Best Small Business Insurance In Texas Of 2024 – Forbes

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If you’re shopping for small business insurance in Texas, you’ll want to make coverage decisions based on your industry and the size of your business. The common types of small business insurance you’ll find include general liability insurance, professional liability insurance and workers compensation insurance.

Texas General Liability Insurance

General liability insurance covers businesses for accidental property damage and bodily injuries to others. It also covers claims such as slander, libel or copyright infringement. General liability insurance pays for legal costs, such as attorney fees, judgments and settlements.

Texas Professional Liability Insurance

Professional liability insurance covers businesses from claims of mistakes in your professional services, even if the claim has no merit. It pays for legal fees, settlements and judgments. For example, if a client claims advice from your consulting business caused them financial harm, your professional liability insurance will pay your legal costs.

Professional liability insurance is also called errors and omissions insurance.

Texas Workers’ Compensation Insurance

Texas workers’ compensation insurance covers your employee’s lost wages, medical bills and other expenses if they get injured or fall due to work-related tasks. Although many states mandate that businesses have workers’ compensation insurance, Texas does not.

Other Types of Texas Business Insurance

You’ll likely need to add other types of small business insurance to cover the risks that your industry faces. For example, you’ll want to cover business property such as your building, inventory and office equipment.

A good place to start is with a business owners policy (BOP). A BOP combines general liability insurance with commercial property insurance and business interruption insurance. It’s generally cheaper to buy a BOP compared to buying each coverage separately. Here’s what they cover:

  • Commercial property insurance: This covers the physical property of your small business for problems like theft, severe weather and fire damage. Commercial property insurance covers items like office furniture, business records, inventory and supplies.
  • Business interruption insurance: If you are unable to open due to a problem covered by your policy (such as a fire), business interruption insurance covers your lost income.

You can add additional coverage types to your BOP as needed. Here are some more coverage types to consider:

  • Builder’s risk insurance. This provides property coverage for structures and buildings that are under construction. Builders risk insurance is also called “course of construction insurance.”
  • Commercial auto insurance: If you use a vehicle for work purposes, you’ll need commercial auto insurance. Your personal auto insurance won’t cover work-related accidents.
  • Commercial umbrella insurance: This kicks in when your general liability limits are exhausted. For example, if your general liability limit is $500,000 and you get sued for $750,000, your commercial umbrella insurance would cover the $250,000 shortfall.
  • Cyber liability insurance: This covers cyberattacks and data breaches. Cyber liability insurance pays for expenses like data recovery, investigative services and legal costs.
  • Directors and officers (D&O) insurance: This liability insurance covers decisions made by company directors, officers or board members. If someone files a lawsuit against your business, directors and officers insurance covers their legal expenses.
  • Inland marine insurance. This covers materials and products that are being transported on land by train or truck. Inland marine insurance pays for property that has been stolen, lost or damaged.
  • Medical malpractice insurance: This covers claims resulting in patient injury or death, including medication errors. Professionals who may need medical malpractice insurance include acupuncturists, counselors, dentists, nurses, optometrists, physicians and therapists.
  • Product liability insurance. If one of your products causes harm to someone or someone’s property, product liability insurance covers the costs resulting from lawsuits or claims.
  • Technology errors and omissions insurance: This covers claims made by customers against technology businesses. Small businesses that may need technology errors and omissions insurance include computer consultants, IT contractors, software developers and website developers.

Cost of Business Insurance in Texas

The average cost of general liability insurance in Texas is $42 per month, according to Insureon. Workers’ comp in Texas cost an average of $31 per month and professional liability insurance cost an average of $59 per month.

Your own small business insurance costs will depend on several factors, including:

  • Annual revenue.
  • Number of employees.
  • The coverage types you choose.
  • Your policy limits and deductibles.
  • Your industry.

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