What Kind of Insurance Does a General Contractor Need in Texas?

Nate Jones
6 days ago
2 min read

General contractors in Texas face unique risks on residential, commercial, and industrial job sites—especially in high-demand markets like Houston, Dallas, Austin, San Antonio, Fort Worth, and El Paso. Whether you’re renovating homes, managing crews, or overseeing large-scale construction projects, having the right insurance coverage is essential for protecting your business and meeting client expectations.

Below is a complete guide to the five most important insurance policies every Texas general contractor should carry, along with SEO-rich insights and external linking opportunities to strengthen your blog strategy.

1. General Liability Insurance

General Liability Insurance protects your business if a third party suffers property damage or bodily injury due to your work. Most Texas clients—including homeowners and commercial property managers—require proof of liability coverage before hiring a contractor.

This is the foundation of every contractor insurance package and is recommended by agencies such as the Texas Department of Insurance.

2. Workers’ Compensation Insurance

While Texas does not mandate workers’ compensation statewide, general contractors operating in busy cities like Austin and Dallas benefit significantly from carrying it. Workers’ comp covers:

Employee injuries
Lost wages
Medical costs

Many commercial projects in Houston, San Antonio, and Fort Worth require contractors to provide a certificate of coverage before starting work.

3. Commercial Auto Insurance

If your contracting business uses work trucks or vans, Commercial Auto Insurance is essential. It protects your vehicles used on job sites across Texas—from El Paso to Houston—from accidents, liability, and vehicle-related damage.

This is especially important for crews transporting tools, lumber, equipment, or materials daily.

4. Tools and Equipment Insurance

Tools and equipment are the backbone of your day-to-day operations. This coverage protects against:

Theft
Vandalism
Damage
Loss during transport

Contractors working in metro areas like Dallas and Fort Worth experience higher equipment theft rates, making this coverage crucial.

5. Professional Liability Insurance

Professional Liability Insurance (also known as Errors & Omissions Insurance) covers claims related to:

Project mismanagement
Design or planning errors
Contract omissions
Failure to meet project expectations

If your Texas contracting work involves consulting, planning, or supervising sub-contractors, this insurance protects you from costly liability disputes.

Where to Get Contractor Insurance in Texas

If you want fast, reliable, and affordable coverage, One Hampton Insurance specializes in contractor insurance packages built for Texas businesses. You can easily request a quote and ensure your company is protected before your next project.

Final Thoughts

The right insurance coverage not only protects your Texas contracting business—it strengthens client trust, improves your professional reputation, and keeps you compliant with job requirements in major cities like Houston, Dallas, Austin, San Antonio, Fort Worth, and El Paso. By carrying the five essential insurance policies listed above, general contractors can work with confidence and reduce financial risk.

If you're ready to get insured or want expert guidance, One Hampton Insurance is a trusted resource for Texas general contractors seeking reliable and affordable coverage.