How Much Does It Cost to Start an HVAC Contractor Business?
- Nate Jones, CPCU, ARM, CLCS, AU
- Sep 22
- 2 min read
Starting an HVAC contractor business is a smart move in today’s growing home services market—but how much does it really cost to get started?
At Wexford Insurance, we help HVAC entrepreneurs protect their investment with tailored HVAC contractor insurance, so you can launch your business with confidence and peace of mind.
HVAC Contractor Startup Costs
The cost to start an HVAC business can vary widely based on your location, business size, and service offerings. Here’s a detailed breakdown of typical startup expenses:
1. HVAC Tools and Equipment
Basic hand tools: $500–$2,000
Power tools: $1,000–$3,000
Specialty HVAC equipment (refrigerant recovery machines, vacuum pumps, leak detectors, gauges, etc.): $2,000–$8,000
Safety gear: $200–$800
2. Work Vehicle
Used van or truck: $5,000–$15,000
New van or truck: $25,000–$40,000
3. Licensing, Permits, and Legal Fees
Business registration: $100–$500
HVAC contractor license: $300–$1,500 (varies by state)
Permits and bonding: $200–$1,000
4. Office Setup and Technology
Computer, phone, and office supplies: $800–$2,000
Business management software: $50–$200/month
Website and branding: $500–$3,000
5. Initial Marketing and Advertising
Logo and branding: $300–$1,000
Website development: $500–$2,000
Digital marketing (SEO, ads, social media): $1,000–$5,000
Print materials (business cards, flyers): $200–$500
Market Your HVAC Contractor Business with Contractor Back Office
Contractor Back Office helps HVAC contractors build a strong brand by managing websites, Bookkeeping social media platforms, and SEO. These tools support your marketing and branding efforts by showcasing your services, promoting special offers, and engaging with clients—helping you grow your business from day one.
6. Insurance Costs
General Liability Insurance: $662–$941/year
Workers’ Compensation Insurance: $1,200–$2,676/year (if you have employees)
Commercial Auto Insurance: $1,200–$2,292/year
Tools & Equipment Insurance: $168–$295/year
Umbrella Insurance: $984/year
Tip: Bundling your insurance policies with a specialist like Wexford Insurance can help you save on premiums and ensure you’re fully protected.
7. Other Startup Expenses
Inventory and parts: $1,000–$5,000
Uniforms and PPE: $200–$800
Training and certifications: $500–$2,000
Tips to Manage and Reduce Startup Costs
Buy quality used equipment to save on upfront costs.
Start small and scale up as your business grows.
Bundle insurance policies with a specialist like Wexford Insurance for better rates.
Estimated Total Startup Costs
Solo operator (minimal setup): $8,000–$20,000
Small team (1–3 techs): $30,000–$60,000
Larger operation (multiple vehicles/techs): $60,000–$150,000+
Your actual costs will depend on your business plan, location, and whether you buy new or used equipment. For a more detailed breakdown, see Circle of Intrapreneurs’ cost analysis.
Final Thoughts
Starting an HVAC contractor business requires careful budgeting and planning, but the investment can pay off with strong demand and growth potential. Don’t forget to factor in insurance as a key startup cost Wexford Insurance specializes in HVAC contractor insurance to help you launch and protect your business.
Ready to start your HVAC business or review your insurance needs?
Contact Wexford Insurance today.
