Pen-and-ink Texas scene: a tower crane over a framed commercial building on one side, a water tower and a tall live oak beside a pickup on the other.

Texas general contractor insurance

building in
Texas? here’s
what you need.

City rules, the comp choice and project coverage, in plain English.

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MARKETS WE PLACE THROUGH

the short answer

Texas has no statewide general contractor license, but cities can require registration and permits, and electrical, plumbing and mechanical work carry their own state licenses. There’s no statewide GC insurance minimum either, so the city, the owner and the contract set the limits for each job.

what Texas requires.

The rules that come with building here.

License: No statewide general contractor license. Cities can require registration before permits; Austin, for example, registers contractors before a building permit. Electrical, plumbing and mechanical trades are licensed separately.
Insurance requirement: No statewide GC minimum. A specialty trade’s licensing minimum, like the electrical one, isn’t a rule for general contractors.
Workers’ comp: A choice for most private employers. Private employers on government construction projects must cover employees working on the project.
General liability: No state rule. The city, the project owner and the contract set the limits and endorsements.

Sources: City of Austin Development Services, Texas Department of Insurance. Last reviewed September 2026.

what your customers will ask for.

Tap a coverage to see what it does on a GC’s project and who asks for it.

What it covers

general liability.

Damage to someone else’s property or injuries to people who aren’t your employees, like a visitor who trips over materials on site.

Who asks: Owners, developers and cities, usually in the insurance exhibit with additional insured wording.

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what’s different about
building in Texas.

The city is the gate.
With no state GC license, local rules decide. Austin, for example, requires contractor registration before a contractor is tied to a building permit. Check each city where you build.
Your trades are licensed.
Electrical, plumbing and mechanical work run under state licenses of their own. Know who on the project holds them, and collect their certificates before they start.

good to know.

Straight answers for Texas general contractors.

Do general contractors need a license in Texas?

Not from the state. Texas has no statewide general contractor license. Cities can still require registration and permits, and Austin, for example, requires contractor registration before a building permit. Electrical, plumbing and mechanical work carry their own state licenses, so check who on your project holds them before the work starts.

Do Texas general contractors need general liability insurance?

There’s no statewide general contractor insurance minimum. The city, the project owner and the contract set the limits and endorsements for each job. Don’t borrow a specialty trade’s rule, like the electrical license minimum, as a rule for general contractors. Owners commonly ask for general liability in the insurance exhibit, often with additional insured wording.

Do Texas general contractors need workers’ comp?

Most private Texas employers can choose whether to carry workers’ comp. Private employers on government construction projects must cover employees working on the project. Choosing not to carry it comes with obligations of its own, and owner contracts often ask for it anyway, so review each contract before you bid.

Sources: City of Austin Development Services, Texas Department of Insurance. Last reviewed September 2026.

Insurance words, in plain English: waiver of subrogation · certificate of insurance · additional insured · primary and noncontributory · hold harmless agreement · contractual liability · per-project aggregate · completed operations