Commercial General Liability Insurance for Texas Contractors

Nate Mclaughlin • April 18, 2026

Texas General Liability Insurance - Wise County Texas

Yellow wet floor warning sign on a tiled floor with a caution symbol

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 Agency 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

A pen resting on a signature line, the page where a business owner agrees to repay a surety
By Nate Mclaughlin • November 4, 2026
A claim was filed against your surety bond. What the indemnity agreement says you owe, how a bond claim moves and what to do the day the surety's letter arrives.
A worn hitch ball on a vehicle's rear bumper, the point where a trailer hooks on as its own unit
By Nate Mclaughlin • November 3, 2026
Is your gooseneck covered if hail hits it or it is stolen from the yard? How owned trailers are scheduled, valued and covered on a Texas hotshot policy.
A building inspector with a clipboard, the code review that can change what a rebuild must include
By Nate Mclaughlin • November 3, 2026
Who pays when a city requires code upgrades after a fire or storm? How ordinance or law coverage works for Texas commercial buildings, in its three parts.
Two workers in hard hats, safety glasses and orange vests, the crew safety behind a claim history
By Nate Mclaughlin • November 2, 2026
Why did your workers' comp renewal go up? How a Texas experience modification factor is built from your claims, who has one, and what moves the number.
A dog looking through an iron yard gate, the family pet whose breed and bite history shape a claim
By Nate Mclaughlin • November 1, 2026
A dog bites a guest or a neighbor. What Texas homeowners liability coverage pays, how breed exclusions and bite history change it, and when limits run short.
A smoke detector on a ceiling, the small device between a close call and months away from home
By Nate Mclaughlin • October 31, 2026
If a fire or storm makes your Texas home unlivable, additional living expense pays the extra costs. What it covers, how long it lasts and how to claim it.
A bartender pouring a drink at a bar, the point where a host starts answering for a guest's night
By Nate Mclaughlin • October 30, 2026
Hosting a holiday party or serving drinks at your business? How host liquor and liquor liability coverage differ for Texas businesses, and what to check first.
Pallets of boxed freight stacked in a warehouse, a load that depends on reaching the right door
By Nate Mclaughlin • October 29, 2026
A driver delivers to a fake receiver. Does cargo coverage pay? How voluntary parting and fraud exclusions work for Texas carriers heading into holiday freight.
A plumber tightening a pipe fitting under a sink, finished work that can fail long after it is paid
By Nate Mclaughlin • October 29, 2026
A finished job can still bring a lawsuit. How completed operations coverage works for Texas contractors, what takes it away, and what to check before you switch.
A white hard hat beside a clipboard and building plans, the paperwork a contractor needs from a sub
By Nate Mclaughlin • October 28, 2026
Hiring a sub without a certificate can raise your GL and comp audit and leave you holding the claim. How Texas contractors vet subs before the first check.
Show More