Business Insurance in Texas FAQ - Quick Answers

The cost of your small business insurance in Texas will vary depending on numerous items. Some risk factors carriers look for when rating your coverage are as follows:

  • Type of industry
  • Number of employees
  • Gross annual sales
  • Location of business
  • Number of company vehicles
  • Safety practices in place
  • Past claims reported
  • Number of years in operation

Several policies are necessary to fully protect your small business. In Texas, you're not required to carry workers' compensation insurance, or other policies in most cases. However, you may be interested in other policies depending on your specific situation.

Your small business insurance policies will be specific to your operations and unique risks. In Texas, here are policies that could apply to your business:

In Texas, there are numerous small business liability insurance policies you can obtain. Some of the most common are listed below:

According to the Affordable Care Act, you're not required to offer small business health insurance in Texas unless you have 50 employees or more. However, you may want to include coverage as a part of your company's benefits package. A local independent insurance agent can help with quotes.

There are several ways you can obtain small business insurance, but some carriers are better than others. In Texas, Hanover, Nationwide, and Travelers insurance companies come highly recommended. This is due to their superior claims handling and excellent customer service.

Do You Know What Your Business Insurance Covers in Texas?

Find the Best Business Insurance in Your City

How does your city measure up to the national average?

Number of businesses in the US: 30,819,176

Burglary rate per 1,000 residents in the US: 3.76

Auto theft rate per 1,000 vehicles in the US: 2.29

CityNo. of businessesBurglaries / 1,000 peopleAuto thefts / 1,000 cars
Amarillo                17,3437.164.83
Arlington                35,9883.243.1
Austin                96,0484.413.07
Corpus Christi                27,4165.962.71
Dallas              142,6586.767.52
El Paso                55,6971.531.24
Fort Worth                71,5454.343.64
Grand Prairie                15,6782.562.55
Houston              260,3477.235.57
Plano                30,5672.161.53
San Antonio              117,5465.244.99
  • Houston, TX
  • Business Insurance Common Coverage Options
  • 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 the 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.
  • Workers' Compensation: This 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 job classifications.


  • San Antonio, TX
  • Business Insurance Common Coverage Options
  • 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. 
  • Workers' Compensation: In Texas, workers' 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, but it also shields your business from potential lawsuits related to these injuries.


  • Dallas, TX
  • Business Insurance Common Coverage Options
  • Property
  • The property crime rate in Dallas is higher than both the state and national averages. This makes it particularly relevant to consider looking into sufficient coverage. 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.
  • Workers' Compensation: This 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. Workers' compensation rates are assigned according to your company’s overall payroll and the types of jobs your employees do.


  • Austin, TX
  • Business Insurance Common Coverage Options
  • 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. 
  • 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.
  • Workers' Compensation: 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.


  • Fort Worth, TX
  • Business Insurance Common Coverage Options
  • 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. 
  • Commercial Auto
  • Many businesses in Fort Worth have company-owned vehicles. If yours is among them, you will need to cover 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. 
  • Worker' Compensation: 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.