Nationwide is Texas’ best general liability insurance provider, with a MoneyGeek score of 93 out of 100. Next, The Hartford, Hiscox and Thimble are also great options for general liability policies.
Best General Liability Insurance in Texas
Updated: April 14, 2025
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Key Takeaways
Nationwide is Texas' best general liability insurance company, offering affordable rates for LLCs and good customer service.
Thimble offers the cheapest general liability insurance for sole proprietors in Texas at $24 monthly. Next is the most affordable option for LLCs at $28.
General liability insurance costs in Texas vary by industry, averaging $30 to $4,067 monthly.
Best Cheap General Liability Insurance in Texas
| Nationwide | 93 | $42 | $44 |
| Next | 90 | $27 | $28 |
| The Hartford | 88 | $34 | $63 |
| Hiscox | 83 | $32 | $84 |
| Thimble | 83 | $24 | $67 |
*Rates are based on a $1 million per occurrence and $2 million aggregate limit for a software development company.
Nationwide: Best Overall
pros
Low rates for LLC businesses
Large coverage selection
Low customer claims frequency
cons
Higher rates for sole proprietors
COMPANY HIGHLIGHTS
Nationwide is the best overall general liability insurance company in Texas, balancing affordability and great customer service. The company tied for first place for the lowest claims ratio from the National Association of Insurance Commissioners (NAIC) and ranks second for LLC affordability, with an average annual rate of $530.
Next: Cheapest Overall
pros
Easy, fast buying process
Very cheap rates overall, regardless of business size
Business-insurance-only focus
cons
Higher customer complaint frequency
COMPANY HIGHLIGHTS
Next offers the cheapest overall general liability insurance in Texas. It has the second-cheapest monthly rate for sole proprietors at $27 and the lowest monthly rate for LLCs at $28. While its claims ratio is higher than that of other companies reviewed in the state, the buying process is smooth, and you can get proof of insurance within the same day.
How Much Is General Liability Insurance in Texas?
General liability insurance costs sole proprietors in Texas an average of $30 monthly and LLCs $57. These figures apply only to software development companies, as costs vary widely by industry.
The table below shows the average general liability insurance prices for various Texas industries, such as cleaning services, general contractors and software development firms.
| Cleaning | $1,524 | $88 |
| General contractor | $4,067 | $216 |
| Software development | $57 | $30 |
*Rates are based on a $1 million per occurrence and $2 million aggregate coverage policy for general liability.
Factors That Impact General Liability Insurance Costs in Texas
The cost of general liability insurance for Texas businesses varies based on several key factors. Here's how these elements affect your coverage costs:
Policy limits
Coverage limits significantly affect insurance premiums. Higher limits increase costs, while lower limits typically result in cheaper premiums.
Number of employees and payroll costs
Companies with many employees and high payroll costs can expect higher general liability insurance expenses. Our analysis of LLCs and sole proprietors shows this relationship.
Business location
Your business location affects insurance costs. Average rates vary between states and cities, so consider these differences when evaluating coverage needs.
Claims history
Multiple claims can make your business seem risky to insurers, leading to higher premiums.
Industry
Industries with higher risks, such as construction, generally face higher general liability insurance costs.
Texas General Liability Insurance: Buyer's Guide
Business insurance can be complex, but understanding general liability insurance doesn’t have to be. This short guide explains how to find the best coverage, what it covers, Texas requirements and how much coverage you may need.
How to Find the Best General Liability Insurance Company
Here’s a step-by-step guide to help you find the best small business insurance for your industry:
- 1
Define your coverage needs
Determine your liability risk by considering your industry, products or services, customer types, business size and market impact. Measure the frequency and costs of common claims in your industry to evaluate coverage options better.
- 2
Research average costs for your business
Research average insurance costs for your type of business to judge whether you're getting a good deal. This gives you a measuring stick to determine if a company saves money.
- 3
Consult similar businesses
Talk with other business owners in your community for recommendations. Their experience can be more valuable than online research. They can suggest coverage suited to your needs and share common claims in your industry. They might also suggest ways to reduce risks so you need less coverage.
- 4
Compare multiple options through different means
Compare several companies directly to find the best option for your business. Use online comparison sites and brokers to get a more complete view of pricing and more chances to receive advice.
What Does General Liability Insurance Cover and How Does It Work?
General liability insurance has two parts: per occurrence limits (maximum for a single claim) and aggregate limits (total yearly coverage). This policy covers:
Bodily injuries or damage to business property
Legal fees for bodily injury or property damage your company may be responsible for
Damage to leased or rented business property
Bodily injury or property damage caused by your product or service
Legal defense for libel, slander or reputational harm
Legal fees for copyright infringement accusations
Is General Liability Insurance Required in Texas?
Like most states, Texas doesn't require general liability insurance by law, though requirements vary by industry. You may need coverage to get a professional license, sign contracts with larger companies or secure an office lease.
Industries that typically need such coverage include:
- Accounting
- Consulting
- Contracting
- Engineering
- Insurance
- Law
- Marketing
- Media/Communications
- Medical
- Real estate
How Much General Liability Insurance Do I Need?
Most small businesses need only a standard policy with $1 million protection per occurrence and a $2 million yearly limit. This typically covers most damages for most business types. However, your industry's specific risks and operation size might require larger coverage limits.
WHO MAY NEED MORE COVERAGE
Industries with the highest risk and most expensive general liability insurance claims include health services/products, construction, contracting, hospitality and retail. If your business falls into any of these categories, consider a higher coverage level. Larger small businesses with more employees or wider product and service reach should also assess their risk and may need coverage beyond the standard level.
Best General Liability Insurance Texas: Bottom Line
The best general liability insurance companies in Texas are Nationwide, Next and The Hartford. However, we recommend comparing options yourself and getting multiple quotes to ensure you find the best deal.
General Liability Insurance Texas: FAQ
Below, we address frequently asked questions about general liability insurance in Texas:
Which company has the best general liability insurance in Texas?
Nationwide offers the best general liability insurance in Texas, earning a MoneyGeek score of 93 out of 100. However, the ideal insurance depends on your business size, number of employees and specific coverage requirements.
Which company has the cheapest general liability insurance in Texas?
Next offers the most affordable coverage for LLCs, with an average annual rate of $333. Thimble is the cheapest option for sole proprietors, averaging $284 per year.
Is general liability insurance legally required for businesses in Texas?
General liability insurance isn’t legally required for businesses in Texas, but it’s a smart investment to safeguard against the financial risks of third-party liability claims.
How We Chose the Best General Liability Insurance Providers in Texas
We broke down our scores into these categories and weights:
- LLC cost (55% of score)
- Sole proprietor cost (5% of score)
- Customer satisfaction (25% of score)
- Financial strength (10% of score)
- Quote process time (5% of score)
For all business insurance companies, we assumed software development industry LLCs with 20 employees. We based customer satisfaction and financial strength scores on NAIC and A.M. Best ratings. Quote process scores came from our MoneyGeek experts' personal experiences.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.