Business insurance coverage and requirements in Texas
Texas is the merely country that doesn ’ t require any business insurance by express law. however, it ’ s common for some state agencies and clients to ask you to have coverage before they ’ ll solve with you. Plus, you could be forced to pay for expenses out of pouch after an accident or wound if you don ’ deoxythymidine monophosphate have insurance .
Customized Texas clientele indemnity packages from next Insurance include different types of coverage that can protect you from unexpected expenses. You can choose the types of coverage and limits depending on different factors, including your :
Reading: Texas Business Insurance
- Size of business
- Number of risks you regularly brush
We recommend that all small businesses in Texas carry a combination of general liability, professional indebtedness ( besides known as E & O ) and commercial car indemnity .
Texas is the only state that does not legally require workers ’ compensation insurance, but it calm offers important protective covering if you have employees or cultivate in an industry where you might get hurt. If you don ’ t have Texas workers ’ comprehensive examination, you will likely have to pay out of pocket for related expenses .
General Liability indemnity
General indebtedness indemnity in Texas protects small business owners from damages and lawsuits that occur if person suffers a physical injury because of your actions or you damage person else ’ sulfur place .
many clients will besides ask you to purchase this coverage if you are working on a job where an injury or property damage are a legitimate concern. commercial landlords may besides require your clientele to carry coverage before they ’ ll bless a lease with you .
For case, suppose a Dallas-based contractile organ by chance leaves a cinder pulley on a stairwell of a build under construction and the property owner is injured after tripping over it. The contractor ’ s insurance could help pay for relate medical expenses if the contractor is ruled at fault .
We besides offer tools and equipment policy as an upgrade to this coverage for Texas contractors and cleaning businesses. If your expensive gearing is damaged or stolen, it will help pay for substitution costs .
commercial Auto indemnity
Texas requires all business-owned vehicles to have commercial car indemnity, which helps for injuries and property wrong if you have an accident while driving for work .
If you only have personal car insurance, you might not be covered after an accident and you could be out of complaisance with state of matter laws .
For example, an employee at a landscaping company in Austin drives a company cable car to a node ’ randomness corporate campus and has an accident on the room, damaging another car and sending the driver to the hospital. commercial car indemnity helps the landscaping company wage for medical bills, vehicle damages and legal fees if the early driver files a lawsuit .
Hired and non-owned car policy is a form of commercial car policy that covers damages if employees have an accident while driving a personal or rent fomite for cultivate. You can add it to your commercial car policy policy for more coverage .
professional Liability ( E & O ) insurance
Clients might accuse small occupation owners of professional mistakes, tied if the claims are baseless .
This is why professional indebtedness policy in Texas is a dear idea for business in sealed industries. besides known as errors and omissions insurance, this coverage can help pay for expenses related to claims of professional negligence, missed deadlines and incomplete exploit .
Suppose a construction contractor in Galveston is hired to renovate an aging port facility. Six months after the project is completed, the building is ruled structurally bad because the contractor used steel that couldn ’ metric ton support the construct ’ sulfur burden .
The contractor ’ s professional liability policy could help cover expenses to resolve the issue with new construction .
Workers ’ Compensation insurance
Workers ’ recompense coverage is not mandatary when buy business indemnity in Texas. But it can be a lifeguard if you or an employee get injured on the job because it covers medical treatment and lost wages.
Read more: General liability insurance cost
not carrying workers ’ compensation insurance might seem like an easy manner to shave a few bucks off your commercial enterprise costs. however, if you don ’ t have workers ’ comp, your out of pocket expenses could be significant after a workplace accident .
For exercise, an electrician in Fort Worth sustains third-degree burns because of defective equipment and requires extensive medical manage. Workers ’ recompense indemnity helps pay for the hurt employee ’ s medical bills, rehabilitation costs and lost wages .
Learn more about Texas workers ’ comprehensive examination policy .