Texas Drywall Contractor General Liability Insurance Cost & Coverage

Drywall general liability in Texas splits into hanging, taping/finishing, and texture — operations with different class codes and base rates. The defining drywall claim is a completed-operations defect: cracking or finish failure can cost several times the job value to repair. A correctly structured drywall GL reflects your actual operation and covers the defect claims that surface after finishing.

Drywall Class Codes Carriers Use

Carriers separate drywall into hanging (mid base rate, with lift and heavy-lift exposure), taping and finishing (lower rate), and texture (lower rate). Break payroll out by operation so each is rated at its own class code. A finishing contractor blended into a hanging rate overpays; a hanging contractor blended into a finishing rate is underinsured when a fall claim hits.

Completed Operations and Finish Claims

Drywall defect claims — cracking, joint-compound failure, texture defects — surface months after finishing. Drywall GL must include products and completed operations coverage, and the policy should not cap it with a short sunset. Verify the policy covers resulting property damage from a failed finish even when the cause is your workmanship.

Exclusions to Watch on a Drywall Policy

• Faulty workmanship exclusion — GL should cover resulting damage from a failed finish
• Subcontracted work exclusion — 1099 drywall crews may be excluded unless you add them as additional insureds
• Height or lift limitation — policies may cap coverage at a specific ceiling height
• Texture or acoustic-ceiling exclusion — verify if you perform that work

What Drives Drywall GL Cost in Texas

Base rate per $1,000 of payroll and subcontractor cost, modified by hanging-vs-finishing mix, residential-vs-commercial, and ceiling-height exposure. A finishing contractor with $150K payroll often pays $700–$1,400 for $1M/$2M. A commercial hanging contractor running $500K payroll can pay $2,000–$4,500 plus an umbrella. Subcontractor cost without sub COIs is charged at the highest drywall rate.

How to Lower Drywall GL Premium

• Separate hanging and finishing payroll for proper class-coding
• Collect COIs from 1099 drywall crews and name yourself additional insured
• Document lift and silica programs — carriers discount verified safety programs
• Carry an umbrella instead of inflating the GL aggregate