Contractor Insurance in Texas
Texas does not license general contractors, so your trade license, your contracts and public-project rules set your insurance requirements. Here are the state trade minimums, the workers comp certificate chain on public jobs, the Texas law that limits contract demands, and how your insurance and bond programs fit together.
Business Insurance › Contractors › Texas
We grew up in the trades, and contractors are the core of what we do. Grit places insurance and surety bonds for Texas contractors, from one-truck operations to general contractors bidding public work.
Texas contractor insurance comes in three layers: what the state and your trade license require, what your contracts require, and what keeps one bad job from ending the company. For how requirements compare across states, see our contractor insurance requirements 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.
What Are the Insurance Requirements for Contractors in Texas?
Auto liability at 30/60/25 or higher on every vehicle, and a TxDMV filing on trucks over 26,000 pounds. General liability at the minimum your trade license sets, if it sets one. Workers comp on government construction contracts, and wherever your contracts require it. Then whatever your contracts add, which usually means an umbrella and specific endorsements.
Does Texas Have a State Contractor License?
Not for general contractors. The Office of the Governor's business licensing guide says: "General contractors are not required to obtain a license to practice in Texas. A general contractor may be subject to local (county or city) requirements." The City of Austin puts it plainly: in Texas, anyone can be a general contractor, including homeowners.
The Texas Residential Construction Commission was abolished on September 1, 2009, and nothing replaced it.
The state does license trades. Electrical, air conditioning and refrigeration, mold and elevator contractors are licensed by TDLR. Plumbers are licensed by the Texas State Board of Plumbing Examiners. Cities such as San Antonio and Austin require contractor registration before permits.
Texas Trade License Insurance Minimums
| 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. |
These are license minimums. Most subcontracts start at $1,000,000 per occurrence. City registration adds its own rules; San Antonio examples are on our Texas general liability page.
Public Projects: The Workers Comp Certificate Chain
Texas lets private employers choose whether to carry comp. Public construction is where that choice ends.
When a Texas governmental entity, including a city, signs a building or construction contract, Labor Code 406.096 requires the contractor to certify in writing that it provides workers comp for each of its employees on the public project. Every subcontractor provides the same certificate to the general contractor, who passes it to the governmental entity. "Building or construction" covers buildings, bridges, roadways and public utility facilities, plus remodeling, repair and demolition.
DWC rule 28 TAC 110.110 spells out the duties. The contractor has to:
- provide its certificate before starting work, and a renewal certificate before the current one expires;
- collect certificates from every person providing services on the project before they start, and collect renewals within 7 days of receiving them;
- keep the certificates for the duration of the project and for one year after;
- notify the governmental entity within 10 days of any material change in coverage;
- post the required jobsite notice in English and Spanish; and
- flow the same requirements down by contract.
"Persons providing services" includes subcontractors, independent contractors, leasing companies, motor carriers and owner-operators, including anyone hauling or delivering equipment or materials. It does not include unrelated vendors such as food deliveries or portable toilet drop-off. A certificate is a representation that coverage is based on proper reporting of class codes and payroll, and a false one can bring administrative, criminal or civil penalties.
One exception: a sole proprietor, a partner, or a corporate officer with at least 25 percent equity in a covered business may be excluded from coverage under this rule (406.097(c)).
Non-subscriber rules and the full picture are on our Texas workers comp page. Whether a particular worker is an employee is a legal question; take it to an employment attorney.
Texas Laws That Shape Your Liability Coverage
Insurance Code chapter 151: anti-indemnity and additional insured limits
A Texas construction contract provision is void to the extent it requires you to indemnify, defend or provide additional insured coverage for another party's own negligence (151.102 and 151.104). Claims for injury to your own employees or your subs' employees are carved out (151.103). Single family houses, townhouses, duplexes and municipal public works projects are excluded (151.105), and the rule cannot be waived by contract (151.151). Have your attorney read the contract; we will tell you what your endorsements provide.
Wrap-up programs (OCIP and CCIP)
Chapter 151 also requires the principal to give you program details at least 10 days before contracting, and requires the program's GL to carry completed operations coverage for at least three years. More on both on our Texas general liability page.
Trucks, Trailers and the TxDMV Filing
Texas requires liability coverage of at least $30,000 per person and $60,000 per accident for bodily injury and $25,000 for property damage on any motor vehicle (Transportation Code 601.072). That is the 30/60/25 minimum.
Heavier trucks add a second layer. TxDMV requires a TxDMV number to operate a commercial motor vehicle or combination with a gross weight, registered weight or gross weight rating over 26,000 pounds, and private or for-hire carriers in that class must carry at least $500,000 and keep an active insurance filing in TxMCCS at all times while operating in Texas. A contractor's own dump truck, water truck or tandem equipment hauler can trigger it even if you never haul for anyone else.
If your truck crosses 26,000 pounds, TxDMV treats you as a motor carrier.
The Full Texas Contractor Program
| Coverage | What it covers | Why Texas contractors need it |
|---|---|---|
| General liability | Injury and property damage to others, including completed work | Required by several trade licenses and every contract |
| Workers compensation | Employee injuries | Required on government construction contracts; without it, injured employees can sue |
| Commercial auto | Trucks, trailers, hired and non-owned vehicles | 30/60/25 minimum; $500,000 filing over 26,000 pounds |
| Inland marine / equipment | Tools and equipment on site or in transit | GL and property do not cover your own equipment at the job |
| Builders risk | The structure under construction | Often required on new builds and remodels |
| Umbrella | Limits above GL, auto and employer's liability | How most contractors meet higher contract limits |
| Contractors pollution | Pollution caused by your operations | Excluded from standard GL |
Texas Contractor Bonds
Without a state GC license, your bond program and your insurance program are how a Texas contractor proves itself to a public owner. Public work typically requires bid, performance and payment bonds, and the surety looks hard at your insurance program when it sets your capacity. Our Texas contractor license bond page covers bond requirements in Texas.
Looking for public work to bid? Start with our guide to finding construction work in Texas. Need more bonding capacity? Take the Bond Scorecard.
Texas Contractor Insurance by Trade
- General contractors
- Excavation and concrete
- Roofing
- Electrical, plumbing and HVAC
- Landscaping and painting
How Much Does Contractor Insurance Cost in Texas?
Your trade sets most of it. After that it is payroll, revenue, subcontracted work and whether those subs carry their own insurance, your vehicles, your claims history, and the limits your licenses and contracts require. Our contractor general liability cost guide shows how GL cost varies by state and trade.
Frequently Asked Questions
What insurance does a Texas contractor need?
Auto liability of at least 30/60/25 on every vehicle, plus a TxDMV number and $500,000 filing for trucks over 26,000 pounds. General liability at the minimum your trade license sets, such as $300,000 per occurrence for TDLR electrical contractors. Workers comp on government construction contracts, and on most private contracts that require it. Most contracts add an umbrella and specific endorsements.
Does Texas require a general contractor license?
No. The Governor's office states that general contractors are not required to obtain a license to practice in Texas, though they may be subject to local requirements. The Texas Residential Construction Commission was abolished on September 1, 2009. Trades such as electrical, air conditioning and plumbing are licensed by the state.
Do Texas contractors need workers comp?
Private employers in Texas can choose whether to carry it, but contractors and subcontractors on government building or construction contracts must certify coverage for their employees on the project. Many private general contractors require it from subs as well.
What insurance does a Texas electrical contractor need?
TDLR requires general liability of at least $300,000 per occurrence, $600,000 aggregate and $300,000 products and completed operations aggregate. The electrical statute lets the contractor carry workers comp or elect not to, but a non-subscriber must file the DWC notice.
Do Texas contractors need a TxDMV number for dump trucks?
If the truck or combination has a gross weight, registered weight or gross weight rating over 26,000 pounds, yes. TxDMV requires a TxDMV number and at least $500,000 in insurance with an active filing, even for private carriers hauling their own equipment and materials.
Get Your Texas Contractor Program Quoted
Tell us your trade, your payroll, the licenses you hold, the cities you pull permits in and what your contracts require. We will build the insurance program and the bond program together.
Call the Grit team at (801) 505-5500 or start online.
