General Contractor Insurance in Texas

The Exposures That Define General Contracting

A GC supervises work performed by many trades, so your GL has to respond not only to your own crew but to the cascading liability that flows up the contracting chain when a subcontractor causes damage or injury. Texas courts apply a sophisticated-appliance test to determine when a GC is liable for a sub's work, and your contract language, indemnification provisions, and additional-insured status from each sub determine who pays first. A single sub with a lapsed or under-endorsed policy can expose your GL to a claim that should have been theirs.

General Liability for General Contractors

GCs require higher GL limits than subs. Standard is $1M per occurrence and $2M aggregate, but commercial and public works frequently require $2M per occurrence and $4M aggregate, layered with an umbrella to reach $5M or $10M total. Your GL must cover operations and completed operations because claims can surface years after project completion. For GCs, GL is typically rated on payroll and subcontractor cost — collecting sub COIs that name you additional insured can remove properly insured sub cost from your premium base, which is a direct premium savings.

Umbrella and Excess Liability

Umbrella coverage sits above your GL, auto, and employer's liability. For GCs bidding commercial or public work, umbrella limits of $5M–$10M are common requirements, and umbrella is surprisingly affordable — typically a few hundred dollars per million per year. It signals to project owners and lenders that you take risk management seriously and is often a hard contract requirement.

Workers' Comp for GC Operations

If you have direct employees on site — superintendents, laborers, carpenters — you need workers' comp. Texas does not require it for private employers, but project owners and lenders almost always do. Even a sub-only GC with no W2 employees often needs a workers' comp "if any" policy to satisfy contracts and to cover uninsured subs under your policy. Track your experience modifier — an EMR below 1.0 is a bidding advantage on public work; an EMR above 1.0 raises premium and can disqualify you from some projects.

Subcontractor COI Management

The sub-COI program is where GCs get burned. Require every sub to deliver a COI before mobilization showing $1M/$2M GL, additional insured via CG 20 10 and CG 20 37, waiver of subrogation, and primary/non-contributory wording, plus workers' comp with employer liability. Track every expiration date and collect renewals before lapse — an uninsured sub mid-project turns a covered exposure into an uninsured one on your GL. Many GCs use a COI tracking service or dedicated software to manage this at scale.

Performance and Payment Bonds

GCs on public works and large commercial projects typically must provide performance and payment bonds. The federal Miller Act requires them on federal projects over $100,000, and Texas state law requires them on public works over $100,000. Bond capacity is based on your financials, work-in-progress schedule, and credit — it is a guarantee, not insurance. If you bid public or large commercial work, establish a surety relationship before you need to bid.

What Project Owners and Lenders Require

• General Liability at $1M/$2M minimum (large commercial: $2M/$4M)
• Umbrella/excess of $5M–$10M depending on project size
• Workers' compensation with employer liability
• Additional Insured and waiver of subrogation from every sub
• Performance and payment bonds on public and large commercial work
• Builder's risk (property) coverage during construction

Frequently Asked Questions

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