If you're installing hardwood, tile, laminate, or carpet in Texas, you might be wondering what insurance and licenses you actually need. Here's the good news: Texas is one of the most contractor-friendly states when it comes to licensing. There's no state-issued flooring installer license. But before you celebrate, understand that insurance requirements are a different story—and they can make or break your ability to land jobs.
The reality is that while Texas doesn't force you to carry insurance by law, your clients absolutely will. General contractors, commercial property managers, and even many homeowners now require proof of insurance before you can step foot on a job site. Let's break down what coverage you actually need, what's optional but smart, and how much you should expect to pay.
Do You Need a License in Texas?
Short answer: no. Texas doesn't require flooring installers to hold a state license. The Texas Department of Licensing and Regulation (TDLR) focuses on specialty trades like electricians, HVAC techs, and plumbers—but flooring work doesn't make the list.
That said, don't assume you're in the clear. Many Texas cities and counties have their own registration requirements. For example, San Antonio requires contractors to register and obtain permits before starting work. Austin has similar requirements for certain types of construction work. You'll want to check with your local city or county clerk's office to see what's required in your area. It's usually a simple registration process, not a full licensing exam, but skipping it can result in fines or being barred from pulling permits.
Also, you'll need to register your business with the state—that's a basic business license or LLC registration, not a contractor license. And if you want to boost your credibility, consider voluntary certifications like CFI (Certified Flooring Installers). It's not required, but it can help you stand out when bidding against competitors.
General Liability Insurance: Not Required, But Essential
Here's where things get interesting. Texas doesn't legally require you to carry general liability insurance. You could theoretically operate without it. But good luck landing any commercial work—or even most residential jobs—without a certificate of insurance in hand.
General liability covers you when someone gets hurt on the job or when you accidentally damage a client's property. Imagine you're installing tile in a bathroom and your crew accidentally cracks the porcelain tub. Or a homeowner trips over your tools and breaks an ankle. Without GL insurance, you're paying for that damage—and any resulting lawsuits—out of your own pocket.
The standard coverage flooring contractors carry is $1 million per occurrence and $2 million aggregate. Some municipalities and general contractors will accept lower limits—like $300,000 per occurrence and $600,000 aggregate—but you're better off with the higher limits. It gives you more credibility, and the cost difference is minimal. As of 2026, GL policies for flooring installers start around $39 per month or about $500 annually, depending on your business size and claims history.
Workers' Compensation: Texas Plays By Different Rules
Texas is the only state in the country where workers' compensation insurance is optional for most private employers. Yes, you read that right. If you have employees, you can choose whether or not to carry workers' comp. But before you celebrate saving money, understand what you're giving up.
When you carry workers' comp, you get something called "exclusive remedy" protection. This means that if an employee gets hurt on the job, they file a workers' comp claim—but they can't sue you directly. If you don't carry coverage (you're what Texas calls a "nonsubscriber"), injured employees can sue you for negligence. And unlike workers' comp claims, which have set benefit schedules, lawsuits can result in massive judgments that include pain and suffering, lost wages, and punitive damages.
There are also situations where workers' comp is mandatory even in Texas. If you contract with any government entity—city, county, state, or federal—you must provide workers' comp coverage for employees working on that project. And many general contractors now require their subcontractors to carry coverage as a condition of the contract. If you're working on commercial jobs, expect this to come up.
If you do choose to be a nonsubscriber, Texas law requires you to file annual notices with the Texas Department of Insurance, post notices in your workplace, and inform new employees in writing that they're not covered. The administrative burden alone is a reason many flooring businesses just buy the coverage. For a flooring contractor, workers' comp typically runs between $400 and $3,000 annually, depending on your payroll and the number of employees.
Commercial Auto Insurance: Legally Required
If you own a truck or van for your flooring business, Texas law requires commercial auto insurance. Personal auto policies won't cover vehicles used for business purposes, and if you're in an accident while hauling materials to a job site, your personal insurer will deny the claim.
Texas requires minimum liability limits of $30,000 per person for bodily injury, $60,000 per accident for bodily injury to multiple people, and $25,000 for property damage. These are bare minimums, and most flooring contractors carry higher limits—especially if they're hauling expensive materials or equipment. Consider bumping up to at least $100,000/$300,000/$100,000 for better protection.
Other Coverage to Consider
Beyond the basics, there are a few other policies worth considering. Tools and equipment coverage (often called inland marine insurance) protects your saws, nailers, and other gear if they're stolen from your truck or a job site. If you're carrying around $10,000 worth of tools, this coverage can save you from a devastating loss.
A Business Owner's Policy (BOP) bundles general liability and commercial property coverage together, often at a discount. If you have a physical office or showroom, a BOP can be a smart move. And if you're installing high-end materials or offering design consultations, professional liability insurance (also called errors and omissions) protects you if a client claims you gave bad advice or made a costly mistake in project planning.
What It All Costs
For a basic insurance package—general liability, workers' comp (if you have employees), and commercial auto—most Texas flooring installers pay between $800 and $3,000 per year. Your actual cost depends on your annual revenue, payroll, number of employees, claims history, and the limits you choose. A solo installer with no employees and minimal revenue will be at the lower end. A business with five employees doing $500,000 in annual revenue will be at the higher end or beyond.
Shop around. Insurers price flooring contractor coverage differently based on their own claims data and risk models. Get quotes from at least three carriers, and work with an independent agent who specializes in contractor insurance. They can help you find the right balance between coverage and cost.
How to Get Started
First, check with your city or county to see if there are any local registration or permitting requirements. Most municipalities have this information on their website, or you can call the city clerk's office. If you need to register, do that before you start bidding on jobs—some cities won't let you pull permits without proof of registration.
Next, contact an insurance agent or broker who works with contractors. Explain what kind of work you do, how many employees you have, and what your annual revenue looks like. They'll recommend coverage options and get you quotes. Once you have coverage in place, you'll receive certificates of insurance (COIs) that you can provide to clients and general contractors. Keep digital copies on your phone—you'll need them constantly.
The bottom line is this: Texas gives you a lot of freedom when it comes to licensing and insurance requirements, but that freedom comes with responsibility. If you want to build a legitimate, sustainable flooring business, treat insurance as a business necessity, not an optional expense. It protects you, your employees, your clients, and your livelihood.
