Business Insurance Texas

Business Insurance in Texas 101

Running a business in Texas is itself already very stressful, demanding, and highly challenging. If Texas business owners can have something or anything to help them unburden some of the load, they will most probably take their chance. This is when having Texas business insurance comes in handy because having one means you are also protecting your business and your own assets.

When doing business in another place such as Texas and whether you have a small business or a big one, be sure to get yourself acquainted first about their laws on business and their policy about having commercial insurance and other insurance policies. It would be best if you did this to ensure that you comply with all the Texas business requirements, and through this, you can be sure that you will not have to deal with penalties later on.

Here’s everything you need to know about business insurance in Texas. 

A man preparing food in a blue food truck.

What is Business Insurance in Texas?

Laws on commercial insurance may differ for every state, and while some may make it mandatory, others may not, which is why you must know the rules where you have your business. Business insurance provides protection for all the aspects of a business or a corporation. Its policy coverage includes the business itself and the proprietorship, property damage, and its employees. This liability insurance Texas may also cover the protection of reputation and the finances of a business.

Because there are several kinds of Texas businesses out there and each with its own situations and concerns, business insurance then comes in many different forms to respond to the needs of every Texas business. Getting insurance in Texas for your company means protecting your business from potential risks that may damage your company’s success.

How Much Does Business Insurance in Texas Cost?

Premiums for small business insurance policies in Texas, such as commercial insurance, vary because of different factors such as:

  • Location
  • Number of years in small business payroll
  • Exposures
  • Number of employees
  •  Company type 

A small Texas business, for example, may pay around \$300 to \$5,000 for a whole year for their general liability insurance. Every liability coverage of a business is unique from each other. It may also depend on the classification system for the GL rating of the insurance company or the SIC code.

What are Texas Business Insurance Requirements?

Unlike other US states, business insurance isn’t required by law in Texas. However, businesses that have a contract with a government entity still must provide workers’ compensation insurance for each employee until the project is complete. If the business owner chooses not to have the insurance policy in place, it could eliminate some of the much needed protection in case of an expensive lawsuit. 

Texas Business Policy vs. Personal Insurance in Texas

When getting Texas small business insurance, business owners must be aware of all the risks that could potentially harm their company so they will also know how to prevent or avoid those risks. No matter what industry your business is in or whether you are a tow truck operator, a dealer of industrial equipment, a light manufacturer, or a shopping or commercial retail center operator, your business certainly needs business insurance Texas.

If you are purchasing business insurance in Texas, you should reach out to an insurance underwriter in Texas who is highly experienced and well-trained in business insurance and, if possible, someone who has industry-specific credentials because they are the ones who can lead you to the most appropriate commercial policy for your Texas business. They can also tell you why it is best to consider getting a business policy rather than personal insurance. They are trained particularly for this kind of insurance policy, so they know the threats and the risks of every business in Texas.

The advantage of having a business policy for your Texas business is that it can protect more employees and stakeholders and that it has a higher coverage limit because there are more properties involved. Under this kind of Texas commercial insurance, you may have:

  • General liability insurance
  • Commercial auto insurance
  • Property damage insurance
  • Bodily injury insurance
  • Workers’ compensation insurance. 

While if you only get personal insurance such as renters insurance or auto insurance, the coverage is very limited. You do not get as much protection to cover some other general liability. Make sure that your Texas policy is well suited for your company’s daily activities. It will save you from various liabilities and other unforeseen expenses.

Types of Texas Business Insurance

If you are not sure what is under this kind of insurance, here are some of the common ones in Texas:

Workers Compensation Insurance 

This type of liability insurance is usually mandatory in Texas, especially if your industry is in manufacturing, engineering, construction, or repair. This kind of business insurance protects the Texas firm from any lawsuit that may arise and involves bodily injury while the employee is on duty at work. With this kind of liability insurance, you can save yourself from taking out some personal money to pay for medical expenses.

Cyber Liability Insurance

Because companies in Texas store a huge amount of information on their servers, they need this kind of liability insurance to protect them from cybersecurity damage or a data breach. These kinds of harms can cause some financial dent.

Commercial Auto and Equipment Insurance

It is most helpful for those who deal with automobiles or tools in their day-to-day activities. It would also be great to get extra property insurance to cover devices such as desks, other office pieces of equipment, computers, etc.

Choosing the best coverage for your business insurance in Texas can get really costly, which is why, when purchasing your insurance policy, you need to ask your representative how you can get your liability insurance with the best deal. 

They typically offer Business Owners Policy (BOP) insurance or some other types of packages that can provide great savings. Most often, getting business insurance in TexasTexas in a bundle offers a more affordable premium. And again, these types of solutions may vary for every kind of company and industry and if it is a small business or a big one. 

These packages may also cover general liability, property, inland marine, and crime. Even if you have a small business, it may be wise to get business interruption insurance as it can protect your company from incurring financial losses if an unexpected circumstance happens. Your business is not capable of operating.

It is also important that you comprehend your policy and know what some terms mean. One example is premiums, which means that this is the amount you need to pay as a policyholder for your coverage. Another one is deductibles, which is the amount paid by the holder before a claim. Having insurance in Texas with higher deductibles also means more protection for you and your assets in the event of a claim.

Who Needs Business Insurance in Texas?

Although not required by law, small business insurance in Texas can help you prevent many unforeseen costs. Some of the professions that benefit the most from this type of policy are:

  • Food trucks
  • Contractors
  • Restaurants
  • Landscapers
  • Manufacturers
  • Retail shops
  • Barbers
  • Accountants

Talking to a knowledgeable and trustworthy insurance agency is the best way to find the most suitable business insurance in Texas for your industry and the perfect coverage for your staff.

Contact East Insurance Group and get your free quote and offer today!