Are you unsure if you’re meeting the right insurance requirements as a general contractor in Plano, Texas? Do you feel overwhelmed by the layers of legal terms, coverage options, and city-specific ordinances?
In this guide, you’ll get clear, actionable answers to the exact insurance and bonding requirements you need to operate confidently.
Let’s walk through what’s actually required in Plano, which policies protect your business, and how to avoid coverage mistakes that can cost you thousands.
Why General Contractor Insurance Is Not Just Paperwork
If you’re a general contractor in Plano, your livelihood depends on more than just skill and tools, it depends on protecting your work, your team, and your reputation. While Texas doesn’t mandate a statewide general contractor license, the City of Plano enforces its own permit and insurance standards. And if you’re working in the right-of-way or bidding on commercial jobs, you won’t even get in the door without proof of proper coverage.
Insurance isn’t just a formality, it’s business protection.
Without the right coverage, a single injury, property damage claim, or lawsuit could shut you down. On the flip side, having comprehensive insurance makes you a more trustworthy and contract-ready choice for clients.
Plano, TX Right-of-Way (ROW) Insurance Requirements for Contractors
If you plan to perform work in Plano’s public right-of-way (ROW), you’ll need to follow the city’s ordinance requirements in Chapter 19, Section 19-68 of the City of Plano Code of Ordinances. All contractors applying for permits through the Engineering Department must register annually and provide proof of insurance that meets or exceeds the minimum thresholds.
Minimum Coverage Requirements:
| Insurance Type | Agencies & Network Providers | Public Infrastructure Contractors |
|---|---|---|
| Commercial General Liability | $5,000,000 per occurrence, $10,000,000 aggregate | $1,000,000 per occurrence, $2,000,000 aggregate |
| Automobile Liability | $1,000,000 combined single limit | $1,000,000 combined single limit |
| Workers’ Compensation | Statutory Limits and $500,000 Employers Liability | Statutory Limits and $500,000 Employers Liability |
Always review the specific contract terms for each job as project owners may require higher coverage limits than the city minimum.
The 6 Types of Insurance Every General Contractor in Plano Should Carry
Even if you’re not working in the ROW, these six types of insurance are essential for protecting your business and winning bigger jobs.
1. General Liability Insurance
This is the foundation of contractor coverage. It protects you from third-party claims like bodily injury or property damage resulting from your work.
- Typical Cost: Around $1,395 annually for a small to mid-size construction business
- Key Benefit: Essential for both legal protection and contract eligibility
2. Workers’ Compensation Insurance
Although Texas doesn’t require private employers to carry this, many clients do, especially on large or commercial projects.
- Why It Matters: Covers medical expenses and lost wages for injured employees
- Bonus: Protects your business from most employee injury lawsuits
3. Commercial Auto Insurance
If your team drives company vehicles, you’re required to carry commercial auto coverage under Texas law.
- State Minimums: $30,000 per person, $60,000 per accident, $25,000 property damage
- Best Practice: Most contracts demand at least $1,000,000 in coverage
4. Builder’s Risk Insurance
This protects your in-progress construction projects from damage or loss caused by fire, theft, vandalism, or weather.
- Who Needs It?: Contractors, property owners, and developers involved in new builds or major renovations
5. Professional Liability Insurance (Errors & Omissions)
If you offer design-build or construction management services, this coverage protects you against claims of negligence, errors, or omissions.
- Why You Need It: A bad design or missed detail can cost your client thousands, and lead to a lawsuit
6. Umbrella or Excess Liability Insurance
Provides extra protection beyond your general liability or auto policy limits.
- Best For: High-risk contractors or those working on large-scale commercial builds
- Safety Net: Helps you stay afloat in the event of a catastrophic claim
What About Surety Bonds?
Surety bonds aren’t technically insurance, but they’re often required to bid on or secure work. They act as a guarantee to the project owner that you’ll meet the obligations of the contract.
Common Types of Bonds for Plano Contractors:
- Bid Bonds: Ensure you’ll honor your bid and provide further bonding if awarded the contract
- Performance Bonds: Guarantee project completion under the agreed terms
- Payment Bonds: Ensure payment to your subcontractors and material suppliers
Frequently Asked Questions (FAQ)
Do I need a general contractor license in Plano, TX?
No statewide license is required in Texas, but Plano mandates registration with the Building Inspections Department. The fee is $100 annually.
What are the insurance minimums for contractors in Plano?
For ROW work, you need $1M in general liability and $1M in auto liability, plus workers’ comp. But many contracts require higher coverage, so check every project’s specifics.
Is workers’ comp required in Texas?
It’s not mandatory statewide, but many commercial projects require it contractually, and it shields you from legal liability.
What is an additional insured endorsement?
This adds another party (like a project owner or GC) to your insurance policy, extending your coverage to them — a common requirement in construction contracts.
Where can I view the full Plano ROW insurance ordinance?
You can access it in Chapter 19 of the City of Plano Code of Ordinances.
Your Next Step to Protect Your Construction Business
After years of building in Plano, you’ve likely run into unexpected insurance demands, contract holdups, or questions about what coverage actually matters. Now, you know what the city requires, what your clients expect, and how to protect your business from risk. Don’t leave your next job, or your business, vulnerable. Let Neill Insurance help you:
✅ Review your current policies
✅ Compare coverage limits against the city’s requirements
✅ Consider bundling essential coverages with a provider that understands Plano contractor risks
