As a contractor in Dallas, it is essential to have the right insurance coverage in place to protect your business from financial losses. There are several types of insurance that contractors should consider, including general liability insurance, workers’ compensation, commercial auto, builder’s risk, inland marine, and commercial umbrella insurance. Each type of insurance covers different risks and can provide critical protection for your business.
This article will explore the various insurance options available to Dallas contractors and discuss each coverage’s importance. Whether you are just starting in the contracting industry or have been in business for years, it is important to review your insurance needs regularly to ensure that you have the right coverage.
Contractors in Dallas may pay somewhat more than the Texas average, reflecting higher labor costs, busier job sites, and larger project values in the metro area. These estimates are for general liability insurance only and assume a general contractor carrying commonly requested $1M per occurrence / $2M aggregate limits. Actual premiums vary based on payroll, annual revenue, subcontractor cost, type of work, claims history, location, policy limits, endorsements, and carrier underwriting appetite.
| Annual Revenue | Estimated Annual Premium Range | Estimated Monthly Cost |
|---|---|---|
| $50,000 | $850 – $1,700 | $71 – $142/mo |
| $100,000 | $1,100 – $2,600 | $92 – $217/mo |
| $150,000 | $1,575 – $3,650 | $131 – $304/mo |
| $250,000 | $2,500 – $5,800 | $208 – $483/mo |
| $500,000 | $4,450 – $9,550 | $371 – $796/mo |
| $750,000 | $6,650 – $13,400 | $554 – $1,117/mo |
| $1,000,000 | $8,650 – $17,000 | $721 – $1,417/mo |
Disclaimer: These pricing examples are estimates for informational purposes only. General liability insurance is commonly required by project owners, commercial clients, landlords, lenders, and general contractors before work begins.
General liability insurance is essential coverage for contractors working in Dallas. It protects your business against financial losses resulting from third-party claims of bodily injury, property damage, and personal injury (such as libel and slander). Clients and contracts typically require this type of insurance before work can begin.
Here are some common situations that general liability insurance may cover:
Workers’ compensation insurance provides a vital safety net for your business and your team. It offers essential financial assistance to employees who are injured on the job or suffer from a work-related illness, ensuring they receive the care they need while protecting your company from significant out-of-pocket costs. This insurance covers medical expenses, lost wages, and rehabilitation costs, helping your employees recover and return to work safely.
Some of the benefits of workers’ compensation insurance include:
You will need commercial auto insurance if you own a vehicle for business purposes, such as transporting tools or materials. This type of insurance covers damages to your vehicle and any injuries or property damage you may cause in an accident.
Commercial auto insurance policies typically include the following coverages:
It’s important to carefully review your business insurance needs and choose a policy that provides the right level of coverage for your business. Our experienced insurance brokers can help you understand your options and choose the best policy for your needs.
Builder’s risk insurance, also known as course of construction insurance, covers damages to a building or other structure while it is under construction. This can include damages caused by weather, accidents, or theft. Builder’s risk insurance typically covers the structure itself and any materials, supplies, and equipment used in the construction process.
Some of the benefits of builder’s risk insurance include:
Inland marine insurance is a type of insurance that covers the transportation of goods, equipment, and other property within the United States. Businesses that transport goods or equipment over land or water often use it, such as contractors, manufacturers, and wholesalers.
Inland marine insurance typically covers the following:
Commercial umbrella insurance, also known as excess liability insurance, provides additional liability coverage above and beyond the limits of your other business insurance policies. This type of insurance protects your business from catastrophic losses that could bankrupt your company.
Some of the situations where Dallas commercial umbrella insurance may be useful include:
The ACORD (Association for Cooperative Operations Research and Development) Certificate of Insurance is a standard form used to provide proof of insurance coverage. Clients or other businesses often request it to confirm that you have the necessary insurance coverage in place.
The ACORD Certificate of Insurance includes information about the insured business, the types of coverage, the policy limits, and the policy’s effective and expiration dates. It also includes the name and contact information of the insurance carrier and any endorsements or exclusions that may apply to the policy.
If you are a contractor working in Dallas, it is important to have the necessary Texas contractors insurance coverage in place to protect your business. Our firm offers carefully designed insurance packages for specific Dallas businesses, including contractors. Our team can help you understand your insurance needs and choose the right coverage to protect your business. Call us at (888) 973-0016 or click for a free quote. We can assist you and answer all your questions 24/7!
Get answers to your most common questions from Contractors Liability
For General Liability Insurance in Dallas, you need $1,000,000 per occurrence and $2,000,000 aggregate almost 100% of the time. 99% of all General Liability policies we sell in Texas are $1,000,000/$2,000,000.
Texas law requires minimum liability limits of 30/60/25 for commercial vehicles, but for construction businesses, this is rarely enough. Most commercial clients and general contractors in Dallas will require you to carry a minimum of $1,000,000 in Combined Single Limit (CSL) coverage to protect against severe accidents on the road or at the job site.
While Texas is unique because workers’ compensation is not legally mandated for most private employers, carrying it is highly recommended and often practically required. Most general contractors in Dallas will not let you set foot on a job site without a policy. Standard policies typically offer $500,000 to $1,000,000 in Employer’s Liability limits to cover medical expenses and lost wages for injured workers.
Beyond the basics, Dallas contractors frequently need Inland Marine Insurance (also known as Tools and Equipment coverage) to protect gear while in transit or left at a job site. If you own a commercial property or warehouse, Commercial Property Insurance is vital. For larger projects, an Umbrella Policy can provide extra liability limits above your primary general liability and auto policies.
We understand that time is money and you can’t start a job without proof of coverage. In most cases, once your policy is finalized and paid for, we can issue a Certificate of Insurance (COI) within minutes. You can easily request and download your COI online or have our agents send it directly to your general contractor or the city licensing board.
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