Getting Business Insurance in Texas, and What to Know

This is an enormously important step to legitimizing your business. Applicable regulations and laws for business insurance in Texas can be different from what you’re used to, however, if you have previous experience in a different state or country. Obviously, there are differences between what companies will offer for business insurance across Texas, but the statewide regulations will be the same.

In order to deduce what you need to focus on while looking into business insurance in Texas, there are a few important first steps to follow in order to best determine what insurance plans will suit you.

Classifying Your Business

Health coverage is a pretty big part of getting business insurance in Texas. It’s important when perusing the available insurance options to know how many employees will be eligible for health coverage through your business. Plans will differ for companies that have 2-50 employees when compared to a company that has 51-99 eligible employees. Typically, any amount of employees eligible to receive health insurance that number 100 or more will land companies in the same bracket of available plans.

Different Types of Business Insurance in Texas

As with all things when it comes to running your own business, there are multiple aspects of insurance that will cover different aspects of liability.

Commercial Property Insurance

Assists businesses when it comes to repairs and replacements made due to fires and storms, as well as any other incidents specifically outlined in the insurance plans policy. For businesses who rent or lease structures to others, there are additional clauses that can be added to insure the contents of your property or building. In terms of covering different locations or facilities, as long as all of them have the same overall function they can be covered by one plan.

Crime Coverage

Not its own specific insurance plan, but rather an added caveat to an existing property insurance plan that deserves its own focus. When looking for business insurance in Texas, make sure that you pay heed to the location and surroundings of your property. Higher crime rate areas or less secure buildings may greatly benefit from crime coverage additions to an existing plan, so keep in mind security while looking for business insurance across Texas.

Workers’ Compensation Insurance

Covers employee income and benefits if they are injured while performing any workplace related injuries, regardless of whether they are actually at work or not. In terms of business insurance in Texas, workers’ compensation is optional and may or may not benefit a business. If an employer does not carry workers’ compensation business insurance in Texas, however, they will have to send regular reports outlining workplace related injuries to the Division of Workers’ Compensation. If an employer decides to not purchase workers’ compensation insurance, they will have to be certified by the Texas Department of Insurance after meeting the requirements of the Texas Workers’ Compensation Act.

Health Insurance

Perhaps one of the most important of the different types to be knowledgeable about when searching for business insurance in Texas. As previously stated, there will be price discrepancies between larger and smaller companies looking to provide different numbers of eligible employees with health insurance.

Getting the most out of your Plan

In an effort to not overspend, it’s imperative to do a bit of research on specific plans that will be the most effective for your business, both in terms of fiscal responsibility and adequate coverage. Searching for business insurance in Texas in an efficient manner may require contacting several insurance agencies and the Texas Department of Insurance in order to make sure you’re getting the most out of your plans.

Additional Resources

The Texas Department of Insurance keeps several up to date lists on companies offering small employer coverage, mid size employer coverage, and large employer coverage. They also provide examples of sample coverage plans, including projected costs, offered benefits, and different types of coverage considering different hypothetical situations. Depending on what your business does, where it operates, and how many employees it has, you may consider looking into some of the samples to get a rough estimate of how much you are looking to pay for a comprehensive plan for business insurance in Texas. They also break down coverage rates by county, so regardless of where you are in the state you should be able to find an insurance plan that will mirror your own situation.

You’ll notice that as you browse plans for business insurance in Texas, there are somewhat drastic discrepancies in price and coverage. The most major factors that will change your costs and coverage are what type of business you run, where it is located, and how large it is. An insurance company provides insurance rates based on how much risk there is of having to pay for repairs or replacements, so when looking for business insurance in Texas, keep in mind how likely you are to call on your provider for assistance.

Business insurance in Texas is a necessary component of all small and large businesses. You must carry coverage for your company that handles everything from the profits you make to the intellectual property you own. Insurance agents may write these policies for you at any time, but you must understand what a policy does for you before you make a purchase. A standard business policy does much more than protect the roof over your head.

Profit And Loss

The business insurance in Texas you take out will cover profit and loss for every project you begin. Large projects that include launching new products or compiling data may be covered under your policy in the event of a loss on the project. Projects that involve a cash prize for the winner may be covered under a policy rider, and your business insurance in Texas helps you cover the machinery and supplies you purchase for your business.

You are spending money on many different parts of your business, and your policy is an umbrella that covers everything. A business must keep in contact with its insurance agent to add riders for new items, and you must subtract riders once certain projects have been completed. Think of business insurance in Texas as a flexible financial product that helps you manage every part of your business that is supposed to make money.

Workforce Retention

You may purchase business insurance in Texas for the workforce you plan to keep for many years. Workers who leave your business too soon could change the level of productivity in the office, and your business insurance in Texas will cover the losses your business could take as a result of a sudden departure.

You must keep up productivity in every facility you manage, and the best way to ensure productivity is with a policy. The policy will step in to cover losses when workers go on strike, or you may lose money when many people leave at the same time. The insurance policy will help you remain afloat while you staff your facilities once again.

Business Assets

Your business owns intellectual property, trademarks and other items that help you make a profit every year. You must protect the intellectual property of your business with business insurance in Texas. The insurance policy will pay for a court battle with another company, or the policy will pay for losses incurred when your intellectual property is lost, stolen or refuted.

Your business owns properties around the state that must be protected under a similar policy. Your buildings have a specific value that must be covered under insurance, and you may protect a fleet of vehicles under the same policy. Business insurance in Texas is a large brush that paints over the massive canvas that is your business.

Filing Claims

You may file claims on business insurance in Texas any time you like. Each claim must be processed by an agent who understands your business, and it is wise to ask the agent who wrote the policy to help you. The most successful businesses keep their agents on retainer in the event of a massive claim, and your insurance agent will help you create a claim that will be approved.

The large amount of money involved in these claims makes them hard to get approved, and you must work with your insurance agent to compile the necessary paperwork. Business insurance in Texas only works for your business if you have an agent on your side during the process.

Covering New Assets

Business insurance in Texas changes at the same rate your business changes. You must have insurance that will cover every new product, asset and building you acquire. You may purchase another company that has assets of its own, and your business insurance in Texas will cover the new acquisitions the moment you take possession.

Your insurance agent may write new policies for these acquisitions, and you must ask your agent to help get the policies written quickly. You are responsible for the property once it belongs to your business, and your business could take a major loss if you forget to take out a new policy.

Business insurance in Texas is the best way to protect your company when you are have many assets to worry about. You may take out business insurance in Texas on new properties or products at any time, but you must keep your agent close at-hand to assist you. The business insurance in Texas you purchase every year will protect your business from hardships created created by loss, theft and stiff competition.

Owning your own business can be a very rewarding experience, providing a way to engage your passion, while also offering a way to make a comfortable living. However, owning a business leaves you in a position in which you will have a lot that you will be responsible for protecting. Purchasing business insurance in Texas is one of the most viable ways to protect your business from a number of risks; however, there are numerous types of business insurance policies that can be purchased, and it is immensely important for business owners to have a lucid understanding of what each policy has to offer.

Although there are a wide variety of types of business insurance in Texas, the problem is that it can be difficult to understand which types of coverages are best suited for a specific type of business. Following, is a synopsis of different common coverages and how they protect a business. Depending on the type of business you own and specific needs of that business, the type business insurance in Texas that you purchase will vary.

Property Coverage

One of the most obvious reasons that a business owner would seek small business insurance in Texas would be to protect any tangible assets that they have amassed for and through the business, including tools, merchandise and inventory. For example, a fire could literally destroy a brick and mortar business’s ability to function in any capacity, destroying merchandise and rendering equipment unusable. However, business insurance in Texas that provides property protection will allow you to rebuild the business and replace damaged equipment and merchandise.

The property coverage aspect of business insurance in Texas would provide the protection for the physical assets associated with your business from damage, allowing you to make any repairs and replacements that are necessary to get the business back up and running in a respectable time frame.

The type of property damage that is available for businesses in Texas can protect your business in a number of ways. Business insurance in Texas can protect the actual physical building in which your business actually conducted. This is important if you actually own the building. Additionally, business insurance in Texas that is focused on property protection can protect furnishings, merchandise, equipment and other property that may be identified, designated or implied within the policy.

Liability Coverage

No matter how cautious a business owner is in managing their property and business operations, there is always a risk that they can find themselves caught in a lawsuit due to personal injury, financial loss or a number of other issues. When purchasing business insurance in Texas, it is always a good idea to purchase a certain level of liability coverage that can underwrite the cost in the case that you are successfully sued by an employee, customer or vendor. Insurance companies that offer business insurance in Texas offer liability coverage on several distinct levels, including:

General liability coverage: General coverage will protect your business in the case in which you are sued due to accidents, injuries, claims of negligence, etc.

Product liability coverage: When it comes to business insurance in Texas, this type of coverage comes in handy for businesses that manufacture or sell a product. Product liability protection protects the business in case the product is defective or causes damage or injury.

Professional liability coverage: This type of coverage is ideal for business that offer services to their clientele — providing a level of protection against professional negligence.

Business Vehicle Coverage

Much in the same way that a person must have liability insurance to cover their personal vehicle, businesses must also have a certain amount of coverage on any vehicle that they are operating in a business capacity. This is extremely important to understand, because many personal liability policies will be rendered void if an accident takes place during the process of carrying out a business function. Vehicle liability insurance is available for companies that are looking for comprehensive business insurance in Texas that includes vehicle liability coverage.

Employee Related Coverage

Depending on the number of employees that a company has, along with other factors, it may be necessary to consider specific types of policies that are a part of business insurance in Texas, and will provide protection that is associated with actions of employees. For instance, there are insurance policies that will protect a business from a groundless claim filed by a disgruntled former employee.

Other Things to Consider

As you shop for business insurance in Texas, there are other things that should be considered. For instance, if you are operating a business out of your home, the basic homeowner’s policy will rarely cover damage to business-related property.

Also, depending on the nature of your business, it may be wise to discuss additional forms of coverage with your insurance agent. Business insurance in Texas has the potential to provide an exceptional amount of protection when its benefits are effectively exploited; however, it will be important to familiarize yourself with all of the options that are available to your business.