So, you are running a small business or just starting a brand new one in Texas. Some of the first steps of getting a business off the ground are getting paperwork and documentation in order, getting permits, and naturally, getting insurance.
Although Texas state law does not require business insurance you should not disregard it. Without proper insurance coverage, you are putting both yourself and your company in a precarious position in the event that something unexpected happens.
So, what do you need to do to avoid that? How do you go about getting the right insurance for your company? We took a look at some of the most useful tips for getting insurance for your Texan company.
Find An Insurance Provider For Your Specific Needs
When it comes to looking for insurance providers, you will need to find one who will understand your unique business needs. So, shop around before simply landing on one. You will need to find one that understands your industry as well as your unique positioning.
An insurance company that services mostly industrial clients will not be perfectly suited to a retailer and visa versa. Look for a provider who specializes in your field for the most comprehensive cover.
It is also worth your while to keep things local. So, if you are looking for insurance, do not cast your net too wide. Being based in Texas, you should look for specifically Texas business insurance. They will have a deeper insight into the local community, understand regional risks better, and know more about local businesses than firms based out of the state.
Know What Insurance You Actually Need
Insurance differs vastly between car, home, business, and personal. What you will need for business insurance will need to be a lot more comprehensive than that for your home or car.
Remember, there are a lot more elements to your business than to your home, and you will need to make sure it is all covered.
Here are the various types of business insurance you need to know about:
- General liability insurance covers third-party injuries, third-party property damage, defamation, or copyright infringement.
- Commercial property insurance covers stolen, lost, or damaged business property. This includes the physical property, inventory, equipment, and furnishings.
- A business owner’s policy (BOP) combines general liability insurance with commercial property insurance
- Business interruption insurance covers operating costs if your business is forced to temporarily close due to a storm, fire, or pandemic.
- Professional liability insurance covers lawsuits over work mistakes, oversights, and negligence in professional businesses.
- Cyber liability insurance covers a data breach or other cyber incident that can impact your business or your customers.
- Workers’ compensation insurance covers medical expenses and lost wages for work-related injuries or illnesses. It will also cover you against employee lawsuits.
- Commercial auto insurance covers your fleet as well as medical expenses, property damage, and legal bills in the case of a traffic accident.
Know What Is Going To Impact Your Premium
There are various things that are going to impact your premium. What your competitors might be paying will not be what you will be paying and each business is different.
Biggest factors to consider include:
- Whether you’ve been without insurance for a while. If you have had any break in insurance, this might push your premiums up when you start with a new insurance provider.
- What you do or sell will impact how much you pay for insurance. Not only does your premium depend on what type of business you run, but the higher the risk of your business, the more you’ll pay.
- Where you are located. As we mentioned, your location will impact your insurance greatly. Say, for example, you are in a high-risk area in Texas, then your premiums will be higher. If you are located in a safer neighborhood that is not prone to crime, bad weather, or natural disasters, you will pay less because you are considered low-risk.
- Your prior claims history. Even if you are swapping insurance companies, the new provider will also look at your past claim history if you are an already established business. If you have a history of high claims, especially due to negligence, or if you have faced any business-related lawsuits, this might impact your insurance premium.
The Bottom Line
In conclusion, it is important to do your research and understand all elements of your business before getting insurance. Be aware of where your risks lie and where your company faces the biggest threats. Shop around too, and don’t just go with the first or the cheapest quote. You will want an insurance company that understands your needs and will collaborate with you.