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Texas Subcontractor Insurance Requirements: What GCs Must Require from Subs
What coverage general contractors should require from subcontractors on Texas job sites — including the one insurance rule Texas handles differently than every other state.
In this guide
Standard Insurance Requirements for Texas Subcontractors
Most general contractors in Texas require subcontractors to carry four core coverages before they can work on a project. These are not statutory minimums — they're commercial standards that GCs set contractually to protect themselves from liability arising from their subs' work.
| Coverage type | Typical minimum | What it covers |
|---|---|---|
| Commercial General Liability (CGL) | $1M per occurrence $2M aggregate | Bodily injury and property damage caused by the sub's operations, completed work, and products |
| Workers' Compensation | Statutory limits (see below) | Medical expenses and lost wages for the sub's employees injured on the job |
| Employer's Liability | $500K / $500K / $500K | Lawsuits from injured employees not covered by WC (commonly bundled with WC policy) |
| Commercial Auto Liability | $1M combined single limit | Bodily injury and property damage from vehicles used in the sub's operations |
| Umbrella / Excess Liability | $1M–$5M (project dependent) | Excess coverage above CGL, auto, and employer's liability limits |
Workers' Compensation — Texas's Unique Rules
Texas is the only state in the US where workers' compensation insurance is not required by law for most private employers. This makes Texas a special case that every GC hiring subs in the state needs to understand.
What "non-subscriber" means
A subcontractor in Texas can legally operate without workers' compensation insurance and is called a "non-subscriber." Non-subscribers lose certain liability protections — they cannot use contributory negligence as a defense if an injured worker sues — but many small subs operate this way regardless.
What to require
- Require all subs to carry Texas workers' compensation with statutory limits (or provide proof they are a certified non-subscriber with their own liability coverage to compensate)
- For subs claiming non-subscriber status, require evidence of employer's liability insurance at $1M / $1M / $1M at minimum
- Include a WC requirement clause in your subcontract agreement, not just in your COI checklist
- Verify that the WC policy covers the specific work location and that all workers on your site are employees of the sub, not 1099 contractors misclassified as employees
Government and public work exception
If the project involves a government entity or public works contract, workers' compensation may be required by the contract terms regardless of Texas's general opt-out. Check the project owner's requirements in addition to your own.
Additional Insured and Waiver of Subrogation
The certificate of insurance alone is not enough. Two additional provisions belong in every subcontract and should be reflected on the COI:
Additional insured endorsement
Require that your company (and the project owner, if applicable) be listed as an additional insured on the sub's CGL and auto policies. This gives you the right to make a claim directly under the sub's policy if their work causes a loss. Specify that the additional insured status applies on a primary and non-contributory basis, meaning the sub's policy responds first before your own coverage is called upon.
Waiver of subrogation
Require a waiver of subrogation on the sub's workers' compensation and general liability policies in favor of your company. Without this, the sub's insurer can sue you to recover what they paid out on a claim — even if you're a co-defendant — after they've settled with the injured party.
Adjusting Minimums by Project Type
The standard minimums above work for typical commercial projects. For larger or higher-risk work, adjust upward:
| Project type | Suggested CGL minimum | Suggested umbrella |
|---|---|---|
| Residential remodel / small commercial | $1M / $2M | Not always required |
| Mid-size commercial ($1M–$10M project value) | $1M / $2M | $1M–$2M |
| Large commercial / industrial ($10M+) | $2M / $4M | $5M+ |
| High-hazard trades (demo, roofing, structural) | $2M / $4M | $5M+ |
Your contract with the project owner will often set a floor — whatever they require of you flows down to your subs. Read your prime contract carefully before setting sub requirements.
Collecting and Tracking Certificates of Insurance
Knowing what to require is the easy part. Actually collecting COIs from every sub — and keeping them current as policies renew — is where most GCs fall behind. A COI that was valid at onboarding can expire three weeks into a six-month project with no one noticing.
- Collect a new COI before work begins, not after. Never let a sub on site without a current certificate on file.
- Verify the COI yourself — don't rely on the sub's broker alone. Brokers can issue certificates reflecting coverage that doesn't actually exist.
- Track expiration dates. Set a reminder 30+ days before each COI expires to request a renewal certificate.
- Store COIs somewhere you can retrieve them quickly — not in an email folder or shared drive with no structure.
For larger rosters, use magic-link vendor onboarding to let subs upload their own certificates directly into your dashboard. Automated alerts notify you at 90, 60, 30, and 7 days before any COI expires, and per-project compliance views show exactly which subs are covered for each job.
You can also verify each sub's Texas contractor license alongside their COI. See Texas license verification →
Track COIs and licenses for all your Texas subs
TrackMyVendor collects, parses, and monitors certificates of insurance automatically — so nothing expires without you knowing. Free for your first 25 subcontractors.
Start free →Frequently Asked Questions
What happens if my Texas sub doesn't carry workers' compensation?
What is the minimum general liability insurance for a subcontractor in Texas?
Do I need to be listed as additional insured on my sub's policy?
How often should I collect updated certificates of insurance?
Does my sub's COI tell me if they're licensed in Texas?
Use our Texas contractor license lookup tool to verify any sub's Texas license status instantly.
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