Texas does not have one law that says every contractor needs liability insurance. It has separate rules for separate trades, written by two different agencies. This guide quotes each rule as written, as of October 2026, so you can read the actual numbers instead of a summary of them.
Two agencies matter here. The Texas Department of Licensing and Regulation (TDLR) licenses electricians, air conditioning and refrigeration contractors, and elevator contractors. The Texas State Board of Plumbing Examiners licenses plumbers. I am a landlord and a cost estimator, not an agent or an attorney. This guide explains what the rules say. It does not tell you what policy to buy.
Electrical contractors
Under 16 Texas Administrative Code Section 73.40, the TDLR rule on insurance requirements for electricians, 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 (d) of the same rule says 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.” The rule applies to contractor licenses. An individual master or journeyman electrician working for a contractor is not named in it.
Air conditioning and refrigeration contractors
Texas Occupations Code Section 1302.102 sets the rule: “The commission by rule shall set insurance requirements for a license holder under this chapter.” The rule itself is 16 Texas Administrative Code Section 75.40, and it splits by license class. Subsection (a) reads:
Class A licensees must maintain commercial general liability insurance at all times during a license period: (1) of at least $300,000 per occurrence (combined for property damage and bodily injury); (2) of at least $600,000 aggregate (total amount the policy will pay for property damage and bodily injury coverage); and (3) of at least $300,000 aggregate for products and completed operations.
Subsection (b) sets the Class B floor:
Class B licensees must maintain commercial liability insurance at all times during a license period: (1) of at least $100,000 per occurrence (combined for property damage and bodily injury); (2) of at least $200,000 aggregate (total amount the policy will pay for property damage and bodily injury coverage); and (3) of at least $100,000 aggregate for products and completed operations.
Section 1302.102(b) lets the executive director “waive the insurance requirements for a license holder who does not engage in air conditioning and refrigeration contracting for the public.” Under Section 75.40(f), a licensee with that waiver “cannot perform or offer to perform air conditioning and refrigeration contracting under his license with the general public.”
Elevator contractors
The TDLR elevator program registers contractors, and 16 Texas Administrative Code Section 74.40 sets a different structure. Subsection (a) reads:
A contractor must maintain general liability insurance at all times during a registration period to satisfy proof of financial responsibility of: (1) not less than $1,000,000 for each single occurrence of bodily injury or death; and (2) not less than $500,000 for each single occurrence of property damage.
It is the highest stated floor of the trades in this guide, and it separates bodily injury from property damage instead of combining them.
Plumbers
Plumbing sits under the Texas State Board of Plumbing Examiners, and the requirement is in statute, not only in a rule. Occupations Code Section 1301.3576 reads:
Before a master plumber works as a responsible master plumber, the master plumber must provide the board with a certificate of insurance that meets the requirements of Section 1301.552.
Section 1301.552 says what that certificate must show:
The certificate of insurance must: (1) be written by an insurer authorized to engage in the business of insurance in this state or an eligible surplus lines insurer, as defined by Section 981.002, Insurance Code; (2) provide for commercial general liability insurance for the responsible master plumber for a claim for property damage or bodily injury, regardless of whether the claim arises from negligence or on a contract; and (3) provide coverage of not less than $300,000 for all claims arising in a one-year period.
The same section tells cities what to do with it. A political subdivision that requires a plumbing permit “shall verify through the board’s Internet website, or by contacting the board by telephone, that the responsible master plumber has on file with the board a certificate of insurance.”
Where Texas sets no state requirement
The TDLR home page lists its regulated industries. As of October 31, 2026, general contractors and roofers do not appear on it, and I found no state insurance rule for either. That is a statement about what the state requires, not about what a job requires. Lenders, property owners, commercial clients, and cities can all ask for a certificate of insurance as a condition of work.
The list is not a complete catalog of every Texas trade. I left out any trade where I could not confirm the insurance rule in the primary source. If your trade is not here, ask the agency that licenses it, or ask a licensed agent.
Cities can add their own rules
State licensing does not stop a city from regulating the same trades. Occupations Code Section 1305.201 says the electrician chapter “does not prohibit a municipality or region from regulating electricians” by inspections, examinations, or municipal licenses. For air conditioning work, Section 1302.052 says work by an exempt person “is subject to any permit, inspection, or approval required by a municipal ordinance.”
Those sections do not themselves set an insurance amount. They show that the state floor is not the only rule in play. Check the permit office in the city where the work happens before you assume the numbers above are the whole story.
What this means if you hire a contractor
If you own rental property, this is the same exposure covered in our guide to what landlord insurance covers and costs in Texas. A contractor’s policy is the contractor’s. It does not replace yours, and the question of who pays when a vendor’s work causes damage is separate from the tenant side, which we cover in tenant damage under Texas landlord insurance. If you want to see how a personal liability layer sits on top of a rental policy, read our guide to the umbrella policy versus an LLC for Texas rentals.
Three of the four rules above let you ask for the carrier, policy number, and agent. Ask. Then read the certificate. Read the form, not the brochure.