Even though companies aren’t required to get general liability insurance in Texas, it is a good idea to purchase this product. You’ll receive essential protection in case of an accident or misstep that results in bodily injury or damage to a customer’s property.
- Top 6 Providers of General Liability Insurance in Texas
- What is General Liability Insurance?
- What does general liability insurance cover in Texas?
- Why Small Businesses Should Get General Liability Insurance in Texas
- How Much does General Liability Insurance Cost in Texas?
- How to find cheap general liability insurance in Texas?
- General liability insurance for contractors in Texas
- General liability insurance for LLCs in Texas
Top 6 Providers of General Liability Insurance in Texas
There are dozens of insurance providers offering general liability insurance in Texas and nationwide. We’ve reviewed them found these top six general liability insurance companies. They all have excellent ratings with customers and with A.M. Best, a credit-based rating agency for insurance companies.
- CoverWallet: Best for Comparing Online Quotes
- American National: Best Local Insurance Provider
- Hettler Insurance: Best Independent Insurance Agency
- Chubb: Best Commercial Insurance Provider by Marketshare
- The Hartford: Best for Customized Insurance Packages
- Progressive Insurance: Best for Discounts on Combined Policies
CoverWallet: Best for Comparing Online Quotes
CoverWallet is a digital commercial insurance broker. They work with several leading business insurance companies such as Chubb, Hiscox, Liberty Mutual, etc. Once you provide your personal information on the lead form on their website, within a few minutes, they will provide you with several quotes to compare and select the best one for your situation.
They also offer a great digital dashboard which you can use to manage all of your business insurance policies in one place from renewing to filing claims if you buy a policy through them.
Below is a sample of general liability insurance quotes that we received from CoverWallet featuring different options for us to choose from:
American National: Best Local Insurance Provider
Founded and headquartered in Galveston, TX, American National is a local company that went big. They provide insurance coverage in all 50 states for both residential and commercial clients. American National also offers a variety of business insurance, including liability insurance, worker’s compensation, and commercial auto insurance.
Hettler Insurance: Best Independent Insurance Agency
For more than 25 years, Hettler Insurance has provided a personal touch to insurance for their clients in the Lubbock, TX area. They are an independent agency that uses a variety of carriers to help clients get a good deal. You can get a customized general liability plan through Hettler for your specific needs.
Chubb: Best Commercial Insurance Provider by Market Share
This multinational company offers business insurance and general liability insurance all over the world. It is the largest commercial insurer in the United States with an annual revenue 19.14 billion USD as of 2015. Chubb also boasts three local offices in Austin, Dallas, and Houston, TX.
The Hartford: Best for Customized Insurance Packages
Another nationwide company to consider is The Hartford, which has been around for more than 200 years. This well-established insurance provider offers industry focused policies. You can get small business insurance, traditional business insurance, and commercial auto insurance tailored to your company.
Progressive Insurance: Best for Discounts on Combined Policies
Progressive has made a name for itself by offering bundled policies in the residential sector, such as combining your home and auto policy for a 15% discount. Well, this nationwide insurance company does the same for companies through their Progressive Advantage® Business Program. Get commercial auto insurance and general liability insurance together to enjoy a discount on your premiums.
What is General Liability Insurance?
Also known as business liability insurance, this is a type of insurance that protects professionals and business owners from common liability claims. Say you are a decking contractor hired to build a deck for a homeowner and you accidentally hit the stucco exterior of the property with a hammer, causing damage. Your general liability insurance would cover that claim.
>>MORE: What does General Liability Insurance Cover?
What does general liability insurance cover in Texas?
General liability insurance cover the following claims related to:
- Property Damage
- Bodily Injury
- Slander
- Copyright Infringement
- Product Liability
General liability insurance will usually cover the cost of repairs to the home or property, as well as any medical expenses incurred.
>>MORE: The 6 Best General Liability Insurance Providers for General Contractors
What doesn’t General Liability Insurance Cover?
General liability insurance only provides coverage in specific circumstances. You won’t be able to use it for incidents that aren’t listed, such as:
- An employee being injured on the job
- Getting into a car crash
- Paying punitive damages from a lawsuit
- Malicious or purposely caused damage
>>MORE: Cheapest General Liability Insurance for Contractors – $41/month
Why Small Businesses Should Get General Liability Insurance in Texas
Though you aren’t required to get general liability insurance in Texas, you can benefit from the coverage when dealing with a lawsuit. It’s also a very affordable policy that can cost as little as $300 a year for small businesses. You can also benefit from general liability insurance in a few other ways:
- Texas gives claimants up to two years to file most civil suits, and up to four years in a fraud or debt collection suit. With a general liability policy, you’ll always be covered by surprise suits.
- General liability insurance doesn’t just pay the settlement for a claim, it can also cover legal fees to defend yourself.
- General liability insurance will help cover damages incurred by your employees, since you can’t be there 24/7 to watch them.
How Much does General Liability Insurance Cost in Texas?
General liability insurance in Texas varies a lot in annual costs due to the type of business, number of employees, and previous history of the policy holder. According to Insureon, most small business owners will pay between $300 to $600 annually for general liability insurance.
If you are running a contracting business, this is considered a higher risk industry so you’d pay more annually compared to someone who works with technology, such as an IT consultant. The median rate for those in contracting is about $825 annually and $340 annually for the latter business.
Prices vary significantly by providers. It is always a good idea to shop around with a few companies or compare several quotes from a digital broker like CoverWallet to make sure you get the best and cheapest quote for your situation.
How to find cheap general liability insurance in Texas?
General liability insurance is necessary to protect your business. You should be able to get general liability coverage without breaking your bank. Here are some tips to help you find the coverage you need at a fair price:
- Shop around to compare several quotes. Get quotes from a few companies or compare the multiple quotes generated by a service like CoverWallet, Simply Business, or PolicySweet
- Don’t stop shopping around. Make sure you get new quotes before you renew your policy, even if you are completely happy with the current carrier.
- Safety-first policy: Make sure you implement safety standards and best practices in your business location and provide safety training to your employee regularly. Make use of safety programs offered by the insurance companies whenever available.
- Take advantage of discounts. If they’re not offered to you when getting a quote, ask about them, whether you’re buying online or through an agent.
Taking these steps will help ensure you’re not paying too much for your general liability coverage in Texas.
>>MORE: The Cheapest General Liability Insurance Companies
General liability insurance for contractors in Texas
Texas is pretty lenient when it comes to insurance requirements—the only type of insurance you absolutely must have is commercial auto insurance (assuming you use vehicles for work).
Contractors and commercial construction businesses in Texas are somewhat of an exception, as many types of contractors must carry general liability insurance. You will not be able to take a job for a client unless you have proof of insurance.
You can get either a claims-made liability policy or an occurrence-based policy. Claims made policies cover you for third-party property damage or third-party bodily injury while the policy is in effect. If your policy runs from July 1st of 2020 until July 1st of 2021, you are covered for that year. But let’s say your client trips over a hammer and injures themselves on May 20, 2021 but doesn’t get around to filing a lawsuit until August of 2021. If you had an occurrence policy, you would be covered because the insurance was in effect at the time of the incident. If you had a claims-made policy, you would be out of luck.
>>MORE: The Best General Liability Insurance for Contractors
>>MORE: The Cheapest General Liability Insurance for Contractors
General liability insurance for LLCs in Texas
Setting up your business as an LLC protects your personal assets by separating them from your business assets. However, just because you are now considered an LLC does not mean your general liability insurance covers everything. It will not protect you if you, as a business, take on too much debt. In this case, it’s possible for someone to hold the owner accountable. General liability insurance will protect you and your business from lawsuits in relation with the third party’s bodily injury, property damages, and advertisement injuries.
The good news is that Texas has the second-largest economy in the nation. There are a lot of business opportunities. An LLC is the first step to benefit from the large economy. Be sure to protect your LLC in Texas with a proper general liability insurance policy.
>>MORE: The Best General Liability Insurance for LLCs
Small business insurance in Texas
Business Insider ranks Texas 4th out of the fifty states in a list of the best states to start a business. The reasonable cost of living in Texas is a favorable condition to start a new business. Texas is also known for its relaxing regulations, making it easy for new companies to start.
Take extra steps to protect your small business in Texas. Small business insurance can increase the cost of running the business, but you will regret not having it when incidents happen. Here are the best small business insurance companies in Texas that we recommend.
Below are some of the popular small business insurance coverages in Texas:
- Workers compensation insurance in Texas
- Commercial auto insurance in Texas
- Professional liability insurance in Texas
Workers compensation insurance in Texas:
Texas is the only state in the country that doesn’t require workers compensation insurance, except if your business provides goods and services to any government entity. However, workers comp insurance has the lowest rate in the country, so there is little reason why you shouldn’t have it. Workers comp insurance pays for medical costs, lost wages, disability benefits, death benefits, re-training costs, etc. if and when an employee gets injured or becomes ill at work. Learn more at the best workers comp insurance companies in Texas.
Commercial auto insurance in Texas:
Commercial auto insurance is required in Texas. If you use a vehicle for work, you need to have commercial auto insurance. Your personal auto insurance policy doesn’t cover your vehicle uses for business. Your personal auto insurance company will refuse your claim if they find out you drive for business and they may suspend your personal policy as well. Learn more the differences between commercial auto vs. personal auto insurance and why small businesses need commercial auto insurance and the best commercial auto insurance companies in Texas.
Professional liability insurance in Texas:
Professional liability insurance isn’t required in Texas. Even medial malpractice insurance, which is legally required in many other states, isn’t in Texas. However, your employers and/or your clients might require you to have it before they can employ you. Professional liability insurance covers lawsuits costs and fees and settlements related to mistakes or negligence you or your employees make while doing your work. If you and your business provide services or advice to your clients, it is likely that you need professional liability insurance coverage. It is often called malpractice insurance in healthcare and legal fields and errors and omissions (or E&O) in real estate, insurance, finance, and other consulting industries. Below are the most popular professionals that need this coverage:
- Lawyers – Top 5 Providers of Legal Malpractice Insurance & How Much It Costs
- Accountants & CPAs – Professional Liability Insurance (E&O) for Accountants and CPAs
- Tax preparers – The Best E&O Insurance for Tax Preparers
- Doctors – The 5 Best Providers of Medical Malpractice Insurance
- Consultants – Professional Liability Insurance (E&O) for Consultants
- Real estate agents – Top 5 Providers of Real Estate E&O Insurance & Costs
- Insurance agents – E&O Insurance for Insurance Agents: Cost and Top 5 Providers
- Engineers – Top 5 Providers of Professional Liability Insurance for Architects and Engineers
- Marketing and advertising services
- Psychologists – Top 4 Providers of Malpractice Insurance for Psychologists and Counselors
- Nurses – The Best 4 Providers of Nursing Malpractice Insurance
- Nurse practitioners: The Best Malpractice Insurance for Nurse Practitioners
- Dentists – Top 5 Providers of Dental Malpractice Insurance
- Dental hygienists – The Best Malpractice Insurance for Dental Hygienists
- Physician’s assistants – The Best Malpractice Insurance for Physician’s Assistants
- Physical Therapists – The 6 Best Malpractice Insurance Providers for Physical Therapists
- Chiropractors – 4 Best Choices for Cheap Chiropractic Malpractice Insurance
- Pharmacists – The Best Malpractice Insurance for Pharmacists and Costs
- Social workers – The Best Malpractice Insurance for Social Workers
Final Thoughts:
- Those living in Texas have plenty of choices for insurance providers, including a few local companies.
- General liability insurance pays for property damage, bodily injury, product liability, slander, and copyright infringement.
- Businesses aren’t required to get general liability insurance in Texas, but the state does require commercial auto insurance.
- General liability insurance is usually very affordable for small businesses, costing just a few hundred dollars per year.
>>MORE: Top 5 Providers of Professional Liability Insurance in Texas
