1. (a) Class A licensees shall maintain commercial general liability insurance at all times during a license period:

   1. (1) of at least $300,000 per occurrence (combined for property damage and bodily injury);
   2. (2) of at least $300,000 aggregate (total amount the policy will pay for property damage and bodily injury coverage);
   3. (3) of at least $300,000 aggregate for products and completed operations, and
   4. (4) with a deductible no higher than $1,000.

2. (b) Class B licensees shall maintain commercial liability insurance at all times during a license period:

   1. (1) of at least $100,000 per occurrence (combined for property damage and bodily injury);
   2. (2) of at least $100,000 aggregate (total amount the policy will pay for property damage and bodily injury coverage);
   3. (3) of at least $100,000 aggregate for products and completed operations, and
   4. (4) with a deductible no higher than $500.
3. (c) Insurance must be obtained from an admitted company, an eligible surplus lines carrier, as defined in the Texas Insurance Code, Article 1.14-2, or other insurance companies that are rated by A. M. Best Company as B+ or higher.
4. (d) If a deductible exceeds the level allowed for a Class A or a Class B license, the contractors' business affiliation is considered to be self-insured. Any contractor whose business affiliation is self-insured must provide an affidavit of responsibility and a certified financial statement showing a net worth of at least the amount required by the deductible for that particular license.
5. (e) A license applicant or licensee shall furnish to the Department a completed certificate of insurance on a form provided by the Department not later than 30 days after expiration of the previous certificate. The certificate shall be furnished to each municipality in which the licensee registers his/her license.
6. (f) Insurance coverage specified in this section shall be maintained during the license period.

7. (g) Requests to waive the insurance requirements because the license holder does not contract with the public shall:

   1. (1) be submitted in writing to the Department;
   2. (2) contain a detailed explanation of the conditions under which the waiver is requested; and
   3. (3) be accompanied by a confirmation of employment by the current employer when working under the license of another contractor as an employee.
8. (h) Air conditioning and refrigeration contracting shall not be performed, or offered to be performed, with the public by a licensee that has received a waiver of insurance.

Source Note:The provisions of this §75.40 adopted to be effective July 21, 1999, 24 TexReg 5469; amended to be effective March 7, 2001, 26 TexReg 1833.