As a contractor in Texas, it’s important to protect your business with the right insurance coverage. From liability to property damage, there are a variety of risks that come with running a contracting business. Learn about the different types of Texas contractor insurance available and the costs associated with each option. Click here for contractors insurance quote.
Texas Contractor – General Liability Insurance.
General liability insurance is a must-have for any Texas contractor. This type of insurance protects your business from claims of bodily injury, property damage, and advertising injury. For example, if a client slips and falls on a job site, general liability insurance would cover the medical expenses and any legal fees associated with the claim. The cost of general liability insurance varies depending on the size of your business and the level of coverage you need, but it typically ranges from $500 to $2,000 per year.
Texas Contractor – Workers’ Compensation Insurance.
In addition to general liability insurance, Texas contractors should also consider workers’ compensation insurance. This type of insurance provides benefits to employees who are injured or become ill as a result of their job. It covers medical expenses, lost wages, and rehabilitation costs. The cost of workers’ compensation insurance depends on the size of your business and the level of risk associated with your industry. It typically ranges from $1,000 to $10,000 per year. It’s important to note that in Texas, workers’ compensation insurance is not required for most businesses, but it is highly recommended to protect both your employees and your business. Click here for sub-contractor information.
Commercial Auto Insurance.
In addition to general liability and workers’ compensation insurance, Texas contractors should also consider commercial auto insurance. This type of insurance provides coverage for vehicles used for business purposes, such as work trucks or vans. It covers damages and injuries caused by the vehicle, as well as theft and vandalism. The cost of commercial auto insurance depends on factors such as the number of vehicles insured, the type of vehicles, and the driving records of employees. It typically ranges from $1,000 to $5,000 per year. It’s essential to have this coverage to protect your business from financial loss in case of an accident or other incident involving your company vehicles.
Professional Liability Insurance.
Another important type of insurance for Texas contractors is professional liability insurance, also known as errors and omissions insurance. This coverage protects your business from claims of negligence or mistakes made in your professional services. For example, if a client claims that your work caused them financial loss, professional liability insurance can cover the costs of legal fees and damages. The cost of this insurance varies depending on the size of your business and the level of risk involved in your services, but it typically ranges from $500 to $2,000 per year. It’s indispensable to have this coverage to protect your business from potential lawsuits and financial loss.
Umbrella insurance is an additional liability insurance that provides extra coverage beyond the limits of your primary insurance policies. It can protect your business from catastrophic events that could result in large lawsuits or financial losses. Texas contractors should consider umbrella insurance because they often work in high-risk environments and are exposed to potential accidents or injuries. This coverage can provide additional protection for your business and assets in case of a lawsuit or settlement. The cost of umbrella insurance varies depending on the size and type of your business, but it typically ranges from $500 to $1,500 per year. It’s critical to consult with an insurance professional to determine the appropriate amount of coverage for your business needs.
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