What is Included in General Contractor Insurance in Texas
Ever noticed that it seem like every facet of life is covered by some type of insurance? Life insurance. Car insurance. Health insurance. Pet insurance. Workers’ compensation insurance. Renter’s insurance. Homeowner’s insurance. Not to mention there are specific types of those insurances. Comprehensive. Liability. Flood. And, let’s not forget about general contractor insurance in Texas. According to the Texas Department of Insurance, general contractor insurance is a combination of workers’ compensation, bonds, and commercial general liability (CGL) insurance.
Comprehensive insurance covers any damages to an automobile. Workers’ compensation protects the employee in case of injury and the employer from liability. General contractor insurance protects equipment and tools from damages and theft that a worker might face while on a job or at a work site. Contractors include, but are not limited to: plumbers, roofers, carpenters, landscapers, and painters.
Let’s think about this for a minute. Texas is always building, expanding, and creating new businesses. You see it every day driving to work, running errands, or traveling to another city in Texas. A new restaurant goes up, a carwash, apartment complexes, grocery stores, and doughnut shops. All this is possible with the right contractor and a contractor without his or her tools is like a surgeon without a scalpel.
It’s a combination of coverage
General contractor insurance ensures that the job will get done regardless of rain, snow, shine, vandalism, loss, or theft. It is important that contractors and small businesses are both covered to avoid claims and lawsuits should mother nature, someone, or something reek havoc.
Workers’ Compensation Insurance: Texas does not mandate contractors to carry workers’ comp insurance; however, contractors are encouraged to do so as it pays for medical bills if an employee is injured or becomes ill on the job.
Bonds: A bonded contractor is someone “who is licensed and bonded as a contractor in the state they are operating in, and who have obtained a relevant contractor bond or bonds for the project they are working on”. In other words, license permit bonds are required by Texas state law.
Commercial General Liability (CGL) Insurance: Commercial General Liability Insurance protects businesses against liability of bodily injury, property damage, advertising injury; such as slander, false advertising, and liable, and medical payments.
Citizens General Insurance Brokers list six facts that every contractor should know:
1. Personal Policy does not cover business vehicle
2. General Liability Policy has a limit
3. Contractors can increase coverage
4. Although Texas doesn’t require Workers’ Compensation it is recommended
5. Commercial auto insurance doesn’t protect tools and equipment
6. Report an accident immediately
While every facet of life seems to be covered by some type of insurance, there is a need for it. And, general contractor insurance in Texas is no exception. Without it, millions of dollars are at stake. But, with it, rain, snow, or shine, communities beam with pride.