Home Service Business Insurance in Texas
House Escort Team
Running a home service business in Texas without proper insurance is a liability that can end your business in a single bad day. A client falls on slippery floors you just cleaned, your employee drops a ladder through a customer’s truck windshield, or a fire starts in the wall where you were doing electrical work. Without the right coverage, these events mean personal financial ruin. Here is every coverage you need and why.
General Liability Insurance: The Foundation
General liability (GL) insurance is the core protection for any home service contractor. It covers:
- Bodily injury — A client, bystander, or third party is injured as a result of your work or operations
- Property damage — You or your crew damages a client’s property while on the job
- Personal and advertising injury — Defamation, copyright issues, wrongful eviction
- Products and completed operations — Damage or injury that occurs after your work is completed (you installed something incorrectly, it fails and causes damage three months later)
Recommended minimums:
- $1 million per occurrence / $2 million aggregate for most home service trades
- $2 million per occurrence for higher-risk trades (roofing, electrical, HVAC, structural work)
Texas GL insurance cost:
- Low-risk trades (cleaning, landscaping, painting): $500–$1,500/year solo
- Mid-risk trades (plumbing, HVAC, electrical): $800–$2,500/year solo
- Higher-risk trades (roofing, demolition): $1,500–$5,000+/year
Without GL insurance, you cannot legally work on most commercial properties or municipal projects, cannot get listed on credible home service platforms, and are personally exposed on every residential job.
Commercial Auto Insurance
Your personal auto insurance does not cover your vehicle when used for business. If you use any vehicle — pickup truck, cargo van, sedan — to travel to job sites, carry tools, or transport materials, you need commercial auto insurance.
What commercial auto covers:
- Vehicle damage (collision and comprehensive)
- Liability for accidents while operating the vehicle for business purposes
- Hired and non-owned auto (if employees use their personal vehicles for your business)
Cost: $1,200–$3,000+/year per vehicle depending on vehicle value, driver history, and trade type. Trucks and vans used for roofing or heavy construction cost more than landscaping or cleaning vehicles.
Common mistake: Contractors who use their personal F-250 for business and carry only personal auto insurance. A serious accident during a business trip results in a denial from your personal insurer and personal liability for all damages.
Workers’ Compensation
As covered in our guide to hiring employees, Texas workers’ comp is optional but strongly advisable the moment you have employees. For sole proprietors with no employees, workers’ comp is not relevant to your staff — but you should consider:
Sole proprietor accident coverage: If you are injured on a job and cannot work, your personal health insurance may cover medical costs but won’t replace income. Short-term disability insurance or an occupational accident policy (designed specifically for self-employed contractors) covers income during recovery.
Occupational accident policies: Designed for independent contractors and gig workers. Covers medical expenses, disability income, and accidental death. More affordable than full workers’ comp for sole proprietors — typically $100–$400/month depending on benefit levels and trade type.
Tools and Equipment Coverage
Your general liability policy does not cover your own tools and equipment — it covers damage you do to other people’s property. If your tools are stolen from a job site or your trailer is broken into, GL doesn’t pay for replacement.
Inland marine insurance (also called tools and equipment floater) covers:
- Tools stolen from a job site, vehicle, or storage
- Tools damaged in transit or on the job
- Equipment lost or damaged
Cost: $500–$1,500/year for most home service contractors, covering $5,000–$25,000 in tool and equipment value. Much cheaper than replacing a stolen set of professional tools.
Professional Liability (Errors and Omissions)
If your service involves advice, design, inspection, or consulting — not just physical labor — you may need professional liability (E&O) coverage:
- Home inspectors: E&O is industry standard and required by some state laws
- Architects and designers: required
- HVAC contractors who design systems: advisable
- General contractors managing design-build projects: advisable
Standard GL policies do not cover economic losses from professional errors in judgment or design. E&O fills this gap.
Building the Right Coverage Stack
| Business Type | Minimum Recommended Coverage |
|---|---|
| Solo handyman | GL ($1M) + commercial auto |
| Landscaping (solo) | GL ($1M) + commercial auto + tools |
| HVAC (solo) | GL ($1M) + commercial auto + tools + occupational accident |
| HVAC (with employees) | GL ($1M) + commercial auto + workers’ comp + tools |
| Roofing (with employees) | GL ($2M) + umbrella ($1–2M) + commercial auto + workers’ comp + tools |
| GC (with employees) | GL ($2M) + umbrella + commercial auto + workers’ comp + tools + E&O |
Work with an independent commercial insurance agent who specializes in Texas contractors. They can access multiple carriers (Markel, State Auto, CNA, Employers, Berkshire Hathaway Guard) and structure the right coverage stack for your specific trade and business size.
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Frequently Asked Questions
What insurance does a Texas handyman need?
At minimum: general liability insurance ($1 million per occurrence) and commercial auto insurance on any vehicle used for business. If you have employees, workers’ compensation is strongly advisable. Tools and equipment coverage protects your investment in tools and equipment from theft or damage. These three to four policies form the basic protective stack for a Texas handyman business.
How much does general liability insurance cost for a Texas contractor?
GL insurance for a solo Texas home service contractor ranges from approximately $500–$2,500/year depending on trade type, annual revenue, and coverage limits. Higher-risk trades (roofing, electrical, structural) pay more. Shopping multiple carriers through an independent agent typically produces better pricing than going direct to a single insurer.
Does my personal auto insurance cover my work truck?
No. Personal auto insurance policies exclude business use. If you use your vehicle for work-related travel to job sites or to transport materials and tools, you need a commercial auto policy. A claim resulting from a business-use accident will be denied by your personal insurer, leaving you personally liable for damages.
Do I need insurance to list on home service platforms?
Most reputable home service platforms, including House Escort, require contractors to carry general liability insurance as a condition of listing. This protects homeowners who find contractors through the platform and ensures that working contractors have basic business infrastructure in place. Providing proof of insurance (certificate of insurance naming the platform as additional insured) is typically required at signup.
