General Contractor Insurance in Texas
Texas has no state-mandated coverage for general contractors on record, but the recommended coverages below still apply.
Texas is the rare state where workers' compensation is optional, which makes the coverage choices below a genuine decision for general contractors rather than a box to tick.
The detail that sets Texas apart for anyone handling other people's animals is liability: the state follows a negligence standard when a dog bites, which is exactly why the coverage priorities below look a little different here than they would a state over.
How Texas regulates general contractors
Workers' comp · Optional
Texas is the only state where workers' compensation is optional for most private employers. A pet-care business can legally operate as a “nonsubscriber,” but opting out forfeits comp's liability shield and exposes the owner personally to employee-injury lawsuits — a live risk when staff handle animals that bite, scratch, or bolt. Nonsubscribers must file annual notices with the Texas Department of Insurance, Division of Workers' Compensation.
Dog-bite liability · Negligence (one-bite rule)
Marshall v. Ranne, 511 S.W.2d 255 (Tex. 1974)Texas has no dog-bite statute; liability follows common-law negligence and the “one-bite” rule. An owner or handler is generally liable only if they knew (or should have known) the animal was dangerous, or were negligent in restraining it. For a pet-care operator that raises the value of documented handling protocols and incident logs, since your own records can decide the negligence question.
Licensing & permits
Texas has no statewide license for pet sitters, dog walkers, or trainers. Dog and cat breeders with five or more adult intact female animals who breed them for sale must be licensed under the Texas Licensed Breeder Program (Occupations Code Ch. 802), administered by TDLR — a threshold lowered from eleven to five by SB 876, effective September 2023. Boarding kennels are regulated at the city/county level.
SOURCE · State statutes & regulators as cited · Last reviewed 2026-07
Texas coverage requirements
| Coverage | Required? | Minimum | Notes |
|---|---|---|---|
| Workers' Compensation | Optional | Statutory | Texas is the only state where workers' comp is optional for private employers. |
State regulator: Texas Department of Insurance
Coverage checklist
| Coverage | Requirement | Annual cost |
|---|---|---|
| Commercial AutoCA | Required | $1,456–$2,912/yr |
| General LiabilityGL | Required | $728–$1,872/yr |
| Workers' CompensationWC | Required | $2,600–$8,320/yr |
| Inland Marine / Tools & EquipmentIM | Recommended | $416–$1,248/yr |
| Business Owner's PolicyBOP | Optional | $832–$2,600/yr |
| Commercial PropertyCP | Optional | $832–$3,120/yr |
| Professional Liability / E&OPL/E&O | Optional | $832–$2,600/yr |
Cost breakdown
- ·Fleet size
- ·Vehicle type
Required for work trucks.
- ·Project values
- ·Crew size
- ·Masonry vs. framing
- ·Subcontractor oversight
Required by virtually every state license and project contract; often $1M/$2M limits or higher.
- ·Payroll
- ·Trade mix
- ·Experience mod
Required once you have employees; many project owners also require proof even for GCs without direct employees.
- ·Equipment value
- ·Job-site storage
Covers generators, scaffolding, and heavy tools at job sites.
- ·Office/shop value
If you have an office or shop.
- ·Office/shop ownership
If you own/lease an office or yard.
- ·Design-build work
- ·Project size
Relevant for design-build GCs.
Best carriers for general contractor
General Contractor insurance in Texas — FAQ
Do general contractors need workers' comp in Texas?+
In Texas, workers' comp is optional — you can legally run a general contractor business without it. But going without ("nonsubscribing") drops the legal protections comp provides and lets injured employees sue you directly, so most owners with staff still carry it. Solo operators with no employees aren't required to.
If a dog in my care bites someone in Texas, am I liable?+
Texas has no dog-bite statute; liability follows common-law negligence and the “one-bite” rule. An owner or handler is generally liable only if they knew (or should have known) the animal was dangerous, or were negligent in restraining it. For a pet-care operator that raises the value of documented handling protocols and incident logs, since your own records can decide the negligence question. That's why general-liability and animal-bailee coverage are worth prioritizing for general contractors working in Texas.
Does a general contractor need insurance?+
Yes — and at higher limits than most trades. General liability is required by virtually every state license and project contract, and workers' comp is required once you have employees. Most GCs carry $1M/$2M liability limits or more.
How much does general contractor insurance cost?+
General liability runs $700–$1,800+ per year for a small GC, and workers' comp $2,500–$8,000 depending on payroll and the trades you oversee. Total core coverage often reaches $5,000–$12,000 per year for a small crew.
Do I need workers' comp if I only use subcontractors?+
Many project owners require GCs to carry workers' comp even without direct employees, and you may be liable if an uninsured sub is injured on your site. Most states require WC once you have W-2 employees.
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