Commercial Lines · Insights

How much general liability insurance does a Texas contractor actually need?

Quick answer

There's no single statewide legal minimum for general liability in Texas, so the real number is usually set by your contracts, not the law. Most commercial leases, general-contractor agreements, and municipal bid packages call for at least $1 million per occurrence, and it's worth checking the specific paperwork for each job rather than assuming one policy limit fits every contract.

General Liability Williamson · Travis · Burnet counties · statewide TX

Why the number comes from contracts, not statute

Texas doesn't set a blanket general liability minimum the way it does for auto liability. Instead, whoever is on the other side of the contract — a property owner, a general contractor, or a municipality — specifies what they require as a condition of working with them. The City of Austin's own contractor insurance requirements, for example, call for at least $1,000,000 per occurrence in commercial general liability coverage; $1 million per occurrence paired with a $2 million aggregate is the combination most GCs, landlords, and bid packages default to as their baseline ask.

Where contractors actually get caught out

The most common problem isn't carrying too little coverage in the abstract — it's carrying a policy that doesn't match what a specific contract requires: the wrong aggregate structure, a missing additional-insured endorsement naming the property owner or GC, or a certificate that expires mid-project. Any of those can hold up a certificate of insurance even when the underlying coverage is otherwise solid.

What to check before bidding or signing

Read the insurance section of the contract or bid package directly rather than assuming a “standard” GL policy will satisfy it, and ask specifically about additional-insured status, waiver of subrogation, and per-project aggregate requirements — all fairly common asks on Texas construction and commercial work that a generic policy doesn't automatically include.

Related coverage

Where this usually connects to a policy

This is general information, not a coverage determination for your specific policy or property — the honest next step is a quick conversation with a licensed agent about your actual situation.

A few more questions on this topic

Is $1 million per occurrence enough for every job?

It's the common baseline, but larger commercial projects or higher-risk trades sometimes require $2 million per occurrence or more, plus an umbrella on top — the contract itself is the source of truth, not a general rule of thumb.

What does “aggregate” mean versus “per occurrence”?

Per-occurrence is the most a policy pays for a single covered incident; aggregate is the total cap across all claims in the policy period (or, on some policies, per project). A contract can specify either or both, so it's worth confirming which applies.

Do I need to add a client or property owner as an “additional insured”?

Very often, yes, when a contract calls for it — it's a specific endorsement, not something a standard policy includes automatically, and it's one of the most common reasons a certificate of insurance gets rejected.

Have a specific situation to talk through?

Tell us what's going on and we'll walk you through how it actually applies to your policy.

Get a Quote Call (512) 792-4220