Electrical Contractor Insurance in Texas
This page is for the owner of a Texas electrical contracting business, doing service and repair, remodel, or new construction work. We help you match your insurance to what the state expects for your contractor license, then prepare it for a licensed review.
Independent insurance guidance from our Madisonville office for businesses across Texas.
Do I need insurance to be a licensed electrical contractor in Texas?
The Texas Department of Licensing and Regulation, or TDLR, issues the Electrical Contractor license, the business license that lets a company perform electrical contracting work in Texas. This license is separate from the individual licenses, such as apprentice, journeyman, and master electrician, that the people doing the work carry.
TDLR's insurance rule, 16 Texas Administrative Code Section 73.40, requires an Electrical Contractor to maintain general liability insurance of at least 300,000 dollars per occurrence, combined for property damage and bodily injury, at least 600,000 dollars aggregate, and at least 300,000 dollars aggregate for products and completed operations. The insurer must be an admitted company, an eligible surplus lines carrier, or rated B+ or higher by A.M. Best.
Section 73.20 of the same rule ties this requirement to the license itself. An applicant must submit proof of general liability insurance, and either workers compensation insurance, a certificate of authority to self insure, or a written election not to carry workers compensation, with the initial application and every renewal.
The requirement attaches to the Electrical Contractor business license, not to any one electrician working under it. In practice, when a customer asks whether an electrician is insured, our office often helps by providing a certificate of insurance at that business license level.
Source: Texas Department of Licensing and Regulation, 16 Texas Administrative Code Sections 73.40 and 73.20, read September 7, 2026.
If you run an electrical contracting business
This page is written for all of it: service and repair calls, remodel and upgrade work, and new construction wiring. The size of your crew and the mix of work you do both shape what a review should cover.
Also take on high-voltage, utility, industrial, or solar installation projects? Bring those to us first so a licensed team member can check what fits, rather than assuming the work is out of reach.
What insurance does an electrical contractor need?
A policy for an electrical contracting business usually looks at more than one exposure at a time. Here is what to think through, in plain terms.
Vehicles and driving
Tell us about every truck or van used for the business and who drives each one, including a personal vehicle used for a parts run. Coverage can look different depending on who owns the vehicle.
Tools and equipment
List what you carry on the truck, keep in a shop, or leave on a job site overnight. Where equipment sits, and who owns it, both matter to a review.
A shop, yard, or storage building
If you own or lease a building for storage, a shop, or an office, bring the address and how it is used. Property coverage can help address covered damage to the building and what is inside it.
People doing the work
Count employees, apprentices, and anyone you bring in as a subcontractor. Workers compensation is an election in Texas, and how you staff a job changes what a review should cover.
Completed work
A wiring job can cause damage or a fire well after you have left the site and been paid. Ask how your liability policy addresses a claim tied to work you already finished.
Customer property while you work
Working inside a home or business means being around someone else's walls, floors, and belongings. General liability can help address covered damage caused by the work itself.
What is the difference between general liability insurance and workers compensation?
A few terms come up often once you start comparing electrical contractor insurance. Here is what each one means.
General liability insurance
The Texas Department of Insurance describes general liability insurance as coverage that can help address claims of bodily injury, property damage, and personal and advertising injury. It is also the coverage TDLR sets a stated minimum for to hold an Electrical Contractor license.
Workers compensation
Workers compensation can help pay medical costs and lost wages for an employee hurt on the job. The Texas Department of Insurance says the state does not require most private employers, including electrical contractors, to carry it, and TDLR's license application still asks which election you have made.
Completed operations
Completed operations means a claim tied to work you already finished and were paid for, such as a fire traced back to a wiring job from months earlier. TDLR's rule sets aside a separate aggregate figure just for this kind of claim.
Certificate of insurance
A certificate of insurance is a standard document your insurer issues showing your coverage and limits. Our office often helps put one together when a customer or a general contractor wants to see proof that you are insured.
How much does electrical contractor insurance cost in Texas?
What an electrical contractor pays depends on the size of the crew, the mix of service and repair, remodel, and new construction work, the vehicles and equipment involved, and claims history.
The limits and deductibles you choose also change the outcome, along with which insurance markets are available for the operation as described. A specific review says more than a generic number ever could.
Before you compare the price
- The same liability limits
Confirm every quote meets or exceeds the same general liability limits, not just the state minimum on paper.
- The same completed operations limit
Ask whether products and completed operations coverage sits at a comparable limit on each quote.
- The same vehicles and drivers
Check that every truck, van, and driver you listed is actually included on each quote.
- The same deductibles
Look at what the business would pay out of pocket before you compare the total price.
What to gather before you call
You do not need everything on this list to get started, though having it ready saves a second call.
- 01Your TDLR Electrical Contractor license number and status
- 02The kind of work you do
service and repair, remodel, new construction, or a mix
- 03Any high-voltage, utility, industrial, or solar installation work, so we can look at it first
- 04The trucks and vehicles used for the business, and who drives each one
- 05The number of employees, apprentices, and any subcontracted electricians
- 06Whether you own or lease a shop, yard, or storage building
- 07Your current insurance policies, if you have them
- 08Any past claims or losses, even ones you think are minor
One office. Access to more than one insurance market.
Stover & Crouch is an independent agency based in Madisonville, not tied to one insurance company. Being independent means we can look at more than one market for your electrical contracting business and compare what each offers.
A licensed team member reviews your operation before anything is quoted. That review is what turns the list above into an actual submission, not a guess at a price.
- Tell us about your business
Describe the work you do, your license, your crew, and your vehicles.
- A licensed review comes first
A licensed team member looks at what you have told us before anything is quoted.
- We check the available markets
As an independent agency, we can compare more than one insurance market for your operation.
- You see the options
We explain what each option addresses, at what limits, and what is still needed to move forward.
Common questions from electrical contractors
Do I need insurance to hold an Electrical Contractor license in Texas?
Yes. Texas Administrative Code 73.40 requires an Electrical Contractor to maintain general liability insurance of at least 300,000 dollars per occurrence, 600,000 dollars aggregate, and 300,000 dollars aggregate for products and completed operations. TDLR ties this directly to keeping the license active, not only to opening it.
Is this insurance requirement about me personally or about my business?
It's a business license requirement, not a personal one. If you hold an individual license, such as journeyman or master electrician, the business that holds the contractor license is the one that must carry the coverage.
Is workers compensation required for my crew?
The Texas Department of Insurance says Texas does not require most private employers to carry workers compensation, and that includes electrical contractors. Your Electrical Contractor license application, filed with TDLR, still asks you to state, in writing, whether you carry it, self insure, or elect not to.
A customer asked if I am insured. What are they asking for?
They are almost always asking to see a certificate of insurance, a standard document your insurer issues showing your coverage and limits. We can help make sure you have one ready to hand over.
Does my insurance need to change for a bigger remodel or a new construction job?
It can. Service and repair, remodel, and new construction work do not always carry the same exposures, so tell us the mix of work you do and we will review it with you.
What if my work includes high-voltage, industrial, utility, or solar installation projects?
Bring it to us first. A licensed team member looks at that kind of work before we say what fits, rather than assuming it is out of reach.
How much does electrical contractor insurance cost?
It depends on your crew size, the mix of work you do, your vehicles and equipment, and your claims history. A specific review says more than a generic number.
Do you work with electrical contractors outside Madisonville?
Our office is in Madisonville, and we work with electrical contractors across Texas by phone or online. Tell us where you work and what you do, and we will take it from there.
Let's get your electrical contracting business reviewed
Start with a quote request, or call our Madisonville office. A licensed team member reviews your operation before anything is quoted.
A website request does not bind, change, cancel, reinstate, or confirm coverage.