Texas Pest Control Insurance: What TDA Requires
A Texas structural pest control business license requires general liability of at least $500,000 for bodily injury and property damage, with a $1,000,000 annual aggregate. That's the Texas Department of Agriculture's rule. The statute says $200,000 and $300,000.
If all you need is ALS-1101 signed, send me your declarations page. The rest of this page is what I check it against.
$500,000 or $200,000: Which Number Applies
The rule's $500,000 per occurrence and $1,000,000 aggregate apply. The statute, Occupations Code § 1951.312, sets $200,000 for bodily injury and property damage with a $300,000 aggregate as a floor — "not less than" — and requires a policy "approved as sufficient by the department." TDA's rule, 4 Texas Administrative Code § 7.123, sets what's sufficient: $500,000 and $1,000,000. TDA's certificate form, ALS-1101, certifies coverage at the rule's figures, not the statute's.
| Where the figure comes from | Per occurrence | Aggregate |
|---|---|---|
| 4 TAC § 7.123 (the one that applies) | $500,000 | $1,000,000 |
| Occupations Code § 1951.312 (statutory floor) | $200,000 | $300,000 |
Sources: 4 Tex. Admin. Code § 7.123 · Tex. Occ. Code § 1951.312 · TDA, SPCS Insurance Requirements · TDA Form ALS-1101
Form ALS-1101 and Who Signs It
Proof of coverage goes to TDA on its own certificate, form ALS-1101, not a standard certificate of insurance. The rule requires the certificate "on the form provided by the department." The person who signs it certifies they are "a licensed Texas insurance agent or the insurer's representative authorized to sign on behalf of the insurer," and that the insurer is authorized to do business in Texas. An agent who signs adds a Texas license number. The completed form is emailed to insurance@texasagriculture.gov.
The rule also limits which policies count: only those "issued by insurers authorized by or registered with the Texas Department of Insurance."
Sources: TDA Form ALS-1101 · 4 Tex. Admin. Code § 7.123
The Care, Custody, or Control Gap
The policy has to cover damage to property in your care, custody, or control, and a general liability policy can exclude exactly that. The statute and the rule both require coverage for damage to "premises or any other property under the applicant's care, custody, or control." TDA's insurance page tells applicants to remind their agent that the "care, custody and control exclusion" must be deleted from the policy. For a pest control business, that property is usually the customer's house.
Sources: Tex. Occ. Code § 1951.312 · TDA, SPCS Insurance Requirements
Notices: 30 Days and 10 Business Days
The policy must notify TDA at least 30 days before cancellation, and the carrier must tell TDA and you within 10 business days if paid claims drop the aggregate below $1,000,000. Both are in 4 TAC § 7.123. The second one matters after a large claim: the rule says "the licensee must obtain additional coverage to meet the minimum requirements," so an eroded aggregate is something you have to buy back, not wait out.
Source: 4 Tex. Admin. Code § 7.123
What Happens When Coverage Lapses
A lapse is grounds for suspending or revoking the business license. The statute requires the license holder to "at all times maintain" the insurance, and says failure to renew or maintain it "is a ground for suspension or revocation of the license and a violation of this section." TDA won't issue or renew a business license until the insurance is on file. Before a suspension or revocation, you're entitled to a hearing.
Sources: Tex. Occ. Code § 1951.312 · Tex. Occ. Code § 1951.502
Questions People Ask
How much liability insurance does a Texas pest control business license require?
$500,000 per occurrence for bodily injury and property damage, with a $1,000,000 annual aggregate, under 4 TAC § 7.123. The statute's $200,000 and $300,000 are a floor the rule raised effective January 16, 2023.
Why does a TDA document say $200,000?
It's a printout of § 7.123 from before the 2023 amendment. The current rule is $500,000 and $1,000,000, and form ALS-1101 certifies the current figures.
What is form ALS-1101?
TDA's Structural Pest Control Service certificate of insurance. A licensed Texas insurance agent or the insurer's authorized representative signs it, and it's emailed to insurance@texasagriculture.gov.
What happens if my pest control insurance lapses?
Failing to maintain the insurance "is a ground for suspension or revocation of the license" under Occupations Code § 1951.312, and TDA won't renew the license until coverage is on file.
Sources: 4 Tex. Admin. Code § 7.123 · Tex. Occ. Code § 1951.312 · TDA printout of § 7.123, pre-2023 version · TDA Form ALS-1101