Insurance Requirements

Licensees or applicants for licenses must comply with the minimum amounts of insurance specified below. Before AFS grants or renews a license, an applicant for a license must submit proof the required insurance coverage is in effect on the appropriate insurance ACORD™ form.*  

There are three types of Insurance coverage, which may be required.

• General Liability
• Motor Vehicle
• Workers Compensation

Insurance requirements can be found in sections:

• §9.26 in the Liquefied Petroleum Gas Safety Rules
• §13.62 in the Regulations for Compressed Natural Gas
• §14.2031 in the Liquefied Natural Gas Regulations

General Reminders

• Proof of insurance must be submitted on the industry-standard ACORD Certificate of Insurance form.* Please see your insurance agent for this document. Insurance binders or cards will not be accepted.
• The ACORD must list the company name exactly as it appears on the Railroad Commission license. The licensee must be listed as the insured or explicitly stated to be an “Additional Insured” on the ACORD.
• The Insurer Affording Coverage must be listed on the ACORD exactly as it appears on the Texas Department of Insurance website and must include the NAIC number

General Liability

All licensed companies must provide proof of general liability coverage 

• Standard General Liability Requirements
  • Coverage amounts are based on the licensed category. See below for the appropriate amount of general liability for your company.
    • General liability coverage including: premises and operations in an amount of at least $25,000 per occurrence with a $50,000 policy aggregate
    • General liability coverage including: premises and operations in an amount of at least $300,000 per occurrence and $300,000 aggregate
    • Completed operations or products liability insurance, or both, in an amount of at least $300,000 aggregate

• Surplus Line Policy Requirements
  • RRC can only accept Surplus Line insurance policies if the policy includes certain phrasing required by the Texas Insurance Code. To comply with the Texas Insurance Code § 804.106, the surplus lines policy must include the following statement in 11-point type on the single page from the policy:
    • “This insurance contract is with an insurer not licensed to transact insurance in this state and is issued and delivered as surplus line coverage under the Texas insurance statutes. The Texas Department of Insurance does not audit the finances or review the solvency of the surplus lines insurer providing this coverage, and the insurer is not a member of the property and casualty insurance guaranty."

• Garage Policy Requirements
  • RRC can only accept Garage Liability policies on the ACORD 30.
  •  If received on the ACORD 25 the statement below is required to be listed under the additional remarks:
    • “General liability,” “premises and operations,” “bodily injury and property damage coverage (aka ‘BI&PD’),” and/or “personal and advertising injury,” be explicitly stated on the ACORD form.

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Workers' Compensation

Workers compensation or Alternative to Workers' Compensation must be provided for companies with employees, except for Category P licensees.
(See Insurance Requirements Tables below)

• Standard Workers' Compensation Requirements
• • Workers' Compensation, including Employer's Liability

• Alternative to Workers' Compensation
  
  • A licensee may protect its employees by obtaining accident and health insurance coverage from an insurance company authorized to write such policies in this state as an alternative to workers’ compensation coverage. The alternative coverage shall be in the amounts specified below.
    • Medical expenses in the principal amount of at least $150,000;
    • Accidental death benefits in the principal amount of at least $100,000;
    • Loss of limb or sight on a scale based on principal amount of at least $100,000;
    • Loss of income based on at least 60% of employee’s pre-injury income for at least 52 weeks, subject to a maximum weekly wage calculated annually by the Texas Workforce Commission.
  • Please note that the coverage for the Alternative will need to be listed out on the ACORD so we can see it meets the rule requirements.

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Motor Vehicle

• All companies who operate registered units must carry Motor Vehicle Insurance.
• If a company has a category of license that allows units to be operated, but the company is not operating any units, or is no longer operating any units, then the company is not required to maintain Motor Vehicle coverage and they must submit a Form 997B/1997B/2997B, Statement in Lieu of Motor Vehicle Bodily Injury and Property Damage Liability.

LPG Insurance Requirements

CNG Insurance Requirements

LNG Insurance Requirements

*Or other forms approved by the Texas Department of Insurance for reporting proof of insurance