Business Insurance Texas

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Contributor, Benzinga
March 3, 2022

Looking for the best business insurance Texas? Small business insurance is different in Texas because the Lone Star State doesn’t generally mandate workers’ compensation insurance. However, employers must pay for any employees’ occupational injury expenses.

Small businesses play a crucial role in the state’s overall economic health, employing 4.7 million employees, which is close to half of the state’s workforce. To encourage the growth of businesses, Texas maintains fairly lax industry regulations. However, the true opportunity for business development comes from the feeling of security inspired by protecting a business from potential liabilities.

Best Business Insurance Providers in Texas

Best Business Insurance Options in Texas

One-size-fits-all policies no longer exist. Business insurance carriers now work to build profound understandings of the unique industries they serve to provide solutions tailored for your business’s unique needs. Ultimately, the right policy will protect your business from liability claims. Here are a few recommendations for the best business insurance carriers in Texas.

1. Best Overall for Business Insurance: The Hartford

The Hartford protects your business’ income, property and financial assets with a 3-in-1 policy – its business owner’s policy (BOP). This policy combines:

  • Commercial property insurance, which helps offset the costs of repairing or replacing business inventory, tools, accounts receivables and more.
  • General liability insurance, which helps protect your venture from liability claims like bodily injury, property damage and advertising mistakes.
  • Business income insurance, which helps replace lost revenue if you can’t operate your business due to damages caused by burglaries, fires or destructive winds.

Depending on your business’s unique needs, The Hartford lets you add other commercial coverages for customized protection. You’ll only need less than 10 minutes to obtain a customized insurance quote through its online quote tool. Chat with a licensed insurance agent online.

The company’s website can also be a great resource to learn more about business insurance and any frequently asked questions.

2. Best for Tailored Coverage: Simply Business

Simply Business offers a comprehensive suite of business insurance that specializes in making it easy to insure your business. 

Whether you’re looking for construction workers' insurance or insurance for your startup, Simply Business helps you find the right coverage at the right price. 

Tell Simply Business a little bit about your business and you'll get almost-instantaneous affordable quotes from top insurance providers. You can look into workers’ comp insurance that will cover everyone on your team, and you can get covered in accordance with Texas law without overspending. 

Building your business is hard enough. Let Simply Business make it easier. Get a quote from Simply Business today.

3. Best for Small Businesses: Hiscox

  • securely through Hiscox's website
    securely through Hiscox's website
    Best For:
    Small businesses with both part and full-time employees
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Hiscox provides small businesses with custom insurance tailored toward the specific risks and needs of more than 180 of Texas’s professions. To help you better understand your insurance needs, Hiscox offers coverage recommendations based on the industry for which you request a quote.

Some of its coverages include:

  • Business owner’s policy
  • General liability
  • Professional liability (E&O)
  • Short-term liability
  • Cybersecurity
  • Directors and officers
  • Umbrella

It also offers a BOP policy, which combines general liability insurance and business property insurance. Get a customized quote in 20 seconds — just answer a few quick questions and you’ll be able to find a suitable policy.

4. Best for Self-Employed: Suracy

Self-employed individuals can take advantage of Suracy’s national business insurance programs that support a wide range of small and larger businesses, franchises, unions and other organizations. Its coverage solutions are designed to address the diverse needs of those serving in various self-employment roles.

Suracy will help with defining and fulfilling the minimum protection standards as well as create programs you can easily distribute across various locations as your business grows. This provider also works with multiple top-tier carriers to widen its coverage options. Here’s what to expect once you approach Suracy for business insurance:

  1. Business exploration to learn about your business or industry
  2. Coverage assessment and recommendations for the appropriate policies
  3. Analysis of top-tier carriers for your policy placement
  4. Quote presentation
  5. Delivery of robust insurance solutions

5. Best for Business Auto: Progressive

Insure your business-owned vehicles with Progressive, the leading commercial auto insurer in America. Its business auto insurance covers:

  • Business autos, including vans, SUVs, light trucks and more.
  • Trucks, from tractor trailers to dump trucks.
  • Trailers, including pickup truck utility trailers and large dump body trailers.

Progressive also offers a few other perks, including flexible billing and payment options, 24/7 policy service by phone or online, professional claims adjusters and an unlimited travel distance with your business vehicles. Its customized coverage options are designed to match your business’s exposure to certain risks.

You qualify for a policy discount if you have been in the commercial truck and tow business for more than 3 years or have maintained continuous coverage for the past 12 months. You’ll also save up to 15% when you pay your annual premium upfront. Get your customized quote online, by phone or via a local agent.

6. Best for Umbrella Insurance biBERK

  • securely through biBERK's website
    securely through biBERK's website
    Best For:
    Staying compliant with state and federal regulations
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Do your claims exceed your current policy limits? biBERK’s umbrella insurance can provide the extra coverage you need to protect your business and its assets from financial risk. This policy will help cover all costs associated with:

  • Product liability
  • Customer property damage
  • Bodily injury and other medical expenses
  • Defending against a lawsuit
  • Libel, slander and copyright infringement

biBERK insures your small business directly and allows you to save up to 20% on your policies. Obtaining a quote is entirely online, but you can speak with an insurance expert for help buying a policy or answering your questions.

Small business customers can access low down payments through the company’s online system. You can also submit your claims entirely online without the wait.

Types of Business Insurance

Business insurance provides crucial protection for any venture. Out-of-pocket payments for medical bills, property damage and the high cost of litigation could be expensive. However, there isn’t a one-size-fits-all policy, so your risk exposure determines the policies your business needs. Here are common types of policies businesses purchase.

General Liability

A general liability policy covers the risks that arise from interactions with people outside of the business. It protects against customer injuries, damaged customer property, copyright infringement and defamation accusations. This type of insurance doesn’t cover employee injuries, professional errors, vehicles used by your business and damage to business property.

Although this type of insurance isn’t required by law, you may need proof of general liability coverage to apply for specific professional licenses.

Product Liability

Product liability isn’t just a product warranty or guarantee. It protects your business against lawsuits related to its products in the event that they cause injury or damage to 3rd parties. Customers could be harmed by how your product is designed, manufactured, marketed or misused. Your business may still be liable for damages that arise when a product is used incorrectly.

Manufacturers and retailers should invest in this type of coverage since they are likely to be held liable for injuries caused by products they manufacture or sell.

Commercial Property

Commercial property insurance is essential if you own buildings or have business personal property, including inventory office equipment and tools. This type of insurance protects your business’s physical assets from fire, burst pipes, explosions, storms, vandalism and theft. Floods and earthquakes aren’t usually covered, so you may want to add them to your policy.

Commercial property insurance will help get your business back up and running after a disaster strikes. The cost of your policy will vary depending on the value of your business assets, its location, nature of construction materials and protection systems installed.

Workers’ Compensation

Workers’ compensation insurance covers employees who are injured on the job. It provides medical and lost wage benefit resulting from work-related illness or injury. In case of a fatality, this insurance will also pay death benefits.

This coverage is considered a social insurance since it banks on a social agreement between management and workers. Business owners are protected from civil suits from their workers in exchange for buying this insurance. You’ll need to have workers’ compensation if you have W-2 employees.

Professional Liability

A professional liability or errors and omissions policy provides damages and defense for failure to or improperly offering professional services. It helps cover popular claims including negligence, inaccurate advice, misrepresentation and violation of fair dealing and good faith. Depending on the terms, this policy may also cover privacy violations. 

It may also provide coverage for missed deadlines and undelivered services.

Cost of Business Insurance in Texas

Every business is unique, so your insurance rates will differ from what another company pays. Insurance carriers often review several risk factors to determine your cost. Factors that will affect the cost of your insurance premiums include:

  • Policy details: The type of policy you’re purchasing, deductible amounts and coverage limits can affect the cost of your insurance.
  • Size: The size of your business’ floor area can affect the cost of certain types of insurance, like general liability insurance.
  • Location: Being in an area more prone to theft or natural disasters will affect your insurance rate.
  • Industry: Some industries have a higher risk exposure than others, and this will impact your insurance rate.
  • Number of employees: The cost of your workers’ compensation insurance is affected by the size of your payroll.

Claims data from The Hartford shows that you will pay an average of $1,172 annually for a small business insurance policy without bundling coverage. The mean price is $618 per year.

Protect Your Texas Business

Having business insurance will help keep you covered from risks like property damage, accidents, theft, professional errors and lawsuits. Although there are numerous options, not all business insurance carriers provide the same coverage. Every business has unique needs, so shop around for insurance solutions tailored to the specific risks your business may face.

Always work with an insurance company or licensed agent to make sure to get the right coverage — and enough of it.