Contractor Liability Insurance Cost in Texas: What You Pay and Why

A general contractor or property manager wants your certificate of insurance before you can start the job. Contractor liability insurance is general liability insurance written for contractors. It helps pay when your work injures someone or damages their property. Thumann Agency's general starting ranges in Dallas run from about $100 to $200 per month for light trades to $230 to $460 per month for roofers. Your trade, payroll and contracts set the final price.

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What Contractor Liability Insurance Covers

The Texas Department of Insurance describes commercial general liability insurance as protection against claims of bodily injury, property damage, and personal and advertising injury. For a contractor, two parts matter most:

• Premises and operations coverage. This helps pay for bodily injury or property damage that happens on your premises or because of your business operations, such as a ladder that falls through a customer's window.

• Products and completed operations coverage. This helps pay for injury or damage that happens away from your premises and is caused by your completed work, such as a leak that shows up after you've left the job.

Contractor liability insurance is one policy type with a trade-specific label. It's not the same as workers' compensation, commercial auto or professional liability, and none of those replace it.

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What Contractors Pay by Trade in Dallas

Industry matters more than your exact address. These are Thumann Agency's general monthly starting ranges for a standard policy with a $1 million limit per occurrence and a $2 million aggregate (the most the policy pays in a year):

• Light contractors (heating and air conditioning, electricians, plumbers, painters), small residential crew: about $100 to $200 per month

• General contractors and construction trades: about $150 to $300 or more per month

• Roofing contractors: about $230 to $460 per month

Roofing sits at the top because of fall risk, frequent property damage claims and a long list of policy exclusions. Smaller specialty trades, such as handyman or cleaning work, usually land lower. Ask us for a range that fits your exact trade.

Prices shown are general starting ranges for common Texas business policies. Your actual cost is set during the quote process and depends on your specific business. We don't guarantee pricing or savings.

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What Sets Your Contractor Liability Price

Insurance companies price the chance of a claim and how costly it could be. These factors move your premium most:

• Trade classification. Roofing, demolition and structural work carry more risk than interior finish work or landscaping. Getting your trade classified correctly matters.

• Payroll and revenue. The Texas Department of Insurance says most general liability policies are auditable. The premium you pay at the start is an estimate based on payroll, sales or units sold, and an audit after the policy can change it. Give an estimate that's as accurate as you can.

• Subcontractors. Using subcontractors who lack their own insurance can raise your cost.

• Type of work. Residential and commercial jobs carry different risks, and so does work at height or near customer property.

• Limits and deductible. Higher limits cost more. A higher deductible may lower the premium, and you'd pay more yourself when something goes wrong.

• Claims history. A clean record helps. Past claims can raise the price.

• Contracts. Some jobs require higher limits or added wording.

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What Contractor Liability Insurance Doesn't Cover

The Texas Department of Insurance lists common exclusions in these policies. Coverage varies by policy, so read yours:

• Damage to your own work. Policies generally exclude damage to the work you performed. There may be an exception when a subcontractor did the work.

• Damage to your product. If something you installed is faulty, the policy may help pay for harm it causes to the home, but it may not pay to replace the faulty item.

• Contract promises. Policies generally exclude liability you take on only through a contract, with some exceptions.

• Your employees' injuries. General liability isn't workers' compensation or employer's liability coverage.

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What Texas Requires of Contractors

Texas doesn't set one liability minimum for every contractor. Requirements come from your license, your contracts and your clients. Two examples from the Texas Department of Licensing and Regulation:

• Air conditioning and refrigeration contractors must keep commercial general liability insurance while the license is active. A Class A license requires at least $300,000 per occurrence and $600,000 aggregate. A Class B license requires at least $100,000 per occurrence and $200,000 aggregate.

• Electrical contractors must keep at least $300,000 per occurrence and $600,000 aggregate.

Those are state minimums for licensing, and many general contractors and property managers ask for more. Read the insurance clause in every contract.

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Workers' Compensation: How the Texas Law Works

Texas lets most private employers choose whether to carry workers' compensation insurance. Employers who choose not to are called non-subscribers. According to the Texas Department of Insurance, Division of Workers' Compensation, non-subscribers lose the protection of statutory limits on liability and may be sued by injured employees. In 2024, 24 percent of Texas employers were non-subscribers, and 13 percent of employees worked for one.

Electrical contractor license applicants must submit proof of workers' compensation coverage, a certificate to self-insure, or a statement that they chose not to carry it. This is a decision to talk through with an attorney. For how coverage works, see our workers' compensation page.

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Subcontractors and Certificates of Insurance

If you hire subcontractors, ask for their certificates before they start. A certificate of insurance shows that coverage exists. It doesn't change the policy. Texas also limits what a certificate can say. The Texas Department of Insurance says a certificate can't refer to insurance requirements in another contract, such as a construction contract. It also says that if a policy has only a blanket additional insured endorsement, the certificate can state that endorsement but can't name the holder as an additional insured.

That's why your agent should send the endorsement wording when a contract asks for additional insured status. Our guide on what a certificate of insurance is explains the basics. Existing clients can get same-day certificates from us.

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Dallas-Fort Worth Contractor Risks

Weather shapes the work here. The National Oceanic and Atmospheric Administration's Storm Events Database lists 51 hail events in Dallas County in 2023, including 11 with hail two inches or larger, plus 28 in 2024 and 16 in 2025. Flash flooding adds to it: the same database lists 44 flash flood events in Dallas County in 2025. Storm seasons can mean more roofing, exterior and water-damage repair work, along with more falls and property damage on job sites.

If your crew works after storms, tell your advisor so your policy and trade classification fit the work. Commercial clients in Dallas-Fort Worth, from property managers to general contractors, often ask for proof of insurance before the first day on site, so keep your certificate request ready.

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How to Lower Your Contractor Liability Cost

You can't set the price, but you can give insurance companies a better picture of your business:

• Estimate payroll and sales carefully, so an audit doesn't surprise you.

• Collect certificates from subcontractors before they start work.

• Write down your safety steps. Training, ladder rules and job-site checks show you manage risk.

• Keep your claims history clean and fix recurring problems.

• Choose limits that match your contracts, not more and not less.

• Compare insurance companies. Underwriting varies, and as an independent broker with access to more than 80 carriers, we compare options for you.

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How Thumann Agency Helps Dallas Contractors

We've worked with Dallas businesses since 1996. You get a dedicated advisor, not a call center, and an annual renewal review so your coverage keeps up with your jobs. Start with our contractors insurance page or our general liability insurance page. If you want the full coverage picture, our business insurance hub lists every line we place. For the wider cost picture, read our guide to general liability insurance cost in Texas.

I am glad I found a company that offers great customer service. I have called many companies and a lot don't even return my phone call. Customer service here is definitely five stars.

Mr. Larry Bailey, Four Seasons Gutter Protection | Google | ★★★★★

Talk to Us about your trade and the contracts you're bidding, or Get a Quote.

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Frequently Asked Questions About Contractor Liability Insurance

Does contractor liability insurance cover my work truck?

No. A work truck needs commercial auto insurance, which is a separate policy. Contractor liability insurance responds to injury or damage from your work and operations, while commercial auto responds to accidents involving your vehicles. If your truck carries tools or equipment, ask about that coverage too. Our commercial auto page explains how it works.

Does it cover my tools and equipment?

Usually not. General liability helps with claims from other people, not with theft or damage to your own tools. Contractor equipment is usually covered under inland marine coverage, which protects property kept on land and property that moves between locations. Ask your advisor how to cover tools that travel between job sites. Mention their total value and where they're stored, because both affect the options.

Can a new contractor with no claims history get coverage?

Often yes. Insurance companies look at your trade, payroll, experience and the work you plan to do, and a short history means they have less to review. Tell your advisor when you started, who has worked for you and what jobs you've done. Some insurance companies decline new businesses in certain trades, so comparing several matters.

What should I send to get a contractor quote?

Send your trade and the work you do, expected annual revenue and payroll, number of employees, how often you use subcontractors, the limits your contracts require and any claims from the past few years. If a general contractor sent an insurance requirements page, send it too. It helps us match the policy to the job.

Do I need this insurance if I work as a subcontractor?

Many general contractors require subcontractors to show proof of general liability insurance before work starts, and some require higher limits or additional insured wording. Even without a requirement, a job site claim can reach you directly. Read your subcontract's insurance clause, then send it to us so the policy and certificate match it.

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Ready to Compare Contractor Liability Quotes in Dallas?

Tell us your trade, your payroll and the contract you're trying to win. We'll compare options and help get your certificate ready. Get a Quote or Call Us at (972) 991-9100.