If you're starting a roofing business in Texas or wondering what insurance you actually need to stay legal and competitive, you're in the right place. Here's the thing that surprises most people: Texas doesn't require roofing contractors to get a state license. That makes it one of the most business-friendly states for contractors. But here's the catch—just because the state doesn't require insurance doesn't mean you can skip it. Commercial clients, government contracts, and local city regulations all have their own insurance requirements that you absolutely need to meet.
Let's break down exactly what insurance you need, when you need it, and how to make sure you're covered for the work you're doing.
Understanding Texas Roofing Licensing and Registration
Unlike most states, Texas has no mandatory state roofing license. You won't need to pass a state exam or register with a statewide licensing board. However, the Roofing Contractors Association of Texas (RCAT) offers a voluntary licensing program that many contractors pursue. Why? Because it helps you stand out as a qualified, insured professional when homeowners and businesses are vetting contractors.
For RCAT licensing, residential roofers need $300,000 in general liability insurance or a $100,000 surety bond, plus at least two continuous years of roofing experience in Texas. Commercial roofers face higher requirements: $500,000 in general liability insurance or the same $100,000 bond option. You'll also need to provide either workers' compensation coverage or file DWC Form-005 acknowledging you don't carry it.
Even without state licensing, major cities have their own rules. Houston, Dallas, Austin, and San Antonio all require roofing contractor registration with proof of general liability insurance, typically with minimums of $300,000 per occurrence. Check your local city or county regulations before you start taking jobs.
General Liability Insurance: Your Foundation Coverage
General liability insurance isn't legally required by Texas law, but it's effectively mandatory if you want to work. Almost every commercial client will require you to show proof of coverage before signing a contract. The industry standard is $1 million per occurrence with a $2 million aggregate limit. This coverage typically runs around $2,800 per year for those limits.
What does general liability cover? It protects you if your work causes property damage or bodily injury. Let's say a crew member accidentally drops tools off a roof and damages a client's car. Or a homeowner trips over your equipment and breaks their ankle. Your general liability policy handles those claims. It also covers legal defense costs if you get sued.
For residential work, you might get by with $300,000 in coverage, but most contractors opt for the full $1 million per occurrence because it opens up more opportunities. Government contracts and larger commercial projects won't even look at you without that level of coverage.
Workers' Compensation: Optional But Critical
Texas is unique—it's the only state that doesn't require most private employers to carry workers' compensation insurance. If you're a roofing contractor working exclusively for private clients, you can legally choose not to carry it. However, there's a massive exception: if you contract with any government entity (city, county, state, or federal), you must provide workers' comp coverage for every employee working on that project.
Here's why most roofing contractors carry it anyway: roofing is dangerous work. Falls, heat exhaustion, equipment injuries—they happen. Without workers' comp, if an employee gets hurt on the job, they can sue you directly for medical bills, lost wages, and pain and suffering. That lawsuit could bankrupt your business. Workers' comp provides a no-fault system where injured workers get benefits and you get protection from most lawsuits.
If you decide not to carry workers' comp (called being a "nonsubscriber"), you must file an annual notice with the Division of Workers' Compensation, post notices in your offices and workplaces, and tell new employees in writing that they're not covered. Many contractors find it's easier and safer to just carry the coverage.
Additional Coverage to Consider
Beyond general liability and workers' comp, smart roofing contractors carry commercial auto insurance to cover company vehicles and tools in transit. Inland marine insurance protects your expensive equipment and materials whether they're at the job site, in your truck, or in storage. If you've got $50,000 worth of tools and equipment, this coverage is essential.
Some contractors also carry professional liability insurance (errors and omissions) if they provide design services or consulting. And if you're doing high-value commercial work, an umbrella policy that extends your liability limits beyond $2 million can protect you from catastrophic claims.
Texas Legal Requirements You Must Know
The Texas Department of Insurance enforces strict rules that roofing contractors must follow. First, you cannot act as a public insurance adjuster on claims for work you're performing. That means you can't officially represent the homeowner in negotiating with their insurance company if you're also the one doing the repair work.
Second—and this is huge—it's illegal to waive, rebate, or absorb a property policyholder's deductible. If you advertise "we'll cover your deductible" or offer to do the work without the homeowner paying their deductible, you're breaking the law. For contracts over $1,000 that involve insurance settlements, you must include a notice stating that the policyholder is responsible for paying their deductible.
These aren't just technicalities. Violating these rules can result in fines, license revocation (if you have RCAT licensing), and even criminal charges in serious cases.
How to Get Your Insurance in Place
Start by contacting insurance agents who specialize in contractor coverage. Roofing is a high-risk business, so not every insurance company writes policies for it. Work with someone who understands the industry and can get you competitive rates.
Be prepared to provide details about your business: how long you've been operating, your annual revenue, number of employees, types of projects you take on (residential vs. commercial, new construction vs. repairs), and your claims history. Your rates will depend heavily on these factors.
Once you have coverage in place, ask for certificates of insurance (COIs) that you can provide to clients. Most commercial clients will require you to name them as additional insured on your policy for the duration of the project. Make sure your agent understands this—it's a standard request in the construction industry.
Bottom line: while Texas gives you flexibility by not mandating state licensing or insurance, the market demands it. Get proper general liability coverage, seriously consider workers' comp even if you're not required to carry it, and make sure you understand the legal restrictions around insurance claims and deductibles. The right insurance protects your business, opens up better opportunities, and gives your clients confidence that you're a professional who takes responsibility seriously.
