Commercial Insurance in Texas
Generally Available but Context-Dependent
Commercial insurance in Texas is normally accessible for most businesses. However, certain industries and locations face greater challenges. Commercial property policies aren't standardized in Texas, with insurance companies free to use their own policies subject to approval by the Texas Commissioner of Insurance. Average commercial insurance costs in Texas are relatively affordable: general liability at $42 per month, workers' comp at $32 per month, and professional liability at $71 per month.
Weather-Related Challenges
Like residential insurance, commercial coverage faces weather-related pressures. Coastal counties from Galveston to Cameron County have experienced the most significant carrier departures, with the I-35 corridor from Dallas to San Antonio facing increased restrictions following severe hail events. Businesses in high-risk areas may encounter higher premiums or limited carrier options, particularly for property insurance covering wind and hail damage.
Required vs. Optional Coverage
Business insurance isn't required by law in Texas, with one exception: businesses that have a contract with a government entity must provide workers' compensation for each employee until the contracted project is complete. All business-owned vehicles must carry commercial auto insurance with minimum liability coverage of 30/60/25, specifically $30,000 per person for bodily injury, $60,000 per accident, and $25,000 for property damage.
Industry-Specific Considerations
Certain industries face significant challenges. Commercial trucks have steeper liability limits because accidents involving them have a greater chance of leading to severe injuries and greater damage, with trucking companies required to carry $300,000 to $750,000, depending on cargo type and vehicle weight. Contractors need surety bonds, while professional service businesses typically require errors and omissions insurance.
Market Advantages
Insurers' ability to offer different policies allows them to tailor products to fit the needs of particular businesses, with the availability of multiple policies encouraging a competitive market. Nearly 160 companies sell commercial policies in Texas, a count that has held steady since 2022 and is up more than 20% from a decade ago.
Conclusion
Most firms in Texas can still get commercial insurance. Businesses in areas that are prone to bad weather, especially on the coast, may face problems similar to those in the residential market because of low prices and several carrier possibilities. Problems like greater expenses, fewer choices, or larger deductibles. The best results usually come from shopping with independent agents who work with more than one airline.
