Best Small Business Insurance in Texas

NEXT tops our analysis of Texas business insurance providers because of its strong customer service, low rates and comprehensive coverage options. The Hartford and Simply Business are also reliable options for small business owners across the state.

Note: This data represents a small business with 2 employees, $150,000 in payroll and $300,000 in annual revenue. All scores were calculated for four of the most common coverage types in the industry across 79 industries in the United States.

Your business insurance costs in Texas range from $74 to $148 monthly, depending on which coverage types your business needs. Industry and risk factors drive these price differences. Below you can compare average rates for the four most common business insurance types in the lone star state:

• General Liability Cost: $104/mo or $1,253/yr
• Workers' Comp Cost: $74/mo or $890/yr
• Professional Liability (E&O) Cost: $78/mo or $939/yr
• Business Owners Policy (BOP) Insurance Cost: $148/mo or

Note: We analyzed rates for your two-employee business across 79 industries, focusing on general liability, professional liability, workers' compensation and business owner's policies. Our Texas research covers the companies we surveyed and won't include every rate available to your specific business.

The cost of business insurance in Texas varies widely depending on industry and coverage types being anywhere from $6 to $1,341 monthly. Below you can compare Texas commercial insurance costs for your desired coverage type and industry below

Note: We analyzed rates for your two-employee business across 79 industries, focusing on general liability, professional liability, workers' compensation and business owner's policies. Our Texas research covers the companies we surveyed and won't include every rate available to your specific business.

Below we've summarized business insurance cost factors that affect your premium, specific to Texas:

• Texas Workers Compensation Laws: Texas is one of only two states that doesn't require most private employers to carry workers' compensation insurance. About 40% of Texas employers choose "non-subscriber" status, opting out of the system entirely and saving on commercial insurance. However, employers without workers' comp lose legal protection against lawsuits and can be sued by injured employees.
• Weather and Natural Disaster Risks: Texas has the highest average yearly number of tornadoes in the United States, with cities near the Gulf Coast, Tornado Alley, North Texas, and Panhandle most affected. Coastal properties often need separate windstorm policies through the since standard policies exclude wind and hail coverage along the coast. Insurance companies often put a hold on approving new policies when a storm is in the Gulf, and flood policies don't take effect until 30 days after purchase’.
• Tort Reform and Liability Environment: Texas implemented significant tort reform in 2003 including a $250,000 cap on non-economic damages in medical malpractice lawsuits. Despite reforms, Texas is the leading state for verdicts exceeding $10 million in injury cases, costing Texas job creators over $45 billion from 2009-2023. Texas is one of four states responsible for half of all nuclear verdicts in the United States, driving up insurance costs statewide.
• Regional Cost Variations: Cities near the Gulf Coast like Brownsville, Galveston, Houston, and Port Arthur face the highest hurricane risk Flood-prone areas include Austin, Houston, and Fort Worth, requiring additional flood insurance coverage. A business in Austin can expect different insurance rates than a business in Lubbock due to varying local weather patterns, crime rates, and regional risk factors.

Getting multiple business insurance quotes from Texas commercial insurers is the best way to save on your policy. Be sure to compare companies apples to apples for coverage so you can compare appropriately. You can use MoneyGeek's business insurance quote tool below to get matched to the best cheap small business insurance for you.

If you're researching business insurance Texas requirements, you'll be pleased to know the state keeps things simple. Texas small business insurance laws require only a few specific types of coverage:

Business insurance in Texas isn't heavily regulated, which means you get to choose the types of coverage that actually fit your needs. We've analyzed what works best for the major industries driving Texas business.

Finding the right business insurance Texas coverage feels overwhelming when you're running a small operation. You can cut through the noise and secure financial protection that fits your budget and business needs using these steps:

Based on our analysis, NEXT, The Hartford and Simply Business are Texas' best business insurance providers. However, what's ideal for you depends on your business risks and employee needs. Research each company's service quality, maximize discounts and select coverage that fits your budget.

Finding the right business insurance in Texas raises many questions for small business owners. Below, we answer the most frequently asked questions:

Small business owners in Texas need reliable coverage that protects their operations without breaking their budgets. We designed our methodology to help Texas entrepreneurs navigate challenges like hurricane risks and the state's optional workers' compensation laws.

We studied thousands of quotes from 79 industries across four coverage types for a two-employee firm with $300,000 annual revenue and $150,000 payroll. All policies included $1 million per occurrence and $2 million total per year, with BOPs adding $5,000 business property coverage.

• Affordability (50% of score): We compared company rates across all coverage types to identify the most cost-effective options for small businesses that need comprehensive financial protection without overpaying.
• Customer experience (30% of score): We analyzed J.D. Power satisfaction ratings, NAIC complaint data, online review sites and independent agency feedback to assess real-world service quality when you need claims handled quickly.
• Coverage options (15% of score): We evaluated the breadth of coverage types, policy limits and add-on options available to accommodate growing businesses and Texas's diverse industry needs.
• Financial strength (5% of score): We reviewed AM Best ratings, Moody's assessments and company financial reports to ensure insurers can reliably pay claims, especially important given Texas's frequent weather disasters.

This approach helps Texas small business owners compare insurers on what matters most: affordable premiums, reliable service, adequate coverage and financial stability.