Whether you own one of Austin’s thriving high-tech companies or run a small sole proprietorship out of your home, if you are a business owner in this city, you can benefit from protecting the investment you have made in your company by covering it with the right commercial insurance products.
Independent agents make it easy to put together a comprehensive business insurance policy package. These experienced agents can help you identify your company’s various exposures and can recommend the right insurance products to cover against each of them.
If you are ready to start comparing customized quotes for business insurance products, you can get started by contacting an insurance agent near you.
Why Is Business Insurance Important in Austin?
Every business has some risks, and sometimes these risks can result in very expensive losses. If your business is hit with a liability lawsuit or your inventory is damaged in a fire, the resultant costs can be very high if you do not have the right business insurance products in place.
Consider this: Businesses in Texas collect nearly $40 billion a year in insurance claims. Will your company be suitably covered if disaster strikes? A local independent insurance agent can help you be certain that it will.
How Much Does Business Insurance Cost in Austin, TX?
Business insurance costs can range from a couple hundred dollars a year for a small business with little overhead to tens of thousands a year for a large corporation.
There are many factors that insurance companies take into consideration when calculating costs. These include:
- The type of business you have
- The size of your business and its expected annual revenues
- The value of your business-owned property
- Whether your business owns and operates vehicles
- Your company’s claims history
- The crime rate and weather risks where your business is located
- The types of coverage you are including in your policy package
The only way to find out how much business insurance will cost for your company is by contacting a few competing insurance companies and requesting customized quotes. Independent agents can save you time and money by doing this for you.
What Liability Risks Does Austin Business Insurance Cover against?
No business is too small to be sued.
Business liability insurance products are designed to protect your company by covering expenses like court costs, legal defense fees, mediation costs, settlements, and judgements if your company is sued for a covered event.
You will want to be sure that you have purchased the right insurance products to cover against each of your company’s liability exposures. Some of the many available commercial liability products that may be a good fit for your Austin business include:
- Premises liability insurance: This covers third-party injuries and property damage that occur due to accidents on your business premises.
- Product liability insurance: This covers third-party injuries, illnesses, and property damage caused by products your company produces or sells.
- Cyber liability insurance: This covers your business’s financial obligations to affected individuals if cybercriminals break into your company’s computer system and access their personal and/or financial data.
- Commercial vehicle liability insurance: This covers your business if an employee causes a collision in a company vehicle. In Texas, it is required if your business owns and operates vehicles.
- Employment practices liability insurance: This covers against accusations of illegal employment practices such as harassment, discrimination, retaliation, and wrongful termination.
- Professional liability insurance: This covers individuals in professional positions if negligence, errors in judgement, or other professional mistakes cause their clients to suffer financial losses or other harm.
These are not the only liability product available. You will want to be sure that your Austin business is suitably covered against all of its liability exposures.
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How Does Austin Business Insurance Cover against Property Damage?
Businesses in Austin are most at risk for property loss and damage caused by:
- Fires and explosions
- Property crimes
- Severe weather events like thunderstorms, high winds, and tornadoes
Fortunately, each of these hazards is covered by commercial property insurance, which is a standard part of every business insurance policy.
To fully protect your business property, it may be necessary to supplement your commercial property insurance with additional policies such as:
- Flood insurance: While the risk of floods is relatively low in Austin, you should be aware that flood damage is not covered by commercial property insurance. If your business is at risk, you can protect it with an affordable flood insurance policy through the National Flood Insurance Program (NFIP).
- Inland marine insurance: This covers your business’s portable property when it is being transported over land or is being stored away from your business premises, such as at a job site.
- Equipment breakdown insurance: This covers repair costs and business losses related to mechanical malfunctions of your company’s well-maintained essential business equipment and machinery.
- Bailee’s insurance: This covers your customers’ property when it is in your business’s custody, care, or control, such as if you are performing repair, alteration, or maintenance work on it.
You will want to be certain that all of your company’s valuable property is sufficiently covered by the right insurance products.
How Can Business Interruption Insurance Help Companies in Austin?
If your business is severely damaged by a disaster like a fire or a tornado, you may need to shut it down for several weeks while repairs are made.
Many small businesses do not have the financial strength to withstand a long-term forced closure following a disaster. Business interruption insurance offers a solution to this problem.
Business interruption insurance is designed to provide businesses with the funds necessary to continue paying regular expenses like rent, bills, taxes, loan installments, and payroll during the times that it is unable to generate revenue due to damage caused by a covered event.
This coverage can continue until you are able to resume normal business operations, though it is usually limited to 12 months.
What Is Workers’ Compensation Insurance and Is It Required in Austin?
Even when all recommended safety protocols are in place, employees sometimes get hurt on the job. That is why workers’ compensation insurance can prove beneficial.
Texas is the only state that does not require employers to carry workers’ compensation insurance. Coverage is necessary only if you own a construction firm and you are working on a government contract.
Even though it is not required, workers' compensation insurance has many benefits and is usually a good idea for businesses.
If your workers are injured on the job or come down with an occupational illness, this insurance can cover their medical treatment, follow-up care, prescription medications, disability pay, and other incurred costs. This can protect your company from potential liability lawsuits related to the injuries.
What about Insurance Products for Employee Benefits Packages?
If you are shopping for insurance products like life insurance and health insurance to include in your employee benefits package, you will find you have many different options available to you, especially when it comes to health care.
This can make it difficult to decide which policies make best choices for your employees while not putting too large a financial burden on your company.
You may therefore find it beneficial to seek assistance from a local insurance professional who is familiar with healthcare plans and networks in your area, can explain the pros and cons of each of your options, and can shop around to find you good coverage at a great price.
Why Work with a Local Independent Insurance Agent?
Independent insurance agents are available to help you build a comprehensive policy package for your business.
These agents can offer guidance and advice as you navigate through your many coverage options, and they can obtain customized quotes from some of the best insurance companies in Austin, TX on your behalf. That way, you can be sure you are getting the coverage your business needs at a reasonable price.
Arrange an obligation-free consultation with an insurance agent near you get started.
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