Building Smart: Why Texas Contractors Need the Right Insurance
Running a construction or contracting business in Texas comes with big rewards — and serious responsibilities. Whether you’re remodeling homes in Alamo Heights, wiring a new development in Stone Oak, or managing a full-scale commercial build, the right contractor insurance can mean the difference between a small hiccup and a costly disaster.
At SOGO Insurance, we help San Antonio contractors protect their projects, crews, and reputation with tailored coverage that meets both Texas requirements and local jobsite realities.
What Insurance Do Texas Contractors Need?
Even though Texas doesn’t mandate every type of business insurance, most contractors and subcontractors must show proof of coverage to win bids, pull permits, or sign contracts.
Here are the essential coverages every construction business should consider:
General Liability Insurance
Protects you if a client or third party is injured or their property is damaged because of your work.
- Covers medical expenses, legal defense, and repair costs
- Often required for city or state licensing
- Common minimum: $1 million per occurrence
Example: A client slips on your jobsite or a tool damages a customer’s floor — general liability helps cover the costs.
If you specialize in a trade, see our guides on:
Electrician Insurance in San Antonio
Plumber Insurance in San Antonio
Commercial Property Insurance
Protects your tools, equipment, and materials from theft, vandalism, or weather damage.
- Especially important for San Antonio contractors who store gear in trucks, trailers, or jobsite containers
- Can be bundled into a Business Owner’s Policy (BOP) for added savings
Workers’ Compensation (Optional in Texas — But Essential)
Texas doesn’t require private employers to carry workers’ comp, but many general contractors and project owners require subcontractors to show proof of coverage before allowing them on site.
- Covers medical costs and lost wages if an employee is injured
- Helps you avoid lawsuits under Texas Labor Code Chapter 406
- Makes your business more competitive in bids and contracts
Commercial Auto Insurance
If your crew drives company vehicles or transports materials, you’re legally required to carry commercial auto coverage.
- Protects against accidents, property damage, and liability
- Can include tools and equipment carried in your vehicles
Contractor’s Equipment Insurance
Portable tools and heavy machinery often aren’t covered by general property insurance. This add-on covers losses or damage to mobile equipment like power tools, compressors, or excavators — even when they’re off-site.
Surety Bonds
Many Texas municipalities require surety bonds for licensing. These guarantee your work complies with contract terms and local building codes.
What Does Contractor Insurance Cost in San Antonio?
Average monthly premiums depend on your trade, project size, and claims history.
- General contractors: $85–$150/month
- Electricians: $50–$90/month
- Plumbers: $60–$100/month
- Handymen or remodelers: $40–$80/month
Combine multiple policies into a Business Owner’s Policy (BOP) to save up to 20% and simplify renewals.
Learn more about coverage bundles on our Small Business Insurance page.
Why Local Matters: The San Antonio Advantage
Local construction projects face unique challenges — from hailstorms to high heat.
A San Antonio-based agency like SOGO Insurance understands local building codes, subcontractor agreements, and insurance certificate requirements.
We partner with top-rated carriers to find affordable, compliant coverage that keeps your projects moving and your reputation protected.
Final Thoughts
Whether you’re a licensed electrician, independent plumber, or general contractor, having the right insurance coverage is more than a box to check — it’s a business survival tool.
Protect your crew, your contracts, and your clients with tailored construction insurance in San Antonio.
Let SOGO Insurance help you compare quotes, meet Texas requirements, and keep your business covered from the ground up.