Running a business in Texas offers big opportunities but also significant risks. From the oilfields of West Texas to the tech startups in Austin, no company is immune to unexpected accidents, lawsuits, or disasters—making the right type of insurance for business essential.
A broken contract, workplace injury, or storm can jeopardize years of hard work. That’s why choosing the right type of insurance for your business is one of the most important steps to protect your investment.
Why Business Insurance Matters in Texas
Texas does not require every business to carry the same insurance coverage. However, state law and industry standards often dictate minimum requirements. For example, most employers must carry workers’ compensation if they want protection from certain lawsuits, and commercial vehicles must comply with state insurance laws.
Without the right coverage, business owners face significant risks. A lawsuit or property loss could drain company assets, damage your reputation, or shut your business down. Business insurance is not only a box to check, it’s a safeguard for your future, helping ensure continuity when unexpected events disrupt operations.
Common Types of Business Insurance Policies
Common types of business insurance policies for Texas companies include:
- General liability insurance. This insurance covers claims for bodily injury, property damage, and certain personal injury claims. For example, this policy may cover legal fees and damages if a customer slips and falls in your store.
- Property insurance. If your business owns a building, equipment, or inventory, this helps cover damage from fire, theft, or weather events. Property coverage is essential in Texas, where storms and flooding can be severe.
- Workers’ compensation insurance. Workers’ compensation coverage helps pay medical bills and lost wages for employees injured at work. It also limits lawsuits against your business for workplace injuries.
- Commercial auto insurance. Texas law requires insurance for company-owned vehicles. This policy covers accidents involving vehicles used for business operations.
- Professional liability insurance. Sometimes called errors and omissions coverage, this policy protects against claims that your services caused financial harm due to mistakes or negligence.
Each business faces unique risks, so there is no one-size-fits-all solution. Choosing the right mix of coverage depends on the industry you’re in, your company size, and the risks you face.
What Company Insurance Types Do Small Businesses Need?
Certain company insurance types are particularly valuable for small businesses, including:
- Business owner’s policy (BOP)—a bundled policy that combines general liability and property insurance at a lower cost;
- Cyber liability insurance—helps when hackers steal data, shut down your website, or target your online payment system; and
- Business interruption insurance—for lost income if your operations stop due to a covered event like fire or storm damage.
These policies can give smaller operations affordable but meaningful protection. A contract dispute, a natural disaster, or even one legal claim can quickly overwhelm a small business without coverage.
Different Types of Insurance for Businesses in High-Risk Industries
Some industries face higher risks than others, and those businesses often need more than basic coverage. Examples of different types of insurance for businesses that operate in high-risk sectors include:
- Pollution liability insurance—covers claims of environmental damage, cleanup costs, and third-party lawsuits that can arise in energy, chemical, or manufacturing operations;
- Builder’s risk insurance—protects construction projects during building, covering damage to materials, equipment, and partially completed work;
- Professional liability insurance—critical for healthcare providers, consultants, and financial advisors, covering claims of negligence, mistakes, or bad advice;
- Commercial umbrella insurance—adds an extra layer of protection by covering costs that exceed the limits of other liability policies; and
- Inland marine insurance—helps construction and transportation companies protect tools, machinery, and equipment in transit or stored off-site.
Industries like energy, construction, and healthcare often require these additional layers of coverage to guard against serious financial loss.
The Curley Law Firm Can Help Identify the Right Insurance for Your Business
Choosing the right type of insurance for a business is one of the most important steps to secure its future. But the choice is not always simple. Policies are full of technical language, exclusions, and requirements that can be easy to overlook. If you miss these details, you could breach an agreement or leave your business exposed. At The Curley Law Firm, we help Texas business owners understand their options, review contracts, and choose coverage that reduces risk.
Adam Curley has over a decade of experience helping Texas businesses navigate contracts, disputes, and risk management. He has an in-depth understanding of how companies can reduce liability before conflicts arise. Adam will help you select the best insurance type for your business and ensure it aligns with your overall strategy.
The Curley Law Firm provides legal guidance that prevents problems before they start, allowing you to focus on running your business. Contact our office today to learn how we can help you select and manage the right insurance for your Texas company.
Texas Business Insurance FAQs
Is Business Insurance Required by Law in Texas?
Not all businesses are legally required to carry insurance. However, certain industries and contracts often make insurance mandatory. For example, Texas requires businesses with company vehicles to carry commercial auto insurance. Workers’ compensation is optional but it protects employers from most employee injury lawsuits. Federal law may also require unemployment and health insurance.
How Do I Know Which Insurance My Business Needs?
The right policies depend on your industry, business size, and risks. A retail store has different needs than a construction company or a technology startup. Speaking with a lawyer can help you understand which policies your business needs.
How Much Does Business Insurance Cost in Texas?
The cost depends on factors like your industry, number of employees, location, and coverage limits. Higher-risk industries generally pay more, but tailored policies can help you keep costs manageable.
Can I Change My Business Insurance Coverage Later?
Yes. As your business grows or your risks change, you can adjust your policies to add more protection or reduce unnecessary coverage. Regular reviews help keep your insurance properly aligned with your evolving business needs.