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What Are the Texas Business Insurance Requirements for Small Businesses?

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What are the Texas business insurance requirements every small business needs?

The types of business liability insurance plans you require for your small business may be influenced by your state laws.

Texas Workers’ Compensation Insurance

Texas differs from the majority of other states in that it does not require workers’ compensation insurance. Most company owners, however, will find this coverage intriguing because it can cover medical expenses as well as partly lost wages due to a work-related injury or illness. Companies that do business with the government are required to have insurance.

Texas Commercial Auto Insurance

Commercial auto insurance is required in Texas for all business-owned automobiles. Texas mandates a minimum of $30,000 per person in bodily injury liability, $60,000 per accident in bodily injury liability, and $25,000 in property damage liability per accident. 

Personal vehicles used for work should be protected by hired and non-owned auto insurance, even if it isn’t needed because personal auto policies typically exclude commercial use. It can be added to a business owner’s policy or general liability insurance.

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Recommended Texas Insurance Policies For Small Businesses

Recommended Texas Business Insurance Policies For Small Businesses

General Liability Insurance: This policy is critical for all businesses in Texas. It covers ordinary hazards like property damage and injuries to customers. This is a requirement in most commercial leases. This type of policy is ideal for customer injuries at your place of business, customer property damage, and libel or slander cases.


Professional Liability Insurance: This coverage, often known as mistakes and omissions insurance, safeguards experts whose livelihood is dependent on their knowledge. It protects clients from litigation stemming from errors and missing deadlines. This coverage is ideal for work-related errors and omissions, professional negligence claims, and late or incomplete work.

Cyber Liability Insurance: This Insurance policy helps by covering client notification costs, legal fees, and other relevant charges, this policy assists Texas businesses in surviving data breaches and cyberattacks. For data breach litigation, customer notification fees, and fraud monitoring charges, this policy is ideal.

Business Owner’s Policy: This policy combines property and general liability coverage into a single policy. For a Texas company, it’s generally the most cost-effective sort of commercial insurance. This coverage is appropriate for customer injuries, customer property damage, and business property damage.

Workers’ compensation Insurance: Workers’ compensation insurance is advantageous for firms in Texas that employ people. It may pay for medical expenses incurred as a result of work-related injuries and illnesses. This coverage is ideal for employee medical expenditures, partially missed earnings and employee injury lawsuits.

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Commercial Auto Insurance: In Texas, this policy is mandatory for business-owned automobiles. It protects you against bodily injury and property damage in the event of an accident, as well as car theft, vandalism, and weather damage. Accidents involving company vehicles, theft of a company vehicle, and damage to a company vehicle are all covered under this policy. You can use any of these anti-theft devices to help protect your car and in turn, reduce your vehicle insurance premium.

Desmond Dickson
Desmond Dickson is a freelance writer, business coach, and lead content manager of MyTopInsuranceBlogs.com. He supervises all insurance-related content targeting the United States & Canada.

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