Texas ACR contractors must maintain commercial general liability (CGL) insurance at all times while their license is active. The minimum coverage limits are:
- $300,000 per occurrence for Class A ($100,000 for Class B) — property damage and bodily injury
- $600,000 aggregate for Class A ($200,000 for Class B) — property damage and bodily injury
- $300,000 products and completed operations aggregate for Class A ($100,000 for Class B)
The policy must come from a provider authorized to sell liability insurance in Texas, and a Certificate of Insurance — listing the license holder name and business name — must be on file with TDLR. New contractors submit it after passing the licensing exam and before the license is issued; after that, coverage must be maintained continuously, because a lapse in insurance can result in license issues.
The requirement applies to Class A and Class B contractors alike — only the minimums differ (16 TAC §75.40). Texas does not require a state-level contractor license bond for ACR contractors, though individual municipalities may impose their own bonding requirements, which vary by city and county.
What it means for your renewal
At renewal time, CE hours get the attention — but your CGL policy is the quieter requirement that can trip a license. Before you renew, confirm the policy is current and the certificate on file with TDLR is accurate, then complete your 8 CE hours. Both have to be in order for your renewal to go smoothly.