What is the penalty for not maintaining liability insurance?

• A. Possible denial, suspension or revocation of the registration certificate after notice and opportunity for hearing.
• B. A fine of $1,000
• C. License revocation automatically
• D. No penalty

Answer: (A)

Maintaining liability insurance is required for your Texas Fire Sprinkler registration, and enforcement is administrative. If you don’t keep up the coverage, the responsible authority may deny, suspend, or revoke your registration certificate, but only after you’re given notice and an opportunity for a hearing. This due-process step lets you respond and address the lapse while protecting the public. A fixed fine or automatic revocation isn’t how the rule is structured, and there is a real penalty when insurance isn’t maintained.