NEXT tops our analysis of Texas business insurance providers because of its strong customer service and comprehensive coverage. The Hartford and Simply Business are also reliable options for small business owners across the state.
Business Insurance in Texas
Updated: July 29, 2025
Advertising & Editorial Disclosure
Key Takeaways
Small business owners can get the best business insurance in Texas from NEXT, The Hartford and Simply Business.
The best business insurance in Texas depends on your industry risks, employee count and preferred coverage limits.
To find the best coverage, assess your risks, compare multiple quotes, research provider service quality and maximize available discounts.
Best Business Insurance Companies in Texas
| NEXT | 4.64 | 3 | 1 | 2 |
| The Hartford | 4.63 | 1 | 2 | 3 |
| Simply Business | 4.50 | 4 | 5 | 1 |
| Nationwide | 4.48 | 6 | 2 | 4 |
| Coverdash | 4.42 | 5 | 6 | 2 |
| biBerk | 4.40 | 7 | 2 | 5 |
| Progressive Commercial | 4.34 | 3 | 7 | 5 |
| Thimble | 4.33 | 2 | 8 | 5 |
| Hiscox | 4.27 | 6 | 4 | 6 |
| Chubb | 4.26 | 8 | 3 | 4 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Best by Coverage Type
Small business owners looking for business insurance in Texas should consider The Hartford, which tops our analysis as the best provider for general liability coverage and business owner's policies (BOP). If you need professional liability insurance, NEXT offers the best option.
| Business Owners Policy | The Hartford | 4.68 |
| General Liability | The Hartford | 4.63 |
| Professional Liability (E&O) | NEXT | 4.73 |
| Workers' Compensation | NEXT | 4.62 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Best Texas Small Business Insurance Reviews
We detailed why these three providers ranked highest in our research on business insurance in Texas for small business owners. If you're looking for comprehensive coverage, here's what makes each company stand out.
Next
Best Customer Experience
MoneyGeek Rating
4.6/ of 5
4.5/5Affordability
4.7/5Customer Experience
4.8/5Coverage Options
Average Cost of General Liability Insurance
$102These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies.Average Cost of Workers' Comp Insurance
$69These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers' comp policies.Our Survey: Claims Process
3.9/5Our Survey: Likely to Be Recommended to Others
4.8/5
The Hartford
Best for Affordability
MoneyGeek Rating
4.6/ of 5
4.6/5Affordability
4.6/5Customer Experience
4.7/5Coverage Options
Average Cost of General Liability Insurance
$83These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies.Average Cost of Workers' Comp Insurance
$70These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers' comp policies.Our Survey: Claims Process
4.5/5Our Survey: Likely to Be Recommended to Others
4.5/5
Simply Business
Best for Coverage Availability
MoneyGeek Rating
4.5/ of 5
4.5/5Affordability
4.2/5Customer Experience
4.9/5Coverage Options
Average Cost of General Liability Insurance
$97These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies.Average Cost of Workers' Comp Insurance
$72These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers' comp policies.Our Research: Policy Management
3.7/5Our Survey: Likely to Be Recommended to Others
4.2/5
Cheapest Business Insurance Companies in Texas
The Hartford offers the cheapest business insurance in Texas at $85 monthly ($1,015 annually), with Thimble and Simply Business following at rates below $100 per month. These providers top our research for the most affordable coverage options available to small businesses across the state.
| The Hartford | $85 | $1,015 |
| Thimble | $94 | $1,125 |
| Simply Business | $98 | $1,176 |
| Progressive Commercial | $100 | $1,197 |
| NEXT | $101 | $1,209 |
| Coverdash | $102 | $1,222 |
| Nationwide | $102 | $1,227 |
| biBerk | $105 | $1,257 |
| Hiscox | $109 | $1,307 |
| Chubb | $118 | $1,421 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest General Liability Insurance Companies in Texas
For those looking for business insurance in Texas, The Hartford offers the cheapest general liability coverage in the state. We found that its average monthly rate of $83 is lower than Simply Business, which comes in second with $97.
| The Hartford | $83 | $990 |
| Simply Business | $97 | $1,159 |
| Nationwide | $98 | $1,175 |
| Progressive Commercial | $101 | $1,212 |
| NEXT | $104 | $1,247 |
| Coverdash | $104 | $1,251 |
| Thimble | $108 | $1,297 |
| Hiscox | $115 | $1,380 |
| biBerk | $115 | $1,381 |
| Chubb | $120 | $1,438 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest Professional Liability Insurance Companies in Texas
The Hartford has the most affordable monthly professional liability insurance (E&O) rate at $72 ($862 annually). NEXT is another low-cost option for comprehensive business insurance in Texas.
| The Hartford | $72 | $862 |
| NEXT | $73 | $875 |
| Progressive Commercial | $76 | $906 |
| Thimble | $76 | $915 |
| Simply Business | $77 | $923 |
| Hiscox | $78 | $934 |
| Coverdash | $78 | $942 |
| biBerk | $80 | $958 |
| Nationwide | $83 | $998 |
| Chubb | $89 | $1,071 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability/errors and omissions policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest Workers’ Comp Insurance Companies in Texas
The Hartford offers the cheapest workers' comp rates at $70 monthly ($834 annually). NEXT and Thimble have similarly competitive rates, making all these solid choices for affordable business insurance in Texas.
| The Hartford | $70 | $834 |
| NEXT | $70 | $836 |
| Thimble | $71 | $851 |
| Progressive Commercial | $72 | $859 |
| Hiscox | $72 | $865 |
| Simply Business | $72 | $868 |
| Coverdash | $73 | $880 |
| biBerk | $75 | $904 |
| Nationwide | $82 | $982 |
| Chubb | $85 | $1,025 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest BOP Insurance Companies in Texas
Like with other coverage types, The Hartford is the provider with the cheapest BOP insurance rates, with an average monthly cost of $114 ($1,373 annually). Business insurance in Texas can also be affordable with Thimble, Nationwide and Simply Business.
| The Hartford | $114 | $1,373 |
| Thimble | $120 | $1,438 |
| Nationwide | $146 | $1,754 |
| Simply Business | $146 | $1,755 |
| biBerk | $149 | $1,784 |
| Progressive Commercial | $151 | $1,810 |
| Coverdash | $151 | $1,817 |
| NEXT | $157 | $1,879 |
| Hiscox | $171 | $2,049 |
| Chubb | $179 | $2,147 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on BOP policies. Survey results reflect limited sample data and may not represent all available rates in your area.
How Much Does Business Insurance Cost in Texas?
Business insurance in Texas costs between $74 and $148 monthly, with workers' compensation being the most affordable and business owner's policies the most expensive. Rates vary based on the coverage type your business needs.
| BOP | $148 |
| General Liability | $104 |
| Professional Liability (E&O) | $78 |
| Workers Comp | $74 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Cost of Business Insurance by Industry and Coverage
The cost of business insurance in Texas varies widely depending on industry and coverage types. For example, in our study, workers' comp for speech therapists only costs $6 monthly, while pressure washing businesses pay as much as $1,341 for a business owner's policy.
Data filtered by:Results filtered by:
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Coverage Type:
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Industry:
| Accountants | Workers' Compensation | $21 |
| Accountants | General Liability | $22 |
| Accountants | Business Owners Policy | $33 |
| Accountants | Professional Liability (E&O) | $148 |
| Ad Agency | Workers' Compensation | $16 |
| Ad Agency | General Liability | $36 |
| Ad Agency | Business Owners Policy | $41 |
| Ad Agency | Professional Liability (E&O) | $100 |
| Auto Repair | Professional Liability (E&O) | $82 |
| Auto Repair | Workers' Compensation | $153 |
| Auto Repair | General Liability | $154 |
| Auto Repair | Business Owners Policy | $225 |
| Automotive | General Liability | $54 |
| Automotive | Professional Liability (E&O) | $77 |
| Automotive | Business Owners Policy | $80 |
| Automotive | Workers' Compensation | $119 |
| Bakery | Professional Liability (E&O) | $52 |
| Bakery | Workers' Compensation | $54 |
| Bakery | General Liability | $92 |
| Bakery | Business Owners Policy | $136 |
| Barber | Workers' Compensation | $14 |
| Barber | Professional Liability (E&O) | $43 |
| Barber | General Liability | $45 |
| Barber | Business Owners Policy | $54 |
| Beauty Salon | Workers' Compensation | $15 |
| Beauty Salon | Professional Liability (E&O) | $50 |
| Beauty Salon | General Liability | $68 |
| Beauty Salon | Business Owners Policy | $95 |
| Bounce House | Workers' Compensation | $40 |
| Bounce House | Professional Liability (E&O) | $58 |
| Bounce House | General Liability | $71 |
| Bounce House | Business Owners Policy | $106 |
| Candle | Workers' Compensation | $41 |
| Candle | Professional Liability (E&O) | $42 |
| Candle | General Liability | $56 |
| Candle | Business Owners Policy | $81 |
| Cannabis | General Liability | $68 |
| Cannabis | Workers' Compensation | $84 |
| Cannabis | Business Owners Policy | $100 |
| Cannabis | Professional Liability (E&O) | $125 |
| Catering | Workers' Compensation | $74 |
| Catering | Professional Liability (E&O) | $80 |
| Catering | General Liability | $89 |
| Catering | Business Owners Policy | $100 |
| Cleaning | Workers' Compensation | $49 |
| Cleaning | Professional Liability (E&O) | $55 |
| Cleaning | General Liability | $134 |
| Cleaning | Business Owners Policy | $190 |
| Coffee Shop | Workers' Compensation | $47 |
| Coffee Shop | Professional Liability (E&O) | $61 |
| Coffee Shop | General Liability | $91 |
| Coffee Shop | Business Owners Policy | $135 |
| Computer Programming | Workers' Compensation | $28 |
| Computer Programming | General Liability | $29 |
| Computer Programming | Business Owners Policy | $33 |
| Computer Programming | Professional Liability (E&O) | $106 |
| Computer Repair | Workers' Compensation | $24 |
| Computer Repair | General Liability | $48 |
| Computer Repair | Professional Liability (E&O) | $63 |
| Computer Repair | Business Owners Policy | $68 |
| Construction | Professional Liability (E&O) | $77 |
| Construction | General Liability | $178 |
| Construction | Workers' Compensation | $181 |
| Construction | Business Owners Policy | $229 |
| Consulting | General Liability | $22 |
| Consulting | Workers' Compensation | $31 |
| Consulting | Business Owners Policy | $33 |
| Consulting | Professional Liability (E&O) | $107 |
| Contractor | Professional Liability (E&O) | $63 |
| Contractor | Workers' Compensation | $167 |
| Contractor | General Liability | $258 |
| Contractor | Business Owners Policy | $377 |
| Courier | Professional Liability (E&O) | $51 |
| Courier | General Liability | $198 |
| Courier | Workers' Compensation | $230 |
| Courier | Business Owners Policy | $290 |
| DJ | Workers' Compensation | $14 |
| DJ | General Liability | $26 |
| DJ | Business Owners Policy | $29 |
| DJ | Professional Liability (E&O) | $46 |
| Daycare | Workers' Compensation | $13 |
| Daycare | General Liability | $33 |
| Daycare | Business Owners Policy | $50 |
| Daycare | Professional Liability (E&O) | $110 |
| Dental | Workers' Compensation | $11 |
| Dental | General Liability | $22 |
| Dental | Business Owners Policy | $32 |
| Dental | Professional Liability (E&O) | $85 |
| Dog Grooming | Professional Liability (E&O) | $56 |
| Dog Grooming | General Liability | $64 |
| Dog Grooming | Workers' Compensation | $65 |
| Dog Grooming | Business Owners Policy | $96 |
| Drone | General Liability | $17 |
| Drone | Business Owners Policy | $25 |
| Drone | Workers' Compensation | $27 |
| Drone | Professional Liability (E&O) | $106 |
| Ecommerce | Workers' Compensation | $22 |
| Ecommerce | Professional Liability (E&O) | $62 |
| Ecommerce | General Liability | $74 |
| Ecommerce | Business Owners Policy | $106 |
| Electrical | Workers' Compensation | $58 |
| Electrical | Professional Liability (E&O) | $64 |
| Electrical | General Liability | $114 |
| Electrical | Business Owners Policy | $166 |
| Engineering | Workers' Compensation | $38 |
| Engineering | General Liability | $40 |
| Engineering | Business Owners Policy | $48 |
| Engineering | Professional Liability (E&O) | $105 |
| Excavation | Professional Liability (E&O) | $68 |
| Excavation | Workers' Compensation | $107 |
| Excavation | General Liability | $472 |
| Excavation | Business Owners Policy | $707 |
| Florist | Professional Liability (E&O) | $38 |
| Florist | General Liability | $43 |
| Florist | Business Owners Policy | $60 |
| Florist | Workers' Compensation | $62 |
| Food | Workers' Compensation | $43 |
| Food | General Liability | $109 |
| Food | Professional Liability (E&O) | $110 |
| Food | Business Owners Policy | $159 |
| Food Truck | Workers' Compensation | $46 |
| Food Truck | Professional Liability (E&O) | $61 |
| Food Truck | General Liability | $144 |
| Food Truck | Business Owners Policy | $214 |
| Funeral Home | Workers' Compensation | $27 |
| Funeral Home | General Liability | $61 |
| Funeral Home | Professional Liability (E&O) | $81 |
| Funeral Home | Business Owners Policy | $91 |
| Gardening | Professional Liability (E&O) | $40 |
| Gardening | Workers' Compensation | $47 |
| Gardening | General Liability | $114 |
| Gardening | Business Owners Policy | $158 |
| HVAC | Workers' Compensation | $64 |
| HVAC | Professional Liability (E&O) | $83 |
| HVAC | General Liability | $249 |
| HVAC | Business Owners Policy | $371 |
| Handyman | Professional Liability (E&O) | $56 |
| Handyman | Workers' Compensation | $94 |
| Handyman | General Liability | $247 |
| Handyman | Business Owners Policy | $360 |
| Home-based | Workers' Compensation | $10 |
| Home-based | General Liability | $24 |
| Home-based | Business Owners Policy | $35 |
| Home-based | General Liability | $46 |
| Home-based | Business Owners Policy | $73 |
| Home-based business | Professional Liability (E&O) | $39 |
| Hospitality | General Liability | $66 |
| Hospitality | Workers' Compensation | $70 |
| Hospitality | Professional Liability (E&O) | $75 |
| Hospitality | Business Owners Policy | $95 |
| Janitorial | Workers' Compensation | $49 |
| Janitorial | Professional Liability (E&O) | $51 |
| Janitorial | General Liability | $139 |
| Janitorial | Business Owners Policy | $205 |
| Jewelry | Workers' Compensation | $30 |
| Jewelry | Business Owners Policy | $39 |
| Jewelry | General Liability | $41 |
| Jewelry | Professional Liability (E&O) | $63 |
| Junk Removal | Professional Liability (E&O) | $68 |
| Junk Removal | Workers' Compensation | $141 |
| Junk Removal | General Liability | $165 |
| Junk Removal | Business Owners Policy | $241 |
| Lawn/Landscaping | Workers' Compensation | $38 |
| Lawn/Landscaping | Professional Liability (E&O) | $51 |
| Lawn/Landscaping | General Liability | $122 |
| Lawn/Landscaping | Business Owners Policy | $176 |
| Lawyers | General Liability | $23 |
| Lawyers | Business Owners Policy | $34 |
| Lawyers | Workers' Compensation | $53 |
| Lawyers | Professional Liability (E&O) | $146 |
| Manufacturing | Business Owners Policy | $39 |
| Manufacturing | Workers' Compensation | $60 |
| Manufacturing | Professional Liability (E&O) | $60 |
| Manufacturing | General Liability | $65 |
| Marine | General Liability | $28 |
| Marine | Business Owners Policy | $42 |
| Marine | Professional Liability (E&O) | $89 |
| Marine | Workers' Compensation | $152 |
| Massage | Workers' Compensation | $15 |
| Massage | General Liability | $97 |
| Massage | Professional Liability (E&O) | $107 |
| Massage | Business Owners Policy | $140 |
| Mortgage Broker | Workers' Compensation | $14 |
| Mortgage Broker | General Liability | $23 |
| Mortgage Broker | Business Owners Policy | $34 |
| Mortgage Broker | Professional Liability (E&O) | $167 |
| Moving | Professional Liability (E&O) | $82 |
| Moving | General Liability | $126 |
| Moving | Business Owners Policy | $181 |
| Moving | Workers' Compensation | $262 |
| Nonprofit | Workers' Compensation | $32 |
| Nonprofit | General Liability | $36 |
| Nonprofit | Professional Liability (E&O) | $50 |
| Nonprofit | Business Owners Policy | $55 |
| Painting | Professional Liability (E&O) | $64 |
| Painting | Workers' Compensation | $142 |
| Painting | General Liability | $146 |
| Painting | Business Owners Policy | $214 |
| Party Rental | Workers' Compensation | $37 |
| Party Rental | Professional Liability (E&O) | $55 |
| Party Rental | General Liability | $81 |
| Party Rental | Business Owners Policy | $119 |
| Personal Training | General Liability | $24 |
| Personal Training | Workers' Compensation | $25 |
| Personal Training | Business Owners Policy | $35 |
| Personal Training | Professional Liability (E&O) | $70 |
| Pest Control | General Liability | $33 |
| Pest Control | Business Owners Policy | $48 |
| Pest Control | Workers' Compensation | $71 |
| Pest Control | Professional Liability (E&O) | $95 |
| Pet | Workers' Compensation | $31 |
| Pet | Professional Liability (E&O) | $45 |
| Pet | General Liability | $57 |
| Pet | Business Owners Policy | $84 |
| Pharmacy | Workers' Compensation | $6 |
| Pharmacy | Professional Liability (E&O) | $57 |
| Pharmacy | General Liability | $63 |
| Pharmacy | Business Owners Policy | $91 |
| Photography | Workers' Compensation | $17 |
| Photography | General Liability | $24 |
| Photography | Business Owners Policy | $32 |
| Photography | Professional Liability (E&O) | $63 |
| Physical Therapy | Workers' Compensation | $7 |
| Physical Therapy | Business Owners Policy | $42 |
| Physical Therapy | Professional Liability (E&O) | $96 |
| Physical Therapy | General Liability | $112 |
| Plumbing | Workers' Compensation | $65 |
| Plumbing | Professional Liability (E&O) | $92 |
| Plumbing | General Liability | $366 |
| Plumbing | Business Owners Policy | $537 |
| Pressure Washing | Professional Liability (E&O) | $57 |
| Pressure Washing | Workers' Compensation | $85 |
| Pressure Washing | General Liability | $928 |
| Pressure Washing | Business Owners Policy | $1,341 |
| Real Estate | Workers' Compensation | $30 |
| Real Estate | General Liability | $54 |
| Real Estate | Business Owners Policy | $79 |
| Real Estate | Professional Liability (E&O) | $129 |
| Restaurant | Workers' Compensation | $63 |
| Restaurant | Professional Liability (E&O) | $81 |
| Restaurant | General Liability | $147 |
| Restaurant | Business Owners Policy | $213 |
| Retail | Workers' Compensation | $35 |
| Retail | Professional Liability (E&O) | $56 |
| Retail | General Liability | $66 |
| Retail | Business Owners Policy | $98 |
| Roofing | Professional Liability (E&O) | $98 |
| Roofing | General Liability | $393 |
| Roofing | Business Owners Policy | $572 |
| Roofing | Workers' Compensation | $851 |
| Security | Workers' Compensation | $52 |
| Security | Professional Liability (E&O) | $100 |
| Security | General Liability | $141 |
| Security | Business Owners Policy | $209 |
| Snack Bars | Workers' Compensation | $44 |
| Snack Bars | Professional Liability (E&O) | $47 |
| Snack Bars | General Liability | $119 |
| Snack Bars | Business Owners Policy | $178 |
| Software | Workers' Compensation | $27 |
| Software | General Liability | $27 |
| Software | Business Owners Policy | $31 |
| Software | Professional Liability (E&O) | $97 |
| Spa/Wellness | Workers' Compensation | $18 |
| Spa/Wellness | General Liability | $108 |
| Spa/Wellness | Professional Liability (E&O) | $110 |
| Spa/Wellness | Business Owners Policy | $158 |
| Speech Therapist | Workers' Compensation | $6 |
| Speech Therapist | General Liability | $32 |
| Speech Therapist | Business Owners Policy | $46 |
| Speech Therapist | Professional Liability (E&O) | $100 |
| Startup | Workers' Compensation | $13 |
| Startup | General Liability | $29 |
| Startup | Business Owners Policy | $43 |
| Startup | Professional Liability (E&O) | $73 |
| Tech/IT | General Liability | $27 |
| Tech/IT | Workers' Compensation | $28 |
| Tech/IT | Business Owners Policy | $32 |
| Tech/IT | Professional Liability (E&O) | $98 |
| Transportation | General Liability | $38 |
| Transportation | Business Owners Policy | $57 |
| Transportation | Professional Liability (E&O) | $95 |
| Transportation | Workers' Compensation | $231 |
| Travel | Workers' Compensation | $7 |
| Travel | General Liability | $21 |
| Travel | Business Owners Policy | $32 |
| Travel | Professional Liability (E&O) | $97 |
| Tree Service | Professional Liability (E&O) | $75 |
| Tree Service | General Liability | $132 |
| Tree Service | Business Owners Policy | $192 |
| Tree Service | Workers' Compensation | $222 |
| Trucking | General Liability | $104 |
| Trucking | Professional Liability (E&O) | $114 |
| Trucking | Business Owners Policy | $154 |
| Trucking | Workers' Compensation | $271 |
| Tutoring | Workers' Compensation | $10 |
| Tutoring | General Liability | $31 |
| Tutoring | Business Owners Policy | $34 |
| Tutoring | Professional Liability (E&O) | $60 |
| Veterinary | Workers' Compensation | $20 |
| Veterinary | General Liability | $45 |
| Veterinary | Business Owners Policy | $66 |
| Veterinary | Professional Liability (E&O) | $118 |
| Wedding Planning | General Liability | $28 |
| Wedding Planning | Workers' Compensation | $29 |
| Wedding Planning | Business Owners Policy | $32 |
| Wedding Planning | Professional Liability (E&O) | $77 |
| Welding | Professional Liability (E&O) | $78 |
| Welding | Workers' Compensation | $118 |
| Welding | General Liability | $167 |
| Welding | Business Owners Policy | $252 |
| Wholesale | Workers' Compensation | $40 |
| Wholesale | General Liability | $45 |
| Wholesale | Professional Liability (E&O) | $61 |
| Wholesale | Business Owners Policy | $67 |
| Window Cleaning | Professional Liability (E&O) | $63 |
| Window Cleaning | General Liability | $161 |
| Window Cleaning | Workers' Compensation | $211 |
| Window Cleaning | Business Owners Policy | $241 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
What Factors Influence My Costs?
Want to know why your premiums are so high? We listed several factors that impact your premiums:
Industry risk level
Your business type has the biggest impact on what you'll pay. Construction companies face much higher rates than consultants because insurers know construction sites have more accidents. For example, a contractor pays hundreds monthly, while a consultant pays just tens of dollars.
Geographic location and weather risks
Where you operate makes a big difference in your costs. Coastal areas pay more due to hurricanes, while inland cities get better rates. According to NOAA data, Texas leads the nation in weather disasters, with 190 billion-dollar disasters occurring from 1980 to 2024. Storm damage costs keep climbing, and insurers pass those costs on to businesses.
Business size
The more employees you have, the more you'll pay. Workers' comp is calculated per $100 of payroll, and general liability considers your revenue and customer volume. A landscaping crew with 10 workers pays far more than someone working alone from home.
Claims history
Past claims stick with you for years and can spike your premiums quickly. A single liability claim impacts rates across multiple coverage types. Maintain a claims-free record, and insurers will reward you with better pricing.
Coverage types and limits
Your premium reflects the coverage you select and how much protection you want. Higher limits mean higher costs, though business owner's policies can save money by bundling multiple coverages into one package.
Years in business
New businesses pay higher premiums because insurers can't evaluate their track record yet. Once you've operated for a few years with a clean claims history, your rates typically drop as you prove yourself a reliable risk.
Professional certifications
Getting safety training or professional licenses often reduces what you pay, particularly for higher-risk work. OSHA certifications tell insurers you're serious about preventing accidents; many offer discounts for these credentials.
Texas Business Insurance Buying Guide
Getting business insurance can feel overwhelming when you're focused on running your business. Here's the thing about Texas business insurance: it's actually pretty straightforward, and we'll walk you through each step to help you make confident decisions.
What Coverage Is Required?
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:
Workers' comp
Most Texas businesses don't need workers' compensation insurance, making it one of only two states where coverage is optional.
The one exception? If you have a contract with a government entity, you must provide coverage until the project wraps up. If you have employees and choose not to carry workers' comp, you lose legal protections against employee injury lawsuits. The exception: businesses with government contracts must provide coverage until the project completes.
However, insurance requirements can change, and you should verify current Texas Department of Insurance regulations before making coverage decisions.
Commercial auto insurance
Small businesses that own vehicles or require employees to drive for work need commercial auto coverage. Texas requires all vehicles to carry at least $30,000 per person and $60,000 per accident for injuries, plus $25,000 for property damage. You'll also get personal injury protection automatically, though you can opt out in writing.
Contractor bonds
If you hold a contractor license for electrical, plumbing or specialty work, you'll need to post a surety bond. This financial guarantee protects customers if you don't complete your job as promised or follow licensing rules. The amount depends on where you work and your contracting type.
What Coverage Do We Recommend?
Business insurance isn't heavily regulated in Texas, which puts the burden on you to choose wisely. We've analyzed what coverage works best for the industries that drive Texas business:
Contractors and Construction | General liability, workers' compensation, commercial auto, tools and equipment coverage, employment practices liability | Construction businesses face high injury risks, expensive equipment theft and liability exposure from property damage. Even one-person operations need protection from accidents and customer property damage. |
Oil Field Services | General liability, workers' compensation, commercial auto, pollution liability, cyber liability | Energy service companies work with hazardous materials in remote locations. Texas produces nearly half of the nation's oil, creating opportunities for specialized service contractors who need industry-specific coverage. |
Restaurants and Food Trucks | General liability, workers' compensation, commercial property, cyber liability, liquor liability (if applicable) | Food service businesses face high burn/cut risks, foodborne illness liability and equipment breakdown costs. Customer slip-and-falls and food safety incidents can devastate operations. |
Consultants and Professional Services | Professional liability (E&O), general liability, cyber liability, commercial property | Independent consultants, accountants, and service providers are liable for client mistakes and data breaches. For growing firms, one lawsuit can exceed annual revenue. |
Dentists | Professional liability, general liability, cyber liability, workers' compensation | Dental practices face procedure complications, HIPAA violations, patient slip-and-falls and equipment failures. Even minor treatment issues can result in substantial malpractice claims. |
Veterinarians | Professional liability, general liability, cyber liability, workers' compensation, animal bailee coverage | Veterinary clinics face animal bite injuries, treatment malpractice claims, liability for animals in their care and drug storage compliance issues. Animal bailee coverage protects against injury or death of animals under their care. |
Retail Shops | General liability, commercial property, cyber liability, workers' compensation, crime coverage | Retail businesses face customer slip-and-falls, theft and data breaches. Employee theft and shoplifting can significantly impact tight profit margins. |
Trucking and Delivery Services | Commercial auto, general liability, cargo coverage, workers' compensation | Trucking companies and delivery services face vehicle accidents and cargo theft. Texas's vast size means longer hauls and higher liability exposure for operators. |
How to Get the Best Cheap Business Insurance in Texas
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:
- 1
Assess your actual risks first
Look at what could realistically go wrong in your business, not what insurance salespeople tell you to buy. A food truck owner prioritizes equipment coverage over cyber liability, while a consultant focuses on professional liability.
- 2
Get quotes from multiple insurers
Each company weighs risks differently, creating large price variations for identical coverage. That plumbing contractor can find much lower rates elsewhere by comparing at least three providers, sometimes saving hundreds or thousands annually.
- 3
Choose providers based on service, not just price
Research claims handling, financial stability and industry expertise before deciding. An oil field services company needs an insurer experienced with pollution liability, while a restaurant wants fast equipment breakdown claim processing.
- 4
Maximize every discount
Bundle policies when logical, time renewals strategically and leverage safety programs or claims-free history. A construction company with documented safety training and combined coverage can cut premiums compared to similar businesses.
- 5
Review coverage annually
Your risks change as you grow, hire employees or add services. A consultant who added two employees needs workers' compensation, while a growing trucking company requires higher liability limits for additional vehicles.
Texas Business Insurance: Bottom Line
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.
Small Business Insurance in Texas: FAQ
Finding the right business insurance in Texas raises many questions for small business owners. Below, we answer the most frequently asked questions:
What business insurance is required by law in Texas?
Texas keeps it simple. You need commercial auto insurance if you own vehicles ($30,000/$60,000/$25,000 limits). Workers' comp is optional unless you have government contracts. Licensed contractors need surety bonds. State law doesn't mandate general liability, but landlords and clients usually require it.
How much does business insurance cost in Texas?
Our analysis shows that costs range from $74 to $148 monthly, depending on coverage. Workers' comp is the cheapest at $74, while BOPs cost $148. The Hartford averages $85 monthly in our study across all coverage types. Actual costs depend on your industry, business size and claims history.
Which company has the cheapest business insurance in Texas?
The Hartford leads at $85 monthly, followed by Thimble ($94) and Simply Business ($98). The Hartford also has the most affordable rates for individual coverage types in our analysis: general liability ($83), professional liability ($72) and workers' comp ($70). Always compare quotes since rates vary based on specific risks.
What business insurance do I need for my small business in Texas?
Start with general liability for customer injuries and property damage. Add workers' comp if you have employees and commercial auto for business vehicles. Consultants need professional liability (E&O), while restaurants should add cyber liability and commercial property coverage. Contractors need tools and equipment protection against theft.
Is NEXT good for Texas businesses?
NEXT tops our rankings with a 4.64 score, excelling in customer service and coverage quality. It's best for professional liability with a 4.73 rating in our study, making it an excellent choice for consultants, contractors and service providers. However, NEXT is pricier than The Hartford, so compare quotes if cost matters most.
Do small businesses in Texas need workers' compensation insurance?
Texas is unusual in that it makes workers' compensation optional. Businesses with government contracts must provide coverage, but everyone else can choose. Going without removes your legal protection against employee injury lawsuits. Most owners buy it anyway since one claim could bankrupt a small business.
What factors affect business insurance costs in Texas?
Your industry has the biggest impact. For example, construction pays more than consulting. Geographic location matters too, with coastal areas facing higher rates due to hurricane risks. More employees increase workers' comp costs. Past claims follow you for years, though safety certifications can earn discounts.
How do I get cheap business insurance in Texas?
Assess your actual risks first, rather than buying everything suggested. Get at least three quotes since pricing varies widely between insurers. Research claims handling and industry expertise to focus on service quality, not just price. Bundle policies and leverage safety programs for discounts.
What's the difference between general liability and errors and omissions (professional liability) insurance in Texas?
General liability covers physical accidents, such as customer slip-and-falls or property damage during work. Errors and omissions (professional liability) cover service mistakes, such as missed deadlines, bad advice or failed deliverables. Most businesses need general liability coverage, while service providers need E&O coverage.
Can I get business insurance quotes online in Texas?
All our top providers offer online quotes: NEXT, The Hartford and Simply Business. Having your business details ready gets you accurate quotes faster. If your business is more complex, like contractors, you may need an agent to help with specialized coverage like pollution liability.
How We Scored the Best Business Insurance Companies in Texas
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.
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.
sources
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