Business insurance is vital to protecting your company against lawsuits and other unforeseen situations. For example, if a customer slips on a wet floor in your store, they could sue you for damages. Business insurance can protect you from such lawsuits and other incidents that may lead to financial ruin if you are not insured properly. We’ve evaluated the best business insurance providers based on coverage, financial stability, customer satisfaction, and overall quality.
Coverwallet began its journey in New York City in 2015 operating under the
Aon Insurance banner. At Coverwallet, you can access everything you need to
keep your company well-protected at an unbeatable price.
With a 100-year history of insuring businesses, Hiscox is well-known across
America and globally. With more than 500,000 small business customers,
Hiscox is fully aware and trained in the unique risks a business can face.
Thimble provides business insurance that can be tailored to your business by
the year, month, day, or even the job. At Thimble, the process to getting
the right business insurance is simple, scalable, and flexible.
What are the requirements for business insurance in Texas?
The Texas Department of Commerce outlines the minimum requirements for business insurance, which depends on the type of business:
Businesses with employees must carry workers’ compensation insurance. Most businesses with employees must pay into the state unemployment insurance fund.
The Texas Department of Commerce recommends that all businesses carry general liability insurance and property insurance.
What are the types of business insurance in Texas?
Here are the common types:
General liability
General liability insurance covers physical injuries and property damage caused by your company, including (but not limited to) accidents on your property, the loss of customers’ property that occurs when in your care, and the cost of defending yourself in court.
It doesn’t cover:
Employee injuries. Worker’s comp is required for any employees you have, with very few exceptions.
Vehicle accidents. Auto insurance is required for all vehicles you own or lease, including personal cars you use for business purposes.
Professional errors. Professional liability or malpractice insurance is required if your industry has a standard of care that you must meet (such as medical professionals).
Workers compensation
This insurance covers medical expenses and lost wages for employees who become ill or injured. It does not cover injuries that occur offsite or are caused by employee intoxication.
Professional liability
Also called “errors and omissions” insurance, this policy protects you against lawsuits resulting from erroneous advice, negligent actions, or failure to perform contractual obligations. It does not cover an accident at your office, a mistake made by someone who isn’t covered by the policy (like an independent contractor), or any claims that don’t have a legal basis.
Business interruption
Business interruption insurance covers lost profits, operating expenses, and employee payroll if your business is forced to shut down due to a covered event. For example, if a fire forces you to close for a few days or weeks, your business interruption insurance will reimburse you for the income you would have earned during that time.
Business interruption insurance does not cover damages or losses directly related to the unexpected event. You would need other types of coverage for that, such as property insurance.
Commercial Auto insurance
Commercial Auto insurance is designed to help protect you, your business, your employees, and the public against accidents that may occur while on the road. It can also help you avoid financial losses related to vehicles used for business purposes. But it does not cover company vehicles for social, domestic, or pleasure purposes. If your business drives a vehicle for these types of reasons, the vehicle may be covered under the Personal Auto policy.
How much does business insurance cost in Texas?
Though insurance prices aren’t as clear-cut as they appear, some factors can explain the differences in cost. Here are some of them:
Company size: The larger your company, the more likely you will see a hefty price tag on your business insurance policy. That’s because a larger business typically has more employees and assets, which means more needs to be covered under the policy.
Your business location: Your physical location can affect your liability and workers’ compensation risks. For example, live in an area prone to severe weather. You may have to pay more for commercial property or business interruption insurance than a company located somewhere safer.
Claims history: Whether you have filed claims against an existing policy in the past will also affect how much you pay for insurance in the future. Suppose your company has filed many claims against previous policies. In that case, it may be flagged as high-risk and priced accordingly by insurers who may feel there are too many potential liabilities.
Coverage limits: The higher your coverage limits, the more your monthly payments will be. You’ll want to make sure your coverage limits are high enough to cover a major loss, but you shouldn’t pay for coverage you don’t need. Try to find a policy with limits that protect against the worst-case scenarios and keep your premiums low.
Business Activities: Some industries have higher risks than others. For example, an assisted living facility may have to pay more for general liability coverage than a software development company because there’s a greater chance someone will get hurt at the eldercare facility.
How to choose the best business insurance in Texas
To get the best business insurance for your needs, consider the following tips:
Consider how much coverage you need: you might be tempted to buy the cheapest policy possible when you’re out shopping for small business insurance, but that could end up costing more in the long run. Buying a policy that’s too thin means you might not be covered if disaster strikes. On the other hand, buying too much coverage can be unnecessary.
Check on your local laws: Before choosing a policy, research your state’s rules and regulations. In most states, certain types of insurance are required to operate a business, like worker’s compensation or commercial auto insurance. Before buying anything, make sure you know what your state requires.
Shop Around: Small business insurance policies aren’t one size fits all and come in different levels of coverage and at different price points. It’s important to shop around and find the best deal for your needs. Talk to several agents and ask them to give you quotes on multiple policies that meet your needs. Compare the quotes side by side and pick the one that offers the best value for your money.
Experience: Whether you are a new or existing business, it pays to have an insurance broker that is knowledgeable and experienced in business insurance. You and your broker should understand the nature of your business so that you can select the right insurance product to meet your needs.
Know what’s included and excluded: Business insurance can include liability coverage for third-party claims and physical damage to your property (such as fire or storm damage). It also can include employee compensation for injuries incurred on the job. Make sure you understand what is and is not covered by your policy.
