Starting a Contracting Business in Texas
Getting your first contractor insurance policy is one of the most important steps when starting a contracting business. Here's what you need to know.
What Insurance Do You Need to Start?
At minimum, most new contractors need general liability insurance. This covers third-party property damage and bodily injury claims — the most common risks you'll face working on client property.
If you have employees, you'll also need workers' compensation. If you drive a work truck, you need commercial auto. If you have a shop or office, commercial property or a BOP may make sense.
What Licenses and Bonds Do You Need?
License requirements vary by trade and municipality in Texas. Plumbers, electricians, and HVAC contractors need state licenses. Many trades require surety bonds as part of the licensing process.
We can help you understand what's required for your specific trade and get you bonded quickly.
How Much Will Insurance Cost?
For most new contractors, general liability starts around $500–$2,000/year depending on your trade. As an independent agency, we shop multiple carriers to find you the best rate. We'll give you straight answers about what you need and what you don't.