Every project brings risk. From jobsite accidents to property damage, contractors face exposures that can cost thousands—or even millions—without proper insurance. In Texas, while not every type of coverage is legally required, most contracts, cities, and clients demand proof of insurance before awarding a job.
Here’s a breakdown of the key insurance policies Texas contractors need and why each matters.
Essential Insurance Coverages for Contractors
General Liability Insurance
- Protects Against: Third-party bodily injury and property damage
- Limits: $1M/$2M standard; higher for large projects
- Required By: Almost every municipality and general contractor
Learn more on our General Liability for Contractors resource.
Workers’ Compensation Insurance
- Protects Against: Employee injury costs and lawsuits
- Texas Law: Not universally required, but often contractually mandated
- Tip: Public projects in Dallas or Fort Worth almost always require proof
Read our guide: Workers’ Comp for Contractors in Texas
Commercial Auto Insurance
- Protects: Trucks, vans, and vehicles used in business
- Average Cost: $1,200–$3,000 per vehicle annually
- Local Requirement: Dallas and Fort Worth require proof for certain permits
Builder’s Risk Insurance
- Protects: Materials and structures under construction
- Who Needs It: General contractors and developers financing projects
Inland Marine (Tools & Equipment)
- Protects: Tools in transit or on jobsites
- Who Needs It: HVAC, plumbers, landscapers, and trades relying on equipment
Professional Liability (Errors & Omissions)
- Protects: Design flaws, consulting errors, and job oversight mistakes
- Best For: GCs, engineers, or contractors with advisory roles
Texas-Specific Insurance Considerations
- No statewide workers’ comp mandate (rare among states)
- Certificates of Insurance (COIs) are required to pull permits in most cities
- Higher risk trades (roofing, electrical) may need higher coverage limits
For official guidance, see the Texas Department of Insurance website.
Choosing the Right Coverage Mix
- Start with general liability—every contractor needs it.
- Add workers’ comp if you employ staff.
- Protect business assets with commercial auto + inland marine.
- For larger jobs, add builder’s risk and umbrella liability.
- Work with an independent broker to compare multiple carriers.
Are you a mid-size to larger contractor with premiums in excess of 150,000 a year in GL, Commercial Auto or Work Comp? Visit our Group Captive Contractor Insurance in Texas to see tailored packages for contractors in Texas
Final Thoughts
Contractors in Texas face diverse risks, and the right insurance package depends on your trade, employees, and project size. Even though Texas laws are flexible, cities and clients often set higher standards.
Protect your business, win more bids, and stay compliant with a customized plan. Request a consultation today on our Contractor Insurance in Texas.
Ready to Protect What Matters Most?
Don’t wait for a claim or contract dispute to find out your coverage isn’t built for you.
Call EIS Texas today to schedule your personalized consultation.
Or click below to start your free risk assessment—no pressure, just professional guidance.
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Visit www.EIS-Texas.com
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- How Much Does Contractor Insurance Cost in Texas / North Texas?