The Best Business Insurance for Small Businesses in Texas
Top-Rated Providers
The Hartford tops rankings for the best general liability insurance in Texas, scoring 4.63 out of 5, with an excellent balance of affordability and quality service. NEXT and Nationwide are strong contenders, both ranking well for customer service among general liability providers for small businesses in Texas. The best small business insurance in Texas in 2025 includes options like The Hartford, Hiscox, and Next Insurance, offering tailored coverage for general liability, professional liability, and property insurance.
Most Affordable Options
Analysis of 10 providers showed that The Hartford offers the cheapest general liability insurance in Texas at $83 monthly ($990 annually), with Simply Business and Nationwide following with competitive rates. Average costs in Texas are: general liability at $42 per month, workers' comp at $32 per month, and professional liability/E&O at $71 per month.
Essential Coverage Types
Small business owners in Texas most often buy general liability insurance, which covers common third-party risks and is required by most commercial leases, workers' compensation insurance to protect from work injury costs, and commercial auto insurance for business-owned vehicles. A Business Owner's Policy (BOP) combines property and liability coverage into one easy-to-manage policy and is often the most cost-effective option for small businesses.
Texas-Specific Requirements
Texas law is different from most other states because it doesn't generally mandate workers' compensation insurance, though commercial auto insurance is required for business-owned vehicles. While the state keeps regulations minimal, certain licensed trades must carry specific coverage to keep their professional licenses active, including contractors who need at least $300,000 coverage per incident.
Recommended Additional Coverage
Cyber liability insurance is critical for Texas businesses that handle credit card numbers and other sensitive data. Texas data breach laws require businesses to report security breaches to affected residents, and costs can quickly escalate. Professional liability insurance protects service-based businesses from negligence claims, whereas umbrella insurance provides additional liability coverage beyond the primary policy limits.
Choosing the Right Provider
The best business insurance depends on your industry, company size, and specific risks. The Hartford leads in overall value and service, NEXT excels in digital experience and quick quotes, and Hiscox focuses on professional services. Compare quotes from multiple providers, verify licensing, read customer reviews, and ensure coverage meets both legal requirements and your specific business needs in Texas.