Business insurance is a confusing topic, and it is hard to know if you even need it, especially if you live in a state that does not require it.
Many business owners in Texas do not have business insurance, which can be a costly mistake.
We created this guide to help business owners in Texas understand the requirements for business insurance. This guide will answer the question, “Is business insurance required in Texas?” and provide tips on choosing the right policy for your company.
What Are the Insurance Requirements for Businesses in Texas?
In Texas, it is not required for businesses to have coverage. Also, the state does not require small businesses to have workers’ compensation.
Since the state does not require small businesses to have insurance, many go without it to cut costs. It sounds like an excellent way to save money, but you might not want to make this mistake.
Also, it is very simple to get insurance for your business. Remember, it is not the 1970s anymore! You can get it online within minutes without worrying about accidents harming your business’s financial health in the long run. You can even get advice online quickly from reputable coverage agents. They will make suggestions on what coverage and providers they think will best suit your needs.
Should You Risk Not Getting Insurance for Your Business?
Even if you are not required by law to get insurance, it is still not a good idea to go without it. What are you going to do if a fire happens in your business no what? What if an employee accidentally gets hurt while on the job? Or worst, what if a customer accidentally slips and falls while on your property?
If these situations were to happen on your business property, you would have to come out of pocket due to not having coverage. But, of course, you do not want this to happen!
Even if the state does not require small businesses to have workers’ compensation insurance, it is still essential for you to have it. In 2019, there were 95% of fatal accidents in private businesses in Texas, and some of these places did not have coverages to cover the accidents. This means the companies had to cover the medical expenses out of pocket.
The coverage covers the medical and lost wages cost for your employees. Also, it will offer protection to your personal assets in case of being sued.
How Much Does Business Insurances Cost in Texas?
There is no one-size-fits-all answer to this question, as the cost of insurance for a small business in Texas will vary depending on a number of factors. This includes the type of business, the size of the company, the location, and the required insurance coverage.
However, some general ballpark figures can provide a rough estimate of what to expect. For example, a small business’s average cost of general liability insurance is between $30-$360 per year.
This figure will obviously vary depending on the business’s specific needs, but it provides a good starting point for budgeting purposes. Ultimately, the best way to get an accurate estimate of insurance costs for a small business in Texas is to speak with an insurance agent or broker who can assess the business’s specific needs and provide a tailored quote.
How To Decide Which Insurance Coverage Is Right for Your Business
When it comes to choosing the right insurance coverage for your business, there are a few things you will want to keep in mind. First, you will need to decide what kind of coverage you need.
Various options are available, and each has its own advantages and disadvantages. Below are some of the insurances options you can choose from:
- General Liability
- Professional Liability
- Commercial property
- Workers’ Compensation
Once you have narrowed down your options, you will need to compare rates from different providers. Be sure to get quotes from several companies to find the best deal. Finally, ensure you understand your policy’s terms before you sign anything. By doing your research, you can be sure that you are getting the best possible coverage for your business.
Work With An Agent
If you are like most people, the thought of shopping for insurance coverage can be pretty daunting. There are so many companies out there, and it is hard to know who to trust.
However, you will find there are many insurance agents that can provide great insight on business insurance options. Here are just a few reasons why you should get a second opinion:
- They are knowledgeable about the type of insurance you require
- They can offer you a variety of options
- They know how to find you the coverage you need
- They can tailor your coverage to suit your specific needs
- They are equipped with a team of professionals with the same in-depth knowledge of coverage practices
- They work for you
When it comes to protecting your business, do not settle for anything less than the best. Instead, get your business insurance coverage with the help of an agent you trust. Consider your agent to be a consultant, a lawyer, and an advocate. They take care of all the complicated, frustrating elements of insurance on your behalf. And if needed, offer guidance and advice.
Get Covered Today
So, is business coverage required in Texas? The answer is a simple no. While there are certain instances where businesses must carry specific types of insurance, most companies in Texas are not legally obligated to have any kind of commercial coverage. Furthermore, Texas is the only state in which private companies are not required to have worker’s compensation coverage.
That said, it is always a good idea to protect your business with some form of liability insurance – the risks you face as a company can be costly and even devastating if you are not prepared. For example, without business insurance, you as a business owner may have to pay out-of-pocket for expensive damages or legal claims. Though going without can help save you money short-term, the risks are too great to ignore.