What is contractors insurance?

Contractors know all too well how many risks their businesses are exposed to. From worksite injuries to natural disasters, any number of events could result in a costly lawsuit or extensive property damage. Contractors insurance can help Texas contractors safeguard against many of the risks they face.

Contractors insurance offers tailor-made coverage for those in construction and the trades. Policies usually come with a variety of coverages, which can be customized based on a contractors work.

What Texas businesses need contractors liability insurance?

Most contractors, construction companies, and tradespeople in Texas should have contractors liability insurance. Without coverage, a single incident could have dire financial consequences. Coverage could help pay attorney fees, court fees, and any settlement that’s agreed to.

In addition to contractors liability insurance, property insurance for a business’s assets is also broadly recommended.

Of course, there are many different businesses in construction and the trades. Some examples of the various businesses that might purchase this type of policy include

  • General contractors, subcontractors, demolition crews
  • Residential developers, home builders, residential remodelers
  • Commercial developers, commercial construction companies
  • Specialist contractors (e.g. marine construction companies)
  • Roofers, carpenters, plumbers, electricians, HVAC businesses
  • Landscapers working on large-scale projects


An insurance agent who knows contractors policies well can help find a policy thats well-suited for a particular type of construction or trade work.



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What contractor liability insurance protections are important?

There are several contractor liability insurance protections that businesses might need. Some of these include

  • General Contractors Liability Insurance – Normally covers everyday accidents that lead to third-party injuries or property damage. Could cover slip-and-falls at the contractor’s facility or construction site, for example.
  • Commercial Auto InsuranceNormally covers a contractor’s work trucks and vans, typically providing both damage and liability protection in the event of an auto accident.
  • Commercial Umbrella Insurance – Normally covers lawsuits and settlements that exceed the limits of other contractor liability insurance coverages.

What property coverages are important for contractors to have?

What property coverages contractors need depends on what assets they have and use. Some protections to consider are

  • Commercial Property InsuranceMay insure structures, such as buildings and garages owned by a contractor. Usually usually also covers equipment, materials, and tools when they are at the premises.
  • Builders Risk InsuranceMay insure against risks specific to construction projects, typically covering completed work, equipment, materials, and tools at the construction site.
  • Inland Marine Insurance – May insure items like equipment, materials, and tools, when they are transported to/from construction sites.
  • Equipment Breakdown Insurance – May insure against unforeseen breakdowns of crucial equipment, often covering emergency repair costs to minimize delays in construction.

What types of construction and trade work do contractors policies cover?

Contractors policies are available for most types of construction and trade work. Policies are readily available for new builds, renovations, remodels, additions, installations, and repair work.

Can contractors policies cover multiple job sites?

Many contractors policies are able to provide coverage across multiple job sites. An insurance agent who knows contractors policies well can see whether a particular policy will cover more than one site.

Contractors Insurance Texas

Do general contractor policies extend coverage to subcontractors?

Whether subcontractors have any coverage under a general contractor’s policy varies.

Some general contractor policies extend coverage. Subs might be covered as a standard feature, or covered if listed as an “additional insured.” An additional insured is someone who can file a claim against a policy, despite not being the actual policyholder.

Other general contractors do not offer coverage. General contractors could also be unwilling to list subs as additional insureds, even when that is an option.

To better understand whether they have any coverage from a general contractors policy, subcontractors can work with a knowledgeable agent. An insurance agent who’s well-versed in contractor liability and property insurance will be able to check coverages.

How can Texas contractors get contractors insurance?

If you’re a Texas contractor and need insurance, contact the independent insurance agents at WISE Insurance Group. Our agents will work with you to find a contractors insurance policy that offers solid protection.

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