General Liability Insurance in Texas

Texas at a glance

Statewide GC license

None exists in Texas

Texas is one of the few large states with no general contractor licensing requirement at all.

Electrical licensing

Texas Dept. of Licensing and Regulation (TDLR)

Anti-indemnity law

Texas Insurance Code Chapter 151

Limits how liability can be shifted from GCs to subcontractors via indemnification clauses.

Typical GC-required limits

$1M per occurrence / $2M aggregate

Standard across Houston, Dallas-Fort Worth, Austin, and San Antonio construction contracts.

Texas Has No Statewide General Contractor License

Texas does not license general contractors at all — a rarity among large states — so anyone can legally call themselves a general contractor without state-issued credentials. Certain specialty trades are the exception: electricians are licensed statewide through the Texas Department of Licensing and Regulation (TDLR), and plumbers are licensed through the Texas State Board of Plumbing Examiners, both of which require applicants to demonstrate financial responsibility that is typically satisfied with general liability coverage or a bond.

Because there's no general licensing backstop, Texas businesses rely almost entirely on the contracts they sign — with GCs, developers, property managers, and government entities — to define what insurance they must carry, which makes reading every contract's insurance clause especially important in Texas.

What Texas GCs, Landlords, and Municipalities Require

Given the absence of licensing-driven insurance minimums, Texas general contractors set their own standards, and $1 million per occurrence / $2 million aggregate GL with additional insured status and a waiver of subrogation is the norm across major Texas markets like Houston, Dallas-Fort Worth, Austin, and San Antonio. Commercial landlords across Texas's fast-growing metro areas similarly require tenants to name them as additional insured and provide proof of coverage before occupying space.

Texas's booming construction pipeline means certificate requests are constant and often urgent, since delayed proof of insurance can hold up a permit or a job start. Provident's Live Certificate program keeps a current certificate on hand automatically so Texas GCs and landlords get what they need without delay.

Texas's Anti-Indemnity Statute and Legal Climate

Texas has one of the most contractor-relevant liability statutes in the country: the Texas Anti-Indemnity Act (Chapter 151 of the Texas Insurance Code) limits how much liability a construction contract can shift from a GC onto a subcontractor through indemnification clauses, which affects how GL policies and additional insured endorsements are structured on Texas jobs. Texas courts have also seen substantial verdicts in commercial premises and construction defect litigation, particularly in Harris County, which factors into how carriers price GL for contractors and commercial property tenants statewide.

Texas's dram shop statute similarly creates exposure for bars and restaurants that serve visibly intoxicated patrons, and its broad geography means carriers also weigh regional differences — coastal wind/storm exposure near Houston versus inland urban premises risk in Dallas or Austin.

Controlling Your Texas GL Cost

Because Texas has no licensing backstop, carriers lean heavily on your contract history, subcontractor default record, years in business, and how your indemnification clauses are written under the Anti-Indemnity Act when pricing GL. You can help manage cost by using contracts that comply with Chapter 151, requiring your own subcontractors to carry adequate coverage, and bundling GL with a business owners policy where eligible. Provident's Texas-focused carrier relationships help find the right price for your specific trade and region.

Who we write this for in Texas

General liability FAQs for Texas