General Liability Insurance in Texas
Texas has no statewide general liability mandate. If you hold a TDLR or plumbing license, you have one anyway. Here are the license minimums, the city registration rules we have verified, and the Texas law that limits what a construction contract can make you insure.
Commercial Insurance › General Liability › Texas
General liability pays when someone who does not work for you is hurt, or their property is damaged, because of your business. In Texas, whether you are required to carry it depends on the license you hold, the city you register in and the contracts you sign.
This page covers the Texas side. For how the policy works in general, see our general liability insurance guide.
Written and reviewed by the Grit Insurance Group team · Last reviewed October 12, 2026
Grit is an independent brokerage licensed in Texas. We place commercial insurance and surety bonds for Texas businesses from our headquarters in Salt Lake City.
Is General Liability Insurance Required in Texas?
Not statewide. Texas does not require most businesses to carry general liability. Three things require it anyway:
- State trade licenses. TDLR and the Texas State Board of Plumbing Examiners set GL minimums for air conditioning, electrical, plumbing, mold and elevator licenses.
- City contractor registration. Some Texas cities require a certificate before they issue permits.
- Your deals. Landlords, lenders, general contractors and project owners write their own minimums into the paperwork. $1,000,000 per occurrence is the usual starting point.
Texas Trade License GL Minimums
These are the minimums each licensing agency publishes on its own application pages, certificate forms or statute:
| License | GL minimum | Details |
|---|---|---|
| Air conditioning and refrigeration contractor, Class A (TDLR) | $300,000 per occurrence / $600,000 aggregate / $300,000 products and completed operations aggregate | Must be kept in force at all times while the license is active. TDLR's certificate form does not accept binders or declarations pages. |
| Air conditioning and refrigeration contractor, Class B (TDLR) | $100,000 per occurrence / $200,000 aggregate / $100,000 products and completed operations aggregate | Class B covers cooling systems of 25 tons and under and heating systems of 1.5 million BTUs/hour and under. A holder of both classes can use one policy meeting Class A minimums. |
| Electrical contractor, electrical sign contractor, residential appliance installation contractor (TDLR) | $300,000 per occurrence / $600,000 aggregate / $300,000 products and completed operations aggregate | Insurer must be admitted, an eligible surplus lines carrier, or rated B+ or higher by A.M. Best, per TDLR's application. |
| Responsible Master Plumber (TSBPE) | Not less than $300,000 for all claims arising in a one-year period | Set by statute (Occupations Code 1301.552). TSBPE's form requires the coverage to include LP gas, medical gas and multipurpose residential fire sprinkler work if you perform it. |
| Mold remediation and mold assessment companies (TDLR) | Not less than $1,000,000 per occurrence | Kept in force for the license term. Self-insured alternative requires a net worth of at least $1,000,000. |
| Elevator contractors (TDLR) | $1,000,000 each occurrence of bodily injury or death / $500,000 each occurrence of property damage | Cited by TDLR to Health and Safety Code 754.015. |
Two details trip people up. First, the products and completed operations aggregate is part of the TDLR requirement, not an extra. A certificate that shows only per-occurrence and aggregate limits is incomplete. Second, these are license minimums. A $300,000 policy keeps the license active. It rarely satisfies a commercial contract, and it leaves a lot of a bad claim on you.
City Contractor Registration Minimums
Texas has no state general contractor license, so cities fill some of the gap. The requirements we have verified against each city's published rules:
| City | Who | GL minimum |
|---|---|---|
| San Antonio | Registered home improvement contractors | $300,000 per occurrence / $600,000 aggregate / $300,000 products and completed operations aggregate. City of San Antonio as certificate holder |
| San Antonio | City-licensed mechanical contractors | $300,000 / $600,000 / $300,000 |
| San Antonio | Registered homebuilders | $1,000,000 aggregate / $500,000 products and completed operations aggregate. City as certificate holder |
San Antonio requires registration with Development Services before permits are issued. Other cities, including Houston and Dallas, run their own registration. If you pull permits in several cities, tell us which ones and we will issue certificates that match each one. See our certificate of insurance guide for how certificates work.
Can a Texas Construction Contract Make Me Cover the Other Party's Negligence?
Texas limits what a construction contract can make you insure. Under Insurance Code chapter 151, a construction contract provision is void and unenforceable to the extent it requires you to indemnify, hold harmless or defend another party against a claim caused by that party's negligence or fault (151.102). The same goes for a contract or policy provision requiring additional insured coverage broader than that (151.104).
Know the limits of the rule:
- Employee injury claims are carved out. The rule does not apply to indemnity for bodily injury or death of an employee of the indemnitor, its agent or its subcontractor of any tier (151.103).
- Some projects are excluded entirely, including a single family house, townhouse, duplex or land development directly related to them, and a public works project of a municipality (151.105).
- It cannot be waived. A provision of the chapter may not be waived by contract or otherwise (151.151).
The rule applies to construction contracts entered into on or after January 1, 2012, when HB 2093 took effect. Contract interpretation is a question for your attorney. We will tell you what your policy and its additional insured endorsements actually provide.
What Are the Texas Rules for OCIP and CCIP Wrap-Ups?
Owner and contractor controlled insurance programs (OCIPs and CCIPs) have their own rules in chapter 151:
- 10 days' notice. The principal has to give enrolled parties the program details at least 10 days before contracting (151.003).
- Three years of completed operations. The program's general liability has to carry completed operations coverage for a policy period of not less than three years (151.051).
- Late information protection. If you opt out because the program information came late, the principal has to compensate you for the actual cost of your own insurance (151.006(d)).
A wrap-up does not cover everything. Your own policies still have to respond off the wrap site, and your auto, equipment and workers comp usually stay with you.
What a Texas General Liability Policy Covers
Texas GL policies use the same standard form as most states. They cover bodily injury and property damage to others, personal and advertising injury, small no-fault medical payments, and products and completed operations.
They do not cover your own employees (workers comp in Texas), your vehicles (commercial auto), your own equipment (inland marine), pollution (pollution liability), or professional mistakes (professional liability).
For a Texas non-subscriber, that first gap matters more than anywhere else. A GL policy excludes injuries to your own employees, so it will not defend an injured worker's negligence suit. Plan for that exposure separately.
How Much Does General Liability Insurance Cost in Texas?
There is no single Texas price. Your premium is set by your class of business, your revenue or payroll, your claims history, the limits and deductible you choose, and for contractors, how much of your work is subcontracted and whether those subs carry their own insurance. Uninsured subcontractors are commonly added to your premium at audit.
Contractors can see how cost varies by state and trade in our contractor general liability cost guide. For your own number, an application quoted with several carriers tells you what you will actually pay.
General Liability Is One Line of a Texas Program
- Workers compensation, elective for most Texas private employers but required on government construction contracts.
- Commercial auto at 30/60/25 or higher on every vehicle, plus the TxDMV filing on trucks over 26,000 pounds.
- Umbrella or excess liability for contracts above $1,000,000.
- A business owners policy for smaller businesses that qualify.
Contractors should start with our Texas contractor insurance page. Everyone else, see our Texas business insurance guide.
Frequently Asked Questions
Is general liability insurance required in Texas?
Texas has no statewide general liability requirement for most businesses. Several state trade licenses require it, including air conditioning, electrical, plumbing, mold and elevator licenses, and some cities require it to register contractors. Most leases and contracts require it as well.
How much general liability does a Texas AC contractor need?
TDLR requires Class A air conditioning and refrigeration contractors to carry $300,000 per occurrence, $600,000 aggregate and $300,000 products and completed operations aggregate. Class B requires $100,000, $200,000 and $100,000. Coverage must stay in force while the license is active.
Does a Texas plumber need general liability insurance?
A master plumber working as a Responsible Master Plumber must give the Texas State Board of Plumbing Examiners a certificate of general liability insurance of not less than $300,000 for all claims arising in a one-year period, under Occupations Code 1301.552.
Can a Texas construction contract require me to cover the other party's negligence?
Generally no. Insurance Code chapter 151 voids construction contract provisions requiring you to indemnify or provide additional insured coverage for another party's own negligence, with exceptions for employee injury claims and exclusions for single family homes, duplexes, townhouses and municipal public works. Have an attorney review the contract.
Does an LLC need general liability insurance in Texas?
Forming an LLC does not trigger a state general liability requirement, and it does not pay claims. The LLC itself can still be sued. Trade licenses, leases and contracts often require general liability whether or not you are an LLC.
Get General Liability Coverage in Texas
Tell us what you do, which licenses you hold, which Texas cities you pull permits in and what your contracts require. We will match limits, endorsements and certificate wording to each one.
Call the Grit team at (801) 505-5500 or start online.
