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    Texas General Liability Insurance

    Texas General Liability Insurance

    Texas is the 10th largest economy in the world, and small businesses play a significant role in making it an economic leader. In fact, roughly 3 million small businesses in Texas account for more than 97% of the state's companies and nearly 50% of its employees.

    In an ideal world, business owners in Texas would have nothing to worry about. In reality, however, we inhabit a world filled with dangers, accidents, and other unfavorable occurrences that happen regularly. A customer sustaining an injury within a store's premises, an employee accidentally harming client property, or a small business seeking insurance because it allegedly failed to provide a service successfully — these are just a few of the dangers that businesses confront every day.

    Commercial general liability insurance coverage is an absolute necessity in light of the vast number of potential risks.

    Requirements For General Liability Insurance In ​​Texas

    Texas is the only state where business insurance is not required by law. However, it is typical for several state agencies and clients to require coverage prior to working with you. In addition, if you do not have insurance, you may be required to pay for expenses when an accident or injury happens out of pocket.

    You can select coverage types and restrictions based on various factors, including your:

    • Industry
    • Size of business
    • Operations
    • Total of risks you encounter regularly

    What General Liability Insurance Covers In ​​Texas

    To determine if additional insurance coverages are necessary, you must comprehend what general liability business insurance covers. Certain situations are excluded from the general liability policy. Here are the circumstances where your business's general liability insurance provides enough coverage:

    Property Damage Or Bodily InjuryThis policy covers bodily injury and property damage claims arising from accidents on your property or products, company operations, or advertising. If a customer slips and falls in your store or a third party's work cause accidental property damage, your business will be protected by general liability insurance.
    It is vital to clarify that this only applies to injuries sustained by non-employees.
    Medical PaymentsMedical payment coverage can compensate for minor injuries sustained by non-employees on your property. Typically, it will cover medical and funeral expenses for which your company may be held liable. It is important to realize that the insurance will only pay up to the limitations of your policy.
    For instance, if a customer is wounded at your place of business and incurs $10,000 in medical bills, your insurance policy will cover these costs up to a specified level. If your limit does not exceed $5,000, you are responsible for the remaining costs.
    Personal & Advertising InjuryThis protects you in the case that your company's marketing infringes on someone's copyright or offends them, and they believe you are responsible for any damages you may or may not have caused. Your general liability insurance may cover written or verbal communications that constitute libel, malicious mischief, slander, or copyright infringement, among others.
    Defense CostsThis aspect of your general liability insurance covers the cost of a legal issue if you are sued or have filed a claim for damages against you. The insurance protects your business by covering the insurance company's investigation and legal fees, any judgment or settlement, medical expenses in the event of injury, and bonds if they must be paid subsequently.

    Cost Of General Liability Insurance In Texas

    Your general liability insurance costs can range from a few hundred dollars to a few thousand dollars a year, depending on a number of factors. Your type of business is a big factor.

    For instance, construction companies are more likely to get higher insurance quotes and pay higher rates than consulting companies. Other things that can affect how much your liability insurance costs are:

    • Age
    • Number of employees
    • Location
    • Policy details
    • Building condition
    • Insurance claims history

    Quick Small Business Statistics In Texas

    Texas is among the most economically strong states in the United States. It has the second largest economy in the country, second only to California, with a gross state product of $1,887 trillion. If the state were a sovereign nation, it would have the world's 10th largest economy.

    Small businesses, in particular, are a significant economic driver. They constitute a substantial portion of all businesses in the state. Microbusinesses have penetrated every sector of the Texas economy, making them a vital component of the larger US economy.

    Below are some statistics regarding Texas's small businesses:

    • There are 2.8 million small businesses in the state, representing 99.8% of all businesses
    • The state ranks first in the nation for minority-owned small businesses, with 710,215 small minority businesses
    • There are 4.8 million small business employees, which accounts for 45.1% of all Texas workers
    • The utility services industry is the smallest sector in the state, with only 2,785 small businesses
    • The one-year survival rate for startups is 79.8%
    • 12% is the maximum rate of actualization for new employer enterprises
    • The professional, scientific, and technical services industry is the largest commercial sector in the state, with 354,447 micro businesses currently involved
    • As of August 2020, small businesses in the hospitality/leisure sector employed approximately 9% of non-farm labor, or 1.147 billion individuals
    • Mid-May 2020 saw small businesses in the transportation industry surpass pre-pandemic revenue margins by 10%
    • From the years 2020 to 2021, small businesses with an annual revenue of less than $1,180,000 are exempt from paying taxes
    • 72% of black-owned micro businesses are in the service industry, with 28% in the professional, scientific, and technical services sector, according to a survey
    • The state has a total of 213,590 veteran-owned small businesses, ranking it second in the nation

    Frequently Asked Questions 

    Below are some of the frequently asked questions regarding general liability insurance in Texas:

    Do I need insurance for my LLC in Texas?

    Even though Texas does not mandate it, small business owners should consider workers' compensation and other forms of business insurance to safeguard their livelihoods. Some insurance agencies can assist you in customizing a Texas business insurance policy to include the necessary coverage.

    What is the minimum amount of liability in Texas?

    In Texas, minimum liability coverage requirements are $30,000 per injured person, up to a total of $60,000 per accident, and $25,000 per accident for property damage. This standard coverage is known as 30/60/25.

    How much is general liability insurance for a small business in Texas?

    A general liability insurance policy in Texas can cost anywhere from $300 to $5,000 per year for a small business. 80% of small businesses pay approximately $1,400 per year for this policy to protect them from the most common lawsuit filed against small businesses.

    Other Insurance Types

    Getting insurance quotes is the best way to determine how much your commercial general liability insurance will cost. Additionally, you can change your policy so that it fits your needs. Find out how liability insurance can protect your business by getting a quote today.

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    Assured Standard will protect your business with the right insurance, depending on your needs. Now more than ever, it’s crucial to have the right general liability insurance experts on your side. Protecting the future of your business starts today.
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