Blog Texas Business Insurance
Posted on May 3, 2015 | By Kole
If you are in Texas, it is important that you protect your business and personal assets from lawsuits and legal claims with Texas Business Insurance. Not doing so will spell financial ruin. Having sufficient liability insurance irrespective of where you live in Texas is a must, especially if you own a small business in the state; it is highly recommended to visit https://www.texasquotes.com/business-insurance/.
A business is termed as a small business when there are fewer than 500 employees. There are over 2 million small businesses in Texas as per the statistics from 2006, which equates to 386,4222 employers. Out of this number, more than a million are one-person operated businesses. Texas business insurance also known as commercial liability insurance, commercial general liability insurance or business liability insurance protects your business in Texas from financial loss that may result from injury or damage claims from individuals or entities.
A Texas business insurance policy will typically cover the following elements:
Bodily Injury – This clause covers any physical damage to a person other than the employee at the place of business.
Property damage – This clause covers damages caused by you or your employee to another person or entity’s property.
Personal Injury – Personal injury covers invasion of property, copyright infringement, libel, slander, false arrest, wrongful eviction and other acts that would damage a business or an employee’s reputation and rights.
Advertising Injury – This clause if for covering losses caused due to unfavorable advertising by others.
Legal Defense and Judgments – Another area that the insurance covers is the cost to defend against lawsuits and judgements. There is a limit, however, with how much the insurance will pay for it. In general, this clause does not cover any punitive damage for willful misconduct.
In essence, Texas requires that every business carry a minimum insurance for doing business in the state. Although it is a business-friendly state, many incidents and accidents have caused the law to put-forth certain rules to protect the interests of employers doing business here. The state recommends everyone owning a business to invest in sufficient liability coverage meant for commercial to limit the exposure to risk. What is also important is to figure out how much insurance coverage one needs. Each situation in unique, therefore, the type of business you are operating and the total worth of your business will determine that amount. A good rule of thumb, however, is to have a insurance coverage anywhere between $500,000 to $1 million. If you are in a business that is considered risky and involves large-scale interaction with public, you should consider taking a large coverage. If your business is operated from the comfort of your home, note that your home insurance may or may not cover all the expenses incurred from a business loss.
So how are premiums assessed in Texas? Texas business insurance premiums are based on a wide range of factors such as type of product or service offered by your business, the number of people working for your company, the age of your business as well as your claim history. Coverage is usually capped at a particular amount for every policy period. There are also other factors that need to be to consider when taking a coverage for your business. If you own an automobile as a part of the business, you need to carry a minimum automobile insurance as well. This insurance can be purchased in the form of commercial vehicle policy. Other business insurance types and coverages in Texas include short-term disability insurance, business owner’s package, workers compensation package, employment practices liability insurance, commercial property insurance, product liability and professional liability.