Sections of this topic
Securing the right insurance coverage is crucial when starting or running a small business in Texas to safeguard your operations, employees, and assets from unforeseen events.
This introductory guide to small business insurance in Texas will explore the various insurance available, the state-specific regulations that may affect your coverage choices, and guidance from professional companies like NEXT for finding the best policies tailored to your business needs.
Whether you’re a budding entrepreneur or an established business owner, understanding these essentials will help you make informed decisions to protect your business investment effectively.
>> Secure Your Future – Get Covered With Next! >>
What Business Insurance Policies Are Mandatory in Texas?
Texas state regulations determine the necessary business insurance coverages. The following policies are mandatory across Texas, from Houston to San Antonio:
Workers’ Compensation Insurance
While Texas law uniquely doesn’t mandate workers’ compensation insurance for all businesses, it’s highly recommended and required for any company that contracts with government entities.
This insurance covers medical expenses and a portion of lost wages for injuries or illnesses related to work, such as an employee of a cleaning company getting ill from exposure to cleaning chemicals. It also reduces the employer’s liability for workplace injuries.
Commercial Auto Insurance
Any vehicle owned by a business in Texas must have commercial auto insurance. This policy helps cover the costs of accidents involving business vehicles. The minimum auto liability insurance requirements in Texas are:
- $30,000 for bodily injury per person
- $60,000 for bodily injury per accident
- $25,000 for property damage per accident
Additional coverage may be necessary for trucking companies to meet specific regulations. While not obligatory, it’s advisable for personal vehicles used for business purposes to be covered by hired and non-owned auto insurance (HNOA), since personal auto policies rarely cover business use.
This can be included in a commercial general liability insurance policy or a business owner’s policy.
>> Explore NEXT for Comprehensive Coverage >>
Top 7 Companies for Small Business Insurance
NEXT delivers an array of commercial insurance products that are easily accessible online for swift coverage. Their selection encompasses a business owner’s policy, melding general liability with commercial property insurance, commercial auto insurance, workers’ compensation, professional liability insurance, tools and equipment insurance, and more.
Moreover, NEXT introduces a suite of digital tools for streamlined policy management. These tools empower policyholders to share a live certificate of insurance instantly and include additional insured parties at no extra cost. Monthly payment options are available, and customers might snag up to 25% discounts.
Founded in 2016 and based in Palo Alto, California, NEXT Insurance harnesses artificial intelligence and machine learning to streamline the insurance buying experience. They boast an A- (Excellent) financial strength rating from AM Best. Despite this, some rivals might offer more niche coverages, such as cyber liability insurance.
With NEXT, you can lock in various business insurance coverages online in about ten minutes. If you seek a more personalized approach, you can chat with a U.S.-based insurance advisor.
Opting for NEXT in Texas means swift sharing of live insurance certificates, the ability to customize your business insurance with diverse coverages, and a completely online quote and application process, with additional support ready when needed.
Hiscox stands out as a top pick for freelancers, earning acclaim as the leading provider of independent contractor insurance among small commercial insurers. They provide a tailored business owner’s policy (BOP) that includes options such as business interruption, electronic data loss, and professional liability insurance.
Hiscox also offers standalone professional and general liability policies with flexible, on-demand coverage suitable for short-term projects and features manageable monthly payment plans for freelancers.
Despite holding an A (Excellent) rating from AM Best, reflecting robust financial stability, Hiscox has experienced a higher volume of complaints than usual for its size in the last three years. Yet, there’s a noticeable annual decrease in these complaints, showing strides in customer satisfaction. Hiscox’s policies, including BOPs, begin at approximately $500 annually.
In Texas, Hiscox offers significant benefits, including tailored solutions for independent contractors, zero-fee monthly payments, short-term liability insurance, and an entirely online quote and application process complemented by readily available support.
Simply Business simplifies comparing quotes and coverage from top insurers like Hiscox, helping you pinpoint the perfect option for your needs. It lets you secure a policy online in less than 10 minutes, streamlining your insurance procurement.
If you need extra help or have questions, licensed agents are just a phone call away. This service is precious for businesses and individual proprietors, providing customized insurance advice tailored to specific industries like landscaping, accounting, or photography.
While Simply Business doesn’t manage claims directly, this responsibility lies with the insurer you select, it aids by ensuring easy access to your policy documents and linking you with your provider for any necessary support.
In Texas, the perks of choosing Simply Business include a swift quote process, assistance from licensed agents, and access to a variety of top insurance providers.
Tivly rolls out a one-stop web shop for various business insurance policies. Just pop your details into their site and snag a quote crafted just for your biz needs. Tivly teams up with over 200 insurance vendors, ensuring they hook you up with the perfect match to protect your financial interests.
Their squad features big names like Progressive, The Hartford. These partners help you nail down business income insurance, liability coverage, and other crucial safeguards for your venture.
Opting for Tivly in Texas? You’re looking at a breezy quote process, access to a massive network of more than 200 partnered providers, and customized service to discover the best insurance solution for your business.
Searching for business insurance can often feel daunting, filled with endless quotes and comparisons of coverage options. But CoverWallet eases this burden by offering a streamlined platform for quickly receiving quotes from top insurers like Hiscox and Progressive.
At CoverWallet, you can consult with an insurance advisor or collect quotes. The platform provides various coverage choices, ensuring that every facet of your business, from workers’ compensation and general liability to commercial property insurance, is secured.
After picking your desired coverages, you can easily manage your policies through MyCoverWallet, an online dashboard that allows you to send insurance certificates, file claims, and pay premiums effortlessly. This tool organizes your insurance policies neatly and gives you ongoing access to expert advice.
CoverWallet acts as a valuable educational hub, offering industry-tailored coverage suggestions. You can explore details pertinent to your business, like industry type, location, employee numbers, and annual revenue.
Choosing CoverWallet in Texas offers several perks, such as the simplicity of obtaining multiple quotes, insights into industry-specific insurance recommendations, and access to a diverse range of insurance types.
Progressive stands out as a top choice for car insurance, particularly for businesses that manage a commercial fleet. It’s ideal for trucking companies that operate tractor-trailers and long-haul semi-trucks, offering them comprehensive coverage options.
Businesses operational for at least three years can snag a discount of up to 5% on their premiums. Paying your commercial auto policy in full upfront can earn a 15% discount.
But Progressive isn’t just about vehicle insurance. They also offer a suite of other business insurance products, including cyber insurance, business owner policies, professional liability, workers’ compensation, and general liability insurance. Their “any auto coverage” is especially useful, covering any vehicles owned and used for business by you or your employees.
Opting for Progressive Business Insurance in Texas provides flexible coverage options designed to cater to specific business needs, along with potential perks like risk management services.
The Hartford is highly skilled in business insurance, excelling at customizing policies to fit the distinct needs of its clients while ensuring both affordability and thorough coverage. They serve a varied clientele, from large corporations and mid-sized companies to sole proprietors.
Their wide array of policy options includes event insurance, employment practices liability, directors and officers liability, bonding and surety, flood insurance, restaurant insurance, loss of business income, workers’ compensation, and technology errors and omissions.
Opting for The Hartford in Texas offers several benefits, including over two centuries of industry experience, the convenience of online quote generation, robust financial health, and a comprehensive range of commercial insurance products.
Types of Business Insurance Available in Texas
Texas Business Owner’s Policy (BOP)
A Business Owner’s Policy combines general liability insurance and business property insurance into one convenient package. Businesses in Texas can customize their BOP to fit their specific needs by adding optional coverages, such as data breach insurance. Consider a Business Owner’s Policy if:
- Your business operates from a physical location in Texas, whether it’s an office, a storefront, or your home.
- There’s a potential for your business to face lawsuits, such as a customer slipping on merchandise in your store.
- You possess business assets that could be stolen or damaged, including inventory, furniture, and digital assets.
You can jazz up your Business Owner’s Policy by adding extra coverage types, depending on what your enterprise might need. Consider these options:
- Builder’s risk insurance: Got a construction project? This type of coverage shields buildings under construction. Sometimes called “course of construction insurance,” it’s a must for those in-the-works projects.
- Commercial umbrella insurance: When your basic liability limits aren’t enough, commercial umbrella insurance has your back. Say you’re sued for $750,000 but your limit is only $500,000, this coverage handles the extra $250,000.
- Cyber liability insurance: Cyber liability insurance is handy for digital dilemmas like data breaches or cyberattacks. It helps with costs, from data recovery to legal fees.
- Directors and officers (D&O) insurance: This protects your top brass from lawsuits related to their corporate decisions, covering legal costs that can rack up.
- Inland marine insurance: This one covers goods in transit over land, whether by train or truck. It’s your go-to for protecting property that’s lost, damaged, or swiped.
- Medical malpractice insurance: Healthcare pros, this one’s crucial. It covers patient injury or death due to mishaps like wrong meds. Dentists, nurses, therapists, yep, you might need this.
- Product liability insurance: If your product winds up harming someone, product liability insurance steps up to cover lawsuit costs or claims.
- Technology errors and omissions insurance: Tech biz owners, listen up! This coverage covers claims from unhappy customers, and it is essential for those in software development or IT consulting.
Texas General Liability Insurance
General liability insurance protects enterprises against unintended property harm and physical injuries to others. It also safeguards against issues like slander, libel, or copyright infringement. This insurance covers legal expenses including attorney fees, court judgments, and settlements.
Texas Professional Liability Insurance
This type of insurance provides a safety net for you and your Lone Star business against claims of negligence related to your professional services. Several enterprises, including those listed below, should consider this cover, also known as errors & omissions or E&O insurance. If your gig involves client-facing tasks, snagging this insurance is a no-brainer. Here’s a peek at who might need it:
- Tech wizards
- Travel consultants
- Space stylists
- Strategy gurus
- Number crunchers
Business Income Insurance for Texas Companies
Business Income Insurance assists businesses in Texas by replacing the income they lose when they cannot operate due to damage from events like theft, fire, or lightning. This insurance is crucial for safeguarding your business income against various risks. Texas businesses that would benefit from this coverage include:
- Retailers that operate either online or in physical stores, where they showcase products for sale.
- Companies that rely on cloud storage providers to maintain their digital data.
- Service-oriented businesses, such as hair salons, depend on physical locations to offer their services.
- Business Income Insurance is a feature of a Business Owner’s Policy (BOP), which also offers an extensive array of additional coverage options that can enhance an existing policy.
Texas Risk Engineering Insurance
The risk engineering squad dishes out top-notch loss control services. They aim to craft the safest possible work zones for substantial Texas enterprises. As part of their broad loss control menu, the Risk Management team hooks up big businesses with a variety of safety and risk management perks like:
- Machinery safety enhancements
- Ergonomic pointers
- Tips on keeping the business ticking during disruptions
- Safety checks at the workplace
- Prep for probes
- Insights on leading safely
- Custom safety protocols
>> Ensure Your Business’s Future With NEXT >>
How to Navigate Business Insurance in Texas?
Navigating the maze of small business insurance in Texas can feel like a herculean task. To make this easier, let’s break down the steps.
First off, pinpoint what coverage suits your business best. A business owner’s policy is a solid kickoff. Yet, depending on your industry’s specific dangers, you might need more. Take a consulting firm; you’d likely tack on professional liability coverage.
NEXT, shop around. Costs for business insurance are unique across providers. Snag quotes from a variety of companies. Partnering with an independent insurance agent could help you score the best deal on coverage.
Do a yearly review of your business risks. New risks might pop up as your operation expands, causing additional coverage. Say, for instance, your business offers delivery services. Now, you’ll need commercial auto insurance on your list.
These steps will streamline the process and ensure your business remains well-protected.
What Is the Cost of Small Business Insurance in Texas?
A small business owner in Texas, including cities like Houston, Austin, and Dallas, might find commercial insurance reasonably priced. Here are the typical monthly premiums:
- General liability insurance: $42
- Workers’ compensation: $31
- Professional liability/Error and Omissions (E&O): $59
Several factors can affect the cost of business insurance, such as:
- The type of industry and associated risks
- Business activities
- Employee headcount
- Chosen policy limits and deductibles
Minimum Business Insurance Requirements in Texas
In Texas, employers aren’t mandated to carry workers’ compensation insurance, but it’s advised to safeguard both their business and employees. While Commercial General Liability insurance isn’t compulsory in Texas, it protects business owners from liability claims related to bodily injury, property damage, and personal and advertising injury (such as slander).
>> Ensure Your Business’s Future With NEXT >>
Frequently Asked Questions – Small Business Insurance Texas
Bottom Line
Securing the right insurance is crucial for small businesses in Texas. It serves not only as a safeguard but also as an investment in their future. From general liability to specialized coverage, the diverse insurance landscape in Texas offers small business owners the opportunity to protect themselves against unforeseen losses.
By carefully assessing their needs and consulting with insurance companies like NEXT, Texas entrepreneurs can ensure they’re adequately covered, enabling them to focus on growth and success with peace of mind.
