Texas Electrical Contractor License & Insurance Guide

Electrical is one of the few trades Texas licenses at the state level, and it is the only trade where state law ties the license to an insurance minimum. The Texas Department of Licensing and Regulation (TDLR) issues the Electrical Contractor license and requires $300,000 in general liability to maintain it. Layered on top are city electrical permits and the higher limits GCs demand. An electrical contractor who skips any layer risks license discipline and uninsurable claims.

TDLR Electrical Contractor License

The TDLR Electrical Contractor license is required to advertise, bid, or perform electrical work in Texas. The license requires a Master Electrician as the responsible party, continuing education, and renewal. TDLR also licenses Master, Journeyman, and Apprentice Electricians individually. A contracting business must designate a Master Electrician; without one, the contractor license cannot be maintained.

The $300,000 GL Minimum

Texas Administrative Code requires electrical contractors to carry GL of at least $300,000 per occurrence. That is a license floor, not a contract limit — commercial GCs and many municipalities require $1M/$2M before issuing permits or allowing site access. Carry limits that meet your contracts, not just the TDLR minimum.

City Electrical Permits

Most Texas cities require an electrical permit for installation and major repair, and the permit application requires a licensed electrical contractor and proof of GL insurance. Cities including Arlington, Fort Worth, Dallas, Houston, Austin, and San Antonio commonly require GL minimums above the TDLR floor before issuing an electrical permit. Permitted work is inspected, which protects the completed-operations claim.

Insurance That Gates Electrical Work

• General Liability of at least $300,000 (TDLR floor), typically $1M/$2M for commercial work
• Completed operations coverage for latent fire defects
• Workers' comp or a policy-with-no-employees for GC and permit requirements
• Commercial auto for loaded electrical trucks
• Inland marine for multimeters, thermal cameras, and wire pullers
• High-voltage or solar coverage if you perform that work

Records to Keep

• TDLR Electrical Contractor license and responsible Master Electrician license
• Journeyman and Apprentice licenses for every employee performing electrical work
• GL declarations showing at least $300,000 and completed operations
• Workers' comp certificate and owner-exclusion election
• City electrical permits and inspection records