General Contractor

3 Reasons A General Contractor Should Always Arrange the Insurance in Dallas, TX.


A general contractor should always arrange insurance in Dallas, TX. The classes of insurance cover the contractor must maintain include Commercial General Liability, Workers Compensation, Automobile Liability Errors and omissions Insurance and Builders Risk Insurance. These policies protect a general contractor against the common risks that are inherent in this kind of business. There are many reasons why a general contractor should always arrange the insurance in Dallas, TX. Below we review 3 main reasons why every general contractor must arrange insurance in Dallas, Texas.


Insurance protects the general contractor in the event an accident occurs or if something goes wrong. It is important to remember that in this kind of work, this is the rule rather than the exception. General liability cover for example, protects the contractor in case a contract is not met. Sometimes, a general contractor can be sued when particular aspects of the project are not completed to the specifications of the client. If you are fixing or repairing the plumbing system in a building and something goes wrong, you can count on a General Liability Insurance cover to protect you.

Insurance is crucial when you have employees working with you. In the event that an employee is injured while at work or even dies, insurance will protect you and your business against costly litigation. The employees can also cause damage to the client’s property and the client decides to sue you. If you don’t have an insurance cover, you will suffer huge losses.

Legal Obligation

In order to regulate the work of general contractors, most states require you to be insured. Texas is not an exception. In fact, if you have not arranged for insurance, you risk being denied a license. This is because when you have insurance cover, it protects you as the contractor, your business, your employees as well as your clients. The state conducts various civic education initiatives to educate its citizens on the importance of insurance when a particular project is in place. It is not a wonder then that most clients require that you don’t visit the site or begin any work before insurance is procured.

Peace of Mind

When you have the right insurance cover, you conduct your business with a peace of mind. You are free to concentrate on your numerous job obligations. This is important because your only worry will be to grow your business. You do not want to be distracted from executing the project at hand when a problem occurs that could have been sorted by an insurance company.

These are some of the broad reasons why you should arrange for insurance as a general contractor in Dallas Texas. As you can see, you cannot run a general contractor business without insurance. The right combination of insurance policies provides protection so that the projects you undertake continue seamlessly.

While choosing the right type of policies it important to discuss with an insurance agent who has experience dealing with general contractors in Dallas. During the discussion, ask him or her all the questions you may have and describe the nature of your business. This helps the agent advise for the right kind of insurance cover for your business.

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