Top-Rated Commercial Insurance Agency in Texas

Types of Commercial Insurance To Consider for Your Small Business in Texas

General Liability

General liability is also called business liability insurance and is used to protect the business from ‘basic’ claims that involve property damage and injury at work. Almost every business in Texas requires general liability coverage. General liability covers the cost of hiring a lawyer and paying medical bills that may occur due to damage or injury. This form of insurance also covers reputations damage and copyright infringement, which can be pretty expensive for a business owner to handle on their own.

What Does General Liability NOT Cover? 

General liability does not cover the cost of professional or intentional mistakes, auto accidents, damage to your own business property, claims that cost more than your policy limit, or employee injuries and illnesses. You have the option to choose from different coverages that can be tailored to the needs of your business accordingly.

• Consider getting general liability insurance for your business if you:
• Use social media professionally or personally
• Work or handle work near a client’s property 
• Have a building, store, or office that is open to clients, vendors, and the general public
• Create or advertise marketing materials for your business
  

What Is Covered Under General Liability Insurance?

Products Liability Insurance              

Product liability is a form of commercial insurance that protects against claims arising due to bodily injury or damage to property caused by a company product after it has been sold. In some cases, a business can be held legally liable for selling such products even if it has not been manufactured by it. Having product liability insurance is essential in Texas to guarantee financial protection at the time of claim. By insuring your business with product liability, you can save millions of dollars in case one of your products malfunctions and causes harm or damage to your customer’s or a third party’s property. For example, if you run a toy shop and a parent buys a toy for their child that eventually causes harm to the child, the parent can easily file a lawsuit against your business. 

How Much Product Liability Insurance Does Your Business Need?

It is up to you to decide how much product liability insurance your business needs. Typically, the insurance coverage depends on the nature of products or services being offered and the quantity. If the products are services have the potential to damage someone else’s property, you should choose a greater cover limit. 

What is Covered In Product Liability Insurance?

Business Owners Policy (BOP) 

A business owner’s policy is basically a combination of business liability insurance and business property insurance. It forms a single insurance policy to help protect the company from lawsuits, penalties, and claims arising due to certain events, including fire, theft, or other catastrophes. Business owner’s policy also provides coverage against the claims arising from the operations of a business, such as property damage or bodily injury. Business owners have the option to customize the insurance plan by adding coverages for: 

• Specialized coverages
• Business income for off=premises utility services
• Data breach

One of the biggest advantages of opting for a business owner’s policy is that it can be custom-made according to the needs and requirements of the industry and business owners. This entails that small businesses can achieve great benefits from this type of plan by creating a package policy put together to provide financial support and security to businesses that face similar risks. 

Who Needs Business Owners Policy?



Property Damage

Property insurance is aimed at providing financial security to business property owners, so in the event of damage or theft to the property, this form of insurance provides financial coverage to the owner. Ideally, a property that is expensive or has a high value is usually covered by purchasing an additional rider along with the main policy. In case of a claim, the policy will either pay the owner the actual value of the property or a replacement cost as a reimbursement to fix the issue. 

How Does Property Insurance Protect a Business?

In case of damage or destruction or damage to the property, this form of insurance will protect you from incurring high repair or replacement costs. Property insurance covers the damages that can result from the following situations:

• Wind-related events
• Fire
• Acts of vandalism
• Theft

What Does Property Insurance NOT Cover? 

Property insurance does not include earthquake insurance, homeowners insurance, flood insurance, renters insurance, and other incidents of similar nature. Most business owners usually combine property insurance with general liability insurance, which turns into a package called a business owners policy.

The basic aim of any insurance policy is to ensure financial stability at the time of loss. You agree to pay a certain amount to the insurance company, known as premium, against a guarantee that the company will bear the burden of a larger amount in case of any unforeseen loss or damage.

Professional Liability Insurance

Professional liability insurance in Texas helps to protect you and your company in case of negligence. This type of insurance basically covers the company from basic claims from the clients. Professional liability insurance is also known as errors and omissions insurance. For example, if you are a business owner and you accidentally made an inadvertent error that caused substantial loss or damage to one of your clients, you will be looking at some serious legal repercussions. Professional liability insurance will cover the fees and costs associated with such events. 

If your business involves direct interaction or dealing with customers, you will most likely require professional liability insurance. For instance, if you work as a roofing contractor, provide financial services, or own a small food business, you are directly dealing with your customers. This means that in case your business causes financial loss to any of your customers, you will have proper insurance coverage to cover the damage. Professional liability can help protect tax preparers, real estate professionals, consultants, technology professionals, accountants, and many more businesses from incurring heavy losses. 

How Does Professional Liability Insurance Work?

Professional liability insurance works through a claim-based basis, which means that the policy is activated for all claims arising during the specified claim period. The claims arising against any business on the basis of negligence, errors, mistakes, or omissions will be covered under this policy. However, keep in mind that any incidents that occurred before the policy became active may not be covered under professional liability. 

What Does Professional Liability Not Cover?

Coverage under professional liability does not include any form of legal liability under civil law or criminal prosecution. In addition, data breaches, cyber liability, and other technical issues may not be covered under this policy. However, there is a separate type of insurance that covers technology-related security issues.

 Examples of Professional Liability Insurance

One of the best examples of professional liability is medical malpractice. Medical professionals are constantly under threat of facing heavy lawsuits for alleged medical malpractice. This is known as an error, omission, or act by a medical professional in which the treatment provided is not up to the standard of care, causing injury or death of the patient. 

Surety Bonds

A surety bond is decided on mutual agreement and guarantees that any business deal or a contract between the parties will be completed. It is like a promise between three parties:. 

• The Principal
• The Surety
• The Obligee

A surety bond is a promise to be liable for the failure, default, or debt of another party. Under the terms and conditions of a surety bond, one party (surety) guarantees the obligations or performance of the second party (principal) to a third party (obligee). The obligee is generally a government entity that requires the second party (the principal, which is usually a business owner) to obtain a surety bond as a promise against fulfilling all work obligations. This is one of the most common contracts that allows one party to question whether the other party will be able to complete the requirements of the task. 

There are two primary categories of surety bonds:

• Contract surety bonds
• Commercial surety bonds (also known as miscellaneous surety bonds)

Contract Surety Bonds

Contract surety bonds provide construction assurance and financial security on construction and building projects by assuring the owner of the p0roject, also known as the obligee, that the contractor, also known as the principal, is able to perform the work and will be able to pay laborers, subcontractors, and suppliers. 

Commercial Surety bonds

Commercial surety bonds guarantee performance by the principle of the undertaking or obligation as mentioned in the bond. Commercial surety bonds consist of a series of surety bonds and are required for businesses. These bonds are comprised of five different categories:

Group Health Insurance

Group health insurance plans provide coverage to a group of members in an organization, in which an insurance company helps employers and employees pay for their medical and healthcare expenses. The main purpose of group health insurance is to provide financial coverage against various health risks to the employees of a business. Since the amount of premium is borne by the company, group health insurance is highly beneficial to many employees. In addition, since the risk of the insurer is spread across a large number of people, the premium amount is fairly less. 

How Does Group Health Insurance Work?

Group health insurance is purchased by a business for its employees, but it can only be purchased in groups. This means that an individual employee cannot avail of group health insurance on his own. Most plans ideally mandate 70% employee participation for group health insurance. The plan can be obtained by both employers and employees at varying premium rates and amounts. The premium payable will differ for each insurance policy. Likewise, the coverage and premium will also vary for each individual on the basis of the plan purchased. Since the plan provides coverage to both employers and employees, it is termed as a group health insurance plan.

 What Does Group Health Insurance Cover?

The most significant attribute of group health insurance is free coverage for employees since it enables them to minimize their expenses for medical care. Group health insurance complies with the statutes of the federal and state government and is formulated according to the constitutional framework of a country while considering the importance and needs of employees. The coverage is provided to every group participant along with their immediate family and dependents, such as spouses and children. Large numbers of employees from different sectors are making the best use out of it by meeting the requirements of their employees’ healthcare needs.

 

Once the organization chooses the type of group health insurance plan for each individual, the employees have the option to either accept or reject the coverage. In some cases, the plan may include variants that allow the insured person to opt for basic coverage or advanced coverage with additional benefits and add-ons. The premium amount is divided between the employees and the organization on the basis of the chosen plan

Lessors Risk Insurance Texas

Lessors risk insurance is a type of commercial insurance generally aimed at small business owners or commercial landlords. The main purpose of lessors insurance is to provide financial security in case a tenant sues you for injury or damage sustained while being in one of your properties or buildings. Lessors insurance is widely used for commercial office spaces, shopping centers, warehouses, apartment buildings, retail stores, and much more. The aim of the property is to safeguard the interests of the owner and provide protection and security at the time of a lawsuit by one of the tenants within the commercial property. 

Lessors risk insurance is typically suited for owners of a property who rent or lease their properties to other companies. Thus, in case of an unexpected incident, the policy will cover the expenses. This form of insurance is particularly useful when you rent your commercial building to organizations that require the use of or operate heavy equipment. 

Types of Lessors Risk Insurance Coverage

The coverage provided may vary depending on the location, age, and the type of tenants of the building. Generally, you have the following options:

• Weather-related damage 
• Property insurance for buildings and apartment structures
• Ordinance or law coverage for the undamaged portion of the building
• Vandalism of property belonging to the tenant or tenant’s customers
• Crime insurance, including employee dishonesty
• Site pollution for locations with storage tanks and other contaminants
• Ordinance or law coverage for the undamaged portion of the building

Workers Compensation

Almost every business in the United States has to obtain workers compensation insurance to protect the interests of the employees. Most states require business owners to purchase an insurance policy to meet the obligations of providing the necessary funds to the employees who get ill or injured due to the working conditions. Whether you run a large or small-scale business, meeting these obligations can be an everlasting challenge. 

Unlike most states, Texas does not require workers to have workers compensation insurance. Instead, they put a limit to the amount an employee will receive as compensation in case of an illness or injury that leads to temporary or permanent disability.

The purpose of workers compensation is to provide financial aid to employees who sustain disabilities or injuries due to the nature of the job. Workers who do not opt for workers compensation find it difficult to handle the legal challenges and meet the financial demands of medical bills and other expenses. Workers compensation provides a comprehensive form of coverage that includes compensation for medical expenses, vocational rehabilitation, lost wages, and death benefits. If an employee fails to grant workers compensation, the employee has the right to sue the employer and expose the employer to pay penalties along with the insurance benefit. 

What Does Workers Compensation Cover?

Workers compensation offers financial protection by providing medical care, rehabilitation, lost wages, death, illness, and disability benefits for employees who are killed or injured while working. The premium amount is calculated according to the employee’s current payroll and the type of work being done. For instance, if an employee working for a construction business trips and falls while working on height, the injuries or disability sustained will be covered by the insurance policy. In addition, the medical expenses and cost of rehab (if required) will also be covered by the policy according to the specified limit. 

What Does Worker’s Compensation NOT Include?

Here are a few examples of what is not included in workers compensation:

• Injuries sustained by an employee intentionally
• Injuries received during a fight initiated by the employee
• Emotional trauma that is not connected to the physical workspace situation
• Injuries sustained due to intoxication at the workplace 
  

Cyber Liability Insurance

When you run a business, you are bound to face various physical risks and damages, which is why you get insurance. But have you ever considered getting insurance for digital or online risks? Online risks include everything from hacking to data breaches. Therefore, to obtain protection against these types of risks, most businesses opt for cyber liability insurance to curb the impact of financial losses caused by cybercrime. Cyber liability can provide significant insurance to respond immediately to data breaches and other forms of technology-related crimes. Generally, cyber liability is availed by large-scale businesses, but even small business owners can obtain this form of insurance policy to protect their business. Cyber liability insurance can protect your business in the following ways:

• Regulatory fines imposed by the state and federal agencies
• Notification expenses to alert customers regarding the breach in their personal information
• Extortion paid to recover locked files
• Lawsuits imposed due to breach in employee or customer privacy and security
• Legal services to help businesses meet federal and state regulations

What Is Not Covered Under Cyber Liability Insurance?

Business owners must be aware of what exactly cybercrime liability insurance has to offer. For instance, the policy does not cover any claims arising from utility failure, bodily injury, contractual liability, property damage, etc. You will have to opt for different types of insurance policies in order to have complete coverage against these situations. For example, you can couple cybercrime liability with general liability insurance or commercial property insurance.

Commercial Auto Insurance

Commercial auto insurance policy is provided to businesses that have vehicles used or owned by the business. This form of insurance protects the business from incurring financial losses or damages caused by auto accidents. A commercial auto insurance policy can provide substantial financial protection to the employee and the business owner while driving a business-owned auto or while using your personal or hired vehicle for the purpose of running business operations. 

What Does Commercial Auto Insurance Cover?

Commercial auto insurance generally covers collision or major physical damage, liability damages, medical expenses for injury to occupants of the vehicles, loss to the business vehicle, and injuries sustained by the occupants due to the negligence of an uninsured third-party driver.

What Is Not Covered Under Commercial Auto Insurance?

The major exclusions under commercial auto insurance include liquor liability, insured contracts, workers compensation, intentional injury, vehicle experiment, impaired property, salesmanship insurance, etc. 

Who Needs Commercial Auto Insurance?

You can consider commercial auto insurance if your business:

• Has employees who drive their personal vehicles to run business operations
• Leases, owns, or rents vehicles, such as trucks and cars
• Has employees who operate owned, leased, or rented company cars
  
  

Commercial Umbrella Insurance

Commercial umbrella insurance provides additional financial coverage to businesses that exceed the cost of liability coverage limits. The policy mainly provides protection against the claims arising after the limits of the main policy have been exceeded. This usually happens when companies have to face several lawsuits, which may be difficult to cover by using a single liability policy. Without commercial umbrella insurance, business owners will have to face heavy penalties and lawsuits that they will have to cover from their own pockets. Commercial liability insurance can provide protection against an advertising error that can trigger multiple lawsuits, increasing expenses that will eventually have to be covered by commercial umbrella insurance. In addition, a commercial umbrella can also protect against injuries sustained by a customer due to the negligence of the business. The primary liability can easily be exhausted, especially if the business is facing multiple lawsuits at the same time. 

What Does Commercial Umbrella Insurance Cover?

Commercial umbrella insurance provides extra coverage to cover the extra costs arising out of excess claims. These costs can include the following:

• Legal costs
• Damage to other people’s property
• Medical bills 
• Judgments and settlements

How Does Commercial Umbrella Insurance Work?

In simple terms, commercial umbrella insurance extends the limits of the primary liability policy, such as general liability insurance. If you don’t have commercial umbrella insurance, you would have to incur extra losses, and your business will eventually be put at risk. 

What Is Not Covered Under Commercial Insurance?

Commercial umbrella insurance does not provide coverage for all types of claims, such as property insurance. However, what your policy covers and does not cover will depend on the nature of business and other terms and conditions.