Commercial Insurance in Texas

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Contributor, Benzinga
July 23, 2020

Texas has grown to become an economic powerhouse with a population approaching 30 million people. It creates opportunities for commercial businesses of all types. Opportunity and risk often come hand-in-hand but with the right commercial insurance, you can protect your Texas business in several important ways.

Get a Custom Quote in Texas

Texas businesses are as diverse as its population, spanning every industry and business size. Some risks are nearly universal and the ability to customize your coverage is essential. This helps prevent potentially costly gaps in coverage while also finetuning your commercial insurance so you don’t pay for coverage you don’t need. Compare rates and choose coverage options to find the best commercial insurance for your Texas business.

Best Commercial Insurance Options in Texas

Today’s insurance market offers many great choices for business owners — enough that the number of options can often be overwhelming. We’ve selected a list of the best commercial insurance options in Texas to help narrow the field. We looked for staying power as well as policy customization options so your insurance dollar can go further.

The Hartford Business Insurance
Best For
  • Comprehensive coverage/Business Owners' Policy
securely through The Hartford Business Insurance's website

Best Overall for Commercial Insurance: The Hartford

The Hartford puts over 2 centuries of experience to work, bringing one of the largest selections of commercial insurance types in the nation. Named 1 of the World’s Most Ethical Companies 12 times by the Ethisphere Institute, The Hartford proves itself to be an insurer you can depend on if you have a claim. The Hartford’s own customers rate their claims experience at a stellar 4.8 out of 5 stars. 

Choose from base coverages such as general liability insurance or commercial property insurance or expand your coverage with specialized policies tailored to your business. As with many insurance providers, you can get a quote from The Hartford online. However, you’ll work with an experienced agent to finalize your coverage. We see this as a positive, particularly for mid-sized or larger businesses, because a personalized coverage review helps ensure that you have the coverage you’ll need to protect your Texas business.

Nationwide Business Insurance
Best For
  • Commercial Property

Best for Commercial Auto Insurance: Nationwide

Nationwide is on your side, as the company slogan goes, and this is especially true if you need commercial auto insurance. From truck and van fleets to coverage for employee vehicles, Nationwide offers no-excuses coverage and customization options you may not find with some other insurers. 

Commercial auto insurance policies with Nationwide start with affordable coverage limits as low as $100,000. However, the company recommends a $500,000 limit and offers coverage options up to $1 million. For businesses that need more coverage, Nationwide also offers a commercial umbrella policy that allows you to expand coverage limits more affordably.

Learn more about commercial auto insurance.

Torrent Technologies
securely through Torrent Technologies's website

Best for Commercial Flood Insurance: Torrent Technologies

Offered in partnership with Hiscox and Johnson & Johnson, an industry leader with nearly 100 years of experience, Torrent Technologies unveiled its FloodPlus Commercial policy as a flexible way to insure businesses. 

Large businesses may be better suited by a specialty policy, but for small and mid-sized Texas businesses, FloodPlus offers an attractive alternative to standard flood policies provided by the National Flood Insurance Program (NFIP). For example, FloodPlus provides coverage for up to $2.5 million due to flood damage. This compares well against NFIP commercial policies that offer combined property and contents coverage of up to $1 million.

Learn more about flood insurance.

Best For
  • Small businesses with both part and full-time employees
securely through Hiscox's website

Best for Commercial Property Insurance: Hiscox

Hiscox brings a wealth of experience, but the company also offers a unique benefit in that Hiscox specializes in small business insurance. It allows customization for the unique coverage needs of each business. 

A Hiscox commercial property insurance policy means you can protect your buildings from common risks like fire, lightning or vandalism. Your coverage also extends to business equipment, inventory, tenant improvements and even accounts receivable. 

You’ll also enjoy full replacement cost coverage, which means there’s no deduction for depreciation. And if your business is forced to close temporarily due to a covered claim, business interruption coverage included in your policy can replace lost revenue so you can get back to business when repairs are complete.

Progressive Workers Comp
Best For
  • Bundling commercial policies
securely through Progressive Workers Comp's website

Best for Cyber Insurance: Progressive

Technology improves business productivity, but our always-connected world brings its risks as well. Cyber insurance offers a way to protect your Texas business against a wide range of electronic data liability risks not covered by other liability policy types. 

Progressive stands out amongst commercial insurance providers by letting you compare pricing from up to 4 leading insurance providers. From contractors and consultants to retailers and restaurants, many types of businesses may have cyber liability risk. Coverage typically includes 1st-party coverage that helps cover damages to your business due to a data breach as well as 3rd-party coverage that helps protect your business against liability claims if a data breach at your company affects customers or other businesses. 

In some cases, you can add cyber liability to an existing business owners’ policy (BOP). For some larger businesses or larger risks, a standalone policy may be the best option.

Cost of Commercial Insurance in Texas

The cost of commercial insurance for your Texas business can depend on several factors. As a first consideration, the coverage needs for your business may differ from those of your neighboring businesses or even those of your competitors in the same industry. Business type, how long you’ve been in business, claims history and coverage limits all play a role in the cost of your business insurance. 

For smaller Texas businesses, basic costs for a business owners’ policy averages $80 per month with a median cost of $62 per month, according to Progressive, a leading provider of business insurance. This policy type covers general liability claims but also protects your business property such as real estate, inventory or equipment. However, every business is different and your business may need additional policy types. Because each business has different coverage needs, the best way to find the specific cost of commercial insurance for your business is to get some quotes to compare.

A business owners’ policy offers a popular way to bundle, which refers to buying more than one type of coverage from the same provider. Many insurers also offer a discount if you buy commercial auto insurance along with general liability insurance or a BOP.

Ask your agent or insurer which other discounts may be available. For example, some insurers offer additional discounts for membership in trade groups or for safety measures you put in place at your business location.

Types of Commercial Insurance

Most Texas businesses need more than one type of commercial insurance. Each policy is designed to cover specific risks, but often businesses face risks outside the scope of a single policy. Here are some common commercial insurance types to consider.

Commercial Auto Insurance

Even if your business doesn’t use heavy trucks, you might need commercial auto insurance. Personal auto insurance policies have their limitations. Specifically, personal auto insurance policies typically exclude coverage for business use of your vehicle. 

If your business owns vehicles or you use a personal vehicle to deliver goods or transport people for a fare, you’ll need specialized coverage either through a rider or by purchasing a commercial auto insurance policy. A rider is an add-on to an existing policy that offers new coverage, but this option may not be the right solution in all cases. A commercial auto insurance policy removes many restrictions for business use and often comes with higher liability coverage limits to better protect your Texas business.

Commercial Flood Insurance

If your business is located along the Texas Gulf Coast, you already know flooding can be a risk to your business. But other areas of the state also face flooding risks. In recent years, central Texas has seen several major flooding events as well. Commercial flood insurance helps protect your business property against flood-related risks, such as rising floodwaters, surge and mudflow. 

Your commercial flood policy can safeguard your business real estate as well as your inventory, equipment and supplies. Today’s modern insurance market brings a wider selection of commercial flood insurance providers, allowing you to compare rates and customize coverage to suit your needs.

Commercial Property Insurance

Property insurance coverage can include real estate owned by your business, but this coverage also protects other business assets, such as inventory, supplies, equipment and furnishings. This means that commercial property insurance can help protect your business even if you rent your business location. 

Covered risks include fire, theft, vandalism, windstorms and more. Some risks aren’t covered, however. For example, flood damage isn’t covered by a standard commercial property insurance policy. Instead, you can purchase coverage for flood damage with a separate commercial flood insurance policy. 

Commercial Umbrella Insurance

An umbrella policy extends the liability coverage limits for the underlying policies. For example, if your Texas business carries both commercial auto insurance and general liability insurance, a commercial umbrella insurance policy can extend the effective coverage limits of both policies. 

Because the primary policies absorb the cost of smaller claims, the extended coverage provided by a commercial umbrella policy offers a lower overall cost of insurance per dollar of coverage. For most claims, your business isn’t likely to need the extended coverage, but if your business faces a large loss, an umbrella policy offers the coverage you’ll need for larger claims.

Choosing the Best Commercial Insurance in Texas

Part of running a business is planning for unexpected expenses. Insurance offers a cost-effective way to plan for losses that are impossible to predict for individual businesses. The lowest-priced policy may not always be the best choice, however. Like any business decision, it’s best to weigh your options carefully. To choose the best coverage for your Texas business, consider getting quotes from a few insurance providers, comparing both price and policy features.


Benzinga crafted a specific methodology to rank commercial insurance. We prioritized carriers based on coverage options, specialized industries, customer service experience and how quickly and easily you're able to get insured including online tool usage. We also included commercial 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 Commerical Insurance Methodology page.