Texas business insurance quotes

Most small business owners buy insurance because a landlord, a lender or a customer's contract told them to. That's a reasonable reason to start. It's a poor reason to stop, because the certificate that satisfies a contract is rarely the coverage that would actually keep the business open after a loss.

The core coverages

• General liability. Third-party bodily injury and property damage. The customer who slips in your shop, the pipe you installed that flooded a kitchen.
• Commercial property. Your building if you own it, plus equipment, inventory, tools and tenant improvements.
• Business owner's policy. Liability and property bundled, usually with business interruption included. For most small operations this is the sensible starting point.
• Business interruption. Lost income while you're closed after a covered loss. This is the coverage that decides whether a business reopens.
• Commercial auto. Vehicles used for business. A personal auto policy can deny a claim on a truck being used for work.
• Workers' compensation. Employee injuries.
• Professional liability. Claims that your advice or professional work caused a financial loss.
• Cyber liability. Breach response and liability if customer data is exposed. Relevant to any business that takes card payments or stores customer records.

Workers' comp in Texas works differently

Texas is the outlier: it is generally the only state that does not require most private employers to carry workers' compensation insurance. Employers who opt out are commonly called non-subscribers.

Going without it is not free. A non-subscribing employer gives up important legal defenses in an employee injury lawsuit, has notice and reporting obligations to the state, and may find that general contractors and larger customers simply won't work with them. Whether to subscribe is a real business decision with real trade-offs on both sides, and it deserves an actual conversation rather than a default.

Where small businesses are usually underinsured

• Business interruption limits set too low. Ask how many months of operating expenses your limit would actually fund.
• Equipment and tools valued at what they cost years ago. Replacement pricing has moved.
• Vehicles on personal policies. Very common in the trades, and a serious exposure.
• No coverage for employee dishonesty. Small businesses with a bookkeeper and few internal controls are the most exposed and the least likely to carry it.
• Contract requirements not actually met. Additional insured status, waiver of subrogation and primary-and-noncontributory wording are frequently required and frequently missing.

What to have ready for a business quote

Your business type and what you actually do day to day, annual revenue, payroll and employee count, whether you own or lease your location, square footage, vehicles used for work, and any contracts that specify coverage requirements. If a customer sent you an insurance requirements page, that document is the most useful thing you can hand us.