It is unfortunately easy to overlook some things when planning and forming a new business. However, failing to address critical issues like business insurance can increase your overall liability once you finally open for business.
Since Texas has fewer insurance requirements than most states, it is even easier to forget about this vital form of protection. Below, you will learn more about business insurance, including nonmandatory policies that can benefit your operations.
You have 1 mandatory insurance requirement
While Texas does have fewer insurance requirements, all motor vehicles used for business purposes must be covered by commercial auto insurance.
There are 2 non-mandatory policies that you should consider
Many states require a minimum amount of insurance to protect the business owner and associated parties (consumers, employees, businesses, etc.). Unlike most regions, Texas does not usually require companies to purchase workers’ compensation or general commercial liability insurance.
You might think this gives you a chance to save some money but don’t forget that these two policies can shield your company from legal woes. Without them, you leave a path open to lawsuits from disgruntled or injured employees and customers who believe you wronged them.
There are 3 additional policies definitely worth purchasing
Many entrepreneurs purchase additional insurance policies to safeguard their business operations. For example, commercial property insurance can secure your finances against property damage from natural disasters, vandalism or theft. Other insurance to consider includes:
- Professional liability insurance to protect against malpractice claims
- Cyber insurance to protect your and your customer’s financial information from data breaches and cyber-attacks
- Commercial umbrella insurance to enhance the protections you already have with your other policies
When you address possible risks of conducting a business, you can open your doors without fear of unanticipated liabilities covered by these forms of insurance. Consider learning more about ways to minimize your business risks from a source with knowledge of Texas business laws.
