Understanding the Importance of Commercial Insurance for Business Owners in Texas

Entrepreneurs looking for commercial insurance in Texas should be aware of the different coverage options available for their industry. No one insurance plan fits all types of businesses since every operation is unique with its own set of risks. The key is to explore different coverage choices and decide what works best for your company.

Your Business Needs Coverage Regardless of Its Size

Whether you are a sole proprietor or an MNC, you likely need some type of insurance coverage to protect yourself against potential litigation and financial losses. Small businesses usually don't need as much coverage as a large operation that employs thousands of people. Nonetheless, even a small shop needs financial protection in case someone trips and gets injured. Usually, the more machinery is used in the workplace, the greater chance of on-the-job injuries.

Any company that hires employees needs workers' compensation to pay for hospital bills and time away when employees are injured or become ill while working. It's required by law in all 50 states, just as commercial auto insurance is required for any business that owns vehicles. Beyond these two main mandated forms of insurance, it's usually up to the company how much coverage they buy.

The two main types of coverage that commonly protect businesses are

  • liability insurance for physical or mental harm
  • property damage insurance

These are meant to cover losses for third parties who claim to have been harmed by your business. It's a way for owners to protect their assets from getting drained by lawsuits.

How to Find Suitable Insurance Coverage

The best way to find the right coverage is to get quotes online from insurance companies while learning about their policies. Many businesses choose a Business Owner's Policy (BOP), which combines liability with commercial property coverage.

A BOP plan can further be customized with add-on coverage, such as raising coverage limits. Usually, a BOP plan costs less than if an owner purchases liability and commercial property coverage separately. Be prepared to customize a policy based on your concerns about the safety of your employees and patrons.

Another advantage to a BOP plan is that it provides business interruption coverage. So, if your firm is ever temporarily forced to shut down, the coverage pays for lost revenue and wages.

How to Choose the Right Insurance Company?

While BOP plans are popular with small businesses, larger companies are usually more complex with greater risks. If your company owns a fleet of vehicles, you'll need to cover each vehicle, although the more coverage you buy, the more likely you'll get a price break. Another consideration is if you have all your different insurance types bundled under one company, you can get an overall discount.

You've got to do your homework to determine which insurer offers you the most viable coverage for the best price. Flexibility and easy scalability should also be considered since you will need to make policy adjustments as your company evolves.

Why Choose Amity Insurance Group?

When investigating commercial insurance in Texas it's important to keep your business risks in mind. Think about other firms in your industry. Find out statistics on claims in your field to gauge your risks. Contact us at Amity Insurance Group today to get answers to your questions. We offer a wide variety of commercial insurance options and care about the clients we serve.