General Liability Insurance in Texas

You can save up to 25% in discounts.*

General Liability covers a wide range of incidents

Slip-and-fall injuries

Slip-and-fall injuries

Someone trips at your business, breaks their leg and files a lawsuit. Excluding employees.
Property damage

Property damage

You accidentally damage a client or customer’s property.
Advertising injury

Advertising injury

You’re sued for improper image use in your advertising.
Legal fees & defense costs

Legal fees & defense costs

You need an attorney to defend your business in a lawsuit after a claim.

What is General Liability insurance coverage?

Small businesses are a major part of the state’s economy in Texas. They employ nearly 5 million Texans, which make up 99.8% of all the businesses in the state.1

Getting the right insurance is often overlooked in opening your own business. General liability insurance is a common policy for small business owners and self-employed professionals due to its important protections.

Also known as commercial general liability (CGL), this type of insurance helps cover costs that can result from commonplace accidents and risks, like property damage and injuries to someone other than an employee. For example, general liability insurance protects businesses in situations like these:

  • A customer fractures their wrist when they fall in a Fort Worth restaurant parking lot.
  • A Dallas general contractor drops their heavy toolbox, cracking a client’s tile flooring.

When these types of accidents happen, your Texas general liability insurance policy helps protect you from related costs. This coverage also extends to incidents where you need to defend yourself against an accusation of libel or slander.

Is General Liability insurance required in Texas?

There’s no statewide requirement for general liability insurance in Texas. Local government agencies may require it, however, so it’s important to check with nearby city clerk offices to find out what insurance you need to operate legally in your area.

Even without general liability insurance requirements, Texas entrepreneurs often get this coverage due to the important advantages that come with having CGL insurance.

Business finances

With general liability insurance, Texas businesses are better protected from financial fallout when an accident occurs. Furthermore, small business owners may find that lenders and banks require this type of Texas business insurance.

Work contracts

Your clients may require proof of coverage before working with you. This is often written into contracts, so you could lose out on potential jobs if you don’t have Texas general liability insurance coverage.

Lease agreement

Many commercial property leases require proof of a general liability insurance policy. Texas landlords may refuse to rent out a space to you if you don’t have this coverage.

Licenses and permits

You may need this insurance to get a business permit or license. Certain industries require general liability insurance for businesses in Texas.

Fortunately, it’s easy to get general liability insurance for small businesses in Texas through NEXT. You can secure affordable coverage through our convenient online portal, and our team of U.S.-based insurance advisors can help if you have any questions.

Start a free online instant quote to explore Texas general liability insurance options.

What types of businesses might need General Liability in Texas?

Because it covers common risks in nearly every industry, most businesses need commercial general liability insurance. Texas business owners in professions from construction to consulting and beyond can all benefit from the protections general liability coverage provides.

In some cases, there are special requirements for general liability insurance for contractors in Texas. This is largely because this particular line of work comes with increased physical risks. Depending on where your business operates, you may need to submit proof of Texas general liability insurance for contractors to obtain your business license.

For more details, see our guide to Texas general contractor license and insurance requirements.

Even businesses with lower risk levels should still be covered by general liability insurance. If you’re a tutor and spill coffee on a student’s laptop, or if a product display falls over and hurts a customer in your Texas retail store, you can submit a general liability insurance claim in Texas to help cover related costs.

How does General Liability work in Texas?

The key benefit to having general liability insurance in Texas is that you’ll have protections from certain costs and won’t have to cover all those expenses out of pocket. For accidents that cause third-party injuries or damage to someone’s property, your insurance will help cover the costs up to your policy limit.

For instance, a spa in Austin would get coverage if one of their customers slipped while getting up from a massage table, injuring their arm. General liability insurance will pay for medical bills, legal fees and other related costs.

Similarly, CGL would cover a Houston coffee shop if an employee accidentally spilled a cappuccino on a customer’s designer purse. General liability insurance helps pay for the cost of repairing or replacing damaged property.

Suppose you get sued for libel, slander or defamation. General liability insurance can help cover costs like legal fees, settlements and judgments.

For more comprehensive coverage, Texas businesses often add professional liability coverage, also known as errors and omissions (E&O). This insurance provides added protection if you make a mistake in your work.

For example, a client could claim that a roofing company in San Antonio didn’t do the job correctly, leading to leaks inside their home. With professional liability insurance, the business owner would get financial assistance to fix the problem or defend themselves against the complaint.

How much does General Liability insurance cost in Texas?

The cost of general liability insurance in Texas varies due to several factors, such as:

  • The type of work you do
  • The number of employees you have
  • Where your business operates
  • Past insurance claims
  • What policy limits you select

To get cheap general liability insurance, Texas business owners can get a customized policy from NEXT. Our general liability premiums are priced at $25 to $45 per month for 50% of our customers**.

How NEXT Insurance helps Texas businesses

NEXT Insurance makes it simple to get great insurance coverage for your small business in Texas. You can do everything online in minutes, including applying for coverage, reviewing policy options and downloading your certificate of insurance.

Get an instant Texas general liability insurance quote online today.

If you need any help along the way, our team of licensed insurance advisors is standing by to assist you.

Other business insurance policies that are important in Texas

General liability is just one type of insurance that small businesses typically need. Additional coverage will help protect your business against other types of everyday risks.
Most Texas businesses also consider these options:
Workers Compensation
Workers’ Compensation insurance

Workers’ compensation insurance in Texas provides important coverage for medical expenses and lost wages if an employee gets hurt on the job. Texas doesn’t require workers’ comp, but many businesses get this coverage anyway to ensure protection against lawsuits by injured employees.2

Learn more about workers’ compensation.
Commercial Auto
Commercial Auto insurance

Commercial auto insurance is required for all work vehicles in Texas.3 If you or one of your employees gets into an accident, this insurance will help cover the costs, including medical bills, towing and rental reimbursement.

Learn more about commercial auto.
Errors & Omissions
Professional Liability insurance (E&O insurance)

Professional liability insurance protects you financially if a client or customer claims you made a mistake that cost them money. It’s commonly bundled with general liability insurance for small businesses.

Learn more about professional liability insurance.

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Let’s find the coverage you need for your business
Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.
General Liability insurance
General Liability
Protect yourself from accidents that cause physical injury or damaged property.
Professional Liability or Error and Omissions Insurance
Professional Liability/E&O
Shield yourself from lawsuits that claim your work errors caused financial losses.
Workers' Compensation Insurance
Workers’ Compensation
Cover medical bills and lost wages if your employees have an accident at work.
Commercial Auto Insurance
Commercial Auto
Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.
Tools & Equipment Insurance
Tools & Equipment
Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.
Commercial Property Insurance
Commercial Property
Keep your building, inventory and equipment protected from fire or water damage.
Business Owner’s Policy Insurance
Business Owner’s Policy
Combine general liability and commercial property into one policy to protect your business.
* 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.
** The cost data presented here are based on NEXT active customers in the U.S. who purchased general liability insurance over the previous 12 months. These data should not be considered a substitute for obtaining a quote specific to your business. These data were updated in July 2022.
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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.