Introduction: Why This Checklist Matters for Texas Contractors
Running a contracting business in Texas with more than $5 million in annual revenue means you’re operating at a scale where risk exposure is magnified. One uninsured loss, one missed coverage clause, or one poorly structured policy can result in catastrophic financial damage.
At Eastman Insurance Solutions – Texas, we specialize in helping trade contractors safeguard what they’ve built through tailored insurance and risk management programs. This checklist outlines the non-negotiable coverages and strategic considerations for large contractor firms working across the Lone Star State.
1. General Liability: The Bedrock of Contractor Protection
Every contractor knows general liability insurance is essential—but for firms doing millions in revenue, basic limits won’t cut it.
- Recommended limits: Minimum $2M per occurrence / $4M aggregate
- Add-ons: Completed operations, subcontractor coverage, and blanket additional insured endorsements
- Why it matters: Large projects mean larger contracts, and owners or GCs will often require higher limits to meet compliance standards.
“Learn how Eastman’s Risk Management Programs help firms prevent claims before they happen.”
2. Commercial Auto and Fleet Coverage
If your crews operate multiple vehicles, your commercial auto policy should include:
- Hired and non-owned auto coverage
- Drive-other-car endorsements for executives
- High combined single limits (CSL) for liability
- Coverage for permanently attached equipment
A single vehicle accident involving an employee on the clock could expose your company to millions in liability—especially if you’re self-performing work or transporting materials.
3. Workers’ Compensation: Beyond Compliance
In Texas, workers’ compensation isn’t mandatory—but for firms over $5M in revenue, it’s a business necessity.
- Protects your workforce and reputation
- Reduces exposure to employee injury lawsuits
- Demonstrates responsibility to clients and partners
You can also explore Group Captive Insurance Programs, which allow qualifying contractors to pool resources and share profits from strong safety performance.
“Explore our Group Captive Programs designed for Texas trade contractors.”
4. Inland Marine: Protecting Tools, Equipment, and Materials
Your tools and mobile equipment are constantly on the move—often representing hundreds of thousands in value. Inland marine insurance ensures you’re covered for:
- Tools and equipment in transit or at temporary job sites
- Leased or rented equipment
- Employee-owned tools used on company projects
5. Umbrella & Excess Liability: The Safety Net for Large Firms
A major claim can exceed your standard policy limits in seconds. That’s why large contractors in Texas should maintain an umbrella or excess liability policy with at least $5–10 million in additional protection.
This policy layers over your existing general liability, auto, and employer’s liability coverage to ensure your business remains secure—no matter the scale of the claim.
6. Professional Liability / Errors & Omissions
For contractors offering design-build or consultation services, professional liability insurance protects against allegations of faulty design, misrepresentation, or project delays. Even if you sub out the design work, plaintiffs often include everyone on the contract in a claim.
7. Cyber Liability: The Overlooked Risk in Construction
Modern construction firms store sensitive project data, employee info, and vendor payments online. A cyber breach could halt operations or expose financial records.
Consider a policy that covers:
- Ransomware attacks
- Business interruption
- Data restoration and notification costs
8. Surety Bonds and Licensing Requirements
Working on public projects or large private developments in Texas typically requires bonding capacity. Ensure your insurance partner helps you maintain:
- Bid, performance, and payment bonds
- Financial strength documentation
- Prequalification support for multi-million-dollar contracts
9. Contractor Risk Management Strategy
Insurance is just one part of the equation. True protection comes from integrating insurance with proactive risk management.
At Eastman Insurance Solutions, we go beyond placing policies. We help firms build safer operations through:
- OSHA compliance and safety audits
- Claims analysis and loss prevention
- Contract review and risk transfer strategy
10. Annual Review and Policy Audits
Large firms change fast—new equipment, expanded crews, new projects, or additional states of operation. Schedule an annual insurance review with your broker to confirm:
- All active policies are current and adequate
- Subcontractor and COI requirements are enforced
- Loss runs and claims trends are reviewed for renewal negotiations
Summary: Don’t Leave Gaps in a $5M+ Business
For Texas trade contractors operating at a high level, insurance isn’t just a line item—it’s a strategy.
A comprehensive insurance checklist ensures your company is positioned for growth, compliance, and long-term stability. The right partner doesn’t just sell policies—they build a plan around your unique risks and goals.
At Eastman Insurance Solutions – Texas, we combine decades of experience with a consultative approach to protect what matters most for contractors across the Lone Star State.
FAQs: Texas Contractor Insurance Checklist
Q: What insurance is legally required for Texas contractors?
A: Texas requires general liability and workers’ comp for certain projects, but larger firms should also maintain commercial auto, inland marine, umbrella, and professional liability coverage.
Q: How often should contractor insurance be reviewed?
A: At least annually—or anytime you add new equipment, vehicles, or project types.
Q: Are group captive programs a good fit for contractors?
A: Yes, especially for firms with excellent safety records and over $5M in revenue. Captives allow you to control costs, share profits, and build long-term stability.
Call to Action
Ready to make sure your Texas contracting business is fully protected?
Contact Eastman Insurance Solutions – Texas today to schedule a Contractor Risk Management Review and discover how our Group Captive Programs and Risk Management Services can help you build a safer, more profitable future.
Visit www.EIS-Texas.com
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