What are the requirements for small business insurance in Texas?

Unlike most states, Texas state law doesn’t require small businesses to have workers’ compensation coverage However, businesses are still responsible for employee occupational injury expenses. Without insurance, the cost of severe on-the-job accidents and occupational illnesses could be enough to financially devastate a business.

Certain types of commercial insurance are required in Texas, such as commercial auto insurance for vehicles driven for business purposes. Other forms of business insurance are optional, though certain industries and situations may warrant them. For example, Texas law allows someone injured at a business up to two years to file a lawsuit. A libel or slander lawsuit can be filed up to a year after an incident occurs. If you damage someone’s personal property during the course of your work, they also have up to two years to sue you in Texas. In short, you could remain at risk for a lawsuit long after an incident happens.

Policies such as general liability insurance, professional liability insurance (also known as errors and omissions insurance) can address lawsuit costs. To protect your property from Texas’ sometimes unpredictable weather, consider commercial property insurance.

Business insurance costs vary depending on your industry, location, and other factors. Insureon is licensed in Texas, and our agents can help you find competitively priced coverage from top U.S. carriers.

Learn more about coverage for your profession

Insureon can help your small business find appropriate, cost-effective coverage, whether you’re an IT consultant or a restaurateur.

Find your industry in the list below, or share a few initial details via Insureon’s online business insurance application to find insurance options for your business. Insureon leverages industry-leading technology and the expertise of licensed insurance specialists to help small businesses get coverage from top U.S. insurance companies.

Some examples of the professions Insureon covers:

Accountants Convenience stores Lawyers Real estate agents
Architects Dentists Nurses Tax preparers
Beauty  General contractors Personal trainers Find more professions
Cleaning businesses IT consultants Photo/video  

Texas small business insurance policies

The requirements and costs of business insurance vary depending on your industry, as well as other factors. Common policies for Texas-based small business owners include:

General liability insurance

This policy can pay for expenses related to customer or visitor bodily injuries, property damage, and advertising injuries. For example, this policy can help when:

  • A client slips in a puddle at your salon’s hair-washing station.
  • A customer is cut by a chipped mug at your restaurant.
  • You drop a client’s phone at your repair business and the screen breaks.
  • An employee spreads rumors about your business competitor in an online forum.

Property insurance

Commercial property insurance can help replace or repair business equipment or your commercial building in the event of losses when:

  • A grease fire destroys your restaurant’s kitchen.
  • High winds shatter a window in your office.
  • A vandal tags your business’s front entrance with spray paint.
  • A thief breaks into your office and steals your computer.

Professional liability insurance (errors and omissions insurance)

If you offer expert advice or services, professional liability insurance can help pay for your legal expenses when:

  • You break the terms of a client’s contract.
  • An error results in lost revenue for a client.
  • You miss an important deadline that has a negative impact on a client’s business.

Cyber liability insurance

Texas' Identity Theft Enforcement and Protection Act requires any Texas-based business to inform its customers when their data is compromised in a data breach. Businesses can even be fined up to $250,000 for data breaches. Cyber liability insurance can help your business recover from a breach by paying for:

  • Data breach notification costs.
  • Forensic investigation into the cause of the breach.
  • Credit monitoring for parties affected by the breach.
  • Legal expenses if you’re sued over not preventing the breach.

Business owner’s policy (BOP)

A business owner’s policy bundles general liability and commercial property insurance at a discounted rate. You may be eligible if:

  • You work in a low-risk industry.
  • You have fewer than 100 employees.

Commercial auto insurance

If your business owns a vehicle, it must be covered by commercial auto insurance, a policy that can help pay for:

  • Repairs to the other driver’s car.
  • The other driver’s medical expenses due to injury.
  • Legal expenses if you’re sued over an accident.
  • Repairs to your vehicle if it’s damaged by theft, weather events, or vandalism.

Workers’ compensation insurance

Texas doesn’t require businesses to carry workers’ comp, but they are required to notify workers when coverage is not provided. Businesses are also still responsible for paying for employee occupational injuries. Without workers’ comp insurance, business owners have to pay out of pocket for medical expenses when an employee:

  • Slips and falls on the job.
  • Suffers injuries caused by business equipment.
  • Gets sick from exposure to environmental hazards.
  • Develops repetitive motion injuries or strain from office work.

Texas business insurance licensure information

In Texas, insurance agents, agencies, and brokers are licensed by the Texas Department of Insurance. Insureon is licensed in Texas as BIN Insurance Holdings LLC (NPN 15752926) for Property & Casualty Insurance (License #1621975) and for Surplus Lines (License #1624752). You can verify our licensure with the Texas Department of Insurance using the Agency License Search by entering either of our Texas state license numbers (1621975 and 1624752) into the field marked "License Number."

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