What are the insurance requirements for a construction company?

In Texas, construction companies are legally required to have certain types of insurance in place in order to operate. The most important of these is general liability insurance, which protects the company from financial losses if someone is injured on the job or if damage occurs to a client’s property. It also covers legal fees if the company is sued. In addition, construction companies must also carry worker’s compensation insurance. This provides medical coverage, lost wages, or other financial assistance to employees if they are injured on the job. Employers must register with the Texas Department of Insurance within a certain timeframe after hiring employees in order to comply with the law. Construction companies must also carry commercial auto insurance if they own vehicles or heavy machinery. This policy can cover damage to third-party property, medical expenses for third-party passengers, and legal expenses should the company be sued. Finally, construction companies must also maintain surety bonds. This type of insurance provides a guarantee that jobs will be completed as contracted. If the company fails to meet its obligations, the insurance can cover the cost of damage or losses. Overall, having the right kind of insurance is an important part of doing business in the state of Texas, and it’s important for construction companies to make sure they have all the required insurance in place before they start work.

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What are the insurance requirements for a construction company?

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