General Contractor Insurance in Texas
General Contractor Insurance is designed for general contractors, construction managers, remodelers, and builders. The risks involved can be very different from those faced by an ordinary household or general business, especially when subcontractors, jobsite injuries, property damage, contracts, completed operations, and project oversight are part of the exposure.
Coverage can be tailored to the individual situation. Insurance Source of Dallas can help clients in Texas compare available options from multiple insurance companies and review differences in coverage, limits, deductibles, and eligibility.
Why Do General Contractor Businesses Need Insurance?
General contractors coordinate people, materials, subcontractors, schedules, and customer expectations. Because responsibility can extend across an entire project, insurance needs often go beyond a basic general liability policy.
Insurance can help transfer some of these financial risks, but no policy covers every situation. The appropriate combination of coverage depends on the specific details of the risk and the insurance companies willing to consider it.
General Contractor Insurance Coverage Options
The coverage that may be appropriate varies by client. Depending on the situation, an insurance program may include several different policies or endorsements.
General Liability Insurance
General liability insurance may help protect against covered third-party bodily injury and property damage claims. It can be especially important when customers, vendors, or members of the public are exposed to your operations.
Commercial Auto Insurance
Commercial auto insurance may cover company-owned cars, vans, pickups, or trucks used for business. Coverage may include liability and physical damage options, depending on the vehicles and policy selected.
Workers’ Compensation Insurance
Workers’ compensation insurance may help pay eligible medical expenses and lost wages when an employee suffers a work-related injury or illness. Requirements and available options vary by state.
Contractors’ Tools and Equipment Coverage
Tools, portable machinery, and equipment can be expensive to replace after theft or a covered loss. Inland marine or contractors’ equipment coverage may help protect property that regularly moves between jobsites.
Umbrella or Excess Liability Insurance
Umbrella or excess liability insurance may provide additional limits above certain underlying liability policies when a covered claim exceeds those underlying limits.
General Contractor Insurance FAQs
Are subcontractors covered under a general contractor’s insurance?
Not automatically. General contractors should use written insurance requirements, certificates, additional-insured provisions, and subcontractor agreements.
Does general contractor insurance cover construction defects?
General liability may address certain resulting covered damage, but it is not a warranty for faulty workmanship and construction-defect exclusions can apply.
What is completed-operations coverage for a general contractor?
It addresses certain liability claims arising after contracted work has been completed, subject to policy terms and exclusions.
Does a general contractor need builders risk insurance?
Builders risk may be needed for property under construction, although responsibility for purchasing it depends on the contract and project.