Electricians in Texas work under a state license, and the license itself carries an insurance rule for the business side. This guide quotes what the state and five big cities say, as of October 2026, and links the source for each. I am a landlord and a cost estimator, not an agent or an attorney. Nothing here tells you what to buy or what limits to carry.
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What the Texas statute says
The Texas Department of Licensing and Regulation (TDLR) licenses electricians under Occupations Code Chapter 1305, the Texas Electrical Safety and Licensing Act. Section 1305.101(a)(1) tells the agency to write the insurance rule:
The executive director or commission, as appropriate, shall: (1) by rule establish the financial responsibility requirements for electrical contractors
Section 1305.159(a) lists what an applicant for an electrical contractor license must do. Two items touch insurance:
(2) establish proof of financial responsibility in the manner prescribed by the executive director; and (3) maintain workers’ compensation coverage for the contractor’s employees through an insurance company authorized to engage in the business of insurance in this state or through self-insurance, or elect not to obtain workers’ compensation coverage, as provided by Subchapter A, Chapter 406, Labor Code.
Read item (3) closely. The statute lets the contractor elect not to carry workers’ compensation. The numbers come from the rule.
What the state rule says
The rule is 16 Texas Administrative Code Section 73.40, titled Insurance Requirements. The link goes to the Legal Information Institute copy of the Texas Administrative Code. Subsection (a) reads:
Electrical contractors, electrical sign contractors, and residential appliance installation contractors are required to maintain at least the minimum general liability insurance coverages at all times to satisfy proof of financial responsibility. (1) The insurance must be at least $300,000 per occurrence (combined for property damage and bodily injury); (2) be at least $600,000 aggregate (total amount the policy will pay for property damage and bodily injury coverage); and (3) be at least $300,000 aggregate for products and completed operations.
Subsection (b) says who files proof and when:
A license applicant or licensee shall file with the department a completed certificate of insurance or other evidence satisfactory to the department when applying for initial and renewal licenses and upon request of the department.
Subsection (c) names the form:
Proof of the required general liability and workers’ compensation insurance can be submitted on an industry standard certificate of insurance form with a 30-day cancellation notice. Workers’ compensation coverage may be established by a certificate of authority to self-insure, or an applicant may state that it has elected not to obtain workers’ compensation coverage.
Subsection (d) gives customers a right to ask:
A licensed contractor shall furnish the name of the insurance carrier, policy number, name, address, and telephone number of the insurance agent with whom the contractor is insured to any customer who requests it.
Subsection (e) limits who can write the policy:
Insurance must be obtained from an admitted company or an eligible surplus lines carrier, as defined in the Texas Insurance Code, Chapter 981, or other insurance companies that are rated by A.M. Best Company as B+ or higher.
The rule names contractors. It does not name an individual master or journeyman electrician working for one. Our guide to which Texas trades must carry liability insurance by law reads the same rule next to the air conditioning, plumbing, and elevator rules.
What the big cities say
A city can add its own registration step on top of the state license, and the trades guide linked above quotes the statute that allows it. Here is what each of the five cities published, as I read it in October 2026. These are city web pages and forms, which can change without notice. Confirm with the permit office before you rely on any of them.
Dallas. The city’s electrical contractor registration packet, dated 5/15/2024, says:
MUST HAVE GENERAL LIABILITY INSURANCE WITH COMBINED SINGLE LIMITS OF LIABILITY IN THE AMOUNTS OF NOT LESS THAN $300,000.00 PER OCCURANCE FOR BODILY INJURY INCLUDING DEATH AND PROPERTY DAMAGE. MUST PROVIDE A CERTIFICATE OF INSURANCE INDICATING THE CITY OF DALLAS AS A CERTIFICATE HOLDER (SEE EXAMPLE). THE COMPANY NAME AND SITE ADDRESS OF COMPANY OFFICE MUST BE INDICATED ON THE CERTIFICATE.
The same packet warns that the permit system “WILL NOT ISSUE A PERMIT TO A CONTRACTOR THAT IS NOT REGISTERED, HAS AN EXPIRED REGISTRATION OR WHOSE INSURANCE HAS EXPIRED.”
San Antonio. The Development Services electrical page lists “Certificate of Insurance or Proof of Liability Insurance” among the documents for registering a state license. Under Certificate of Liability Insurance Requirements it says:
The following persons must maintain a certificate addressed to the city with the City of San Antonio listed as the Certificate Holder: Electrical contractor, Electrical sign contractor, Residential appliance installation contractor, The holder of an annual electrical maintenance permit. The certificate must carry the following types and amounts of insurance: Bodily injury liability insurance of at least $300,000. Property damage liability insurance of at least $300,000 for both general liability and completed operations insurance. This amount shall equal the same amount as the state, should requirements be changed by the state.
Houston. The city’s Administrative Code Provisions for the 2023 National Electrical Code has a section titled Insurance. It does not set an amount. Section 403.8 reads:
To apply for or renew a city contractor’s license, an applicant must provide evidence of the following to the Electrical Division: 1. That the applicant is a city licensed master electrician, line master electrician or sign master electrician or has such a person in his or her employment as a full-time employee; and 2. That the applicant complies with Section 1305.159(a)(3) of the Texas Occupations Code regarding workers’ compensation coverage.
The Houston registration page lists a master electrician license, a contractor license, and form CE-1189 as the documents to bring. It does not list a certificate of insurance.
Fort Worth. The contractor registration application marks some contractor types with “*Insurance Required” and “**Insurance and Bond Required.” Master Electrical carries neither mark. That is the form’s own marking. I have not read a Fort Worth ordinance that sets an electrical insurance amount.
Austin. The contractor registration page says “All contractors must submit a Letter of Authorization for any changes to contact information, company ownership, agent changes, or license and insurance status.” It names no insurance amount for electrical contractors. I have not confirmed whether Austin’s code of ordinances sets one, so ask Building and Trade Contractor Services.
What a certificate of insurance is
A certificate of insurance, or COI, is a one-page summary of a policy that the insurance agent prepares and sends to whoever asked. It is a document, not coverage. Our guide to what a certificate of insurance is and how to read one goes through the ACORD 25 field by field and covers what Texas Insurance Code Chapter 1811 says a certificate can and cannot do.
For an electrical contractor, the requests come from several directions:
- TDLR, under Section 73.40(b), at initial and renewal licensing.
- A city permit office, under the Dallas and San Antonio rules above, which name the city as certificate holder.
- A general contractor hiring the electrical contractor as a subcontractor.
- A property manager or building owner who wants proof on file before the work starts.
- A customer, who can use Section 73.40(d) to ask for the carrier, policy number, and agent.
If you own rentals, the contractor’s policy is the contractor’s. It sits beside yours, and our guide to commercial general liability coverage shows what that kind of policy is built to do. Ask a licensed agent how any of this applies to your job.
Want a licensed Texas agent to call you?
Leave your name and number. We pass your request to one licensed Texas insurance agency, and that agency calls you back. PolicyCompared does not sell insurance.