Your business insurance renewal arrives with a nonrenewal notice, or an application comes back declined. Under Texas House Bill 2067, which took effect January 1, 2026, an insurer must give a written statement of the reasons for a declination, cancellation or nonrenewal. You no longer have to ask for it. For business insurance, the notice of a declined application goes to your agent, who must tell you and let you review it.
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What Texas House Bill 2067 Requires
The 89th Texas Legislature passed House Bill 2067 in 2025. It changes Chapter 551 of the Texas Insurance Code. Before the change, an insurer had to give a written reason only when you asked. The enrolled bill removes that "on request" condition, so the statement is now automatic.
The law also requires reporting. Insurers must send the Texas Department of Insurance a written report at least once each quarter that summarizes their reasons. The report is organized by ZIP code, except for workers' compensation policies, which are reported statewide. The department must post an aggregated summary that doesn't identify any insurer, directly or indirectly.
When the Law Applies
The law took effect January 1, 2026. It applies to an application made, or a policy delivered, issued for delivery or renewed, on or after that date. Applications and policies from before then stay under the earlier law. If you aren't sure which rule applies to your policy, ask your advisor or the Texas Department of Insurance.
What It Means for Business Insurance
Business insurance is called commercial lines. House Bill 2067 adds rules for it:
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Notice goes to your agent. When an insurer declines a completed application for a commercial line, it must deliver the notice to the applicant's agent.
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Your agent must tell you. The agent must disclose the declination and make the notice available for you to review.
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Liability and commercial property are covered. An insurer that declines a completed application for liability or commercial property insurance must deliver or mail written notice of the declination.
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A reason must be stated. A notice about a declination, cancellation or nonrenewal must state the reason.
If a business application was declined, ask your agent to show you the notice. Our guide to Texas business insurance requirements explains what Texas law and your contracts ask for, and our commercial insurance page shows the property coverage we place in Dallas.
How Much Notice Do Commercial Policies Get?
House Bill 2067 adds the written reason. The notice periods come from other rules. The Texas Department of Insurance's commercial general liability guide says licensed insurers' policies must include these protections:
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After the first 60 days, the insurer can cancel only for fraud in obtaining coverage, failure to pay premiums, an increase in hazard within your control that would produce a rate increase, loss of its reinsurance, or if it is placed in supervision, conservatorship or receivership.
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The insurer must give at least 60 days' notice of nonrenewal and tell you in writing why.
The guide, last updated in 2021, also says Texas notice laws for cancellation and nonrenewal don't apply to surplus lines insurers. Surplus lines insurers write coverage that licensed insurers don't offer. Ask your advisor whether your policy comes from a licensed or surplus lines insurer, and whether the new law applies to it. Other commercial coverages follow their own rules, so read your policy and your notice.
What a Written Reason Looks Like
The Texas Department of Insurance's public data page groups the reasons insurers report into categories. They include claims history, condition of property (including roof condition), the insurer's concentration of risk in an area, liability, increase in hazard, wind, hail or hurricane exposure, and failure to pay premiums. An insurer can cite more than one reason.
That public tool covers home and personal auto policies, so it doesn't show commercial reasons. A business could still see similar reasons on its own notice. A notice that names the specific problem is more useful than a general category. If yours is vague, ask your agent to request detail from the insurer.
What the Public Data Shows
Since reporting started on April 1, 2026, the Texas Department of Insurance has posted data by ZIP code and policy type, not by insurance company. You can pick a ZIP code and see the reasons cited and the number of policies declined, canceled or not renewed. Right now it covers home and personal auto. If you own property in Dallas-Fort Worth, it shows how insurers are treating homes and cars near your business, which can hint at how they see local risk. It doesn't predict your own commercial renewal.
Dallas-Fort Worth: Why This Matters Here
North Texas weather is one reason notices happen. The Insurance Information Institute reports 902 hail events in Texas in 2025, the most of any state. The National Oceanic and Atmospheric Administration's Storm Events Database lists 16 hail events in Dallas County in 2025, 28 in 2024 and 51 in 2023, when 11 had hail two inches or larger. It also lists 44 flash flood events in Dallas County in 2025.
For a building owner, roof age and condition are the most likely items an insurer will care about. Keep roof records and repair invoices where you can find them. A business with a dated roof may want to talk to its advisor early. See our guide to commercial property insurance for what the policy covers.
If You Get a Notice: Steps for This Week
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Read the stated reason and the dates. Note whether it's a declination, cancellation or nonrenewal, and when coverage ends.
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Send it to your advisor. Talk to Us with a copy of the notice, and we'll go through it with you.
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Fix what can be fixed. If the reason is a roof, a hazard or missing records, ask what the insurer will accept as proof.
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Gather your records. Loss history, maintenance logs, inspection reports and contracts help show your risk.
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Compare other insurers. The Texas Department of Insurance advises that you keep shopping if an insurer declines you, because insurers have different underwriting criteria.
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Call the Texas Department of Insurance if you think a notice was unfair or you never got a written reason. The Help Line is 800-252-3439, Monday to Friday, 8 a.m. to 5 p.m. Central time.
How Thumann Agency Helps
We've been an independent Dallas broker since 1996. Bring us the notice, and your dedicated advisor will read the reason with you, explain the timing and compare what other insurers would write. We have access to more than 80 carriers, and which ones quote depends on your risk. We also hold an annual renewal review with clients, so surprises are less likely. Start with our business insurance hub.
Every year at the time of renewal, the staff is always patient in looking over my plan to see if I have the right coverage. Thanks again for the wonderful customer support.
Maria Galindo | Google | ★★★★★
Talk to Us about your notice or renewal, or Get a Quote.
Frequently Asked Questions About Texas House Bill 2067
Does the law stop an insurer from canceling or not renewing my policy?
No. House Bill 2067 requires insurers to explain their decision in writing and report their reasons. It doesn't stop an insurer from declining, canceling or not renewing when other Texas rules allow it. Its main value is clarity: you see the reason sooner, which helps you fix the problem or shop for other coverage.
Does a written reason mean I can dispute the decision?
It gives you something to respond to. If the reason is wrong, such as an inaccurate claims history or a repair that's already done, send proof to your advisor and ask the insurer to reconsider. It may or may not change the decision. You can also call the Texas Department of Insurance Help Line if you think the notice was unfair.
Will the new law change which businesses insurers will cover?
The law is about transparency, not underwriting. Insurers still decide which risks to write, based on their own guidelines and the policy terms. What changes is what you learn when they say no. Over time, the public data may show patterns by ZIP code, but it doesn't set or change anyone's appetite.
What should I do before renewal so a notice doesn't surprise me?
Start early and keep records current. The Texas Department of Insurance suggests giving your agent your claims history, coverage choices and risk-management steps about four months before renewal. We hold an annual renewal review with clients to check limits, repairs and changes in operations. Fixing a known issue before renewal gives you time to show proof.
Does the law apply to workers' compensation insurance?
The bill's reporting rules mention workers' compensation policies and require a statewide report, not one organized by ZIP code. The notice rules and notice periods are set by Texas law and the Texas Department of Insurance, Division of Workers' Compensation, and can change. Ask your advisor to check your specific policy and notice.
Got a Notice and Need Help Comparing Your Options?
Send us your declination, cancellation or nonrenewal notice. We'll go through the reason with you, explain the timing and look at what other insurers would write for the same risk. Get a Quote or Call Us at (972) 991-9100.
Last Reviewed: October 2026
Author: Lauren Thumann Director of Marketing.
Sources: Texas Legislature: House Bill 2067, Enrolled Version, Texas Department of Insurance: Reasons Home and Auto Insurance Policies Are Declined, Not Renewed or Canceled, Texas Department of Insurance: Commercial General Liability Insurance, Insurance Information Institute: Facts and Statistics, Hail, National Oceanic and Atmospheric Administration: Storm Events Database
Disclaimer: This information is provided for general educational purposes only and is not legal, tax, or insurance advice, or a full description of any policy. Coverage terms, conditions, limits, and exclusions vary by carrier and by state, including Texas. Not all coverages or discounts are available in all states. Reviews and ratings are from verified customers and reflect their own opinions and experiences. For details about your specific needs, please contact Thumann Agency directly. Thumann Agency is licensed and operates under Texas Department of Insurance regulations. Notice periods, reasons and effective dates are set by Texas law and the Texas Department of Insurance and can change. Whether a particular notice or policy falls under House Bill 2067 depends on its dates and terms. Workers' compensation participation and notice rules are set by the Texas Department of Insurance, Division of Workers' Compensation, and can change.