Small business insurance in Texas

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Business insurance protects Texas small businesses

Small businesses are a big thing in Texas, comprising an outsize part of the state’s economy. In fact, 3.1 million small businesses in Texas employ almost half of the state’s workforce.1

Small business insurance in Texas is critical to helping those small business owners protect themselves, their employees and their livelihoods.

From Houston to San Antonio, having the right coverage can provide a financial safety net that can help pay unexpected expenses when accidents, mistakes and lawsuits happen.

Business insurance can also help your company succeed and grow.

Many customers will ask you to show proof of Texas business liability insurance before they’ll hire you. Commercial landlords will often require you to have coverage as a condition of your lease.

NEXT is 100% dedicated to small business and insures more than 1,300 types of small businesses and self-employed workers. We make it easy for you to get the right coverage at the right price and purchase your policy online in less than 10 minutes.

Continue reading to learn about important types of business insurance in Texas. Or get a free instant quote to see customized coverage options for your business.

Small business insurance coverage in Texas

Most insurance companies offer business insurance in customized packages that include different types of coverage, also known as insurance products.

Each kind of coverage is designed to protect your Texas company in different situations.

For example, general liability in Texas can offer help if non-employees are injured on your premises or their property is damaged, while professional liability can assist if someone claims that your business did subpar work or failed to deliver a project on time.

Other forms of coverage that small businesses in Texas purchase are workers’ compensation insurance, commercial property coverage and commercial auto insurance.

A customized coverage package for your business insurance needs may include one or more policy types. The coverage you require will depend on your:

  • Industry
  • Business operations
  • Employment practices
  • Other factors

Keep in mind that most small businesses in Texas need more than one kind of coverage to be prepared for all the situations in which things can go wrong.

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More about types of Texas business insurance

Ready to learn more about how Texas business liability insurance can benefit your company? Keep reading below to explore different types of coverage and see real-life examples of how the right business insurance can help protect you.
General Liability insurance
General Liability insurance Texas

General liability insurance in Texas can protect small business owners if someone other than an employee is injured or suffers property damage on your business premises. It can help pay for medical bills, damages and legal defense costs.

For instance, suppose a Dallas-based contractor accidentally leaves bricks in the stairwell of a building under construction, and the property owner is injured tripping over them. The contractor’s general liability insurance coverage could help pay for the owner’s medical expenses.

Texas contractors and cleaning businesses may purchase tools and equipment coverage as an optional add-on to their general liability policy. It can help repair or replace essential gear that’s lost, stolen or damaged outside of wear and tear.

Workers' comp insurance
Workers’ Compensation insurance

Workers’ compensation insurance in Texas can offer assistance to your company if employees are hurt on the job. It’s designed to help cover medical treatment and lost wages while the worker recovers.

Not carrying workers’ compensation insurance might seem like an easy way to save on your business costs. But, if you don’t have workers’ comp, your out-of-pocket expenses could be significant after a workplace accident.

Commercial auto insurance
Commercial Auto insurance

If your Texas business owns vehicles, you’ll want commercial auto insurance. It can help cover expenses, including vehicle repairs, injuries and property damage, if you or your employees have an accident while driving for business.

It’s important to note that personal auto insurance won’t provide coverage for business-driving-related incidents.

For example, a real estate agency employee in Austin drives the company car to an open house and has an accident on the way, damaging another car and sending the driver to the hospital. Commercial auto insurance could help the real estate company pay for medical bills, vehicle damages and legal fees if the other driver files a lawsuit.

Commercial Property
Commercial Property insurance

Protecting your business property, inventory and even your physical premises can help keep your business safe.

Texas commercial property insurance can help pay for damaged or destroyed business property after a covered event, such as water, fire or wind damage.

For example, a grease fire at a Plano fast food restaurant damages the cooking station. Commercial property coverage could help pay to replace the fryer and repair damage to the grill.

It’s important to read your policy documents carefully to make sure there aren’t exclusions for your business. Some locations prone to flooding or hurricane damage might have limited coverage.

Errors & Omissions
Professional Liability (E&O) insurance

Clients can and do accuse small business owners and self-employed workers of professional mistakes, even if the claims are unwarranted.

That’s why professional liability insurance is a good idea for some Texas companies. Also known as errors and omissions insurance, this coverage can help pay for expenses related to claims of professional negligence, missed deadlines and incomplete work.

Suppose an architect in Galveston is hired to renovate an aging warehouse facility. Six months after the project is completed, the building is deemed structurally unsound because the steel specified wasn’t adequate to support the building’s weight.

The architect’s professional liability insurance could help cover the expenses to resolve the issue with a redesign and repairs.

Pricing for business insurance in Texas

How much does business insurance in Texas cost?

How much you’ll pay for business insurance in Texas depends on your industry, how much risk is involved in the work you do and the types of insurance coverage you select. You can choose a cheap business insurance package to meet minimum requirements or pay more to protect your business from more risks.

Professions that experience more injuries, such as construction workers and restaurants, will typically pay more than professional services workers stationed at a desk.

You may also be able to select different levels of coverage for each of your policies. In general, you’ll pay more for a higher level of coverage but you’ll also get more protection.

The best way to explore coverage options and find out how much you’ll pay for a business insurance policy is to get a free instant quote from NEXT.

You can also use our insurance calculators for a general estimate of insurance costs in Texas:

How NEXT can help you with business insurance in Texas

How NEXT can help you with business insurance in Texas

We offer a fast and easy way for small business owners to get a business insurance quote online, purchase coverage and instantly share a certificate of insurance. The entire process usually takes less than 10 minutes.

You can also chat with our U.S.–based NEXT licensed insurance agents if you need help or have questions.

See what our customers have to say

I am so excited
I am totally excited about my new insurance for my small business. I am happy that the price was in a range that I can afford, the terms were easy to understand and it was so simple to purchase my first policy. I look forward to doing business with you in the future.
Curzella J.
Easiest insurance purchase – EVER!
I was looking around trying to compare insurance and I am so lucky I found NEXT. I was able to compare levels of coverage, and all the options, without pressure from a salesperson or time limits. I was able to check out prices and it was more coverage for less than the “traditional” company I looked at.
Michael W.
Happy small business owner!
I needed liability insurance for my new small business brick & mortar location. I got the run around from another company, but NEXT provided a competitive insurance quote in a timely manner. I now have the insurance that I need and it was stress-free!
Nicole E.
* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
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Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.

Any starting prices or premiums represented before an actual customer quote are not guaranteed and are representations of existing premiums of active policies as of December 6, 2023. To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.