# Texas contractor insurance requirements

> What Texas law says about workers' comp, contractor license insurance and indemnity clauses, and what to check on a contractor COI for a project there.

Reviewed Oct 28, 2026 by Forsured. Source: https://forsured.ai/coi-requirements/texas/

## The short version

- Workers' comp required at: Optional (required on public projects)
- License insurance minimum: No statewide minimum
- Anti-indemnity statute voids: Own negligence, with exceptions; reaches additional insured

## Workers' comp in Texas

Texas private employers can choose whether to carry workers' comp. Employers without it (non-subscribers) must tell their employees and file a notice with the state. On building and construction projects for a government entity, every contractor has to carry workers' comp for its people on the project.

Agency: [Texas Department of Insurance, Division of Workers' Compensation](https://www.tdi.texas.gov/wc/nonsubscriber.html)

## Contractor licensing and insurance

We found no statewide general liability minimum tied to a general contractor license. Texas has no statewide general contractor license. Cities and counties can set their own licensing and insurance rules, so check where the project is.

## Indemnity and additional insured clauses

Texas Insurance Code chapter 151 voids construction clauses that make a contractor indemnify another party for that party's own negligence, with exceptions that include claims for injury to the contractor's own employees. It also voids additional insured requirements that would give the other party coverage it couldn't get through indemnity.

## Government construction projects run on certificates of coverage

Texas Labor Code § 406.096 and 28 Tex. Admin. Code § 110.110 require each contractor on a public building or construction project to give the government entity a certificate of workers' comp coverage before starting work, collect one from every company working under it before that company starts, pass along renewals, and post a coverage notice at the site. A contractor's non-subscriber status doesn't carry over to these jobs.

## What to check on a contractor COI for a Texas project

1. **Workers' comp.** Texas doesn't make most private contractors carry it on private work, so your project requirements decide. If you require it, check that the COI shows workers' comp and employers liability limits. For an out-of-state contractor, confirm Texas is listed on the workers' comp policy.
2. **General liability.** Texas doesn't set a statewide floor for a general contractor license, so your project requirements set the bar. Compare each limit on the COI with what the contract asks for.
3. **Additional insured.** In Texas, the anti-indemnity statute also limits what an additional insured requirement can do. Ask your broker or attorney which wording holds up, then check that the endorsement on file matches it.
4. **Dates.** Every policy should run through the end of the job. A COI only shows coverage on the day it was issued, so check again at each renewal.

## Common questions

### Do contractors need workers' comp in Texas?

Texas private employers can choose whether to carry workers' comp. Employers without it (non-subscribers) must tell their employees and file a notice with the state. On building and construction projects for a government entity, every contractor has to carry workers' comp for its people on the project.

### Does Texas require contractors to carry general liability insurance?

We found no statewide general liability minimum tied to a general contractor license. Texas has no statewide general contractor license. Cities and counties can set their own licensing and insurance rules, so check where the project is.

### Can a Texas construction contract make a contractor cover another party's negligence?

Texas Insurance Code chapter 151 voids construction clauses that make a contractor indemnify another party for that party's own negligence, with exceptions that include claims for injury to the contractor's own employees. It also voids additional insured requirements that would give the other party coverage it couldn't get through indemnity.

## Sources

1. [Non-subscribers](https://www.tdi.texas.gov/wc/nonsubscriber.html), Texas Department of Insurance
2. [Tex. Labor Code § 406.096](https://texas.public.law/statutes/tex._labor_code_section_406.096), Public.Law
3. [28 Tex. Admin. Code § 110.110](https://law.cornell.edu/regulations/texas/28-Tex-Admin-Code-SS-110-110), Legal Information Institute
4. [Anti-Indemnity Statutes in All 50 States (2023)](https://grsm.com/wp-content/uploads/2023/10/Anti-Indemnity-Statutes-2023.pdf), Gordon Rees Scully Mansukhani, 2023
5. [Another State Joins List of "Anti-Additional Insured" States](https://blogs.duanemorris.com/constructionlaw/2012/01/05/another-state-joins-list-of-anti-additional-insured/), Duane Morris Construction Law Blog, 2012
6. [State Workers' Compensation Officials](https://www.dol.gov/agencies/owcp/wc), U.S. Department of Labor

General information, not legal advice. Confirm with the state agency, your broker or your attorney.

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