Texas is rich in many things, not the least of which are the many small businesses that keep our state prosperous. If you are a small business owner in Texas, it is important to protect your company with business insurance.
With appropriate business insurance coverage, your company will be protected against the many risks that could otherwise result in your being forced out of business. Keep your company and yourself safe by purchasing small business insurance from a qualified insurance agent.
Business Liability Coverage
The first and most important type of small business insurance needed to open your company doors to the public is liability coverage, also called Commercial General Liability Insurance or CGL. This policy protects your company when someone is hurt at your location or work site, there is damage caused by an employee to another person’s property, and when personal injury is claimed due to misrepresentation, libel, etc.
It also covers you for data loss due to accidents or malfunctions, although cyber crime liability may require adding a specific rider to your policy.
Business Property Coverage
While CGL business insurance coverage handles any liability issues you may encounter, it is also wise to purchase business property protection as well. A Business Property Protection (BPP) policy is business insurance that protects you in the event that owned or leased equipment is damaged or destroyed.
The policy also covers things such as damaged or stolen supplies and inventory, business interruption costs, damages caused by fire, employee theft, hired vehicle insurance, and more. It does not cover company-owned vehicles, which should be protected under a commercial auto policy.
Any company with employees should carry workers compensation to protect those employees. Even though this business insurance coverage is not required in the state of Texas, it is an important way to protect your company’s name and assets in the event an employee is hurt. Workers compensation policies cover medical costs, extended medical care, lost wages, and other expenses incurred due to a work-related injury.
Workers compensation also pays for your legal costs should an employee be injured while on the job. Without this coverage, you face the potential of an employee lawsuit seeking reimbursement for medical care, lost wages, and other accident-related costs.
Although the above business insurance policies are the three core policies recommended for most small companies, you may also want to consider umbrella coverage. Also known as excess liability coverage, umbrella coverage protects you in the event a claim exceeds the limits of your CGL policy up to the limit that were purchased.
The above policies are the basic types of business insurance every Texas small business owner should purchase to protect their company, assets, and livelihood. Depending on the nature of your business, you may also need other specialized insurance policies. Discuss your individual needs with a qualified small business insurance agent to determine the business insurance coverage and limitations that will effectively protect your company!