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General Liability Insurance in Texas

Business liability coverage for Texas small businesses, contractors and trades: customer injuries, damage to someone else's property and advertising injury claims. Plus what your license, lease or contract may require.

En español: seguro de responsabilidad general para negocios en Texas

Quick Answer: Does A-LA Write General Liability in Texas?

Yes. A-LA writes general liability insurance for Texas small businesses. No single state law requires every business to carry it, but many Texas licenses, leases and client contracts do; TDLR, for example, requires it for licensed electrical and A/C contractors. General liability covers third-party bodily injury, property damage and personal and advertising injury claims. It does not cover your vehicles; that is commercial auto. An A-LA agent compares the options available for your operation and quotes by phone; eligibility depends on your type of business and history.

Call (866) 252-6116 for a quote, or contact an agent.

What General Liability Covers

The Texas Department of Insurance describes commercial general liability as protection against claims of liability for bodily injury, property damage, and personal and advertising injury. In plain terms:

Bodily injury

A customer slips in your shop, or someone is hurt by your work at a job site, and claims you are responsible.

Property damage

Your crew damages a client's floor, wall or equipment while working on site.

Personal and advertising injury

Claims such as slander or false advertising arising from your business.

Premises and operations

Injury or damage that happens on your premises or as a result of your business operations.

Products and completed operations

Injury or damage away from your premises caused by a product you sold or work you finished.

Certificates of insurance

Proof of coverage for landlords, general contractors and licensing agencies, issued once your policy is active.

Is General Liability Required in Texas?

Not for every business. In Texas the requirement usually comes from a license, a lease or a contract. Two examples from the Texas Department of Licensing and Regulation (TDLR), which requires A/C contractors to keep the coverage in force while the license is active and sets minimums for electrical contractors:

TDLR licensePer occurrenceAggregateProducts and completed operations aggregate
A/C and refrigeration contractor, Class A$300,000$600,000$300,000
A/C and refrigeration contractor, Class B$100,000$200,000$100,000
Electrical contractor$300,000$600,000$300,000

Per occurrence and aggregate limits are for bodily injury and property damage combined. Source: TDLR license application pages. Other trades, cities, landlords and clients set their own requirements, so check yours.

  • Leases. Commercial landlords commonly require tenants to carry liability coverage and name the landlord on a certificate.
  • Client contracts. General contractors, property managers and larger customers often ask for a certificate with specific limits before you start work.
  • Peace of mind. Even when no one requires it, defending a single injury claim can cost more than a small business can absorb.

What General Liability Does Not Cover

Your vehicles

General liability is not auto insurance. Accidents in a truck, van or car your business owns or uses are insured on a commercial auto policy.

Your employees' injuries

That is workers' compensation. In Texas, private employers can choose whether to provide it. Coverage generally limits an employer's liability if an injured employee sues; employers who opt out don't get that protection and lose certain common-law defenses in injury lawsuits.

Bond obligations

A license or contract bond is a guarantee, not insurance for your business. If you need one, see surety bonds in Texas.

Ask whether your policy is occurrence or claims-made. TDI explains that occurrence policies cover injury or damage that happened while the policy was in force, while claims-made policies require the claim to be reported during the policy period too. Every policy also has exclusions, so read yours with your agent.

What to Have Ready for a Quote

  1. Business basics: name, structure (sole owner, LLC, corporation) and years in business.
  2. What you do, and where: your own location, customer sites or both.
  3. Size: number of employees and an estimate of annual revenue or payroll.
  4. Required limits from any license, lease or contract, and who must be named on the certificate.
  5. Claims history and any current or prior policy.

General Liability Insurance FAQ

There is no single Texas law that makes every business buy general liability. The requirement usually comes from somewhere else: a state license, a lease, or a client contract. For example, TDLR requires licensed air conditioning and refrigeration contractors to keep business liability insurance in force while the license is active, and sets minimum liability coverage for licensed electrical contractors. Landlords and general contractors also commonly ask for a certificate of insurance before you start. Even when nobody requires it, one lawsuit from a customer injury can cost more than a small business can absorb.

Still have a question? Call (866) 252-6116 or contact us.

Related Coverage for Texas Businesses

Reviewed by the A-LA Auto Insurance editorial team · Last updated October 2026. Sources: Texas Department of Insurance commercial general liability guide, workers' compensation non-subscriber guidance and workers' compensation employer page; TDLR air conditioning and refrigeration and electrical contractor license pages. Coverage varies by policy.

Get Your Business Covered

Tell us what your business does and what your license, lease or contracts require, and an A-LA agent will walk you through the options by phone.