If you are one of the 2.7 Million Texas small business owners, entrepreneurs, freelancers, or sole proprietors, you must purchase enough small business insurance for your company.
The business world is brutal, and it can be hard to find the proper insurance needs.
Small enterprises face many risks and dangers that larger companies with bigger budgets for general liability coverage do not typically encounter.
We made this quick and easy guide to assist you in finding the best small business insurance in Texas. You'll learn about costs, what's covered, exclusions, and more.
Simply Business is an online small business insurance broker, offering customers general liability and professional liability insurance coverage. Their primary focus is on professionals who need affordable business coverage, fast and online.
More Of The Best Cheap Small Business Insurance Companies In Texas Below...
Best For Workers Comp Coverage
Huckleberry is best for small business owners in need of worker's compensation coverage (worker's comp) and is our second pick.
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Best For Any Business Size
Coverwallet is a one-stop-shop for business coverage regardless of size. Their low rates and online application, earned them 3rd.
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Best For Cyber Insurance
Cyber Policy is an insurance marketplace for business insurance. Their primary focus is cyber insurance and they are our fourth pick.
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How Much Does Small Business Insurance Cost In Texas?
Customers pay an average of $59 per month for small business insurance in Texas. But—and this is crucial—the average costs can't tell you what your premiums will be. Insurance rates can vary significantly depending on the industry, where you live in Texas, and how much your insurance needs change. As a result, your premium might be higher - or drastically lower.
Who Has The Cheapest Small Business Insurance In Texas?
Cover Wallet has some of the cheapest Texas business insurance rates.
They provide one of the simplest and quickest methods to obtain liability coverage for your company in Texas.
However, small business owners should compare rates and policies with multiple companies to ensure they get the best deal for themselves.
What Factors Impact Texas Business Insurance Premiums?
The cost of policies in Texas is determined by various factors, including the types of services or goods you offer, the number of employees you have, how long you've been in operation, and your claims history.
Typically, your policy's maximum coverage is restricted to a specific amount throughout the term. The following are some of the most important factors that influence Texas business insurance costs:
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What Are The Most Common Types Of Business Insurance In Texas?
You might only need one policy for your company; however, it's best to know about the common options and what is or isn't covered in your policy. These policies can protect your company from all sorts of things including advertising injury.
Below we detail the most common coverage types:
In Texas, general liability insurance protects small company owners from financial losses and lawsuits that occur if someone suffers a physical injury because of your actions or you damage someone else’s property.
Professional Liability (Errors & Omissions)
This policy is also called errors and omissions insurance or e&o coverage, and it protects experts whose work is based on their expertise. It covers claims filed by clients against professionals for mistakes and missed deadlines.
Workers Comp Insurance
Texas does not require workers' compensation coverage. However, it may be a lifesaver if you or an employee suffers an injury on the job since it covers medical treatment and lost income. If you don't have workers' comp, your out-of-pocket costs could rise dramatically after a workplace accident.
This insurance policy helps Texas companies recover from data breaches and cyberattacks by reimbursing costs for client notification, legal fees, and other associated expenses.
Construction businesses and general contractors operate in hazardous environments and face high risks. Contractor liability policies help pay expenses related to third-party injuries and property damage.
Limited Liability Company Insurance (LLC insurance) is a specialized form of individual insurance protecting LLCs from liability claims. It protects LLCs against various liabilities, including bodily harm and property damage caused by your business, employees, or products.
Business Owners Policy (BOP)
This policy bundles property insurance and a general liability plan into one product. It's often the most cost-effective type of commercial insurance for a Texas small business owner.
Home Business Insurance
Home-based business plans cover the expenses of property and liability risks incurred by business owners that operate out of their homes. Consider purchasing this coverage if you maintain supplies, equipment, or other company assets at your house or have clients visiting.
As you can see, there are several options and it can become more complicated than that as your firm grows.
Which Industries Buy Business Policies In Texas The Most?
Below is a list of industries that most often purchase insurance for their new company or startup:
What Are The Minimum Requirements For Business Policies In Texas?
Each state is going to have it's own requirements for specific types of coverage. Below we go over state specific requirements in regards to a policy.
Workers Compensation Insurance
Unlike most other states, Texas does not require employers to carry workers' compensation insurance. Nonetheless, this coverage is still a popular choice for many business owners. It can cover medical expenses and part-time wages lost due to an injury or sickness at work. Companies that do business with the government are obligated by law to have insurance.
Commercial Auto Insurance
In Texas, SMB’s must insure all business-owned cars under commercial auto insurance. The state requires a minimum of $30,000 bodily injury liability per person and $60,000 bodily injury liability per accident, as well as $25,000 property damage liability per accident.
If you use your car for business purposes, you should have hired and non-owned automobile insurance, as personal auto policies frequently exclude commercial usage. Hired and Non-owned car insurance can be added to a liability policy or a business owner's policy.
Is A Business Policy Required In Texas By Law?
In contrast to most states, Texas only requires one type of insurance for your business, which is only utilized in the rare event that a car is used for commercial purposes. If a firm owns any vehicles used for commercial reasons, those vehicles must be insured under commercial auto insurance.
There is just one exception, and it applies to firms that have a government contract: they must provide workers' compensation for each of their employees until the agreed-upon project is complete.
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Business insurance policies protect you against lawsuits, employee injuries, cybersecurity attacks, and property damage. Click on your state to get a free quote today.