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.