What Insurance Does a Texas Pest Control Company Need?

At minimum, a Texas structural pest control business needs general liability insurance of at least $500,000 per occurrence for bodily injury and property damage, with a $1,000,000 annual aggregate, filed with the Texas Department of Agriculture (TDA) on its ALS-1101 form before the license is issued. That policy has to cover damage to property in your care, custody or control, which standard general liability forms exclude, so the exclusion must be removed. Most pest control companies also need commercial auto, a decision on workers' comp, and a close look at how their policy treats pesticides and inspection reports.

Below is what Texas law and TDA's rules actually require, why the care, custody or control wording catches so many operators, and the rest of the coverage a pest control company usually carries.

What insurance does TDA require for a pest control license?

The Structural Pest Control Act says TDA may not issue or renew a business license until the applicant files proof of liability insurance (Occupations Code 1951.312). The statute sets a floor of $200,000 for bodily injury and property damage with a $300,000 aggregate, and it lets TDA require different amounts by rule.

TDA has done that. Its current rule, 4 Texas Administrative Code 7.123, sets the requirement higher:

• Limits. At least $500,000 for bodily injury and property damage, with a minimum annual aggregate of $1,000,000 for all occurrences.
• Scope. The policy must insure the business for damage to persons or property resulting from structural pest control operations "to premises or any other property under applicant's care, custody, or control."
• Cancellation notice. The policy must give TDA at least 30 days' notice before cancellation.
• Eroded aggregate. If paid claims push the aggregate below $1,000,000, the insurer must notify TDA and the licensee within 10 business days, and the licensee must buy more coverage.
• Authorized insurers. Only policies from insurers authorized by or registered with the Texas Department of Insurance count.
• Continuous coverage. The business must keep the required coverage for the full licensure period.

TDA's structural pest control business page adds the practical details. Proof of insurance must be on the ALS-1101 form, and no other form is accepted. A license is required for each business location, including branch offices, and a business cannot advertise or solicit work before its license is issued. At renewal, current insurance on the ALS-1101 and the renewal fee must reach TDA by the expiration date, or the license expires.

Under the statute, failing to keep the required insurance in force is a ground for suspension or revocation of the license.

Why does the care, custody or control wording matter so much?

Because a standard general liability policy is built to exclude exactly the property a pest control technician works on. The standard ISO form excludes property damage to "that particular part of real property" on which you are performing operations if the damage arises out of those operations; the Texas Supreme Court quoted that exclusion in its 2007 Lamar Homes opinion. The same group of exclusions also removes property in your care, custody or control, which is the exclusion TDA singles out.

For a pest control company, that property is the customer's house, kitchen, attic or crawl space. TDA's page tells applicants directly: your insurance agent must be told that the care, custody and control exclusion has to be deleted to conform to section 1951.312. A certificate that shows the right limits on a policy that still carries the exclusion does not meet the requirement.

What other coverage does a pest control company usually carry?

• Commercial auto. Service trucks carry chemicals and equipment and spend the day on the road. Personal auto policies are not built for business use, which we explained in Do I Need Commercial Auto Insurance for My Business Vehicle in Texas?
• Workers' compensation. TDI explains that most private employers in Texas can choose whether to carry it. Employers without it must report that to the state and must report certain injuries, and coverage is what limits an employer's liability if an injured employee sues (TDI employer resources).
• Pesticide and pollution wording. General liability policies typically carry a pollution exclusion. Pest control programs address pesticide application through specific policy language, so ask how yours treats drift, overspray, spills and misapplication.
• Errors and omissions. TDA's rule is a liability requirement for damage to people and property from your operations. It says nothing about mistakes in inspection reports or treatment recommendations, so wood-destroying insect inspections deserve a separate conversation.
• Equipment and property. Sprayers, foggers, bait stations and stored chemicals need their own property or inland marine coverage.
• Umbrella. Commercial accounts, schools and property managers often require limits above the TDA minimum.

What do property managers and commercial customers ask for?

Usually a certificate of insurance, additional insured status, and sometimes a waiver of subrogation or primary and non-contributory wording. A certificate only shows that coverage exists. The endorsements behind it are what actually extend coverage to the customer, which we explained in The Certificate Proves Nothing. The Endorsements Behind It Decide Who Pays.

Where do pest control companies most often fall short?

• The exclusion was never removed. The limits match the rule, but the policy still excludes property in the company's care, custody or control.
• The aggregate was used up. A few claims reduce the aggregate below $1,000,000, and the company does not buy more.
• A branch was never licensed or insured. Each location needs its own business license.
• Renewal paperwork arrived late. If the ALS-1101 and fee are not received by the expiration date, the license expires, and paying a late fee does not let the business operate until the license is renewed.

Frequently asked questions

How much liability insurance does a Texas pest control license require?

At least $500,000 for bodily injury and property damage, with a $1,000,000 annual aggregate, under 4 TAC 7.123.

Why is the rule higher than the statute?

The statute sets a $200,000 floor with a $300,000 aggregate and lets TDA require different amounts by rule. TDA's rule sets the higher minimum.

What is the ALS-1101?

It is TDA's insurance certificate for structural pest control. TDA says no other insurance form is accepted.

Why does the care, custody or control exclusion have to be deleted?

Because TDA requires coverage for damage to premises or property in your care, custody or control, and a standard general liability policy excludes it.

Do technicians need their own insurance?

The requirement attaches to the business license and to certified noncommercial applicators. Inactive certified applicators and technicians who do not perform pest control work for pay are exempt.

What happens if my policy cancels?

The policy must give TDA 30 days' notice, and failing to keep the required insurance in force is a ground for suspension or revocation of the license.

Is workers' comp required for a Texas pest control company?

Not for most private employers, but companies without it have reporting duties and give up the liability protection coverage provides.

Need your ALS-1101 or a coverage review?

We can review your current policy against TDA's rule, confirm the care, custody or control exclusion is gone, and help you fill the gaps around it. Call 830-303-8300 or visit our commercial insurance page.