Contractors Insurance in Texas

What is contractors insurance?

Texas contractors do hard work, and with that work comes certain risks. Contractors insurance can provide robust protection against what can happen on job sites, when going to/from job sites, and other places.

Contractors insurance policies are tailored to the specific needs of construction and trade professionals. These policies can help professionals protect against both property and liability risks.

What businesses in Texas should have contractor insurance?

Contractor insurance is an important protection for any Texas construction or trade professional to consider. Policies are purchased by both general contractors and artisanal contractors. Moreover, coverage can extend to many different kinds of work: construction, demolition, carpentry, masonry, electrical, plumbing, HVAC, etc.

In some cases, certain jobs may be available only if contractors are properly insured. Certain commercial and government customers require insurance, and homeowners occasionally ask for it too. 

When specific coverages and limits are required, an insurance agent who specializes in contractors policies can help make sure all requisite protections are in place.

What coverages are included within contractor insurance policies?

The exact coverages that are included within contractor insurance policies can vary, but most policies make certain common protections available;

What kind of commercial auto coverage do contractors need?

Insurance companies offer a variety of different commercial auto policies. Some of the main policy options are:

• Commercial auto policies, which primarily insure company-owned vehicles that are commercially registered
• Commercial truck policies, which usually include protections specifically for larger commercial trucks (e.g. non-pickup trucks)
• Commercial fleet policies, which usually include protections for five or more company-owned vehicles
• Hired and non-owned policies, which usually include liability coverage when companies use employee or leased vehicles

Contractors may need one or several of these policy types. An insurance agent who’s familiar with contractors’ coverage needs can help determine the right type of auto policies to get.

Do contractor policies include workers compensation coverage?

Workers compensation is an important protection that normally covers workplace injuries, often providing payment for lost wages and medical costs. Although Texas technically doesn’t require workers comp, contractors that hire employees are highly encouraged to get the coverage.

Sometimes workers comp is included within contractor policies, while other times it’s purchased separately through its own policy. In either case, the coverage is readily available.

How much are the premiums for contractor policies?

The insurance premiums that contractors pay vary, as they’re based on a multitude of factors. A contractor’s line of work, scope of projects, equipment and tools, vehicles, location, claims history and other factors can all impact cost.

Despite variances in cost, most contractors policies are affordable. An independent insurance agent can help contractors check different insurers’ policies to find out how much their insurance will cost.