/ BLOG

What business insurance do contractors need in Texas?

Nov 19, 2020 · 4 minutes to read

About 700,000 people are working in construction in Texas, according to the Associated General Contractors of America. Construction has given people opportunities to earn a comfortable living with an average annual wage that’s 10% greater than the average in the state. Their determination, skill, and commitment to their work facilitate their success. So, if you’re running a contractors business, you must know how valuable each of your construction workers is.

While a construction business is lucrative, it can also  be risky. So what business insurance do contractors need in Texas to protect their employees and their business? This blog explains a few of the most common types of insurance and why you must consider getting them. Let’s dive right in!

What Types of Insurance Are Available for Contractors?

The purpose of business insurance for contractors is to protect the company and its employees. Accidents happen at construction sites. So, acquiring the right insurance policies for your company means that you’ll end up spending less money on the damages than otherwise. Take a look at some types of insurance you could get to keep your company safe.

General Liability Insurance

General liability (GL) insurance is one type of insurance that many contractors in Texas make sure to get. It protects your company from third-party claims for bodily damage, liability, and property damage that occurs when your business operates.

General liability insurance covers:

  • property damage caused to the public
  • injuries caused to the public

Consider this example: a client visits your office, and during their time there, they slip, fall, and injure themselves. Now, they can hold your office responsible for this injury. What this means for you is that your contractor business may have to cover their medical bills. They may also sue your company, resulting in a mountain of legal fees for youpotentially.

Well, how GL insurance helps you, in this case, is that it’ll cover both these expenses.

Workers’ Compensation Insurance

Workers’ compensation is a type of insurance that covers employees’ medical care if they get ill or injured. It may also cover the income they lose while they’re recovering.

So, workers’ compensation insurance in Texas covers

  • Medical bills for your employee that gets ill or injured at the workplace
  • Lost income for employees that are injured
  • Burial expenses if an employee dies because of a work-related injury

Is Workers’ Compensation Insurance a Requirement in Texas?

If you have a private business in Texas, workers’ compensation insurance is not a mandatory requirement. However, you’ll need to acquire workers’ comp for your employees if your contractor business works on a government entity’s project.

You can protect your company from lawsuits by any injured employees with workers’ compensation insurance. So, without workers’ comp, you may not have enough protection against various lawsuits, which can put your company at risk.

Contractor’s Tool and Equipment Insurance

Contractor’s tools and equipment insurance is the best way to avoid losing money on damaged, stolen, or misplaced equipment. This type of business insurance for contractors covers repairs and replacement for heavy equipment, power tools, and hand tools.

So, contractor’s tools and equipment insurance covers:

  • Small tools, such as wrenches, hammers, and saws
  • Mobile equipment

This type of insurance covers repair and replacement costs if someone vandalizes your equipment on site. Whether its backhoes, excavators, nail guns, drills, or jigsaws, you don’t need to spend money on getting replacements.

Professional Liability Insurance

Even the most skilled construction workers can make a mistake. Their negligence can result in property or financial damage to your client, which, in turn, can cost you a lot of money in lawsuits.

The good news is that you can keep your company safe in such situations with professional liability insurance. If, for example, your employee makes a mistake when installing the electrical system for a project, your client can hold your company accountable. As a result, there will most likely be a lot of time and money spent on dealing with the legal side of things. Well, professional liability insurance will cover those costs for you.

This type of business insurance for contractors covers:

  • Failure to meet agreed-upon deadlines
  • Oversights and errors when completing the project
  • Negligence in providing construction services

Professional liability insurance may seem like a costly investment; however, it can protect your company in the long term.

Commercial Auto Insurance

Commercial auto insurance policy covers repair costs for company-owned vehicles and employee medical bills if there’s an accident.

Last Few Words

The insurance policies above are not mandatory for contracting companies to hold. However, they can protect you and your business from a lot of potential risks. Find insurance policies suitable for your contracting business!

Get Free Online Quotes and get coverage instantly

The coverage you need for your business.

Business insurance is divided into different policies. We offer 4 types so it's easy to design the coverage that fits your business.

Professional Liability Insurance

Get a quote

General Liability Insurance

Get a quote

Business Owner’s Policy (BOP)

Get a quote

Workers Compensation Insurance

Get a quote

Let's find

The coverage you need for your business

Professional Liability Insurance

Get a quote

General Liability Insurance

Get a quote

Business Owner’s Policy (BOP)

Get a quote

Workers Compensation Insurance

Get a quote

Love it
Hanna R.
1708272180
Every year, BizInsure is my go to for general and professional liability insurance! Thenrates are unbeatable.
Calandra K.
1708044666
The agent was quick and efficient in generating a quote for my needs.
Theresa F.
1707895796
I enjoy working BizInsure they always answer all my questions and make sure i have the correct coverage for my business.
Prompt and professional service from Biz Insure. Thanks Leslie and Liza!
Bev G.
1707524454
Very easy to sign up for insurance.
Great company
Brown G.
1706896003
Fast and efficient!
Kim C.
1706746693
عالی
alireza J.
1706727364
It was great being able to get a policy that suits my company's need in less than 30 minutes. They were vey thorough. Very competitively priced.
Lynette C.
1706621476
I worked with Andrea for another start up business. She was very knowledgeable and help me pick the correct policy. Amazed at how quickly the process went.
Representative was very kind, helpful, and educated me well. I appreciated today's prompt service with confirmation that I was satisfied with what was provided to me.
Tina P.
1706224051
Great company for.your low cost business insurance needs.
constantin T.
1706156911
Staff was very fessional and friendly. I was able to get a quote and move forward within 20 minutes.
Pebbles S.
1706126428
Wonderful
Complete C.
1705788054
MUY BUENO
Super easy process.
Ashley G.
1704830227
It’s very easy to understand and at a very reasonable price.
Mary M.
1703780096
Professionalism, Quality, Responsive and budget friendly
B D
1703029371
Great rates, easy to understand and select appropriate coverage, can get in a jiffy
Brie C.
1702775397
I have been a customer of BizInsure for a few years now and I love it. There customer service is awesome and the prices are affordable.
Danyale W.
1702132165
Quick easy experience! The rep was knowledgeable & pleasant. Customer care was awesome to respond and clarify my concerns.
Kathy Ann A.
1702059151
bizinsurance makes purchasing Business Insurance...SIMPLE!
Andrea W.
1701380391
Great quality of Service ,faster and convenience way to pay at most. Thank you for your Service to my Healthcare Facility .
Quick and easy!!!!
Terry
1701319042
Great service! Easy process and very informative representative. Andrea was great and very patience with our process. I would recommend using them!!
Terrance R.
1700848536
Always and easy process. Thanks!
Gerald S.
1700244544
Renewal was quick and easy online
Angelita K.
1699752900
I had a great experience working with Andrea from BizInsure. She was extremely knowledgeable, helpful, and responsive throughout the entire process. She guided me through the different options available and helped me find the perfect home care professional liability insurance policy that suited my needs. Her professionalism and expertise made the entire experience smooth and hassle-free. I highly recommend working with Andrea and BizInsure for all your insurance needs.
Juliette S.
1699032636
Easy to submit an application and to get quotes
Simone S.
1698775217
I had the most pleasant prompt and professional experience of my life with Bizinsure. Everything was completed in record time, at an unbelievable cost…and my certificate of Insurance was promptly emailed to me. Most of all it was effective immediately. No hassle no back & forth, just great service highly recommend to all small businesses.
Marcia S.
1698407456
Excellent
advanced U.
1697824466
Great service. Very professional and cordial. Thanks
Jeremiah U.
1697064641
BizInure has been a great company for our insurance needs. I wish customers services was 24/7, that would make it a five stars
Novilette L. J.
1696828014
js_loader
Google Rating
4.7
Based on 242 reviews
×
js_loader