Start with the insurer that already writes your general liability. If it says no, a broker can get one from another standard insurer, or from a specialty market you cannot reach yourself. Which one fits depends on your trade, the limit your contract names, and how high your current insurer will go. Who this is for: Texas contractors and trades whose customer, public bid, or master service agreement (the standing contract a plant, refinery, or oil company makes every vendor sign) asks for more liability coverage than their policies carry.
The short version
- An umbrella is a second layer of coverage above your general liability, your auto policy, and the part of workers comp that pays if an employee sues you.
- Ask your current insurer first. If it declines or caps the limit, a broker can place a stand-alone umbrella with another company.
- Texas hail, very large jury verdicts, and energy-sector contracts are why general contractors here name high limits.
- Specialty insurers take the hard cases. In Texas they add about 4.9 percent in state tax and fees.
- A $1,000,000 umbrella commonly runs roughly $600 to $2,500 a year nationally, illustrative. Roofing, demolition, and oilfield work cost more.
What is an umbrella, and why do Texas contracts ask for one?
An umbrella (also called excess liability) is a second layer of coverage above your other liability policies. If a claim uses up the $1,000,000 on your general liability, the umbrella pays the next $1,000,000 or more. Texas subcontracts ask for one so your total limit matches the size of the project.
Three Texas facts sit behind those requests.
- Hail. Texas ranked first in the nation with 902 major hail events in 2025. Roofers, exterior trades, and anyone with a truck fleet feel it in their pricing.
- Verdicts. Texas led all states with 23 jury verdicts of $10,000,000 or more in 2024, and general contractors raise their minimums after headlines like those.
- Energy work. Under the Texas Oilfield Anti-Indemnity Act, a promise to cover an oil company's losses is enforceable only up to the insurance you agreed to buy. The master service agreement names a limit, and you buy it.
Where can I actually buy one in Texas?
| Source | Best for | Watch out for |
|---|---|---|
| Your current general liability insurer | $1,000,000 to $5,000,000 for common trades with clean claims history | Many cap roofing, demolition, and work at height at $1,000,000 or decline |
| Another standard insurer, stand-alone umbrella | Contractors whose own insurer will not go higher | It will want your general liability, auto, and workers comp at its minimum limits first |
| Specialty market through a broker | High hazard trades, past claims, oil and gas work, limits above $5,000,000 | Higher price, plus about 4.9 percent in Texas tax and filing charges. If that insurer failed, no state fund stands behind the policy the way it does for standard insurers |
| Stacked layers from several insurers | $10,000,000 or more for one large contract | Every layer has its own wording, and a layer above is never broader than the one below |
Only the first row is something you can do yourself. The other three need a broker with access to those markets. The Texas charges on a specialty policy are real but small: a $6,000 umbrella premium reaches your invoice at about $6,293. The national version is at where can I get commercial umbrella insurance for my contracting business.
What limits do Texas contracts and rules actually name?
| Situation | Limit you will usually see |
|---|---|
| Typical commercial subcontract | $1,000,000 to $2,000,000 above $1,000,000 general liability |
| Large general contractor or public project | $5,000,000 total |
| Oil, gas, and pipeline master service agreements | Whatever limit the agreement names. Under the Texas Oilfield Anti-Indemnity Act the indemnity you owe an operator is only enforceable up to the insurance you agreed to carry, so operators set the limit and expect you to buy it |
| Hauling fuel or non-bulk hazardous materials as a motor carrier | $1,000,000 auto liability filed with the state. Your insurer makes that filing on your auto policy, and an umbrella counts only if its insurer files too |
| Hauling bulk hazardous materials | $5,000,000 auto liability, filed the same way |
| Asbestos abatement or underground tank work | $1,000,000 liability required by the state rule. An umbrella cannot meet it, because umbrellas exclude pollution. That limit comes from a contractors pollution policy, with any extra limit layered above it |
The last three rows come from Texas rules, not a customer, and none is an umbrella requirement: the motor carrier filings sit on your auto policy, and the asbestos and tank limits have to come from the right policy. They still explain why some Texas contractors carry limits this high.
What do I need before an insurer will quote?
- Your current policies. Declarations pages for general liability, auto, and workers comp with employers liability (the part of workers comp that pays if an employee sues you). Most umbrella insurers want at least $1,000,000 on each. If you do not carry workers comp, the umbrella has nothing to sit above on that side.
- Five years of loss runs, your claims history report.
- The contract or master service agreement that names the limit, so the broker matches the wording, not just the number.
- Payroll, sales, vehicle list, and driver list.
Illustrative national pricing, not a Texas rate: a $1,000,000 umbrella runs roughly $600 to $2,500 a year for most trades. Roofing, demolition, oilfield work, and past claims cost more, and your payroll, claims history, and insurer move the number either way. For ways to bring it down, see how to find cheaper commercial umbrella insurance in Texas.
What this looks like in real life
Illustrative example. It is typical of what we see and is not a promise of how any specific situation would be handled.
The setup: A mechanical contractor in Houston wins maintenance work at a chemical plant under a master service agreement. The agreement names $5,000,000 in liability coverage, and the indemnity clause is enforceable only up to that insured amount.
What went wrong: His general liability insurer offers $2,000,000 and will not go higher because of the plant site work. The plant will not issue a badge until the certificate shows $5,000,000.
What it cost: A broker placed the first $2,000,000 with the current insurer for about $3,400 and a further $3,000,000 layer with a specialty insurer for about $5,200, plus roughly $255 in Texas tax and filing charges, all illustrative. The badge was issued eleven days after signing.
The fix: Ask your insurer for the full limit first, and when it says no, ask a broker to layer the rest. Start the day you see the master service agreement, because plant sites do not wait.
Frequently asked questions
Q: Where can I get commercial umbrella insurance for my Texas business?
From the insurer that writes your general liability, from another standard insurer, or from a specialty market through a broker. Start with your current insurer, then have a broker shop the rest.
Q: Why does my Texas contract want an umbrella at all?
Because the general contractor wants your total limit to match the size of the project. Texas hail losses, very large jury verdicts, and energy-sector indemnity rules are why those limits run high here.
Q: Will my insurer sell me an umbrella if I am a non-subscriber?
Often yes, but it will sit above your general liability and auto only. It cannot sit above an employers liability limit you do not carry, so some insurers ask more questions or charge more.
Q: What if I need the higher limit before the policy is issued?
Nothing you sign creates coverage before the policy starts. A general contractor's written permission to begin work does not backdate an umbrella, and insurers rarely backdate one. Ask your broker for written confirmation of the start date, and keep crews off site until it arrives.
Q: Does my umbrella add my general contractor the way my liability policy does?
Not automatically. Some umbrellas follow the additional insured wording on the policy underneath and some need their own endorsement. A certificate showing an umbrella row is a claim that the wording exists, not proof, so ask for the pages.
Q: How long does it take to get an umbrella in Texas?
One day to two weeks. Your current insurer can often add one in a day or two; a stand-alone or specialty umbrella takes longer, because the new insurer reviews your other policies and claims first.
How Morrow helps
Morrow is a licensed independent commercial insurance brokerage that works with contractors and trades every day. Placing an umbrella for a Texas contractor when the current insurer will not go high enough is a large part of what we do.
- Free contract review. Send us the contract or bid documents and we mark up the insurance section in plain English, whether or not you buy anything from us.
- Free, instant certificates. Clients issue their own certificates of insurance online in about a minute, any hour, any day, at no charge.
- Markets you cannot reach online. One application, shopped across many insurance companies for general liability, workers comp, auto, umbrella, and pollution coverage.
One more thing. This article is general information and is not legal advice or a statement of coverage. Your contract and your policy wording control in every case. Requirements vary by customer, by state, and by insurance company, so have a licensed advisor review your own contract and your own policy before relying on any of it.
Last updated: Reviewed by the Morrow commercial lines team. Last updated September 2026.