10-Year Labor Warranty: Who’s Offering It-and at What Cost?

The question comes up more often than ever in HVAC circles:
Are you offering a 10-year labor warranty?

Some HVAC owners answer yes without hesitation. Others say no just as confidently. Meanwhile, many sit somewhere in the middle, trying to decide whether it’s smart or risky.

What becomes clear very quickly is this: a 10-year labor warranty is not just a warranty decision. Instead, it’s a business decision.

Why HVAC Owners Disagree on 10-Year Labor Warranties

When you listen to real owner conversations, the disagreement makes sense.

For example, some owners have offered 2-year, 5-year, and even 10-year labor warranties and noticed little to no change in closing rates. Because of that, they prefer shorter warranties and less long-term pressure. In their experience, workmanship issues usually appear early anyway.

On the other hand, some owners take a completely different approach. They build long labor warranties into their pricing model from the start. Higher hourly rates, structured service fees, and clear labor limits help them control the risk. As a result, the warranty feels manageable instead of stressful.

However, not everyone shares that confidence. Many owners avoid long labor warranties altogether, especially those tied to third-party programs. They’ve seen reimbursements fall short and margins shrink. Over time, those promises turned into losses rather than advantages.

Each position comes from experience, not theory.

Pricing and Structure Matter More Than the Warranty

As these conversations continue, one pattern stands out.
The warranty itself isn’t the real problem. Poor structure is.

Owners who feel comfortable offering long labor warranties usually have:

• Strong labor rates
• Clear service call pricing
• Defined coverage limits
• Solid installation standards
• Maintenance requirements tied to coverage

In contrast, owners who struggle often underprice labor or underestimate callbacks. Because of that, even a well-intended warranty can become a burden.

Third-Party Programs: Support or Risk?

Many 10-year labor warranties today rely on third-party programs. Some HVAC owners trust them and use them successfully. Others regret the decision.

The difference usually comes down to fit. Approval processes, payout limits, and hourly caps all affect whether the program works with your business. If those numbers don’t align with how you operate, the warranty won’t fix the gap.

What This Really Comes Down To

A 10-year labor warranty means different things to different companies.

For some, it acts as a retention tool.
For others, it works as a pricing strategy.
For many, it represents a risk they choose not to take.

There is no universal answer. Still, copying what another company offers without understanding how they price, install, and service often leads to problems later.

Final Thought

Long labor warranties aren’t about bold promises. They’re about alignment.

Alignment between pricing, workmanship, labor rates, service structure, and long-term expectations. When those pieces work together, a long warranty can make sense. When they don’t, it can quietly create pressure.

That’s why HVAC owners continue to debate this topicnand why they should.

For more real HVAC owner conversations around topics like this, you can explore the community here:
👉 https://hvachub.co