Top 7 Texas Small Business Insurance Options for 2024
By AHAD WASEEM Published: JULY 25, 2024 20:24(photo credit: PR)
Discover the top 7 small business insurance options in Texas for 2024. Protect your business with the best coverage. Get informed and secure your future!
Navigating the complex landscape of small business insurance in Texas can be a daunting task for entrepreneurs. With diverse options and regulatory requirements, securing the right coverage is crucial for protecting your business against unforeseen challenges.
This article provides a comprehensive guide to understanding the various insurance available for small businesses in the Texas State. It covers the cost of small business insurance in TX and offers essential tips from professional companies like NEXT to ensure your business remains safeguarded and compliant.
Whether you’re just starting out or looking to reassess your current policy, this resource will equip you with the knowledge to make informed insurance decisions tailored to your unique business needs.
State laws dictate business insurance requirements in Texas, making certain policies mandatory throughout the state.
Workers' Compensation Insurance
This insurance is essential for all businesses with employees, whether full-time or part-time, in Texas. It covers medical expenses for work-related injuries or illnesses, such as a cleaning company employee getting sick from fumes. Workers' compensation also provides disability benefits and shields business owners from liability related to workplace injuries.
Commercial Auto Insurance
Any vehicle owned by a business in Texas must have commercial auto insurance. This policy covers accident-related costs involving business vehicles. The minimum requirements for auto liability insurance in Texas are:
Bodily injury coverage: $25,000 per individual
Bodily injury coverage per accident: $50,000
Death coverage per individual: $50,000
Death coverage per accident: $100,000
Property damage coverage: $10,000 per accident
Personal injury protection: $50,000
Uninsured motorist coverage: $25,000 per person
Uninsured motorist coverage per accident: $50,000
Trucking companies might require additional coverage to meet specific regulations. While not mandatory, it's advisable for personal vehicles used for work to be insured under Hired and Non-owned Auto Insurance (HNOA) since personal auto policies typically exclude business use.
NEXT offers a range of commercial insurance policies you can purchase online and activate immediately. They provide a business owner's policy combining general liability and commercial property insurance.
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They offer commercial auto insurance, workers' comp, professional liability insurance, and coverage for tools and equipment, among others. NEXT, it also provides digital tools to simplify policy management.
These tools allow you to share a live certificate of insurance and add additional insured parties at no extra cost. You can opt for monthly payments and save up to 25% with their discounts.
Founded in 2016 and based in Palo Alto, California, NEXT Insurance uses artificial intelligence and machine learning to make the insurance buying process easier. With an A- (Excellent) financial strength rating from AM Best, NEXT stands out in the industry. However, some competitors might offer specialized coverages like cyber liability insurance.
With NEXT, you can secure various business insurance coverages online in about ten minutes. If you prefer, you can also speak with a U.S.-based insurance advisor for help.
Choosing NEXT in Texas offers several benefits, including the ability to share a live insurance certificate quickly, customize your business insurance with various coverages, and a fully online quote and application process with additional support available when needed.
Hiscox is a top choice for freelancers, recognized as the leading insurer for independent contractors among small commercial insurers. They offer a flexible Business Owners Policy (BOP) that addresses various needs, such as business interruption, electronic data loss, and professional liability insurance.
For freelancers, Hiscox provides standalone professional and general liability policies ideal for short-term projects, with convenient monthly payment options.
Hiscox holds an A (Excellent) rating from AM Best, reflecting strong financial health. Although they've had a higher-than-average volume of complaints in the past three years, the year-over-year decrease in complaints shows improving customer satisfaction. Hiscox’s policies, including their BOPs, start at an affordable $500 per year.
In Texas, Hiscox excels by offering tailored options for independent contractors, no-fee monthly payments, short-term liability insurance, and a fully online quote and application process, all backed by readily available support.
Simply Business simplifies comparing quotes and coverage options from leading insurance providers like Hiscox, helping you find the best fit for your needs. You can access policy options online in less than ten minutes. If you need additional help or have questions, licensed agents are just a phone call away.
This service is useful for businesses and individual proprietors, offering customized insurance recommendations based on the unique aspects of your profession, whether that's landscaping, accounting, or photography.
While Simply Business doesn't handle claims directly (that’s up to your chosen provider), it provides ample support, from retrieving new copies of your policy documents to helping you connect with your provider for any needed help.
Key benefits of using Simply Business in Texas include a quick quote process, access to licensed agents for guidance, and options from top insurance providers.
Tivly simplifies obtaining business insurance through an extensive online platform. By quickly inputting your criteria, you can receive a quote customized to your business needs. With partnerships with over 200 providers, including major players like Progressive and The Hartford, Tivly ensures you're paired with the insurance provider that best safeguards your financial interests.
With Tivly, you can access various business insurance types, such as business income insurance and liability coverage, to protect your hard work.
The benefits of using Tivly in Texas include a straightforward quote process, a vast network of over 200 partner providers, and the confidence of being matched with a provider that aligns with your specific business insurance requirements.
Shopping for business insurance can be daunting and time-consuming, but CoverWallet simplifies the process by providing easy access to quotes from multiple insurers. You can start by chatting with an insurance advisor or getting quotes directly from renowned companies like Hiscox and Progressive.
CoverWallet offers a range of coverage options, including workers' compensation, general liability, and commercial property insurance, enabling you to customize protection for every aspect of your business.
After choosing your insurance, you can manage your policies via MyCoverWallet, an online dashboard that lets you issue insurance certificates, file claims, and handle premium payments, keeping your policies organized and accessible. You can always reach out to an expert for advice.
CoverWallet also provides extensive educational resources tailored to various industries. These resources help you identify the recommended coverage based on your industry, location, workforce size, and annual revenue, simplifying finding the right insurance for your business.
Key benefits of using CoverWallet in Texas include the ease of obtaining multiple quotes, learning about industry-specific insurance recommendations, and accessing a comprehensive range of insurance types.
Progressive is well-known as a reliable car insurance provider and is an excellent choice for businesses with commercial fleets. Trucking companies operating tractor-trailers and long-haul semi-trucks will particularly benefit from Progressive's extensive coverage.
Businesses with at least three years of operation can enjoy up to 5% savings on premiums. There’s an opportunity to secure a 15% discount on your commercial auto policy if you pay the full premium upfront.
Beyond vehicle insurance, Progressive offers a variety of other business insurance options, including cyber insurance, professional liability, business owner policies, workers' compensation, and general liability insurance. They also provide "any auto coverage," which ensures protection for all vehicles owned and operated for business by you or your team.
The benefits of choosing Progressive in Texas include flexible coverage options tailored to your specific business needs and the possibility of additional perks such as risk management services.
Hartford brings a wealth of expertise in business insurance, specializing in crafting policies that align precisely with each client's unique requirements, leading to cost savings. They cater to a wide range of clients, from large corporations and mid-sized businesses to sole proprietors, offering diverse policies.
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Their offerings include event insurance, employment practices liability, directors and officers insurance, bonding and surety, flood insurance, coverage for loss of business income, restaurant insurance, workers’ compensation, and technology errors and omissions, among others.
Opting for The Hartford in Texas means benefiting from the company's over 200 years of experience in the insurance industry. The company simplifies the process with online quote generation, upholds a strong financial rating, and provides a broad selection of commercial insurance products.
Types of Business Insurance Coverage Available in Texas
Texas Business Owners Policy
A Business Owners’ Policy (BOP) combines business property and liability insurance into one unified policy. This coverage supports Texas businesses and their workforce against various claims, such as:
Bodily injury
Property damage
Theft
You can tailor your BOP to suit the specific needs of your business by incorporating additional policies like:
Data breach insurance
Professional liability insurance
Workers’ compensation insurance
A BOP is particularly advisable if your business possesses:
A physical premises in Texas, such as a retail store, home office, conventional office, or leased area
The potential for customer lawsuits due to injuries incurred at your business location
Valuable digital assets, equipment, money, or furnishings are at risk of being lost, damaged, or stolen
Texas Commercial Property Insurance
Securing your assets is paramount if you run a business in Texas. This is where commercial property insurance steps in, providing a safety net for:
Your equipment
Inventory
Office decor
Personal belongings
Imagine a fire wreaking havoc in your workspace, destroying your products or gear. This coverage not only aids in repairs or replacements but also covers losses from theft or misplacement of office equipment. Policies can be tailored to fit your needs, safeguarding valuable papers or records.
General Liability Insurance in TX
Also known as business liability insurance, general liability insurance in Texas protects your venture from various claims, such as:
Reputational damage
Property damage
Bodily injury
Advertising errors
So, if your advertisement misfires or someone gets hurt on your premises, this insurance covers potential liabilities.
Texas Business Income Insurance
If a mishap like fire, theft, or storm forces your business to close temporarily, business income insurance helps recover the lost revenue during downtime. You might consider this coverage essential if:
Your business operates out of a physical location, whether owned or rented
You run a retail store
Your revenue depends heavily on software or digital assets
Your business uses machinery or tools to produce goods or provide services
We offer business income insurance as part of our Business Owners’ Policy (BOP). However, you can also purchase it separately.
Errors and Omissions Insurance in Texas
Also known as professional liability insurance, errors and omissions coverage is vital for safeguarding your business against claims such as:
Negligence
Misrepresentation
Giving incorrect advice
Failing to deliver professional services or making errors in providing them
Libel or slander
Not securing personally identifiable information
Without this insurance, you could face hefty legal defense costs alone.
Cost of Small Business Insurance in TX
As a small business owner, understanding your insurance expenses is crucial. Here’s a breakdown of the average costs for small business insurance in Texas:
General liability: $41 monthly
Workers' compensation: $37 monthly
Professional liability/Errors and Omissions: $70 monthly
These figures apply to businesses in Texas and across the state. Factors influencing these costs include:
Frequently Asked Questions - Small Business Insurance Texas
Can a Data Breach Make My Company Liable?
Yes, which highlights the importance of cyber insurance. Small businesses are especially vulnerable to hackers, three times more likely to target them due to their limited defensive resources.
In Texas, for instance, data breach laws require businesses to notify affected residents about security breaches, a process that can be costly. Cyber liability insurance mitigates these costs by covering notification expenses, legal fees, and potential fines.
Does the Industry I Operate in Influence the Insurance Requirements Set by the State?
Indeed, your industry can dictate specific state mandates concerning business insurance and bonds. For example, contractors typically need general liability insurance or surety bonds to undertake certain projects, in line with state licensing regulations.
Likewise, real estate professionals, including agents and brokers, often require errors and omissions insurance to secure a license. While state law may not compel physicians to have professional liability insurance, many Texas healthcare facilities require such coverage.
Cannabis businesses, though not mandated to have specific insurance to operate legally, are advised to obtain coverage to safeguard their operations. Local city and county regulations may also apply, in addition to state laws.
Small business insurance in Texas is a vital safeguard for businesses, protecting against various risks and uncertainties inherent in today's economic landscape. Whether it’s liability coverage, property damage, or workers' compensation, the right insurance policy provides not only peace of mind but also a solid foundation for growth and stability.
Texas small business owners are encouraged to assess their needs and seek tailored insurance solutions to ensure their enterprise thrives in the competitive market.
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