How Much Is Commercial Insurance in Texas?
Average Rates for Small Business Coverage
Commercial insurance costs in Texas can vary widely depending on factors like business size, industry, and coverage types. For many small businesses, standalone policies such as general liability often cost around $1,200 per year (approximately $100 per month) for standard limits. A business owner’s policy (BOP)—which bundles general liability and commercial property—may run in the ballpark of $1,118 annually for low-risk businesses.
Cost Influencers: Industry, Risk & Location
The cost of commercial insurance increases if your business operates in a high-risk industry such as construction, auto repair, or manufacturing. For example, businesses with active fleets or heavy employee involvement may pay more. Location also matters—urban centers like Houston or Dallas tend to have higher rates due to increased liability exposure and property values.
Commercial Property & Auto Premiums
When we look at commercial property insurance in Texas, the rates scale with the value of assets and risk profile. On average, business property insurance might cost about $1,000 to $3,000 annually for each million dollars of coverage. Smaller or lower-risk operations might pay around $500 to $800 per year. Commercial auto insurance has its own scale: in Texas, full-coverage commercial auto policies might start around $600 annually for a basic vehicle liability exposure, but can run up to $2,400 or more depending on the number and type of vehicles, usage, and risk.
What to Expect & How to Budget
If you’re running a small professional service or retail business, budgeting $70–$150 per month for a baseline insurance package is reasonable. For example, a general liability policy might cost $104/month and a workers’ compensation policy about $74/month in Texas for very modest operations. But if your business has more exposure—vehicles, physical inventory, multiple employees—you should expect several hundred dollars per month (or thousands per year) in premiums. Shopping around, bundling policies, and increasing deductibles are strategies to reduce costs.
Commercial
There is no single “one size fits all” cost for commercial insurance in Texas. The actual premium depends heavily on your business category, asset exposure, claims history, and coverage limits. That said, many small businesses can secure basic liability and property coverage for under $2,000 per year, while higher-risk operations may pay several thousand or more. Reviewing quotes from multiple insurers and working with a knowledgeable Texas-licensed agent is the best way to determine a tailored estimate.
