Is Commercial Insurance Needed in TX?

If you own a small business in Texas then you are going to want to know what the insurance requirements are to remain in compliance with state law. Unlike the vast majority of other states, Texas does not mandate workers’ compensation insurance which pays for the medical bills associated with a workplace injury or illness. With that said, these costs can quickly escalate and not having workers’ compensation insurance can quickly lead to financial ruin. Bear in mind, that if own a company that contracts with state or federal government agencies then workers’ compensation insurance is required. Additionally, any vehicles owned by the business must be covered by commercial auto insurance with the following minimum liability requirements:

  • $30,000 bodily injury liability per person
  • $60,000 bodily injury liability per accident
  • $25,000 property damage liability per accident

Even though it is not mandated, personal vehicles that are driven for work related needs should be covered by hired and non-owned auto insurance. Personal auto policies often exclude business use and could leave your employee on the hook for thousands in damages if they are not adequately covered. 

In addition to the aforementioned coverages, Texas businesses can consult with Main Street Independent Insurance Agencies Inc. in Ft. Worth, TX to learn about optional add-ons that may better protect their business. For example, cyber liability insurance is a must for any company that handles sensitive data and is at a higher risk of cyber attack or data breach. 

For further information and to learn how we can help, contact our friendly and knowledgeable team to schedule a no-obligation consultation with one of our insurance professionals.