download and complete the AL-1, AL-2 and BF-1 application forms
  • Pay a $220 licensing fee

You must get approval from the Board before you can sit for the HVAC license exam. Prov proctors the exam, which is open-book and timed. You must achieve a 70% score in order to pass the exam. Prov will automatically send your scores to the licensing board.

License reciprocity for Alabama HVAC contractors

The state of Alabama has reciprocity agreements from the following states for HVAC licenses:

  • Louisiana
  • Mississippi
  • Ohio
  • South Carolina
  • Tennessee
  • West Virginia

You must complete and notarize a reciprocity application. You must also pay a $220 licensing fee and show proof of a $20,000 Performance Bond.

Alabama license renewal requirements

Licensed air conditioning & refrigeration contractors must renew their Alabama HVAC licenses each year. Each license holder must renew by December 31 of each year.

If you take over a year to renew, you must complete the entire application process again. You can renew online.

According to the Board, every contractor or licensed HVAC professional must take four continuing education hours annually to qualify for renewal. You may take as many as eight hours in one year and carry over four of those hours to the next renewal cycle.

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How NEXT helps support Alabama HVAC contractors

NEXT Insurance focuses on coverage for small businesses; we help over 1,300+ professions with business insurance. We have the right HVAC insurance to help protect your business and satisfy licensing laws.

You can get a free quote and complete all the insurance-buying steps online. This includes applying for coverage and accessing proof of coverage. If you have questions, our U.S.-based insurance professionals are available to help.

Start a free instant quote with NEXT.

Looking for more information on what states require HVAC licenses? Check out our summary of HVAC contractor license requirements across the U.S.

This information has been provided as a service. It is correct and up-to-date to the best of our knowledge; however, it is in no way intended to offer legal advice and you must always consult with local authorities before you make any business decisions. Regulations and requirements may change at any time.

Jessica Crosby
About the author

Jessica spent over a decade working in education before moving into content marketing. She has worked on content marketing campaigns in the edtech, real estate, and personal finance sectors. She has a passion for working with companies that take the time to educate their customers. When she’s not working, she’s probably outside with her two kids.

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