Moon Insurance Managers, Inc. · TDI license #5595

Electrical Contractor Insurance in Texas

A Texas electrical contractor license comes with a written insurance rule. This page sets out what the rule says, how TDLR wants proof shown, and who else will ask you for it. Your general contractor or a city may ask for something different.

What’s required: TDLR’s rule requires electrical, electrical sign and residential appliance installation contractors to keep at least $300,000 per occurrence, $600,000 aggregate and $300,000 aggregate for products and completed operations in general liability. Workers’ compensation is elective under the licensing statute.

Sources: 16 TAC § 73.40 (Cornell LII mirror; last amended Jan. 1, 2010 per its notes); TDLR form ELC-LIC-021, rev Jun 2026. Verified 30 October 2026.

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16 TAC § 73.40

What the Texas rule says about insurance

The rule is 16 Texas Administrative Code § 73.40. It says these contractors must maintain at least the minimum general liability coverage “at all times” to satisfy proof of financial responsibility:

$300,000 Per occurrence: Bodily injury and property damage combined.
$600,000 Aggregate: Bodily injury and property damage.
$300,000 Aggregate: Products and completed operations.

The same three figures apply to all three contractor licenses, so a sign shop and an appliance installer read the same table. Products and completed operations is its own line, so the rule looks past the day you finish the job. Our general liability page explains what each of those terms means.

The rule also says where the insurance may come from: an admitted company, an eligible surplus lines carrier as defined in Insurance Code chapter 981, or another insurer rated B+ or higher by A.M. Best.

TDLR’s penalty schedule lists failing to maintain the minimum general liability as a Class B violation, at $1,000 to $3,500 and/or up to a one-year full suspension.

Sources: 16 TAC § 73.40(a), (e) (Cornell LII mirror); TDLR — Electricians Penalties and Sanctions. Verified 30 October 2026.

The certificate

How TDLR wants to see it

The rule says a license applicant or licensee files a completed certificate of insurance, or other evidence satisfactory to the department, when applying for initial and renewal licenses and when the department asks.

The rule allows an industry standard certificate with a 30-day cancellation notice. TDLR’s application pages tell you to use its own form, ELC-LIC-021. Four things on that form and the application are worth knowing before you ask anyone for it:

“Binders or Declarations are not Accepted.” That is printed on the form.
An authorized insurance representative signs it, certifying that the policy meets or exceeds the minimums. Ask whoever is selling you the policy whether they will complete it.
The name has to match. The name or assumed business name on the certificate must match the application. If you change the business name, TDLR’s FAQ asks for an updated certificate with the new name.
It only shows general liability. Workers’ compensation goes through the application.

On cancellation, the form says the carrier “shall endeavor to notify” TDLR at least 30 days before a cancellation or non-renewal by the carrier, and not more than 10 days after one by the insured.

Sources: 16 TAC § 73.40(b), (c) (Cornell LII mirror); TDLR form ELC-LIC-021, rev Jun 2026; TDLR form ELC-LIC-003, rev Feb 2026; TDLR — Electrical Contractor; TDLR — FAQ 3.4. Verified 30 October 2026.

§ 73.40(d)

Your customer can ask who insures you

Under § 73.40(d), a licensed contractor must give any customer who requests it the name of the insurance carrier, the policy number, and the name, address and telephone number of the insurance agent.

TDLR’s penalty schedule lists failing to do that as a Class B violation too. Keep those details somewhere you can reach from a job.

Sources: 16 TAC § 73.40(d) (Cornell LII mirror); TDLR — Electricians Penalties and Sanctions. Verified 30 October 2026.

Beyond the license

Who else asks for proof, and what they ask

The state’s figures are a floor for the license. Other people set their own terms, and they do not all use the state’s wording.

San Antonio: Electrical, sign and appliance contractors and annual maintenance permit holders keep a certificate with the city as certificate holder: bodily injury of at least $300,000, and property damage of at least $300,000 for both general liability and completed operations.
Dallas: Registration checklist dated 5/15/2024: $300,000 combined single limit, on a certificate naming the City of Dallas as holder and showing the company name and office address.
Orange: Certificate showing a minimum of $300,000 in general liability on file with the Inspections Office.
Houston: The electrical contractor and appliance contractor registration pages list state licenses and notarized form CE-1189, and no insurance document. We did not read the city’s electrical code or the form itself, so confirm with the city’s electrical inspections section at 832.394.8860.
Eanes ISD: Any vendor or contractor working on its property: $1,000,000 general liability each occurrence, with the district as certificate holder and additional insured. $500,000 auto and $100,000 workers’ compensation apply on the conditions it states. The page is undated.

We have read only these. Other cities may differ, and state law leaves room for local licensing and inspection rules, so check the city where the job is.

General contractors, property managers and HOAs. We did not find a published Texas example to quote. When one asks for more than the state floor, that comes from the contract, so the clause in your contract is the number that counts. Our contractors page covers how a subcontract’s insurance requirements usually read, and our certificate article covers the paperwork.

Sources: City of San Antonio — Electrical contractors; City of Dallas — electrical contractor registration; City of Orange — Electrical Contractors; Houston Permitting Center — HPWCODE1051; Houston Permitting Center — HPWCODE1065; Eanes ISD — insurance requirements; Tex. Occ. Code § 1305.201. Verified 30 October 2026.

Employees

If you have a crew, or it is just you

The licensing statute lets you carry workers’ compensation for your employees, self-insure, or elect not to obtain it. The application makes you pick one. TDLR says that if you elect out, you file an online notice of no coverage with the Texas Department of Insurance, called Employer E-File.

So going without is a lawful choice under the license. Two things can change the answer for a particular job:

Public work. A governmental entity with a building or construction contract must require the contractor to certify workers’ compensation coverage for each employee on the project, and each subcontractor provides that certificate up the chain.
A contract or a customer’s terms. Eanes ISD’s condition above is one example.

What going without means for you is a bigger question, and our workers’ compensation page owns it.

Sources: Tex. Occ. Code § 1305.159(a)(3); Tex. Lab. Code § 406.096; TDLR — Electrical Contractor. Verified 30 October 2026.

The other licenses

Sign, appliance, pool and solar work

Sign contractors hold a separate license and read the same insurance table.

Residential appliance installation contractors connect or disconnect a residential appliance, including a pool-related electrical device, to an existing circuit, other than by plugging or unplugging it. That is a separate business license under the same rule, and pool-related electrical maintenance is in the definition.

Residential solar. When a sale or lease includes installation at a home, the statute says the agreement must provide that an electrical contractor will do the installation and conspicuously state the contractor’s name and license number, or give a list to choose from. We found no solar-specific insurance rule in what we read, so your name can appear on someone else’s contract while your policy stays your own question. Tell your insurance contact that you do this work.

Chapter 1305 also has exemptions, in § 1305.003, so not all wiring-related work falls under this license.

Sources: Tex. Occ. Code §§ 1305.002, 1305.003, 1305.160, 1305.1618; Tex. Occ. Code § 1806.155; TDLR form ELC-LIC-012, rev Apr 2026. Verified 30 October 2026.

Before you buy

Will the policy fit the work you actually do?

Meeting the three limits and fitting your work are two separate questions. A broker’s 2024 article on contractors’ general liability describes endorsements that some policies carry. Before you buy, ask to see the wording on these:

Classification limits. Some policies limit coverage to the operations they classified and rated. Describe everything you do, including generator work, service calls, or anything else outside your usual run.
Residential work. Some policies exclude it, and the article says the wording can run from all residential work to narrower categories such as multi-unit or tract homes.
Subcontractors. Some policies set conditions on your subs’ insurance, with consequences for a loss if you miss them. Collect their certificates, and ask what yours requires.

Your truck and tools usually sit outside this policy. The truck is a commercial auto question, and tools are inland marine. A contract may also ask for an umbrella above your limits, and public prime contracts have their own bond thresholds.

Sources: Gary Grindle, Amwins Brokerage, June 20, 2024 — a broker’s general article, not Texas law and not specific to electricians; Tex. Gov. Code § 2253.021. Verified 30 October 2026.

No obligation

Comparing quotes, and what to send us

Two quotes at the same limits are not necessarily the same policy. Before you compare the price, compare the items above, and ask each seller whether they will complete TDLR’s form.

Moon places general liability for electrical contractors.

Moon Insurance is an independent agency on FM 1959 in southeast Houston. Send your license type, the work you actually do, whether you use subs, and any contract’s insurance clause with your inquiry, and the first call can start from the requirement rather than from guesswork. The phone is fastest: (281) 484-8320, or use the form below.

Monday to Thursday, 9:00 to 5:00; Friday, 9:00 to 4:00. Our Houston office is at 360 FM 1959, Houston, TX 77034.

Electrical contractor insurance questions

What insurance does an electrical contractor need in Texas?

For the license, general liability of at least $300,000 per occurrence, $600,000 aggregate and $300,000 aggregate for products and completed operations, under 16 TAC § 73.40. Anything beyond that comes from a contract, a city or your own choice.

Do I need $1,000,000 in liability to be licensed?

No, the rule’s figures are the ones in the table above. A contract or customer can ask for more, and Eanes ISD’s published requirement is $1,000,000 per occurrence, so read the clause before you bid.

Will TDLR take a binder or a declarations page?

Not on its certificate form, which says “Binders or Declarations are not Accepted.” The rule also mentions “other evidence satisfactory to the department”, so a question about anything else goes to TDLR.

Do I need workers’ comp if it is just me?

The license does not force you to buy it: the statute lets a contractor elect not to obtain it. You still have to choose an option on the application, and TDLR says electing out means filing a notice with the Texas Department of Insurance. A public job or a contract can require coverage for employees.

Does a journeyman or apprentice need their own policy?

The rule we read names contractor licenses and no individual license. We are not addressing here who may take work on their own, because licensing decides that and we did not establish it. Ask TDLR.

Does a surplus lines policy count?

The rule says an eligible surplus lines carrier as defined in Insurance Code chapter 981 qualifies, alongside admitted companies and other insurers rated B+ or higher by A.M. Best. The policy still has to meet the limits.

If I form an LLC, do I still need this?

The rule has no exception for an LLC or any other business form. Whether an LLC protects your personal assets is a question for an attorney.

How much does electrical contractor insurance cost?

We do not print a figure here, because a number on a page would not be yours. The work you do, your limits and your contract’s terms are what you would need to compare between quotes.

Sources: 16 TAC § 73.40 (Cornell LII mirror); TDLR form ELC-LIC-021, rev Jun 2026; Tex. Occ. Code § 1305.159; TDLR — Electrical Contractor; Eanes ISD — insurance requirements. Verified 30 October 2026.

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