Texascontractor insurance & bonding requirements
Updated April 2026 · Source: TX TDLR (electrical/HVAC/plumbing) + municipal AHJ (Dallas, Austin, Houston)
Minimum requirements
- General liability
- $1,000,000
- Auto liability
- $500,000
- Workers' comp
- Not mandated statewide
Licensed general contractors in Texascarry commercial insurance so that if a crew member gets injured on-site, a homeowner's appliance is damaged during demo, or a neighboring property suffers an impact from construction, the contractor's policy (not the homeowner's) pays the claim. AskBaily does not match homeowners to contractors below these minimums.
TX has no state GC license. TDLR licenses specialty trades. Workers comp is optional under TX Labor Code 406. Municipal bonds $5K–$25K.
Common questions
What insurance does a Texas general contractor need?
A Texas general contractor needs at minimum $1,000,000 general liability coverage plus $500,000 auto liability. Workers' compensation is not mandated statewide but individual contracts and municipalities may require it. Per TX TDLR (electrical/HVAC/plumbing) + municipal AHJ (Dallas, Austin, Houston).
How much is the surety bond for Texas contractors?
Texas does not require a state-level surety bond for general contractors. TX has no state GC license. TDLR licenses specialty trades. Workers comp is optional under TX Labor Code 406. Municipal bonds $5K–$25K.
Who is the licensing authority in Texas?
TX TDLR (electrical/HVAC/plumbing) + municipal AHJ (Dallas, Austin, Houston) is the authority for Texas contractor oversight. Public license lookup is available at https://www.tdlr.texas.gov/.
How does AskBaily verify contractors in Texas?
AskBaily runs automated verification against TX TDLR (electrical/HVAC/plumbing) + municipal AHJ (Dallas, Austin, Houston) before a contractor is matched to a homeowner project. The pro's license number is validated live at signup.
What happens if a contractor doesn't carry the required insurance?
Underinsured contractors are removed from the AskBaily match pool immediately. A homeowner who hires an unlicensed or underinsured contractor in Texas can lose the right to mechanic's lien protection, may be held liable for on-site injuries, and forfeits protection under TX TDLR (electrical/HVAC/plumbing) + municipal AHJ (Dallas, Austin, Houston). That's why AskBaily's policy is to match only verified pros.
Nearby jurisdictions
AskBaily cities in Texas
Homeowners in these cities can chat with Baily today; matched pros must meet the requirements above.
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