General liability insurance for Texas businesses
The policy clients, landlords, and general contractors usually ask for before you can start work in Texas.
What it covers
- Injuries to customers or visitors at your location or job site
- Damage you or your crew cause to someone else's property
- Injury or damage caused by a product you sold or work you completed
- Claims of libel, slander, or copyright infringement in your advertising
- Legal defense costs, usually paid in addition to your policy limit
- Medical payments for minor injuries to others, up to a small limit, without needing to prove fault
How it works in Texas
General liability is the foundation policy for most Texas businesses. It’s designed to pay, subject to the policy’s terms and exclusions, when someone outside your company is hurt or their property is damaged because of your work, your premises, or your product. It also typically covers the cost of defending you, which can be the biggest expense even when you did nothing wrong.
Texas law doesn’t require it for most businesses. Contracts do. Most commercial leases require it. General contractors generally require it from subs before they set foot on site. Cities ask for it with certain permits. Bigger clients put it in the master services agreement. The request usually comes with specifics: limits, additional insured status, a waiver of subrogation, and a certificate to prove it.
Contractors in Texas should pay attention to those contract requirements. Construction agreements here often ask for the general contractor to be named as an additional insured for both ongoing and completed operations, and the least expensive policies don’t always allow that. Send us the contract’s insurance requirements and we’ll quote carriers that can meet them.
One thing general liability doesn’t do: it won’t cover your own employees’ injuries (that’s workers comp), your own vehicles (commercial auto), or your own property (a business owner policy). It’s one piece of the picture, and usually the first.
What changes your price
- What you do: a bookkeeper and a roofer are priced very differently
- Your annual revenue or payroll, depending on the trade
- The limits you carry and the endorsements your contracts require
- How long you’ve been in business and any past claims
- Whether you use subcontractors, and whether they carry their own coverage
- Your location and, for contractors, the types of jobs you take
What we’ll ask you
- What your business does, in your own words
- Rough annual revenue and number of employees
- Any contracts or lease requirements you need to satisfy
- Whether you’ve had claims or been dropped by a carrier
If you need a certificate by a deadline, tell us the date. Binding often takes days rather than weeks, though it depends on the carrier and your trade.
Why go through an independent agent
Carriers have strong opinions about what kinds of businesses they’ll write, and those opinions change. A carrier that’s great for a landscaper might decline a roofer or a food truck. When we quote general liability, we’re matching your trade to the carriers that actually want it, which saves you from applying blind and being declined.
The ongoing part matters just as much. Certificates, additional insured requests, a new contract with higher limits, a change in what you do: those come up all year. You’ll have someone who already knows your business and can handle them without starting over.
Common questions
Is general liability insurance required in Texas?
The state doesn't require it for most businesses. But almost everyone you work with will. Commercial landlords, general contractors, city permit offices, and larger clients typically require a certificate of insurance showing general liability before they'll sign a lease or contract. In practice, it's often the first policy a Texas business buys.
What limits do I need?
A common request is $1 million per occurrence and $2 million aggregate. Some contracts ask for more, and some want your carrier to add the other party as an additional insured. Bring us the contract and we'll match the policy to it rather than guessing.
What's a certificate of insurance and how fast can I get one?
It's a one-page summary showing your coverage, limits, and policy dates. Clients ask for it constantly. Once your policy is in place, we can issue certificates, including ones that name a landlord or GC as additional insured where your policy allows it.
Does general liability cover my tools and equipment?
No. It covers damage and injuries you cause to others, not your own property. For tools, inventory, and equipment, you'd want a business owner policy or an inland marine (tools and equipment) policy. We'll point out the gap if your business relies on gear.
Does it cover mistakes in my professional work?
Not usually. General liability is about physical injury and property damage. If a client says your advice, design, or service cost them money, that's professional liability (errors and omissions), which is a separate policy. Consultants, designers, and bookkeepers often need both.
This page is general information about general liability insurance in Texas, not a description of any specific policy. What a policy covers, excludes, and pays is set by the policy documents the carrier issues, which control if anything here differs. Coverage availability and terms vary by carrier and by risk, and can change after this page was written. How we write and check these pages.
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