SECTION 296.45. Insurance Requirements

(a) Liability insurance. Without limiting any other applicable requirement of law, for purposes of this chapter:

(1) Each applicant and licensee who performs asbestos-related activities and who is required under §1954.105(c) of the Act or this subchapter to maintain specified liability insurance as a condition of licensure must meet the insurance and proof requirements of:

(A) this section;

(B) the sections of this subchapter applicable to each license they hold; and

(C) §1954.105(c) of the Act.

(2) The required liability insurance for each applicant and licensee must include coverage in the amount of at least $1 million per occurrence.

(3) Each applicant and licensee required to have specified liability coverage for work performed for hire must obtain individual coverage, unless covered as required under the insurance of the individual's licensed employer. An applicant or licensee may satisfy applicable liability insurance requirements through coverage under the policy of that person's licensed employer only to the extent that the activities of the applicant or licensee requiring a license are performed on behalf of that employer.

(4) Each applicant and licensee must obtain, and submit with any license application, a certificate of insurance issued for the purpose of licensing in accordance with §1954.105(c) of the Act and this subchapter that verifies the liability coverage required under the Act and this subchapter for each license the applicant or licensee holds.

(A) A policy for the required liability coverage must be issued by a company or other person that is specifically authorized in Texas, for all relevant purposes, to issue the applicable policy. The applicant or licensee must provide any information requested by DSHS to demonstrate such authority.

(B) A governmental or other authorized applicant or licensee that is authorized by law to do so may provide proof of required liability coverage through a form other than a certificate of insurance for purchased insurance if it otherwise meets the requirements of this paragraph.

(i) An applicant or licensee that provides proof of required liability coverage under this subparagraph must identify the form of required liability coverage and provide any information requested by DSHS concerning that form and the authority for that form.

(ii) An applicant or licensee that is otherwise subject to specific requirements for liability coverage under this subchapter may request a variance from a requirement of this subchapter based upon a demonstrated legal limitation to meeting that requirement, and a demonstrated alternative method for assessing and addressing the risks otherwise addressed by the required liability coverage.

(b) Pollution liability insurance. In addition to the liability insurance required by subsection (a)(2) of this section, each asbestos abatement contractor and asbestos transporter applicant and licensee must obtain liability insurance that includes pollution liability coverage for asbestos exposure in the amount of at least $1 million per occurrence.

(c) Workers' compensation.

(1) An applicant or licensee who is an employer, as defined for purposes of the Texas Labor Code, Title 5, Subtitle A (relating to Texas Workers' Compensation Act) and who is not otherwise required by law to have workers' compensation insurance must, for purposes of this chapter, have and provide proof with the license application of workers' compensation insurance, except as otherwise provided under this paragraph. If an applicant is otherwise required by law to have workers' compensation insurance, the applicant must verify such insurance at the time of license application, as required under paragraph (2) of this subsection.

(A) Proof of workers' compensation insurance is not required if an applicant or licensee who certifies that the individual or entity will not use the applicable license for any activity for which workers' compensation insurance is required by the owner of a public building, or by the specifications and plans for the asbestos-related activity. Such certification may be utilized when a person applies for a license or renews it for a term during which the person will not utilize the license.

(B) If, during the license term of a licensee who has made a certification under subparagraph (A) of this paragraph, the licensee engages in asbestos-related activity with respect to a public building for which its owner requires workers' compensation insurance, or for which the specifications and plans for the asbestos-related activity require workers' compensation insurance, the licensee must submit the proof of workers' compensation insurance required under this subsection.

(2) Verification of workers' compensation required under paragraph (1) of this subsection must be provided to DSHS with an applicant or licensee's application in the following form:

(A) proof of workers' compensation insurance for asbestos-related activities performed in Texas and issued in compliance with Texas law on the appropriate form; or

(B) proof of self-insurance authorized in accordance with the Texas Workers' Compensation Act or Texas Labor Code, Title 5, Subtitle C (relating to Workers' Compensation Insurance Coverage for Certain Government Employees);

(i) an applicant or licensee other than a governmental entity must submit proof of self-insurance approval from the applicable authority; or

(ii) a governmental entity that self-insures must submit any documentation requested by DSHS to verify its self-insurance status in accordance with applicable authority.

(d) Policy cancellation notification. The licensee must notify DSHS at least 10 days before the effective date of a policy cancellation by the licensee or the insurance company. The licensee must promptly replace the policy without lapse in coverage and submit the proof required under this section for the applicable coverage.

(e) Policy expiration. Before a policy expires, the licensee must promptly replace or renew the policy without lapse in coverage and must submit the proof required under this section for the applicable coverage.

(f) A licensee must not engage in an asbestos abatement activity or asbestos-related activity in a public building if not insured in accordance with §1954.105(c) of the Act and this section.

Source Note: The provisions of this §296.45 adopted to be effective July 8, 2021, 46 TexReg 3880