A general contractor in Texas can collect a certificate of insurance from every subcontractor on a tenant improvement job and still end up paying for a sub’s loss. A certificate is a one-page summary. It does not change the policy, it does not create rights, and in Texas, state law says so directly.
Texas lets most private employers opt out of workers’ compensation, and since 2012 it has limited how far additional insured coverage can shift risk on construction contracts. A COI file that looks complete can hide both problems. Below are six checks to run before a subcontractor mobilizes on a commercial renovation, plus what Texas law lets you ask for.
Why a COI is not proof of coverage in Texas
In 2011, the Legislature passed Senate Bill 425, which added Chapter 1811 to the Texas Insurance Code. It governs every certificate of insurance issued on a Texas property or casualty risk.
Under Chapter 1811, a certificate cannot alter, amend, or extend the policy, and it cannot give the certificate holder a contractual right. Agents and insurers must use a form approved by the Texas Department of Insurance (TDI) for any risk located in Texas, even when the GC or owner sits in another state.
TDI says a certificate holder cannot require custom wording, supplemental questionnaires, or affidavits in place of the approved form. Penalties, including civil penalties of up to $1,000 per violation, can apply to certificate holders as well as agents. What you can do is ask to see the policy language or a copy of the endorsements, and Chapter 1811 does not stop the agent from sending them. Texas courts follow the same logic: when the certificate and the policy disagree, the policy wins.
6 checks before a subcontractor mobilizes
- Read the endorsement, not the checkbox: An “X” in the additional insured column means nothing unless the policy carries an AI endorsement. Ask for it, and confirm it covers both ongoing operations and completed operations. On a renovation, defects and water intrusion often show up months after turnover, so completed operations coverage is the part most likely to matter.
- Find out whether the sub has workers’ comp at all: TDI confirms that most Texas private employers are not required to carry it. A sub with no policy is a nonsubscriber, and an injury to one of its workers can turn into a lawsuit against everyone on site. If the sub has no coverage, Labor Code Section 406.122(b) only keeps that sub’s workers from being treated as your employees if the sub operates as an independent contractor and signs a written agreement accepting employer responsibilities. TDI’s DWC085 form exists for that purpose.
- Decide whether a DWC081 makes sense: Under Labor Code Section 406.123, a general contractor can extend its own workers’ comp to a subcontractor and the sub’s employees through a written agreement, filed on TDI form DWC081. The agreement makes the GC their employer only for workers’ comp purposes. Failing to file a copy is an administrative violation. This option can close a gap fast, but it moves the sub’s payroll exposure onto your policy, so talk to your agent about the premium effect before you sign.
- Check your subcontract against the anti-indemnity law: Chapter 151 of the Insurance Code, effective January 1, 2012, voids construction contract provisions that require a sub to indemnify or defend you for your own negligence. Section 151.104 extends the same limit to additional insured requirements and endorsements. There are exceptions, including claims for bodily injury to the sub’s own employees and contracts for single-family homes, townhouses, and duplexes, but most commercial renovation work falls inside the law. Have construction counsel review indemnity and AI clauses written before 2012 or copied from another state.
- Match policy dates to the schedule: A certificate shows a snapshot. If the sub’s general liability or auto policy renews before substantial completion, put the renewal date on your calendar and request an updated certificate before it lapses. Do the same for waiver of subrogation and primary and noncontributory wording: TDI allows a certificate to note a blanket endorsement, but only when the policy actually has one.
- Treat public work as a separate category: On building or construction contracts with a Texas governmental entity, Labor Code Section 406.096 and TDI Rule 28 TAC 110.110 require the contractor to provide a certificate of workers’ comp coverage and to collect one from each person providing services before that person starts work. The entity keeps those certificates on file for the project and one year after. A nonsubscriber sub cannot work on that job.
Here is how the certificate compares to what you should actually collect:
| Item | What the COI can show | What to request instead |
|---|---|---|
| Additional insured | A checked box or a note that a blanket endorsement exists | The AI endorsement itself, for ongoing and completed operations |
| Waiver of subrogation | A note that a blanket waiver applies, if the policy has one | The waiver endorsement |
| Primary and noncontributory | Only what the policy already says | The endorsement wording |
| Workers’ comp | Policy number and dates, or nothing | The policy, or a signed DWC085 if the sub has no coverage |
| Notice of cancellation | Only notice the policy or Texas law already requires | The notice endorsement, if you need advance notice |
| Project reference | A job or contract number, for identification only | Nothing more – this is allowed as is |
Based on Texas Insurance Code Chapter 1811 and TDI’s certificate of insurance FAQ. Endorsement form numbers vary by carrier.
Where small and Spanish-speaking subcontractors fit in
Drywall, framing, painting, cleaning, and finish carpentry crews on Texas commercial jobs are often small, owner-operated businesses that run in Spanish. That is not a risk by itself. The risk is a policy bought without a clear explanation of what it excludes. The most common gaps we see on small trade contractor policies are:
- A residential-only classification, even though the sub now takes commercial work
- A height limit that excludes work above two or three stories
- A condition that voids coverage if the sub hires its own subs who are uninsured
- An exclusion for injuries to employees of contractors, which hits hardest when a nonsubscriber crew is on site
None of these show up on a certificate. A GC who asks for the declarations page and endorsement schedule will catch most of them in 10 minutes. TDI publishes Spanish versions of its agreement forms, including the DWC085S, which makes it easier to get a signed form the sub actually understands.
Subcontractors in Houston often buy their general liability, workers’ comp, and commercial auto through a bilingual local agency such as Paga Menos Insurance, which can issue certificates the same day and explain exclusions in Spanish before the sub signs your contract.
A pre-mobilization checklist
- Current certificate on a TDI-approved form, with the job number for identification
- Additional insured endorsement for ongoing and completed operations
- Waiver of subrogation and primary and noncontributory endorsements, if your contract requires them
- Workers’ comp policy, a filed DWC081, or a signed DWC085
- Commercial auto coverage for any vehicle the sub brings on site
- Renewal dates logged against the project schedule
- Indemnity and AI clauses reviewed against Insurance Code Chapter 151
Frequently asked questions
Can I require my subcontractor to send a certificate on my own form?
No. For Texas risks, the certificate must be on a TDI-approved form. You can ask for policy language or copies of endorsements instead.
Does Texas require subcontractors to carry workers’ comp on private commercial jobs?
State law does not, outside of public projects. Your subcontract can require it.
Is a signed DWC085 the same as having coverage?
No. It documents that the sub is an independent contractor responsible for its own workers. It does not pay medical bills or lost wages.
What should I do if a sub’s policy expires mid-project?
Request a renewal certificate before the expiration date and hold payment applications until you receive it if your contract allows.
Endnote
A certificate tells you a policy existed on the day it was issued. The endorsements tell you whether that policy protects you. On Texas commercial renovation work, where workers’ comp is optional and indemnity is limited by statute, collecting the endorsements is the step that keeps a sub’s claim from becoming yours.
