TX Insurance Guide
Texas Business Insurance Requirements
Everything you need to know about business insurance requirements in Texas. Compare quotes from top carriers licensed in TX.
Average Business Insurance Costs in Texas
$58/mo
Business Owners Policy
GL + Property combined
$38/mo
General Liability
$1M/$2M coverage
$96/mo
Workers Compensation
Per employee average
Texas Insurance Requirements
✓
Workers Compensation: Not Required
Not required (but recommended). Required for government contractors.
- ✓Workers compensation is NOT mandatory in Texas (one of few non-compulsory states)
- ✓Employers who opt out must notify employees and file with TDI
- ✓Commercial auto insurance required for business vehicles
- ✓General liability commonly required by landlords and contracts
- ✓Texas-specific wind and hail coverage important in coastal areas
Regulatory Authority: Texas Department of Insurance
Top Industries We Insure in Texas
Oil & Gas
Get a quote →Construction
Get a quote →Technology
Get a quote →Healthcare
Get a quote →Agriculture & Ranching
Get a quote →Restaurant & Food Service
Get a quote →Texas Business Insurance FAQ
Is workers comp required in Texas?
No. Texas is one of the few states where workers compensation insurance is not mandatory for private employers. However, employers who do not carry workers comp lose important legal protections and can be sued directly by injured employees. Government contractors and some industries are still required to carry it.
How much does business insurance cost in Texas?
Business insurance in Texas is generally more affordable than the national average. A typical BOP costs around $58/month, general liability averages $38/month, and workers compensation averages $96/month. Costs vary based on industry, location, and coverage limits.
What insurance do Texas businesses need?
While there are few legally mandated coverages in Texas, most businesses need general liability insurance, commercial property insurance, and commercial auto insurance. If you have employees, workers comp is highly recommended. Professional services firms should carry professional liability (E&O) insurance.
Do I need special insurance for hurricane/wind damage in Texas?
Yes. Standard commercial property policies in Texas often exclude wind and hail damage in coastal counties. Businesses in the Texas Windstorm Insurance Association (TWIA) eligible area should purchase separate windstorm coverage. This is particularly important for businesses in Houston, Galveston, Corpus Christi, and other Gulf Coast areas.
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