Commercial General Liability (CGL) insurance is non-negotiable for Texas contractors. If you're a general contractor, subcontractor, tradesperson, or handyman working on customer property, you're one accident or claim away from financial disaster without it.
What CGL Actually Covers
Bodily injury to third parties caused by your operations. A customer trips over your extension cord and breaks their wrist. Your helper drops a hammer that injures a passerby. CGL pays medical bills, lost wages, pain and suffering, and your legal defense.
Property damage you or your employees cause. You accidentally damage the customer's hardwood floor while moving equipment. A spark from your torch damages adjacent structures. Your ladder falls and damages the neighbor's vehicle. CGL covers the repair or replacement cost.
Personal and advertising injury. Libel, slander, copyright infringement in advertising, invasion of privacy, and wrongful eviction claims. This surprises many contractors—it's included in standard CGL.
Products-completed operations. If a job you completed causes injury or damage later (faulty wiring causes a fire three months after the install), CGL covers you. Critical for contractors.
Legal defense costs. CGL pays for your lawyers, court costs, and settlements. Even frivolous claims cost thousands to defend.
What CGL Does NOT Cover
Professional errors. Design mistakes, engineering errors, faulty advice. That's E&O (errors and omissions) insurance.
Auto accidents. You need commercial auto for your work trucks and vans.
Employee injuries. Workers' comp (or Texas non-subscriber alternative).
Your own tools and equipment. You need inland marine or tools & equipment coverage.
Intentional acts. Not covered.
Damage to work you're performing. Installation floater or builder's risk territory.
Why Most Clients Require CGL
In Texas, most commercial clients, general contractors, property managers, municipalities, and homeowner associations require proof of CGL before they'll hire you. Typical requirements:
• $1 million per occurrence / $2 million aggregate
• Clients listed as additional insureds on your policy
• Waiver of subrogation endorsement
• Primary and non-contributory language
• 30 days' notice of cancellation
Without a certificate of insurance meeting these requirements, you simply won't get the work.
What Does CGL Cost in Texas?
Rates vary by trade, revenue, claims history, and limits. Typical Texas contractor CGL annual premiums:
Handyman/general labor: $400-$900
Painters, landscapers, cleaners: $500-$1,100
Plumbers, HVAC, electricians: $700-$1,800
Roofers: $1,500-$5,000
General contractors/home builders: $2,500-$10,000+
Price depends heavily on annual revenue.
Getting CGL for Your Texas Contracting Business
TAP Insurance Texas specializes in contractor coverage. We work with carriers that understand the trades, including hard-to-place classes like roofers and tree service. We can quote CGL alongside commercial auto, tools coverage, workers' comp alternatives, and surety bonds.
Get a quote today. Call
(800) 666-2254, text
(817) 646-6700, or visit
tapinsuretx.com
