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If you own a small business in the Lone Star State, this information will help you understand Texas Commercial Liability insurance and protect your business and your personal assets from legal claims and settlements that can spell financial ruin. Whether you live in Dallas, Austin, Houston, San Antonio, El Paso or Lubbock, having sufficient general liability insurance is an important part of any small business plan.
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A small business is defined as any company with fewer than 500 employees. Of Texas’s 2.2 million small businesses in 2006 (the latest data available), 386,422 were small employers, accounting for 98.7% of all employers in the state and 46.8% of its private-sector employment. Another 1,819,963 were one-person operations with no employees.
Source: SBA Texas Small Business Profile 2006.
Commercial liability insurance (also called business liability insurance and commercial general liability insurance) protects your Texas business from financial loss resulting from claims of injury or damage cause to others by you or your employees. A policy typically covers:
Commercial Liability Insurance is not mandatory for businesses operating in Texas. It is a business-friendly state and has been in a leader in lawsuit reform to discourage frivolous claims. However, accidents and lawsuits still happen in Texas. If you own property or other valuable assets you would be wise to invest in sufficient commercial general liability coverage for your business to limit your risk exposure.
Each situation is unique, but as a general guideline, the type of Texas business you operate or products you manufacture should determine how much Texas commercial general liability insurance you need. A good rule of thumb for most small businesses is between $500,000 and $1 million. However, if yours is a high-risk business such as the building trades or has a high volume of interaction with the public such as a retail business, you should consider increasing your coverage. Note that if you operate out of your home, your homeowner’s or renter’s insurance has limited coverage for business liability and loss.
Texas commercial liability insurance premiums are based on a number of factors including the types of service or products you provide, the number of people you employ, how long you’ve been in business, and your claims history. Coverage is typically capped at a specific dollar amount for your policy period.
Mandatory
Optional
Texas Department of Insurance
This agency is responsible for regulating all insurance policies sold in the state, including commercial liability coverage.
| Visit: | https://www.tdi.texas.gov |
| Call: | (512) 463- 6169 |
| Write: | Texas Department of Insurance 333 Guadalupe Austin, TX 78701 |
Texas Small Business Administration
The SBA is an independent agency of the federal government created to aid, counsel, assist and protect the interests of small business concerns and maintains Texas district offices in Dallas/Fort Worth, El Paso, Harlingen, Houston, Lubbock and San Antonio. Get links to district offices at http://www.sba.gov
National Association of Insurance Commissioners (NAIC)
This is an organization of insurance regulators from the 50 states, District of Columbia and the five U.S. territories. NAIC provides a forum for the development of uniform policies when appropriate. It also offers an online form for filing complaints, reporting suspected insurance fraud and downloading key financial information about insurance carriers at www.naic.org
Insurance Information Institute (III)
This organization’s mission is to improve public understanding of insurance – what it is and how it works. Visit III at www.iii.org
E-Insure
Get competitive quotes for commercial liability insurance and all your business insurance needs at http://www.EINSURANCE.com/business-insurance/.
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