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TWFG Khan Insurance Services
We Service the Following Locations:
Austin, Travis County, TXLet us help you protect what matters most.
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At TWFG Khan Insurance Services, we’re proud to be an Independent Insurance Agency. That means we’re not limited to just one provider—we work with some of the most trusted names in the industry to offer fast, competitive online quotes that meet your business needs. ~ Reviewed bySameer Khan, licensed Texas commercial P&C agent
with over 20 years in the insurance industry.
General liability insurance for a small general contractor in TX typically costs $800–$3,500 per year (about $125–$290/month) for a standard $1M per-occurrence / $2M aggregate policy. It covers third-party bodily injury and property damage claims tied to the contractor's work.
Each client is supported by a team of professionals committed to delivering outstanding service and expert guidance throughout your insurance journey.
We proudly serve businesses in Pflugerville, TX and throughout the state of TX, delivering tailored solutions no matter where you're located.
We specialize in insuring contractors and trade professionals. From bonds to liability, we've got your business covered from every angle.
Insurance questions come up constantly in this business – what you need, what it costs, what actually gets covered when something goes wrong. Below are the answers TWFG Khan Insurance Services gives contractors most often. Don't see your question? Call us at 713-388-6681 and we'll get you a straight answer.
Texas does not require general liability insurance for contractors by state law, and Texas is the only state where workers' compensation is optional for most private employers. In practice, however, general contractors, project owners, commercial landlords, and municipalities almost always require proof of general liability coverage – typically $1 million per occurrence – before a contractor can start work. So while the state doesn't mandate it, the market does.
Most contractors carry four core coverages: general liability (required by nearly all GCs and project owners), commercial auto (legally required for business vehicles in Texas), workers' compensation or a non-subscriber alternative, and an inland marine policy covering tools and equipment. Depending on the work, contractors may also need builders risk, professional liability, pollution liability, or surety bonds.
Most small Texas contractors pay between $800 and $3,500 per year for a $1M/$2M general liability policy. Rates vary by trade: a handyman or electrician may pay under $1,500, while roofers commonly pay $3,000–$15,000+ because of the height exposure. Payroll, revenue, subcontractor use, and claims history drive the final premium.
| Coverage Type | Typical Annual Cost | Notes |
|---|---|---|
| General Liability ($1M/$2M) | $800 – $3,500 | Varies widely by trade and revenue |
| Commercial Auto (per vehicle) | $1,500 – $3,000 | Higher for trucks towing trailers |
| Workers' Compensation | $3 – $30 per $100 of payroll | Rate depends on trade class code |
| Builders Risk | 1% – 4% of project budget | Higher for ground-up frame construction |
| Commercial Umbrella | $400 – $1,500 per $1M | Sits on top of your existing GL and auto |
| Performance/Payment Bonds | 1% – 3% of contract value | Driven mostly by credit and financials |
Contractor general liability covers third-party bodily injury, third-party property damage, and completed operations – meaning damage that shows up after the job is finished. Example: a plumber's soldering work causes a fire two months after completion; completed operations coverage responds. It does not cover injuries to your own employees (that's workers' comp), your own tools (inland marine), or defective workmanship itself.
Yes. General contractors in Texas almost universally require subcontractors to carry their own general liability policy and to provide a certificate of insurance, usually with the GC named as additional insured. If a sub is uninsured, the GC's insurer will typically charge the GC for that sub's payroll at audit, so hiring uninsured subs directly raises the GC's premium.
A certificate of insurance is a one-page document proving your coverage is active, showing your limits, carrier, and policy dates. GCs and project owners request COIs before allowing you on site. TWFG Khan Insurance Services can typically issue a standard COI same-day, and additional-insured certificates within 24 hours.
Naming a GC or project owner as additional insured extends your liability policy to protect them if they're sued because of your work. It's standard in nearly every Texas construction contract. Most contractor GL policies can add blanket additional insured endorsements for $100–$300 per year, which is far cheaper than adding parties one at a time.
Online insurers quote from one carrier's appetite; an independent agency like TWFG Khan Insurance Services shops multiple carriers that compete for your class of work. For contractors this matters because carrier appetite varies sharply by trade – the carrier with the best roofer rates is rarely the best for electricians. An independent agent also handles COIs, audits, and mid-term changes, which direct-to-consumer platforms handle poorly.
Reviewed by Sameer Khan, licensed Texas Commercial P&C agent with 20+ years insuring Houston-area contractors.
Contact us today at 713-388-6681 or complete our quick online quote form. With support from our trusted partners, we provide a complete and convenient solution for all your contractor insurance needs.
