Texas licenses pest control businesses through the Texas Department of Agriculture, and the license cannot be issued without proof of insurance. This guide quotes what the state and three big cities say, as of October 2026, with a link to each source. 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 Structural Pest Control Act is Occupations Code Chapter 1951. Section 1951.312 is titled Liability Insurance; Exceptions. Subsection (a), through its first item, reads:
(a) The department may not issue or renew a structural pest control business license until the license applicant:
(1) files with the department a policy or contract of insurance, approved as sufficient by the department, in an amount not less than $200,000 for bodily injury and property damage coverage, with a minimum total aggregate of $300,000 for all occurrences, insuring the applicant against liability for damage to persons or property occurring as a result of operations performed in the course of the business of structural pest control on premises or any other property under the applicant’s care, custody, or control;
Item (3) of the same subsection lets an applicant file “a bond, certificate of deposit, or other proof acceptable to the department of sufficient funds in an amount not less than $300,000” instead. Subsection (b) says the duty continues after the license is issued:
(b) A structural pest control business license holder shall at all times maintain the insurance policy or contract or the security described by Subsection (a)(3) in the amount approved by the department. Failure to renew the policy or contract or maintain it or the security in the required amount is a ground for suspension or revocation of the license and a violation of this section.
Subsections (c) and (d) hand the numbers to the department:
(c) The department by rule may require different amounts of insurance coverage for different classifications of operations under this chapter.
(d) The department may adopt insurance requirements for certified noncommercial applicators or technicians.
In this chapter “department” means the Department of Agriculture, under Section 1951.002.
What the state rule says
The department’s rule is 4 Texas Administrative Code Section 7.123, titled Insurance Requirements, in the Secretary of State’s Texas Administrative Code viewer. Its figures are higher than the statute’s. Subsection (a) reads:
(a) Each business license applicant and certified noncommercial applicator license applicant must submit a certificate of insurance with proof of coverage on the form provided by the department in an amount not less than $500,000 for bodily injury and property damage coverage, with a minimum total annual aggregate of $1,000,000 for all occurrences. The insurance policy must insure applicant for damage to persons and/or property occurring as a result of operations performed in the course of the business of structural pest control to premises or any other property under applicant’s care, custody, or control. No new business license or certified noncommercial applicator license will be issued until insurance requirements are met. Policies must contain a cancellation provision for notification to the department not less than thirty (30) days prior to cancellation.
Subsection (c) covers a policy that pays claims:
(c) If payment of claims results in reducing the total aggregate of coverage below $1,000,000, the insurance carrier must notify the department and the licensee within ten (10) business days. The licensee must obtain additional coverage to meet the minimum requirements.
Subsections (f) and (g) cover the insurer and the license period:
(f) Only those insurance policies issued by insurers authorized by or registered with the Texas Department of Insurance will be considered to meet the requirements of this section.
(g) A structural pest control commercial business or noncommercial certified applicator must maintain general liability insurance with the required minimum coverage during the duration of the licensure period.
Subsections (d) and (e) exempt inactive certified applicators and technicians, and certified noncommercial applicators employed by governmental entities. Our guide to which Texas trades must carry liability insurance by law covers the other trades that have a state insurance rule.
What the big cities say
Section 1951.005(a) limits local rules on the product side:
Except as provided by this section, a municipality or other political subdivision of this state may not adopt an ordinance or rule regarding pesticide sale or use.
The section lists exceptions, including zoning for the sale or storage of pesticide products and fire or building regulations.
I searched the full text of the Austin, Houston, and San Antonio codes of ordinances for “pest control” in October 2026. The results I read were about mobile home park insect control, variances, trash and sanitation, landscaping, and zoning definitions. I found no section that sets insurance for a pest control business in any of the three.
I did not search the Dallas or Fort Worth code text for pest control, so I cannot say what those codes contain. A city ordinance can exist that my search missed. Ask the permit or health office where the work happens, and read the state license rule above first.
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.
The Department of Agriculture does not take any certificate. Rule 7.123(a) says “on the form provided by the department,” and the department publishes Certificate of Insurance form ALS-1101, revised 11/01/2023. The signer certifies that “I am a licensed Texas insurance agent or the insurer’s representative authorized to sign on behalf of the insurer identified above.” The form also says it “is issued for informational purposes only, does not confer any rights or obligations other than the rights and obligations conveyed by the policy referenced herein, and the terms of said policy shall control over the terms herein.”
A new pest control business hears a request for a COI from a few places:
- The Texas Department of Agriculture, when it issues or renews the business license under Section 1951.312.
- A property manager or building owner who wants proof on file before a vendor treats a unit. Our COI guide covers why they ask.
- A general contractor or homebuilder that hires the business as a subcontractor.
- A commercial customer whose contract asks for one. That requirement comes from the contract, not from the state rule.
If you own rentals, the vendor’s policy is the vendor’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.