Texas Contractor Insurance

Texas features an incredible amount of small businesses – 2,412,717 to be exact. And 290,989 are in the construction field, which means that this is a big industry for this state. So it’s no wonder that the economy in Texas has been thriving. The real gross state product in Texas grew at a quick 3.7 percent, which is better than the 2.2 percent growth that the U.S. had for its gross domestic product in 2013. (Source: BEA). And of course, unemployment in Texas has decreased, too, dropping from 6.2 percent in 2013 to 5.1 percent in 2014. That’s better than the national average of 5.8 percent. (Source: BLS). If you want to know more about successfully maintaining a construction business in this state, get to know how Texas general contractor insurance can protect you.


Texas Contractors Need The Following Insurance

Coverage for Third Party (GL): If your construction site or office ever gets any visitors, you need general liability. This portion of your Texas contractor insurance will pay off the medical bills of anyone who gets hurt while visiting your business property. It will even cover the repair or replacement costs when a visitor’s personal property such as their car is damaged on the premises. Without general liability, you could be sued by your guests for the cost of medical treatment or property repairs, so it’s an important aspect of your Texas contractor insurance.

Tools & Equipment Coverage (BOP): You likely can’t go long without using certain equipment or tools in this business, which means that you would be inconvenienced if those items were ever stolen or damaged. If you could not afford to immediately replace the tools of the trade if anything happened to them, you need tools & equipment coverage. This covers any tools or machinery you use for work, whether you are renting them or own them.

Employee Coverage (WC): If you employ anyone in your construction business, you need to make sure your Texas contractor insurance features workers compensation. This part of your policy is meant to pay for the medical treatment of workers who are injured in any way while on the job. It also applies if they get sick as a result of working for your company. Workers compensation can pay for lost wages and legal fees, as well.

Business Vehicle Insurance: With Texas being such a large state, you probably spend a lot of your time on the job driving. Whether you just run errands for your business or need to get to different construction sites in the area, protect yourself and your car with business vehicle coverage. You need to add this to your Texas contractor insurance because your own personal car insurance will not pay for the damages when you cause an accident as you are driving for your company.

Bond: The point of adding a surety bond to your Texas contractor insurance is to guarantee your construction services. Without a bond, you have to pay a fine if you do not fulfill the obligations to which you have agreed.