Texas Construction Insurance

In the construction industry, risk is an ever-present factor. From potential accidents on the job site to the possibility of equipment theft, there are numerous scenarios that can lead to financial loss. This is where construction insurance comes in. Specifically, in the state of Texas, understanding the nuances of construction insurance can be the difference between a profitable project and a financial disaster. This guide will delve into the intricacies of Texas construction insurance, providing you with the knowledge you need to protect your business.

There are several types of construction insurance that companies in Texas should consider. Each type of insurance covers different risks, and it's important to understand what each policy covers to ensure your business is adequately protected.

General Liability Insurance

General liability insurance is a must-have for any business, including those in the construction industry. This type of insurance covers claims of bodily injury and property damage that could occur on the job site. For instance, if a visitor is injured on your construction site, or if your operations cause damage to a neighboring property, general liability insurance would cover the associated costs.

In Texas, the amount of general liability insurance required will depend on the size and scope of your projects. It's crucial to work with an insurance professional to determine the right amount of coverage for your business.

Workers' Compensation Insurance

Workers' compensation insurance is another critical type of coverage for construction companies. This insurance covers medical expenses and lost wages for employees who are injured on the job. In Texas, most construction companies are required to carry workers' compensation insurance, although there are some exceptions.

It's important to note that workers' compensation insurance is not just beneficial for employees—it also protects the employer. If an employee is injured and the company has workers' compensation insurance, the employee typically cannot sue the company for the injury.

Builders Risk Insurance

Builders risk insurance covers property damage to buildings and materials during construction. This includes damage caused by events like fire, wind, theft, and vandalism. In Texas, builders risk insurance is typically required for large construction projects, but it can be beneficial for smaller projects as well.

One important aspect of builders risk insurance is that it covers only the construction phase of a project. Once the project is completed, other types of property insurance are needed to protect the building.