Complete Verification Process (8 Steps)
Follow this checklist before hiring any HVAC contractor. Total time: about 30-45 minutes.
Request the TDLR License Number
Time: 1 minuteAsk the contractor directly for their Texas ACR (Air Conditioning and Refrigeration) license number. A legitimate contractor will provide it immediately. The number format is typically "TACLB" or "TACLA" followed by 5-6 digits.
How to: Call or email and say: "Before scheduling, I'd like to verify your TDLR license. What's your ACR license number?"
Red flag: Hesitation, excuses, or claims that "we don't need a license for this type of work"
Verify License in TDLR Database
Time: 2-3 minutesGo to tdlr.texas.gov and use the License Search function. Enter the license number or business name. Verify the license is ACTIVE (not expired or suspended), matches the company name, and is the correct license type (Class A or B).
How to: Visit tdlr.texas.gov → License Search → Enter license number → Review status and details
Red flag: License shows "Inactive," "Expired," "Suspended," or company name doesn't match
Check for Disciplinary Actions
Time: 2 minutesWhile in the TDLR database, check for any enforcement actions, fines, or complaints against the license. This information is public record. Some complaints are normal for busy contractors, but patterns of issues are concerning.
How to: In TDLR License Search results, click on license number to see detailed history and any enforcement actions
Red flag: Multiple recent complaints, license suspensions, or pattern of enforcement actions
Request Certificate of Insurance
Time: 10-15 minutesAsk for a Certificate of Insurance (COI) showing general liability and workers' compensation coverage. The certificate should list you as the "Certificate Holder" or be dated recently. Call the insurance company to verify it's active.
How to: Request COI via email. Once received, call the insurance company listed and ask: "Is policy number [X] currently active for [Contractor Name]?"
Red flag: No insurance, expired policy, extremely low coverage limits, or refusal to provide COI
Verify EPA 608 Certification
Time: 1 minute at appointmentAny technician handling refrigerant must have EPA Section 608 certification. While there's no public database to search, you can ask to see the technician's certification card. Type II covers typical residential AC work.
How to: Ask: "Will the technician working on my system have their EPA 608 card with them? I'd like to see it before work begins."
Red flag: Technician can't produce certification, or company says it's not required
Check Online Reviews & BBB
Time: 10-15 minutesSearch Google Reviews, BBB, Yelp, and Nextdoor for the company. Look for patterns in negative reviews (same complaints repeated) rather than isolated incidents. Check BBB for complaint history and how they resolved issues.
How to: Search "[Company Name] reviews" and "[Company Name] BBB" separately. Read 1-star and 2-star reviews carefully.
Red flag: Consistent complaints about the same issues, no reviews at all, or BBB "F" rating
Verify Physical Business Address
Time: 2-3 minutesConfirm the contractor has a real business address, not just a P.O. box. Google Street View can help. Legitimate contractors have offices, warehouses, or at minimum a verifiable residential business address.
How to: Search the address on Google Maps. Switch to Street View. Look for business signage, trucks, or warehouse-type building.
Red flag: P.O. box only, address doesn't exist, or address is clearly residential with no business indication
Ask for References
Time: 15-20 minutesRequest 2-3 recent customer references for similar work. Call them and ask specific questions about timeliness, quality, cleanup, and whether they'd hire the contractor again.
How to: Ask: "Can you provide references from recent installations similar to mine? I'd like to speak with 2-3 previous customers."
Red flag: No references available, references seem scripted, or references can't be reached
Texas HVAC License Types Explained
Understanding what each license means helps you verify the right credentials for your job.
| License Type | What It Covers | Requirements |
|---|---|---|
| TACLA (Class A) | Full contractor license for commercial and residential work of any size, including systems requiring engineering | 4 years experience, passed exam, $25,000 bond |
| TACLB (Class B) | Contractor license for residential and light commercial systems under 25 tons (most homes are 2-5 tons) | 2 years experience, passed exam, $10,000 bond |
| Registered Technician | Can work under a licensed contractor but cannot perform work independently | Must work under TACLA/TACLB supervision |
| EPA 608 Type I | Technician certification for small appliances only (window units, refrigerators) | EPA exam passage |
| EPA 608 Type II | Technician certification for high-pressure equipment (residential AC, heat pumps) | EPA exam passage |
| EPA 608 Universal | Technician certification for all equipment types | EPA exam passage (all sections) |
For residential work: A TACLB (Class B) license is sufficient for virtually all home HVAC projects. Your typical 3-ton AC system is well under the 25-ton limit. TACLA (Class A) is required only for large commercial projects or systems requiring engineering.
How to Read TDLR Search Results
When you search at tdlr.texas.gov, here's what to look for on each field.
| Field | What You Want to See | Avoid If |
|---|---|---|
| License Status | "Active" in green | "Inactive," "Expired," "Suspended," or "Revoked" |
| Expiration Date | Date in the future (licenses renew every 1-2 years) | Date has passed |
| License Type | TACLA (Class A) or TACLB (Class B) for residential work | Only "Registered Technician" (can't work independently) |
| Business Name | Exact match or valid DBA to the company you're hiring | Different name with no explanation |
| Enforcement Actions | Clean record or minor issues from years ago | Recent or repeated disciplinary actions |
| Address | Texas address that matches their marketing | Out of state or completely different address |
Insurance Types You Should Verify
Insurance protects YOU if something goes wrong. Here's what to look for.
General Liability Insurance
$500,000-$2,000,000Property damage and bodily injury caused by the contractor's work. If a technician damages your floor, wall, or causes water damage, this covers it.
Minimum: $500,000 recommended minimum
Workers' Compensation Insurance
Statutory limitsWorkers injured on your property. Without this, you could be liable if a technician gets hurt at your home.
Minimum: Required for all employees in Texas
Commercial Auto Insurance
$500,000+Damage from contractor vehicles on your property. If a truck backs into your fence or spills fluids on your driveway.
Minimum: $500,000 recommended
Umbrella/Excess Liability
$1,000,000+Additional coverage above other policy limits. Provides extra protection for catastrophic incidents.
Minimum: Nice to have, not essential
Don't skip this step: Call the insurance company directly to verify coverage is active. Certificates of Insurance can be outdated. A 5-minute phone call confirms you're protected.
Red Flags: Detailed Warning Signs
If you see any of these, proceed with extreme caution or find another contractor.
Cannot or won't provide license number
CriticalLegitimate contractors provide their license number immediately—it's on their truck, business cards, and website. Reluctance suggests they're unlicensed.
Action: End the conversation and find another contractor.
License doesn't match business name
HighThe TDLR license must be in the name of the business you're hiring. "ABC HVAC" can't operate under "XYZ Heating" license without proper registration.
Action: Ask for explanation. May be DBA situation, but verify with TDLR.
License is expired or suspended
CriticalAn expired license means they're operating illegally. A suspension means TDLR took action against them for violations.
Action: Do not hire. Report to TDLR if they're still operating.
No insurance or won't provide certificate
HighUninsured contractors leave you liable for damages and worker injuries. Professional contractors carry insurance and readily provide certificates.
Action: Do not hire without verified, current insurance.
Only accepts cash, no written contract
CriticalThis screams "fly-by-night" operation. No documentation means no protection if something goes wrong, and likely no proper tax reporting.
Action: End the conversation. This is a major scam indicator.
Pressure for immediate decision
High"This price is only good today" or "I have another customer who wants this system" are classic high-pressure sales tactics.
Action: Any legitimate offer will stand for at least 24-48 hours. Walk away from pressure.
Drastically lower price than competitors
Medium-HighIf one bid is 40%+ lower than others, ask why. They may be cutting corners, using inferior equipment, or planning to add charges later.
Action: Ask for explanation and verify equipment specs match other bids.
No physical address or unmarked vehicles
HighLegitimate contractors have business addresses and branded vehicles. "Just call my cell" operations are hard to track down if problems arise.
Action: Verify physical address exists and looks like an HVAC business.
Won't pull permits
HighClaims that "permits aren't required" or "we can save you money by skipping permits" should disqualify a contractor. Permits protect you.
Action: Insist on proper permits. Verify contractor will pull them.
Bad or no online presence
MediumA company with no website, no Google listing, and no reviews is harder to vet. New legitimate companies exist, but verify extra carefully.
Action: Proceed with extra caution. Verify all credentials directly.
10 Questions to Ask Every Contractor
Ask these questions before scheduling and listen carefully to the answers.
| Question | Good Answer | Red Flag Answer |
|---|---|---|
| What is your TDLR license number? | Immediate, specific number (TACLB12345 or similar) | Hesitation, "I'll get back to you," or claims license isn't needed |
| How long have you been in business? | Specific years with consistent ownership | Vague answers, very new without experienced staff |
| Are your technicians employees or subcontractors? | Clear answer either way with explanation of how they're managed | Confusion or "it depends" |
| Do you carry workers' comp and liability insurance? | Yes, and willing to provide certificate | "We're careful" or "it's not really necessary" |
| Will you pull the required permits? | Yes, permit costs are included in the quote | "Permits aren't needed" or "we can skip that to save money" |
| What warranty do you offer on labor? | Specific years (1-2 typical) with details in writing | Vague promises or "manufacturer covers everything" |
| Can you provide recent references? | Yes, here are names and numbers of recent customers | Excuses about customer privacy (customers can consent) |
| Who will actually perform the work? | Named technician(s) with described experience | "Whoever is available" or vague response |
| What happens if there's a problem after installation? | Clear callback policy, warranty process explained | Vague or deflects to manufacturer |
| What does "complete installation" include? | Detailed list: equipment, permits, inspection, startup, cleanup | Just the equipment; other items are extra |
Quick Verification Checklist
Print or screenshot this checklist before hiring.
- TDLR license number verified at tdlr.texas.gov — Status: Active
- License type: TACLA or TACLB (appropriate for job)
- Business name on license matches company I'm hiring
- No recent enforcement actions or license suspensions
- Certificate of Insurance received and verified by phone call
- General liability coverage: minimum $500,000
- Workers' compensation coverage: confirmed
- EPA 608 certification: technician can show card
- Online reviews checked: no concerning patterns
- Physical business address verified
- References contacted (if larger job)