In the State of Texas, contractors must have general liability insurance to perform construction work. Standard policies typically cover personal injury, property damage, negligence, and more, but these policies have limits, and some contractors find themselves in need of expanded coverage to protect their business.
Umbrella insurance can help you protect your business assets by boosting coverage limits across multiple policies, including:
- General Liability
- Commercial Auto
One limitation facing umbrella insurance in Texas is that it doesn’t always include employer’s liability claims. This is because the State of Texas is the only state that doesn’t require employers to have workers’ compensation insurance. For assistance with workers’ compensation claims, consult a Houston contractor attorney from Cotney Law.
Project sites are filled with hazards that present a clear risk to workers, bystanders, adjacent property, and more. No matter how many controls you implement to reduce the chance of a construction-related accident occurring, it’s difficult to account for every potential outcome. That is why contractors in Texas are required to have general liability insurance. Severe accidents can lead to costly claims that quickly top-off your limit. When this happens, an umbrella insurance policy can help you bridge the gap and reduce the financial blow your business takes.
Contractors that commute back and forth from the project site can insure their vehicle with commercial auto insurance to protect themselves against a variety of claims. Accidents involving automobiles happen all the time and can be very expensive. Your vehicle could be damaged entering or exiting the project site.
The wear and tear your vehicle takes won’t be “normal” by traditional automobile consumer standards, and the hazards of the project site will pose a constant threat to your vehicle. You can also opt to increase the policy limit for a hired and non-owned auto policy in lieu of commercial auto if you do not own your work vehicles.
For some contractors, an umbrella insurance policy might be the best way to protect business assets while protecting personal assets from having to pay out when your policy has gaps in coverage. Umbrella insurance is sold in one-million dollar increments to protect contractors who are pulling in significant revenue, but the cost of umbrella insurance can be relatively affordable.
Before you change your company’s insurance policy, consult a Houston contractor attorney to ensure that your business is compliant with all state regulations regarding insurance and licensing for contractors in Texas.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.