Do You Need Small Business Insurance in Texas?
There is a saying that “everything is bigger in Texas.” Ironically, small businesses play an oversized role in this state’s economy. According to the U.S. Small Business Administration: *
- 2.6 million small businesses operate in Texas, accounting for 99.8% of all Texas businesses.
- Small Texas companies employ 4.7 million people or nearly half of all workers in this huge state.
- Firms employing fewer than 100 employees boast the largest share of small business employment.
Texas imposes fewer regulations on industry than do many other states, which explains why so many entrepreneurs come here to start up and grow their businesses. Small business owners feel that the state not only supports businesses, but it also protects them from potential liabilities.
That does not mean that businesses that call Texas home are not required or encouraged to purchase business insurance for your small business. Every business owner should be aware of the state’s small business insurance requirements.
Required Business Insurance Coverage in Texas
Commercial Auto Insurance.
Texas business-owned vehicles must be covered by commercial auto insurance that includes bodily injury liability ($30,000 per person/$60,000 per accident) and property damage liability ($25,000 per accident).
Recommended Business Insurance Coverage in Texas
Workers’ Compensation Insurance.
While most states mandate this coverage, Texas does not. That being said, most business owners choose to purchase Workers’ Compensation insurance to cover an employee’s medical costs and partial missed wages after a work-related illness or injury. Companies doing business with government entities are required to have this coverage.
Small Business Owner’s Insurance.
A Business Owner’s Policy (or BOP) combines general liability insurance and property insurance into a single, cost-effective package. It covers losses of and damage to buildings, machinery and equipment, and business personal property. It also covers bodily injury to customers, related medical expenses, and personal and advertising injuries.
General Liability Insurance.
A general liability policy covers customer injuries that occur at your business, damage to customer property, and slander or libel lawsuits. Many commercial leases in Texas require that business owners purchase this type of policy.
Professional Liability Insurance.
For Texas businesses whose work is based on expertise, a professional liability policy is highly recommended. This type of insurance, often called “errors and omissions insurance,” covers work mistakes, missed deadlines, incomplete work and professional negligence lawsuits.
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- QHow do I get a quote for small business insurance in Texas?A
Simply click on the Request a Quote button and answer a few questions about your company.