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Best Hazard Insurance for Businesses in Texas

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According to NASA, Texas ranks 1st in the U.S. for variety and frequency of natural disasters. At least 1 major disaster event is declared every year in the Lone Star State. 

Business owners in Texas need enough hazard insurance to rebuild their businesses if required. Learn more about weather-related hazard insurance for businesses in Texas. 

What is Business Hazard Insurance?

Business hazard insurance helps with the costs of repairing or rebuilding your business structures if they’re affected by a covered event. It covers many weather-related disasters, including fires, wind, lightning, blizzards and hail.  

Texas Business Hazard Insurance Coverage

Texas business hazard insurance isn’t a standalone policy. Instead it’s part of a commercial property insurance policy. These policies have relatively broad coverage, including natural disasters and other events like theft. 

Commercial property insurance policies don’t cover every weather-related disaster, though. They typically don’t cover weather-related flooding or earthquakes, so you need to purchase separate coverage for those events. 

You can buy commercial property insurance on its own or as part of a business owners policy (BOP). 

When Do You Need Hazard Insurance?

Like any insurance policy, the best time to buy hazard insurance is before you need it. Given how unpredictable the weather is in Texas and that you can’t predict theft and other events, it’s best to buy hazard insurance before your business opens. If you don’t already have it, It’s best to buy it as soon as possible. 

How Hazard Insurance Works

Hazard insurance is part of a standalone commercial property insurance policy or the commercial property insurance coverage in a business owners policy. 

If you experience a covered event, whether it’s weather-related or something else, you file a claim with your insurance company. To file a claim, you’ll need to complete a form that asks for information like your policy number, business information and information about the claim. You’ll also need to submit documentation supporting the claim like pictures of the damage and any receipts for work you’ve already completed. 

The insurance company will typically assign a claim number and may provide a dedicated point of contact. For many claims, they’ll send out an adjuster. An adjuster reviews the claim and examines the damage to help the insurance company determine how much to pay you. 

After that, you’ll receive a decision from the insurance company about whether the claim is approved or denied. 

Hazard insurance claims are paid in 2 ways. One is based on the replacement cost of items damaged. This means the policy pays the amount it costs to replace the item without considering depreciation. Depreciation is when the value of an item becomes lower over time. 

The other is based on actual cash value (ACV). This method does account for depreciation, which means you may receive less from the insurance company. 

Review any policies you’re considering to see if they pay based on replacement cost or actual cash value. 

Texas Business Insurance Policies and Coverages

Texas business owners should consider several types of insurance. Here are the ones that are the most helpful in the event of a weather-related disaster. 

Commercial Property Insurance

Commercial property insurance covers the structures of your business’ buildings, as well as the contents. Structures include permanently installed fixtures, machinery and equipment, outdoor fixtures and items you need to service the building. It also covers any additions you have under construction. 

Building contents include your inventory, computers and raw materials. This insurance also covers the property of others that’s in your care. 

Business Owners Policies (BOPs)

A business owners policy (BOP) bundles 3 types of coverage and is a good choice for small business owners. In addition to commercial property insurance, BOPs include:

  • Commercial general liability insurance: This coverage helps to protect you if you’re sued by a third party for specific reasons. It helps with lawsuits related to bodily injury, property damage, and personal and advertising injury. Personal and advertising injury involves lawsuits involving false advertising claims, libel, slander, copyright infringement and similar issues. Some policies also include medical payments, which means a third party could file a claim with your insurance company and receive payment for medical bills without filing a lawsuit. 
  • Business interruption insurance: In the event of a disaster, your business may need to shut down or relocate while repairs are being made. Business interruption insurance can help with those costs. It assists with lost income (as based on your financial records), mortgage, rent or lease payments, taxes, payroll and loan payments. These policies typically have a 2 to 3 day waiting period and pay benefits for 30 days, but that period can be extended if you elect a longer period when you take out the policy. 

Earthquake Insurance

Earthquake insurance can help your business recover from this devastating event. Earthquakes can happen anywhere, but they’re especially likely in areas near a fault line. This insurance covers damage to your business structures and inventory. It may also help with lost income. 

Coverage starts when the damage costs more than your deductible, and deductibles for this coverage tend to be high, according to the Insurance Information Institute. 

Flood Insurance

Floods, like earthquakes, can happen anywhere, but this coverage is particularly important if you live near water or in a hurricane-prone area. It covers damage to your building and its contents caused by flooding. 

You can buy flood insurance policies from companies partnered with the National Flood Insurance Program or private flood insurance policies. Each option has its pros and cons, so evaluate your options carefully. 

Pros and Cons of Hazard Insurance for Businesses

Here are the benefits and drawbacks of hazard insurance. 

Pros

  • It provides valuable protection from a variety of events, including weather.
  • You can bundle it with other types of commercial insurance. 
  • You can lower the policy limits or increase the deductible for lower costs. 

Cons

  • It may not cover all the costs you face after a disaster. 
  • It doesn’t cover some events, like earthquakes and certain types of flooding. 

Best Hazard Insurance in Texas

Here are Benzinga’s picks for the best hazard insurance in Texas. 

The Hartford
Same Day Coverage?
Yes
Online Application?
Yes
get started securely through The Hartford’s website
Same Day Coverage?
Yes
Online Application?
Yes
1 Minute Review

The Hartford is a leader in casualty and property insurance. It brings more than 200 years of experience in developing and providing insurance products. The company uses a quote-based pricing scheme to offer insurance in 2 main segments: commercial and personal lines. 

Its commercial segment serves over 1 million small businesses. The personal segment offers only nationally-endorsed home and auto insurance through the AARP® Insurance Program. The Hartford sells its products mainly through a network of independent brokers and agents. 

The company is also a 12-time honoree for the world’s most ethical companies according to The Ethisphere Institute. It delivers the name recognition and reputation of an experienced insurance carrier.

Best For
  • Those looking for an experienced insurance provider
  • Multiple coverage options with 1 carrier
Pros
  • More than 200 years of insurance experience
  • Provides online quotes
  • Has a solid financial rating
  • Offers a wide range of commercial insurance products
Cons
  • Pricing is entirely quote-based
Simply Business
Same Day Coverage?
Yes
Online Application?
Yes
Get started securely through Simply Business’s website
Same Day Coverage?
Yes
Online Application?
Yes
1 Minute Review

When you’re a small business owner, you have a lot on your plate. Finding the best insurance policies for your business probably isn’t on the top of your list. Simply Business makes it easy to get the coverage you need. It’s a digital small business insurance agency, which means it offers coverage from multiple insurance carriers. 

With Simply Business you can compare quotes and coverage options from multiple companies to determine what’s best for you. Simply Business works with top providers like Hiscox, Travelers and Axis Insurance Company. 

You can get policy options online in less than 10 minutes, and if you need more guidance or have questions, its licensed agents are just a phone call away. 

Simply Business is a great fit for small businesses and sole proprietors. You can look at its recommended insurance options based on the type of work you do, whether it’s landscaping, accounting or photography. 

While Simply Business doesn’t handle your claim directly (the provider you decide to purchase from does), it’s there to help you if you run into any issues. It can get you new copies of your policy documents and help you get in touch with your provider if you need assistance. 

If reviewing or buying business insurance has been on your to-do list, Simply Business is an excellent place to start. You can get a quote while you take a coffee break. 

Best For
  • Small business owners
  • Sole proprietors
Pros
  • Quick quote process
  • Licensed agents to assist you
  • Can choose from top insurance providers
Cons
  • No mobile app
CommercialInsurance.net
Same Day Coverage?
Yes
Online Application?
Yes
get started securely through CommercialInsurance.net’s website
Same Day Coverage?
Yes
Online Application?
Yes
1 Minute Review

Shopping for commercial insurance can be a daunting task. You need to contact multiple insurance companies, ask each for quotes on the different types of insurance and then finally compare quotes to make the best choice.

Or you could simplify things and visit CommercialInsurance.net. With CommercialInsurance.net, you can easily get quotes on the insurance you need from multiple reputable insurance companies like Progressive, The Hartford and Liberty Mutual Insurance. You can get a quick quote online or give CommercialInsurance.net a call. 

CommercialInsurance.net can connect you with all types of business insurance, including general liability, commercial property and workers’ compensation insurance. It’s best for business owners who want to save time and money by getting insurance quotes from multiple providers with 1 quote request.

Best For
  • Busy business owners
  • Comparing insurance policies
Pros
  • Easy quote process
  • Quotes from multiple insurers at once
Cons
  • No mobile app
  • No tools for managing multiple policies from different providers
coverwallet
Same Day Coverage?
No
Online Application?
Yes
get started securely through coverwallet’s website
Same Day Coverage?
No
Online Application?
Yes
1 Minute Review

Shopping for business insurance can be a tedious process. It takes time to collect and review quotes and coverage unless you visit CoverWallet. CoverWallet, an Aon company, makes it easy to get quotes from multiple insurance providers.

With CoverWallet, you can start by talking with an insurance advisor or start directly with quotes. You can get quotes from multiple reputable insurers, including Hiscox, Chubb and Progressive. Choose from a wide range of coverage options to protect every area of your business, including workers’ compensation, general liability and commercial property insurance.

Once you decide on your insurance coverage, you can manage your policies through MyCoverWallet. This online dashboard allows you to send copies of your insurance certificates when needed, file claims and pay premiums. It keeps your policies organized and allows you to reach out to an expert at any time.

CoverWallet also offers extensive educational resources. You can review its recommended coverage by industry. You can also dig into more specific information based on your industry, location, number of employees and annual revenue.

The one drawback to the CoverWallet is that it doesn’t have a mobile app. You can still access the site through your mobile browser and you can call any time for assistance. Overall, CoverWallet makes it easy to shop for and buy business insurance, and it’s an excellent fit for small businesses and the self-employed.

Best For
  • Self-employed
  • Start ups
  • Small to medium businesses
Pros
  • Can get multiple quotes easily
  • Can learn about recommended insurance for your industry
  • Offers many types of insurance
Cons
  • No mobile app
Liberty Mutual
Same Day Coverage?
Yes
Online Application?
Yes
get started securely through Liberty Mutual’s website
Same Day Coverage?
Yes
Online Application?
Yes
1 Minute Review

Business owners who are looking for a wide range of coverage options are likely to find everything they need through Liberty Mutual. From worker’s compensation coverage to protections against acts of terrorism, there are very few coverages that Liberty Mutual isn’t able to offer. While you might pay a bit more for your coverage with Liberty Mutual than you would with a smaller insurance provider, you might appreciate the company’s wide range of local branches and easy-to-operate mobile offering.

Best For
  • Any type of company that needs specialized protections
  • Companies that need multiple coverages and are looking to buy from a single insurer
  • Companies looking for help customizing their policy
Pros
  • Massive list of coverages and coverage options
  • Team prides itself on providing top-quality customer service
  • Allows you to work with an independent agent to create a custom list of coverages
  • Ability to work with any industry
Cons
  • Large companies tend to cost more; may end up paying more for coverage.
  • Massive network of agents can make finding someone you trust a challenge.
  • With so many coverage options and customers, it can be more difficult to get larger companies like Liberty Mutual to take action when you need to file a claim.
Thimble Business Insurance
Same Day Coverage?
Yes
Online Application?
Yes
get started securely through Thimble Business Insurance’s website
Same Day Coverage?
Yes
Online Application?
Yes
1 Minute Review

It’s not often that you see something new in the insurance space but Thimble has come up with something unique — flexible small business insurance. You can buy liability insurance policies by the month, the day or even by the hour. Even better, you can apply in under 60 seconds. In this Thimble review, we’ll dive into how it works and how it can benefit your business. 

Best For
  • Handymen, landscapers and contractors
  • Self-employed individuals
  • Seasonal business owners
  • Freelancers who do multiple types of work
Pros
  • Flexible general liability and professional liability policy options
  • Fast application process
  • Ability to pause monthly coverage
  • High-quality mobile apps
Cons
  • Doesn’t offer business interruption insurance
  • Doesn’t offer commercial property insurance

Is Hazard Insurance Right for You?

Just like homes need homeowners insurance, businesses need hazard insurance. Texas, in particular, faces numerous weather-related perils. A commercial property insurance policy can cover those perils and more. Review your options and choose a policy that will help you rebuild your business. 

Frequently Asked Questions

Q

Is hazard insurance required in Texas?

1
Is hazard insurance required in Texas?
asked
A
1

Texas business owners are not required to have hazard insurance. That said, it’s wise to get it. It protects your business, and it’s sometimes required to receive certain types of disaster assistance. For example, the Small Business Administration may require businesses to have hazard insurance to qualify for an economic injury disaster loan (EIDL).

answered
Q

How much is hazard insurance?

1
How much is hazard insurance?
asked
A
1

Hazard insurance is in commercial insurance policies. The median cost of commercial property insurance is about $60 per month. The cost varies depending on the size of your business, the value of your business equipment and buildings, the type of work you do, the location of your business and other factors.

answered

Methodology

Benzinga crafted a specific methodology to rank business insurance. We prioritized carriers based on coverage options, business types served, customer service experience and how quickly and easily you're able to get insured including online tool usage. We also included business insurance quote aggregators in lists to make it easy and efficient to compare policy quotes and options. To see a comprehensive breakdown of our methodology, please visit see our Business Insurance Methodology page.

Simply Business - It's an Experience

Simply Business Insurance makes buying business insurance easy for everyone. You can quickly, easily and affordably get insurance for your business - whatever the niche may be. Simply Business Insurance requires low down payments and flexible payment plans to fit each person’s individual budget. Its friendly staff puts customer service as its No. 1 priority to ensure you get the best experience.