Insurance in Texas

Texas does not require most contractors to carry insurance as a condition of state licensure, but the real market (general contractors hiring you, commercial customers, larger residential customers) will require proof before you step on site. Minimum coverages a new trades shop should expect to carry: - General liability. $1M per occurrence / $2M aggregate is the typical commercial job requirement. Covers bodily injury and property damage arising from your work. - Workers' compensation. Texas is unusual. Most states require workers' comp, but Texas allows employers to opt out (non-subscription). If you are non-subscriber, you lose common-law tort defenses against injured employees. Most contractors on commercial jobs still carry workers' comp because general contractors require it. - Commercial auto. Your personal auto policy almost certainly excludes business use. Hired and non-owned auto coverage protects against claims arising from employee-owned vehicles used on company business. - Tools and equipment (inland marine). Homeowners and auto policies exclude business tools beyond small dollar limits. Inland marine is the contractor-specific tool coverage. - Professional liability (errors and omissions). Rarely needed for pure trades work but useful if you do design-build or estimating for others. - Umbrella. A $1M or $2M umbrella is cheap relative to what it protects. Shop the market. Trade association programs (ABC, AGC, PHCC, MCA, NECA) often have group insurance programs that beat street-rate premiums for the trade. Never let coverage lapse during an active job. A one-day gap on a multi-month project is enough to void a claim if something happens during the gap.