General Contractor Insurance in Texas

What are the most common policies for general contractors in Texas?

The Lone Star State is home to 3.1 million small businesses, with construction being the number one industry for small business owners in the state. General contractor insurance for Texas businesses helps protect many of them.

Contractor insurance is shorthand for the different types of coverage available to general contractors, handymen, and other skilled tradespeople. This often includes commonly purchased policies, such as:

• General Liability insurance – Texas contractors may consider a General Liability policy to protect against the risk of customer injury and property damage claims and lawsuits.
• Business Owner’s Policy (BOP) – This combination of policies combines coverages such as General Liability insurance and business personal property coverage to help protect small businesses from costly interruptions to service.
• Workers’ Compensation – These policies provide protection for employers if an employee suffers a work-related illness or injury.

Learn more about general contractor requirements in Texas and how to compare multiple quotes to find the best coverage to meet your business insurance needs.

Which insurance policies are required for general contractors in Texas?

General contractor insurance for Texas general contractors, handymen and skilled tradespeople may be required in some situations.

General Liability

General Liability insurance for Texas contractors may be mandatory to work for specific clients, particularly if you are bidding on government contracts. Clients may require you to have a minimum amount of coverage. This is typically written into the business contract you both sign.

You may also need a General Liability policy if you plan to lease space for your business. Commercial landlords often require proof of insurance before renting a warehouse, office or other workspaces.

General Liability insurance is a practical way to safeguard your business finances. Without a policy, you could be responsible for paying third-party medical bills or compensation if someone is injured due to your actions. But instead of paying from your own pocket, your General Liability policy would help cover these costs for you.

Workers’ Compensation

Unlike other states, Texas does not require businesses to have Workers’ Compensation insurance. However, a policy may be necessary to bid on and accept government contracts.

Even if a policy is not required for your business, you might consider having one anyway. Workers’ Compensation insurance helps protect you against injury lawsuits brought by an employee or their family. Your policy could help you cover an employee’s medical bills, lost wages while they recover, and other expenses related to a workplace injury.

Business Owner’s Policy

While not a requirement for general contractors in Texas, a Business Owner’s Policy (BOP) could provide your business with important protection. Your BOP can be customized to include coverages to suit your business’ unique needs. This might include protection for your tools and equipment, assistance during unplanned business interruptions, and other important types of insurance.