You can get started with your HVAC contracting business in Tennessee. You must obtain an HVAC license to start your business in the Volunteer State. This guide walks you through the steps, including eligibility, how to apply, renew, satisfy insurance requirements and more.
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You need a license to work as an HVAC technician or contractor in Tennessee. You will also need a contractor’s license for jobs worth $25,000 or more. The Tennessee Board for Licensing Contractors awards and oversees the licensing process.
While the contractor license is offered at the state level, traditional journeyman and master licenses are not; these may be offered on the local level. For instance, Chattanooga has its own Journeyman Mechanic license, which is required for HVAC work. Check with local jurisdictions to understand your requirements.
You can protect your business with HVAC insurance. Your TN business insurance needs may vary based on whether you’re self-employed, have employees and assets.
If you opt for a contractor’s license, you can hire employees. Tennessee requires employers to have workers’ compensation insurance to help cover medical expenses, injuries and lost wages in case an employee gets hurt or ill.
Learn more about workers’ compensation for contractors.
General liability insurance helps cover work-related accidents like property damage, personal or advertising injuries and bodily injuries. It’s also a requirement if you hold a contractor’s license in Tennessee; the minimum required coverage is based upon the monetary limit of a contractor. (Between $100,000–$1,000,000)
Learn more about general liability insurance for contractors.
Whether you rent or own, you can protect your work property, inventory and equipment with commercial property insurance. In the event of damage or vandalism, this coverage can assist with replacements, repairs and income interruptions.
A business owner’s policy, or BOP insurance, provides broad coverage of general liability and commercial property policies combined in a single, cost-efficient bundle. It can help cover damage that you or your employees may accidentally cause to another person’s property and help protect your business equipment in the event of a fire or other covered event.
With tools and equipment insurance, you can help protect your tools, work gear and equipment if they are lost or stolen.
Driving from job site to job site can rack up a lot of mileage and risk. You can use commercial auto insurance to cover repairs and towing in the event of an accident.
In Tennessee, coverage minimums are:
Get an overview of Tennessee HVAC license requirements below:
Tennessee classifies its first-level HVAC license as a limited licensed electrician (LLE). Here are the requirements for the LLE licensure:
PSI administers the LLE license exam in Chattanooga, Jackson, Johnson City, Knoxville, Memphis and Nashville testing centers. The exam has 40 questions and is open-book and timed. You must score at least 73% to pass.
You can take on jobs for up to $25,000 with an LLE license. However, if you want to take on higher-paying jobs, own a business and hire employees, you will also need a contractor’s license.
The state of Tennessee offers two contractor licenses with HVAC classifications: CMC (Full Mechanical Contractor) and CMC-C (HVAC, Refrigeration and Gas Piping).
Here are the requirements for an HVAC contractor’s license in Tennessee:
To get the full mechanical contractor license (CMC), you must get the Board’s authorization to sit the contractor exam. However, you do not need permission for the HVAC-specific mechanical license (CMC-C)
The Environmental Protection Agency (EPA) requires HVAC professionals who deal with refrigerants to be properly certified. To obtain an EPA certification, refrigeration contractors in Tennessee must pass a multiple-choice test in no more than 3 hours. The passing score is 70%, and the exam cost is $120.
Tennessee has a reciprocity agreement with Alabama and Ohio. You can complete a license verification form to bypass many typical HVAC licensing requirements.
If you are renewing your LLE license in Tennessee (every two years), you must complete an application and pay a $50 renewal fee.
Contractor licenses expire every two years. To renew, licensed HVAC contractors must complete an application, show proof of insurance, provide a financial statement and pay a $200 fee. Good news: there are no continuing education unit requirements for license renewal.
NEXT is dedicated to helping small business owners protect their businesses. It’s our focus — we help over 1,300+ profession. We can help you get affordable HVAC professional insurance to satisfy all state requirements.
You can apply for coverage, get a certificate of insurance and obtain multiple copies in minutes. Our services are available online via web or mobile app.
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Do you want to work as an HVAC contractor in another U.S. state? Learn what states require licenses in our guide to HVAC license requirements.
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 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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