What are the legal requirements for insurance in the construction industry?

In Texas, there are certain legal requirements regarding insurance in the construction industry. All construction companies must carry liability insurance, which can be provided by either a third-party insurance provider or the company itself. This insurance is intended to cover any damages that may occur as a result of the construction project. Contractors and subcontractors must also carry Workers’ Compensation insurance. This coverage is required by the Texas Department of Insurance, and it provides protection to employees who are injured or killed on the job. In addition to liability and Workers’ Compensation insurance, contractors and subcontractors are also required to carry surety bonds. These bonds, which are obtainable from an insurance carrier, are meant to cover any losses that may result from a failure to complete a contract. Finally, contractors and subcontractors are also required to carry property damage insurance. This type of insurance provides coverage for any damage done to the property on which the construction project is taking place. In sum, liability, workers’ compensation, surety bonds, and property damage insurance are all essential types of insurance for contractors and subcontractors in Texas. These forms of insurance are legally required and provide protection to both the construction company and its employees.

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What are the legal requirements for insurance in the construction industry?

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