Business Insurance


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Texas is home to many wonderful things, and this includes millions of businesses. The Lone Star State is home to 2.7 million small businesses alone, which provide around 4.7 million jobs. Combined with the 50 Fortune 500 companies headquartered in Texas as well, it’s clear to see how Texas generates the second most GDP by state raking in over $1.7 trillion. With this much money on the line, businesses need help protecting their assets, revenue, and employees. Business insurance is one of the first steps businesses, big or small, can take to ensure financial protection.

As a business owner, you have to wear many hats and deal with a variety of responsibilities. Business insurance helps you mitigate losses involving a variety of perils including property damage and liability concerns. Enrolling your business in the right coverage options will protect you and your shareholders’ revenues and investments today and in the future.

How Much is Business Insurance?

In Texas, the cost of insurance depends on the type of business, risk exposure, size of the business, and many other factors. It’s important to remember, however, that this is an average and the actual cost for your premium will vary for many reasons including:

  • The type of business you are insuring.
  • The amount of coverage your enterprise will need.
  • How many employees you are looking to ensure.
  • The number of assets in need of protection including equipment and vehicles.
  • Where your operations are located as well as the location of your business.
  • Your claims history.
  • Your property and equipment’s age.

Every insurance brand is going to assess these factors looking for the same thing: the amount of risk you pose as a client. Each business is going to have different characteristics for each of these factors, and complicating things further, every insurance brand will assess your business’s characteristics using its own equations and metrics. With this in mind, we begin to understand why different brands can provide different premium rates for the same amount of coverage.

Your insurance rate may vary from company to company, but your company’s needs remain the same. Protecting your assets and revenue is critical which is why shopping among multiple insurance providers can help business owners receive the right policies but without burning into their profits. Your free business insurance quote is only a few clicks away.

Business Insurance Coverages

As a business owner, nobody knows your business as you do. You understand the intricacies, unique situations, and needs of your business in a way many would never understand. There are several different business insurance coverages available for business owners, and by taking the time to assess your needs, you can avoid costly coverage gaps while also avoiding overpaying for your protection. Each business is different, but here are some of the most common forms of coverage business owners can benefit from:

Business Crime Insurance

When crime affects your business, you shouldn’t have to rebuild alone. Criminals continue to look for nefarious ways to gain ill-gotten means from hardworking Texans, and business crime insurance helps you hedge against such losses. A business crime insurance policy will help you protect from a variety of crimes including theft, forgery, and copyright issues. There are even policy endorsements to protect your cash and to protect you from employee theft.

The way we conduct business continues to evolve in a variety of ways. The Internet has created a platform for enterprises big and small to create, market, and sell their goods/services to billions of potential customers. Business crime insurance policies also protect your company from online losses in an ever-connected world.

Business Interruption Insurance

Suffering a loss is bad enough for business owners. The last thing anyone needs to face during a loss is the interruption of operations. When businesses are unable to conduct business as usual, fulfill orders, or provide service, it can create a ripple effect that continues to harm your bottom line far after any incident. Your bills will continue to come in on schedule, and you’ll need to find ways to continue running your business during this time. A business interruption insurance policy provides financial compensation to help you keep going when you need it the most. Common expenses covered by your policy include:

  • Advertising and marketing.
  • Your mortgages and other loans.
  • Payroll and training expenses.
  • Relocation costs.
  • Taxes and additional business expenses.

A business interruption policy may also protect you from cyber-attacks. More and more each day, businesses are moving online for their operations. If you’ve been attacked or damaged by an Internet-related threat, be sure to review your policy and speak with an insurance agent to best understand your protection.


Note: A business interruption insurance policy is going to protect you from losses involving the loss of revenue to your business caused by the destruction of property. A comparatively new development for many businesses is overcoming the halt of business operations due to the ongoing outbreak of COVID-19. While the terms and conditions of each policy will vary, because COVID is not a physical loss to property, it is unlikely that your policy will honor claims related to such events. Be sure to review your coverage with a licensed agent to best understand how you are protected and avoid gaps in your coverage or misunderstandings.

Commercial Auto Insurance


As a business owner in Texas, you are not required to maintain business insurance policies by law. The one exception, however, is for commercial auto insurance. A personal auto insurance policy does not protect you against losses involving car accidents and as a result, you may find yourself on the hook for legal and medical expenses on top of restoring any property damaged during an accident. Commercial auto insurance may seem clean-cut for many owners, but there is a host of professionals that may be surprised to learn that the coverage is right for their needs and required by law.

Liability Insurance

Losses stemming from liability issues can come in a variety of scenarios for your business. Accidents happen and when your business is found at fault for a loss that occurs to another party during the said accident, the expenses can add up:

  • Medical expenses stemming from accidents.
  • Restoring property damage due to your business’s negligence.
  • Legal expenses during the aftermath of a loss.
  • Data breaches involving sensitive information of your customers and/or employees.
  • Corporate-related data breaches may see a loss of proprietary information for your business or your partner’s.

These costs continue to grow and liability policies are highly encouraged by Freedom Insurance Group for the following reasons:

  • The increase in legal and medical expenses continues to skyrocket. Attorney fees and medical care alone are enough to recommend protecting your business with this powerful coverage.
  • Business evolves as the Internet continues to grow. The prospect of conducting business operations through traditional online transactions, social media, Web 3, and more, is great for companies but opens you up to liability issues. Personal information for customers and other entities is vulnerable to online attacks and deserves protection.
  • Bodily injury liability can often combine the losses of medical/legal expenses with those involving the Internet. Killware is an evolving category of programs built to cause damage or harm to people and things in real life. Entities have a responsibility to safeguard against such cyberattacks and are encouraged to protect themselves from such hateful threats.

Defective products, defamation, and even a slip-and-fall event are all additional examples that show how liability for businesses can come from a variety of angles. Liability insurance for your business is imperative to avoid paying substantial fees out of pocket while facing such losses.

Property Insurance

Having to restore a loss after substantial property damage can be an uphill battle many business owners never reach the top of. Just as homeowners insurance is beneficial for all homeowners, a business property insurance policy can protect the physical assets of your business from similar perils and help you avoid restoring losses out of pocket.

For example, if you are renting a warehouse where a fire breaks out and all of your inventory is lost. A business property insurance policy can help you replenish your supply and replace any lost equipment. Business owners who own their physical structures can have even more to lose and are encouraged to protect their property with this coverage.

It doesn’t matter if you are leasing your property or own it, business property insurance is a must-have for any company. Here are the three coverage options businesses have available, according to the Texas Department of Insurance (TDI):

Coverage Options Description
Basic Form Policies The most basic form of coverage offers protection against the following perils: fires, windstorm/hail, lightning, smoke, explosions, collisions from aircraft and vehicles, vandalism/riots/civil commotion, sinkholes, sprinkler leakage, and volcanoes.
Broad Form Policies Protection from everything included in a basic form policy plus: damage from the weight of ice/sleet/snow, leaking appliances, falling objects, and structural collapses.
Special Form Policies Policies with the largest range of protection. Your property is protected from any peril that is not listed under your policy’s “exclusions”. Common exclusions include infestations, flooding, earthquakes/earth movement, war, nuclear disaster, and general wear and tear.

Umbrella Insurance Coverage

Liability can be a dangerous word in the world of business. Even with commercial auto insurance or general liability, once your company has reached its policy limits, you could find your business left paying the difference out of pocket. For excessive losses, umbrella insurance is a powerful supplement to your existing policies that provide an extra layer of security for your business’s financial health.

Workers’ Compensation

Texas doesn’t require workers’ compensation for businesses, which means business owners may feel it isn’t necessary. This can be a costly mistake because when employees are injured performing tasks, the liability can fall on your company. Workers’ comp protects your business by paying for an employee’s medical expenses and loss of income. You can also save on legal expenses by avoiding a court date from a disgruntled employee who has filed a lawsuit.

Texas Business Insurance Requirements

Businesses in Texas aren’t required to carry insurance, including workers’ comp, however, there is one exception. All businesses are required by law to carry a minimum amount of commercial auto insurance. Personal auto insurance will not cover a business if its vehicle is involved in an accident while conducting business. Here are the mandatory minimum coverages every Texas business owner should know:

  • $30,000 worth of bodily injury liability/person.
  • $60,000 worth of bodily injury liability/accident.
  • $25,000 worth of property damage liability/accident.

Additional Business Insurance Considerations

Businesses in Texas deal with a tremendous range of weather and one particular peril can leave you dealing with tremendous property loss that isn’t covered by standard business insurance policies. Flood insurance policies can help you stave off the costs of restoring your business after a flood event. This is a separate policy that is necessary for protection against floods.


Companies operating near the Gulf Coast may also find themselves affected by tropical storms and hurricanes. While many policies include production against windstorm and hail damage, businesses near the coast may not be so lucky. The Texas Windstorm Insurance Association (TWIA) provides coverages for such perils that can be purchased through agencies such as Freedom Insurance Group. It is important to note that depending on your company’s location, you may also be required to have a valid flood insurance policy in order to qualify for a policy from TWIA.

Why Small Businesses Need Business Insurance in Texas


Running a business isn’t easy. As a business owner, you know the challenges of making sure your company is running smoothly are magnified in a small business giving you less room for error and tighter budgets to work with. Business insurance helps you protect your investment and operations today and in the future.

Small businesses can benefit the most from business insurance because they need protection the most. The same coverages available to Fortune 500 companies can help protect you. No business is infallible from harm and having a plan to protect against perils can help your small business safeguard proactively as opposed to being forced to react in the aftermath.

Small Businesses Who May Overlook Business Insurance

The definition of a small business continues to grow as the Internet provides more and more opportunities for entrepreneurs. Combined with the rise of the gig economy, it’s easier than ever to begin a side hustle or start your own business. But there are many people who may be relying on personal insurance policies that will be shocked to realize they aren’t covered only after suffering a loss. Take a closer look at some common occupations that individuals and business owners alike should be aware may need some form of business insurance to be protected:

  • Real estate agents.
  • Tradesmen.
  • Self-employed contractors.
  • Mobile businesses.
  • Salesmen.
  • Businesses ran out of your home.
  • Dropshippers.
  • Startups.
  • Private instructors.
  • Tour guides/experience hosts.

If you’re conducting business in a physics space, are dealing with sensitive information, or using a vehicle for commercial use, you’re going to need business insurance to stay protected.

Small Business Insurance for LLCs in Texas

LLCs can protect you personally from liability that your business may face, but what’s protecting your business from those same issues? Even with an LLC, you can face legal expenses, operational losses, property damage, and a range of liability scenarios that can harm your business. Your LLC protects you. Return the favor by having the right business insurance coverages in place.

Purchase Business Insurance in Texas

Finding business insurance in Texas is easy with Freedom Insurance Group. We deliver affordable coverage options to companies built to save money and protect your operation. This is because instead of working for a singular brand, we work for you.

By partnering with 25+ insurance brands, our agents can compare your coverages among a variety of top-rated insurance providers. Comparison shopping delivers the best possible price for your business without cutting your protection. Insurance companies all assess risks differently and by comparing your coverage among multiple brands, we can deliver savings and unmatched customer service to our clients. Our average client saves 40% on premiums when switching. Find out how much you can save with a free, no-obligation business insurance quote, or, contact us today!

Business Insurance FAQs

Freedom Insurance Group prides itself on being a resource for your insurance needs. The world of insurance can be a confusing one for many, but we live in this industry and are happy to help. Business owners with questions or concerns about their coverage are encouraged to contact us to best discuss how they can stay protected; however, we also tend to receive some questions more than others.

Below are some of the most frequently asked questions (FAQs) we receive regarding business insurance. Feel free to use them as a reference for your business’s insurance concerns, but remember, each enterprise is different, as are the factors surrounding them. These FAQs should act as a guide but are no substitute for speaking with a licensed insurance agent.

Can Business Insurance Be Written Off?

The IRS allows your business insurance policies to be written off if the expenses are ordinary and necessary.

What Business Insurance Do I Need?

The needs of each business are different. A real estate agent may require different coverages than a small restaurant, and that same restaurant is likely not going to need the same level of coverage as a large warehouse or factory. Because of these differences, your coverage needs will likely be different from those of another enterprise. Auditing your business and speaking with a licensed insurance agent can help you determine the best policies for your needs that avoid coverage gaps and protect your assets and investments.

What Does Business Insurance Cover?

Business insurance policies cover a range of things for your company. Depending on your policy, you can protect yourself from liability, property damage, disruption of income, vehicle-related incidents, and more. Different policies work in different ways, but together, they all assist in keeping your company from dealing with a financial loss all alone.

Will Business Insurance Cover COVID?

No, under most circumstances, business insurance will not cover COVID-related losses. A common misconception is that business interruption insurance policies may cover COVID-related shutdowns, however, because such interruptions are not due to physical damage sustained by your business, your claim will not be covered unless explicitly stated otherwise in your policy.

Does Business Insurance Cover Vehicles?

Yes, commercial auto insurance policies can protect your vehicles, the vehicles of others, and other property that becomes damaged as a result of an accident. Your policy can also help protect your business from liability issues and pay for medical and/or legal expenses out of pocket. Commercial auto insurance is the only business insurance policy required by law in the state of Texas and is necessary for any professional conducting business operations while using a vehicle. From fleets of 18-wheelers to trucks used by contractors to an SUV hauling clients from showing to showing, if there’s business being done, you’ll need coverage.

Where to Get Business Insurance in Texas?

Freedom Insurance Group proudly represents more than 25 top-rated, financially strong insurance brands. By partnering with multiple reputable insurance providers, we can find unique solutions to specific business concerns. It also allows us to shop your coverage needs among multiple brands to deliver the best possible price for the coverage you need. Contact us today to discuss your options.

Contact Us

Freedom Insurance Group
3861 Long Prairie Rd Ste 110
Flower Mound, TX 75028
Phone: (972) 798-3769


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