Popular QuestionsCommonly Asked Questions about Business Insurance in Texas

Why should I purchase Texas business insurance?

Business insurance is designed to safeguard your company against the various financial losses it may face due to hazards such as damaging weather, property crimes, and liability lawsuits. This coverage can prove beneficial, as is evidenced by the fact that businesses in Texas collect approximately $14 billion in insurance claims every year.

A local independent agent can help you build a customized business insurance plan that is designed to meet the specific coverage needs of your company.

How have other business owners used their commercial insurance?

Experts estimate that 40% of all small businesses are likely to experience a property damage or general liability lawsuit in the next 10 years. The following are some hazards American companies have experienced in recent years as well as the approximate average amount they collected when filing claims:

  • Theft and burglary: Average cost per claim - $8,000
  • Water damage and freezing pipes: Average cost per claim - $17,000
  • Wind and hail damage: Average cost per claim - $26,000
  • Fire damage: Average cost per claim - $35,000
  • Customer slip and fall injuries: Average cost per claim - $20,000
How does Texas business insurance help my company?

In Texas, business insurance can cover losses associated with a variety of potential hazards so that your business doesn’t experience large financial losses.

If your inventory is damaged, a customer files a liability lawsuit, or one of your employees is severely injured on the job, a good commercial insurance plan will ensure that you won't have to worry about how these expenses will affect your business’s bottom line.

Here’s what you can expect a well-built business insurance policy package to do for you:

Pay for Damage to Your Building

  • This is called “commercial property insurance.”
  • Example: High winds from a tropical storm damage the roof and gutters of your business-owned storefront.

Pay for Damage to Your Business Property

  • This is called “business property insurance.”
  • Example: A tornado destroys the warehouse in which you have your business inventory stored.

Pay for Damage to Someone Else’s Property

  • This is called  “general liability insurance.”
  • Example: Workers at your tree-removal business accidentally drop a tree on a neighbor’s above-ground pool.

Pay for Someone Else’s Medical Bills

  • This is also called  “General Liability Insurance.” 
  • Example: A customer in your storefront suffers significant injuries after slipping on a wet floor.

Pay for Accidents Involving Company Vehicles

  • This is called “commercial auto insurance.”
  • Example: While on the way to a job site, a construction vehicle owned by your company hits and totals a parked car.

Pay for Employee Injuries and Work-Related Illnesses

  • This is called  “worker's compensation.” This coverage is optional in Texas unless you own a construction firm that contracts with government entities.
  • Example: An employee at your petroleum refinery suffers a significant injury due to an industrial machine malfunction.

In addition to these coverages, there are many more commercial property and liability products available that you can add to your business insurance policy package. You can therefore build a coverage portfolio that is customized to meet each of your company’s specific exposures.

To make sure you're properly insured, talk to a local independent insurance agent who specializes in covering businesses that operate in your industry.

Does Texas require businesses to have insurance?

A business insurance policy is not required by law. However, some types of commercial insurance that are often included in a comprehensive business insurance plan may be. 

  • Many banks will require you to have property and/or liability coverage before they will agree to finance a loan or line of credit.
  • Contracting firms are nearly always required to have contractors insurance in order to be hired to do a job.
  • Construction firms on contract with government entities are required to have worker's compensation insurance. For all other companies, this coverage is optional.
  • If your business owns a vehicle or fleet of vehicles, you need to carry commercial vehicle liability insurance that meets the state’s minimum coverage requirements.

To learn more about coverage that you may have to have for your business, you can talk with a local independent insurance agent.

How do I find the best price for Texas business insurance?

Business insurance rates are calculated according to a number of factors such as the size of your business, the value of your business assets, the number of employees you have, your various liability exposures, and the amount and types of coverage you want. 

Coverage needs can vary significantly from one industry to the next, so it is best to work with an experienced insurance agent who can help you build a suitable and comprehensive policy package for your company. These agents can help you make sure that you are getting coverage against all of your business’s potential risks while helping you avoid paying for coverage that is not a good fit.

Also, because independent agents can work with multiple insurance companies, they can search for the best price for each type of coverage you need. Sometimes this means building a business insurance portfolio that includes policies from several different insurance companies. Don’t worry. You will still only have one point of contact with your independent insurance agent.

Are there any independent agents in Texas?

Yes! There are currently 1,791 independent agents in the state of Texas. 

These agents are available to help you with all of your insurance coverage needs. Did you know that independent insurance agents can work with several different insurance providers to find you a comprehensive and competitively priced business insurance portfolio? Work with an agent near you to ensure that your business is fully covered against all of its various exposures.

InformationFind the Best Business Insurance in Your City

Let's take a look at some factors that can influence business insurance rates and see how your city measures up.

  • Number of business in the US: 27,626,360
  • Number of businesses in Texas: 2,356,748
  • Burglary rate per 1,000 residents in the US: 3.76
  • Burglary rate per 1,000 residents in Texas: 4.11
  • Auto theft rate per 1,000 vehicles in the US: 2.29
  • Auto theft rate per 1,000 vehicles in Texas : 3.08
City Population  Number of Established Firms Burglary Rate Per 1,000 ResidentsAuto Theft Rate per 1,000 Vehicles
Amarillo             199,371                17,3437.594.53
Arlington             398,854                35,9884.533.09
Austin             978,908                96,0484.672.61
Corpus Christi             326,586                27,4166.532.79
Dallas          1,343,573              142,6586.655.91
El Paso             681,728                55,6971.611.19
Fort Worth             909,585                71,5455.043.32
Garland             239,928                21,5454.653.45
Grand Prairie             194,543                15,6782.522.46
Houston          2,320,268              260,3476.965.09
Irving             239,798                22,1752.922.95
Laredo             262,491                27,5172.620.65
Lubbock             258,862                20,3348.984.15
Plano             287,677                30,5672.321.29
San Antonio          1,547,253              117,5465.923.96

Houston, TX Business Insurance

Covering Your Business Assets

Property

With its proximity to the Gulf Coast, Houston sees a lot of inclement weather. Damage caused by hurricanes, tropical storms, high winds and hail can wreak havoc on business property. Fortunately, when you have the right business insurance in place, your company will be able to repair damage and continue to function without experiencing a large financial loss.

Commercial Auto

If your business owns a vehicle or a fleet of vehicles, you may benefit from having the added liability coverage that comes with a commercial auto insurance policy. Your rates will be based on several factors, including the number and types of vehicles you are covering, the risk details about the employees who will be driving them, and the number of collisions and vehicle thefts in your city.

Worker's Compensation

Worker's compensation insurance can pay for medical bills and lost wages if your workers suffer an occupational illness or are injured on the job.  Rates are based on your company’s overall payroll and the potential risks faced by your employees according to their individual job classifications.

For every $100,000 in annual payroll, here is an estimate of what businesses in the three leading industries in Houston, TX would pay for worker's comp coverage:

  • Construction industry, $7,160 per year
  • Healthcare industry: $1,915 per year
  • Professional, scientific and technical services industry: $240 per year

The construction industry has one of the highest rates of significant employee injuries.  That is why the average cost for coverage is so much higher than it is for workers in the healthcare and professional services industries. Maintaining a safe work environment can help to keep your worker's compensation rates affordable. Talk to an independent insurance agent in Houston for help finding a suitable and competitively priced policy.

San Antonio, TX Commercial Insurance

Covering Your Business Assets

Property

Every year, wildfires burn in the state of Texas. Businesses in San Antonio are at risk of sustaining damage due to this persistent hazard. As long as your business insurance plan includes a sufficient amount of commercial property coverage, your company should be able to withstand the losses these fires can cause.

Commercial Auto

Whether you are insuring a delivery van or a fleet of construction vehicles, commercial vehicle insurance can protect your company against losses related to liability risks and property damage. If your business engages in interstate commerce, a local agent can ensure that your coverage meets all state and federal requirements.

Worker's Compensation

In Texas, worker's compensation insurance is only required by law if your business is in the construction field and has contracts with government entities. Despite it being optional, many business owners opt to purchase this coverage. It not only protects your employees from financial losses related to workplace injuries, it also shields your business from potential lawsuits related to these injuries.

For every $100,000 in annual payroll, here is an estimate of what businesses in the three leading industries in San Antonio, TX would pay for worker's comp coverage:

  • Healthcare industry: $1,915 per year
  • Accommodation and Food services industry: $1,777 per year
  • Educational services industry: $560 per year

These are averages for broad-based industries. Some healthcare jobs, like nursing and patient transport, result in higher injury rates than others, like medical records management and diagnosis coding. Therefore, you wouldn’t be paying the same rate for every employee. Your local independent agent can help you compare quotes from a variety of insurers so you can find out what your actual costs may be.

Dallas, TX Business Insurance

Covering Your Business Assets

Property

The property crime rate in Dallas is higher than both the state and national averages. This makes it particularly important for you to ensure that your business assets are sufficiently covered. In addition to covering against crime, your policy can also cover loss and damage due to hazards like inclement weather and accidental fires.

Commercial Auto

Commercial auto insurance can protect your business from facing unmanageable liability damages if one of your drivers causes an accident while operating a company-owned vehicle. Rates can be influenced by the types of vehicles you are covering. It will cost far more to insure a bus or a 12-passenger van than to cover a car or a cargo van, since your liability risks are greater when you are transporting passengers.

Worker's Compensation

Worker's compensation insurance is designed to cover the cost of medical treatment, lost wages, and other expenses related to injuries or illnesses your employees may suffer while doing their jobs. It is optional in Texas, but many business owners find it to be a worthwhile investment. Worker’s compensation rates are assigned according to your company’s overall payroll and the types of jobs your employees do.

Based on a $100,000 annual payroll, here is an estimate of what businesses in the three leading industries in Dallas, TX would pay for worker's comp insurance:

  • Construction industry: $7,160 per year
  • Healthcare industry: $1,915 per year
  • Accommodation and food services industry: $1,777 per year

Rates can vary within these industries according to the actual jobs your employees do. The cost for covering employees in construction jobs can vary from the average amount according to the type of construction your firm engages in, since some jobs are more dangerous than others. Likewise, in the healthcare field, medical workers at a trauma unit have a higher risk of injury than those who work in a pediatrician’s office. To start comparing quotes for worker's comp coverage for your business, talk to a local independent insurance agent.

Austin, TX Commercial Insurance

Covering Your Business Assets

Property

Your business has probably invested a lot in its assets, such as computers, furniture, tools, and supplies. Business property insurance can help cover the cost of repairing or replacing this property if it is lost or damaged by a covered event. Find a policy and rate that works for your Austin business by teaming up with a local independent agent.

Commercial Auto

You can't control other drivers, let alone criminals who may decide to take your company car for a joy ride. If your Austin business owns a vehicle or fleet of vehicles, you will need to carry commercial auto insurance that includes, at a minimum, liability coverage. Rates for these policies can vary according to the number and types of vehicles you are covering, as well as the risk of collisions and vehicle theft where your employees will be driving.

Worker's Compensation

Worker's compensation insurance covers medical expenses and paid time off for employees who are injured on the job. It can shield your company from liability lawsuits related to these injuries. Unless your business does construction work for government entities, you are not required by law to have this insurance. Many business owners opt to purchase it anyway. Rates for coverage can vary significantly from one business to the next, depending on the types of jobs your employees do and your company’s overall payroll.

For every $100,000 spent on annual payroll, here is an estimate of what businesses in the three leading industries in Austin, TX would pay for worker's comp insurance:

  • Professional, scientific and Technical Services industry: $240 per year
  • Educational services industry: $560 per year
  • Accommodation and food services industry: $1,777 per year

Rates within the accommodation and food services industry are higher than those for professional or education jobs because the risk of injury is higher. A cook can get burned in the kitchen, or a housekeeping attendant can throw out her back while engaged in heavy lifting. Contact a local independent insurance agent to find out how much it will cost to insure your particular business.

Fort Worth, TX Business Insurance

Covering Your Business Assets

Property

Tornadoes pose a significant risk to businesses in the Fort Worth area. In fact, tornado activity in this city is 150% greater than the national average. Because the damage caused by a twister can be all-encompassing, it is important that you have enough commercial property insurance to fully cover all of your business assets. A local independent agent can help you review your coverage limits.

Commercial Auto

Many businesses in Fort Worth have company-owned vehicles. If yours is among them, you will need to insure these cars, vans, buses, or trucks with a commercial auto insurance policy. Doing so can prevent your business from facing a financially devastating lawsuit if one of your drivers causes a serious accident. A local independent agent can help you find a reliable policy at a competitive price.

Worker's Compensation

Worker's compensation insurance covers medical bills and lost wages for workers who are injured in the course of doing their jobs. It is optional for most Texas businesses, but is often considered a good idea since it can prevent your company from facing expensive lawsuits related to workplace injuries. Rates for this coverage are assigned according to your company’s overall payroll amount and the types of jobs your workers do.

For every $100,000 spent on payroll annually, here is an estimate of what businesses in the three leading industries in Fort Worth, TX would pay for worker's comp coverage:

  • Construction industry: $7,160 per year
  • Healthcare industry: $1,915 per year
  • Accommodation and food services industry: $1,777 per year

As you can see, rates tend to vary significantly from one industry to the next. Even within these industries, there can be a wide variance of rates depending on the specific jobs done by your employees and the risks associated with them. Talk to a local independent insurance agent to discover how much it will cost to cover your Fort Worth business.