If you're looking for small business insurance in Texas, you'll need to determine coverage based on the type of industry and size of your business. Common types of small business insurance include general liability, professional liability, and workers' compensation.
Texas Liability Insurance
General liability insurance covers your business for accidental property damage and bodily injury to others. It also covers claims such as libel, slander, and copyright infringement. General liability insurance pays for legal expenses such as attorneys' fees, judgments, and settlements.
Texas Professional Liability Insurance
Professional liability insurance protects your business from claims of errors in professional services, even if the claims are unfounded. It pays legal costs, settlements, and judgments. For example, if a client claims they suffered financial loss as a result of a consulting firm's advice, professional liability insurance will pay the legal costs.
Professional liability insurance is also known as malpractice insurance.
Texas Workers' Compensation Insurance
Texas workers' compensation insurance covers lost wages, medical bills, and other expenses if an employee is injured or falls while on the job. While many states require businesses to carry workers' compensation insurance, Texas does not.
Other Business Insurance in Texas
You'll likely need to add other types of small business insurance to cover the risks your industry faces. For example, you'll need to cover your business assets, such as buildings, inventory, and office equipment.
We recommend that you start by purchasing a Business Owners Policy (BOP). A BOP combines general liability, commercial property, and business interruption insurance. It is usually less expensive to purchase a BOP than each policy individually. A BOP covers:
Commercial property insurance: Covers your small business's physical assets from problems like theft, severe weather, fire damage, etc. Commercial property insurance covers items like office furniture, business records, inventory, and equipment Business interruption insurance: If you can't operate because of a covered problem (such as a fire), business interruption insurance covers loss of income.
You can add additional coverage types to your BOP as needed. Here are some coverage types to consider:
Builders Risk Insurance. This covers property for structures and buildings under construction. Builders Risk Insurance is also known as “Construction Process Insurance.” Commercial Auto Insurance: If you use a vehicle on the job, you need commercial auto insurance. Personal auto insurance doesn’t cover work-related accidents. Commercial Umbrella Insurance: This kicks in when you’ve used up your general liability limits. For example, if your general liability limits are $500,000 and you’re sued for $750,000, your commercial umbrella insurance will cover the shortfall of $250,000. Cyber Liability Insurance: This covers cyber attacks 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 the directors, officers, or directors of your company. If someone files a lawsuit against your company, your directors and officers insurance will cover those legal costs. Inland Marine Insurance. This covers materials and products transported overland by rail or truck. Inland marine insurance covers stolen, lost, or damaged property. Medical malpractice insurance: Covers claims that result in patient injury or death, including medication errors. Professionals who need medical malpractice insurance include acupuncturists, counselors, dentists, nurses, optometrists, doctors, and therapists. Product liability insurance. If your product causes damage to someone or someone's property, product liability insurance covers the costs that arise from a lawsuit or claim. Technology negligence insurance: Covers claims made by customers against technology companies. Small businesses that need technology negligence insurance include computer consultants, IT contractors, software developers, and website developers.
Cost of Business Insurance in Texas
According to Insureon, the average cost of general liability insurance in Texas is $42 per month. The average cost of workers' compensation insurance in Texas is $31 per month, and the average cost of professional liability insurance is $59 per month.
The cost of insurance for a small business depends on several factors, including:
Annual revenue. Number of employees. Coverage type selected. Policy limits and deductibles. Industry.
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