Understanding commercial insurance in Houston

Commercial insurance Houston Tx protects businesses and covers it against losses due to property damage and harm to employees. It is commonly used to label the business insurance coverage, such as public liability and employer’s liability. 

Commercial insurance comes in different forms, and the extent of the policy will depend on your company’s needs. Typical business people need more commercial insurance cover compared to a professional liability for writers because business risks are higher and more prominent .

What Is a Commercial Package Policy (CPP)?

A commercial package policy (CPP) is an indemnity plan that works for combining coverages for multiple incidents like liability insurance and commercial property insurance. A commercial package policy enables a firm to consider getting insurance coverage. The advantage of CPP is that it allows businesses to pay for a lower amount of premiums than purchasing a separate policy for each risk. 

How a Commercial Package Policy (CPP) Works

Insurance agencies Houston Texas offer commercial package policies for small to mid-sized businesses. These general liability insurance policies have lesser liability needs because they do not cover large facilities or need additional insurance protection for small risks. 

Commercial package policies can be customized and may combine two or more policies into a single insurance policy. Although each plan is specified, the average CPP can cover different property and general liability exposures. This insurance policy includes general liability insurance and property coverage. Commercial auto insurance is commonly added to the package with crime protection coverage. Crime protection policies cover you against vandalism, embezzlement, forgery, check, money tampering, and credit card fraud.

Commercial package policy does not include coverages like workers’ compensation or director-and-officers insurance. Workers compensation is required by the law and must be purchased as a separate policy, while directors-and-officers policies are intended for non-profit organizations. At the same time, group life and disability policies are individual items with different choices and decisions.

How to Shop for Commercial Insurance

Regardless of your business’s nature, there will always be chances that you will have some general liability exposure. So commercial insurance is an essential part of owning and operating a business. The right business policy protects not only your company but also your personal assets and loss. Like any security products, the right way to get the protection you need at an affordable price is to understand your risks and look around carefully.

1. Contact the insurance agency who handles your commercial auto insurance, homeowners, and life policies. Although they may not work on business insurance, they may give you a recommendation of a reputable commercial Houston insurance agency.

2. Make a list of your main liability concerns. For example, if your business is a retail operation, your potential problems are slips, falls, auto collision, and other accidents that may take place on your business premises. Estimating risks can be a big help when you get in touch with a reliable insurance agent Houston.

3. When meeting with a policy broker, bring a copy of your business plan. Provide enough information as you can about your business operation and the liability risks that you expect.

4. Get at least three bids from different Houston insurance agencies or brokers. It will help you with a good idea to compare rates and coverage levels.

5. Ask other insurance agencies in Houston if they are an admitted insurance company to know if they have a solvency fund to cover catastrophic claims if the insurance agency does not have the funds to pay. It would help if you did not buy policies from companies that do not have a solvency fund.

Best Commercial Business Insurance

Commercial insurance is a vital need that every business should have. Because without proper coverage, companies may find themselves losing thousands of dollars to cover losses due to litigation or unforeseen events. Although some business owners think that if the policy is not required by law, it is not necessary. However, it is not true as unexpected events like burglary and theft may cost a business an average of $8,000, and more serious events can cost a business average losses of $35,000, and reputational harm of $50,000/

Aside from public liability, employer’s liability, and professional liability, some specialist business covers are created to protect businesses.

  • Product liability insurance
  • Business buildings insurance
  • IT equipment and laptop cover
  • Tools and equipment insurance
  • Plant and machinery insurance

How much is a commercial policy?

The commercial policy has many types, and asking assistance from an insurance agent will help you understand which policy suits your business needs.

  • Premiums are the amount a business needs to pay for the coverage. Various factors can influence the premium’s cost, including business type, number of workers, location, payroll, and years in business and exposures.
  • Deductibles are the amount paid by the policyholder before the insurance will cover the claim.
  • Policy limits are the range of amounts the policy carrier will pay out on a given claim or over the indemnity term.

You can ask for an insurance quote from the insurance agency in Houston.


Business commercial insurance needs vary from company size and industry to the number of employees. Although the law does not require some policies, most of them are essential. As business owners, you might want to consider these insurance policies before it’s too late and before paying out of your pocket due to unprecedented unfortunate events.