Just a few minutes can save you up to 65% or more with
Texas's highest-rated contractors' insurance programs –
Contractors
Insurance
Texas
Texas
Contractors Insurance
Stop overpaying for coverage in the Lone Star State!
Just a few minutes can save you up to 65% or more with Texas’s highest-rated contractors’ insurance programs –
Coverage for Texas Contractors
As the leading source for affordable Contractors' Insurance in Texas, our construction specialty programs provide the highest-rated protection with discounts automatically applied for maximum savings –
What is Texas Contractors’ Insurance?
Texas contractors’ insurance shields you from the financial risks present at every stage of business operations. It helps contractors recover from unforeseen property damage or legal claims, ensuring their long-term business continuity.
Why Do I Need It?
From Amarillo to Brownsville, El Paso to Houston, the Texas construction industry thrives, but it’s not without its hazards. Whether it’s employee injuries or property damage claims, operating safely in this field is crucial yet challenging, which is why safeguarding your business with a formidable contractor insurance program is more important than ever.
Protect Against the Unpredictable
Before kicking off business operations, it’s crucial for Texas builders and artisans of all trades to visit the Texas Department of Licensing and Regulation to learn about the necessary licenses and insurance requirements. This knowledge empowers you to be fully prepared for any situation.
Protecting your business doesn’t have to break the bank. Our dedicated team of experts is here to provide you with the support by phone, email or chat, and provide the guidance you need to build a cost-effective, comprehensive insurance portfolio tailored to your needs.
Our Recommended Products
General Liability
General Liability
Contractor liability insurance in Texas, also known as general liability insurance, is a financial protection product that safeguards your company’s assets and reputation. This essential coverage forms the foundation of a comprehensive commercial insurance package, offering a robust shield against potential risks, ensuring you’re always prepared for the unexpected.
Key features of liability insurance for Texas contractors include:
- Bodily Injury Coverage: Protects against claims if someone is injured due to your business operations.
- Property Damage Coverage: Covers damages to third-party property resulting from your work activities.
- Personal and Advertising Injury: Protects against libel, slander, or false advertising claims.
- Medical Payments: Pays for medical expenses if someone is injured on your job site or business premises, regardless of fault.
- Products-Completed Operations Coverage: Covers liability for damages arising from your completed work or products.
In Texas, certain contractor trades are required to carry contractor liability insurance to obtain and maintain licensure:
- Air Conditioning and Refrigeration Contractors:
- Class A License:
- $300,000 per occurrence for property damage and bodily injury
- $600,000 aggregate for property damage and bodily injury
- $300,000 aggregate for products and completed operations
- Class B License:
- $100,000 per occurrence for property damage and bodily injury
- $200,000 aggregate for property damage and bodily injury
- $100,000 aggregate for products and completed operations
- Class A License:
- Electrical Contractors:
- $300,000 per occurrence for property damage and bodily injury
- $600,000 aggregate for property damage and bodily injury
- $300,000 aggregate for products and completed operations
- Plumbing Contractors:
- Responsible Master Plumbers (RMPs) must provide a certificate of insurance with a minimum of $300,000 in commercial general liability coverage.
- Fire Protection Sprinkler System Contractors:
- Required to maintain at least $100,000 combined single limits coverage per occurrence, with a $300,000 total for the policy year.
While the state of Texas and certain municipalities may require minimum liability coverage limits, we strongly recommend carrying the construction industry standard of $1 million per occurrence and $2 million aggregate for general liability insurance. These limits enhance protection against unforeseen claims and demonstrate professionalism to clients and project owners.
Workers' Comp
Workers' Comp
Contractors’ workers’ compensation insurance in Texas is a no-fault system that mitigates financial risks for employers and employees, promoting a safer and more equitable workplace environment. This system provides businesses with a structured way to manage workplace injury claims, reducing the likelihood of disputes and fostering a strong sense of responsibility and care towards your employees.
Benefits of Coverage:
- Employee Protection: Workers’ compensation provides medical and income benefits to employees who suffer work-related injuries or illnesses, regardless of fault.
- Employer Protection: Carrying workers’ compensation insurance can shield employers from certain legal liabilities and potential lawsuits related to workplace injuries.
Recommendations for Texas Contractors:
- Assess Contractual Obligations: Review all contracts to determine if workers’ compensation insurance is required.
- Evaluate Business Needs: Even if not mandated, consider the advantages of providing coverage to protect both employees and the business.
- Stay Informed: Regularly consult the Texas Department of Insurance and the Division of Workers’ Compensation for updates on laws and regulations.
Surety Bonds
Surety Bonds
Surety Bonds are essential for Texas contractors, ensuring compliance with legal requirements and fostering client trust.
Types of Surety Bonds for Texas Contractors:
- Bid Bonds: Ensure that a contractor can fulfill the terms of a bid and provide necessary performance and payment bonds upon contract award.
- Performance Bonds: Guarantee that contractors will complete projects according to contractual terms.
- Payment Bonds: Ensure contractors promptly pay subcontractors, laborers, and material suppliers.
Benefits of Surety Bonds:
- Client Assurance: Demonstrates reliability and financial stability, enhancing client confidence.
- Legal Compliance: Ensures adherence to regulations, preventing potential legal issues.
- Financial Protection: Provides a safety net against potential losses due to contractor default or non-compliance.
Commercial Auto
Commercial Auto
Commercial auto insurance in Texas is essential for contractors who use vehicles in their business operations. It protects against potential liabilities from vehicular incidents, ensures compliance with state laws, and safeguards your business.
State Requirements:
Texas law requires all business-owned vehicles to carry minimum liability limits, often referred to as 30/60/25 coverage:
- Bodily Injury Liability: $30,000 per person and $60,000 per accident
- Property Damage Liability: $25,000 per accident
Key Coverages for Commercial Vehicle Insurance for Texas Contractors:
- Bodily Injury Liability: Covers medical expenses for injuries caused to others in an at-fault accident.
- Property Damage Liability: Pays for damages to another person’s property caused by your vehicle.
- Collision Coverage: Covers repair or replacement costs for your vehicle if damaged in a collision.
- Comprehensive Coverage: Protects against non-collision-related damages, such as theft or vandalism.
- Uninsured/Underinsured Motorist Coverage: Provides protection if involved in an accident with an inadequately insured driver.
- Medical Payments Coverage: This covers medical expenses for you and your passengers, regardless of fault.
Recommendations for Texas Contractors:
- Increase Liability Limits: While state minimums are required, a $1 million combined single limit (CSL) policy offers stronger financial protection.
- Add Specialized Coverage: Additional policies, such as Contractor Inland Marine Insurance for Tool and Equipment Coverage, may be necessary for your business needs.
- Expand Coverage with Endorsements: Adding endorsements like Hired and Non-Owned Auto Insurance (HNOA) or Blanket Additional Insured can address specific risks and enhance your policy.
Inland Marine
Inland Marine
Inland marine insurance for Texas contractors—Tool and Equipment Coverage—provides vital protection for tools, equipment, and materials transported or used across multiple job sites. This type of coverage safeguards movable property, ensuring businesses are protected against financial losses due to theft, damage, or other unforeseen risks.
Key Coverages for Texas Contractors:
- Contractor’s Equipment Floater: Protects high-value tools and machinery frequently moved between locations.
- Installation Floater: Covers materials and equipment waiting for or in the process of installation.
- Building Materials in Transit: Protects supplies transported to or from job sites.
- Electronic Equipment Coverage: Safeguards communication devices and other electronics used in operations.
- Builder’s Risk Coverage: Provides protection for structures under construction against perils such as fire, wind, or theft.
Benefits of Inland Marine Insurance:
- Comprehensive Coverage: Extends beyond traditional property insurance to protect assets wherever they are used or stored.
- Risk Mitigation: Reduces financial exposure from losses away from your main business location.
- Operational Continuity: Ensures your business can recover quickly from unexpected losses without major disruptions.
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