Have Texas Commercial Insurance Rates Increased?
Yes — across virtually every line of commercial insurance, Texas businesses are paying more in 2026 than they were just a few years ago. The rate of increase varies by coverage type, but the direction has been consistently upward. Here is the complete picture.
Commercial Property Insurance: Up 10% to 40% in High-Risk Regions
The steepest commercial insurance increases in Texas have hit property coverage the hardest. Between 2023 and 2025, Texas experienced several billion-dollar storm losses — and these events have driven up commercial property insurance rates for 2026, with many Texas businesses in high-risk regions seeing premiums rise by 10 to 40 percent, putting added pressure on already tight budgets. Insurers have responded not just with higher premiums but also by tightening underwriting standards and increasing deductibles specifically for wind and hail coverage — adding hidden cost layers that businesses do not always anticipate at renewal.
Commercial Auto Insurance: A Decade of Relentless Increases
Commercial auto has been one of the most consistently rising lines of insurance nationally and in Texas. The Texas Automobile Insurance Plan Association filed a 1.7% increase in commercial automobile rates in April 2025, effective October 2025 — a relatively modest filing that follows years of much larger increases. Nationally, after four years of steep increases, industry rate filings project Texas auto rates rising only marginally in 2026 — roughly flat statewide — suggesting the commercial auto market is finally approaching some equilibrium after absorbing years of claims inflation, nuclear verdicts, and distracted driving losses.
Workers' Compensation: Rates Are Actually Improving
One bright spot in the Texas commercial insurance landscape is workers' compensation. The Texas Department of Insurance issued a bulletin in February 2026 requiring insurance companies to submit new workers' compensation rate filings using the most recently available data for policies effective July 1, 2026, or later — a regulatory move designed to ensure rates reflect current loss trends rather than outdated data. Workers' comp rates in Texas have generally been more stable than property lines, with the state's competitive market keeping costs in check for many employers.
Health Insurance for Employees: The Sharpest Spike
For Texas businesses providing employee health benefits, 2026 has brought the most painful increases in years. Health insurance companies requested an average premium increase of 24% for ACA plans in Texas in 2026 — potentially the largest increase since 2018 — driven by the expiration of enhanced federal tax credits that had kept premiums artificially low. BlueCross BlueShield of Texas, the largest insurer in the state and the only company offering ACA plans in all 254 counties, requested an average rate hike of 39% for individual plans — with employers offering group health benefits feeling similar pressure.
What Texas Businesses Can Do
The most effective response to across-the-board commercial rate increases is proactive risk management. Implementing formal safety programs, maintaining strong loss run history, raising deductibles strategically, and working with an independent commercial broker who can shop multiple carriers simultaneously are the best tools available for controlling costs in a market that shows no sign of reversing course anytime soon.
