Commercial Insurance For Texas Business

Business insurance, also called commercial insurance, is a group of policies that protect a company from lawsuits, property damage, employee injuries, vehicle accidents, and data breaches. In Texas, most private businesses aren't required by law to carry most of it, but landlords, lenders, and clients often are, and one uninsured claim can cost more than years of premiums.

A typical Texas program starts with general liability and commercial property, then adds workers' compensation, commercial auto, professional liability, cyber liability, and an umbrella policy as the business grows.

Thumann Agency is an independent broker based in Dallas, serving Texas businesses for 30+ years (since 1996). We compare 80+ carriers, explain your options without jargon, and read the policy against your leases and contracts before you sign.

• What it covers: liability claims, buildings and equipment, employee injuries, vehicles, professional mistakes, and cyber attacks

• Is it required? Texas does not generally require it by law, but contracts, leases, and public projects often do

• What does it cost? It depends on your industry, payroll, location, and claims history, so our starting ranges are below and an actual quote is the only reliable number

Why Texas Businesses Choose Thumann Agency

When a landlord, client, or lender asks for proof of insurance, you need an answer fast. Here's what you get with us:

• Independent broker: we compare 80+ carriers instead of handing you one company's policy

• A dedicated advisor: one person who knows your account, not a call center

• 30+ years in business: Thumann Agency has placed Texas commercial coverage since 1996

• Coverage built around your operation: your vehicles, locations, payroll, and contracts shape the policy, not a template

• Same-day certificates of insurance for existing clients: for leases, contracts, and job requirements

• Annual renewal reviews: so your coverage keeps pace as you hire, expand, or sign bigger contracts

• Licensed in Texas, serving the whole state: our office is in Dallas, and we also serve Houston, Austin, San Antonio, Corpus Christi, and Galveston

• Servicio en español: Spanish-language support is available (see our seguros de negocio page)

What Our Clients Say

Thumann Agency holds a 4.6-star rating from 140+ Google reviews. Here's what some of our clients say about working with us.

"We've had all of our insurance policies with the Thumann Agency for years now and we've been very pleased with the service that they provide. A special thank you to Rashondra for going above and beyond for us!"

Nancie & Greg Byrne

"We love Nida!!!! Company is awesome. She handles our commercial insurance for everything and fast to responses. Keep up the good work!"

Shenicia Barnes

"The Thumann Agency found me the best rates for my commercial building and general liability policies. Their service is great, ten years and counting."

Jill Parr

Google reviews | 4.6 stars, 140+ reviews | BBB A+ rating | Trusted Choice pledge

Who Needs Business Insurance in Texas?

Texas is a small-business state. The Small Business Administration's 2025 profile counts 3.5 million small businesses in Texas, 99.8 percent of all Texas businesses, employing 5.1 million people, or 44.4 percent of Texas employees. If you run one of them, your risks are already on the table:

• Sole proprietors and home-based businesses: you can be sued personally, and your own policies often don't cover business activity

• New companies and limited liability companies: forming a company can separate your personal and business assets, but it doesn't replace insurance

• Small businesses with employees: payroll brings workers' compensation, employment, and liability questions

• Contractors and trades: see our contractors insurance and handyman insurance pages

• Restaurants and retail: customer traffic creates daily liability exposure (see restaurants and retail stores)

• Truckers and fleets: heavy vehicles need their own program (see truckers)

• Professional and online businesses: advice, data, and deliverables carry their own claims

• Property owners, funeral homes, nonprofits, and churches: see property owners, funeral homes, nonprofits, and churches

Small business counts come from the Small Business Administration's small business profile, which defines small as fewer than 500 employees.

Types of Business Insurance in Texas

Every business operates differently, so your coverage should too. These are the commercial insurance policies we most often put in place for Texas companies.

General Liability

General liability insurance, often called business liability insurance, can respond when your business injures someone or damages their property, such as a customer who slips in your store or a client's property damaged by your work. It's often the first policy a Texas business buys, because leases, contracts, and job sites commonly require it.

Commercial Property

Commercial property insurance covers your building, equipment, inventory, and contents against losses such as fire, storms, theft, and vandalism. It matters whether you own or lease, because the lease often decides who insures what. Ask how the policy handles wind and hail, which we cover below.

Business Owners Policy

A business owners policy bundles general liability and commercial property into one policy, often at a lower combined cost than buying them separately. It fits many small offices, shops, and service businesses. Eligibility depends on your industry and size, so larger or higher-hazard businesses may need separate policies.

Workers' Compensation

Workers' compensation insurance pays medical costs and a portion of lost wages when an employee is hurt on the job. Texas works differently from every other state here:

• Optional for most private employers. According to the Texas Department of Insurance, Texas is the only state that lets private employers choose not to buy it, and employers that opt out are called non-subscribers

• Most employers still carry it. In 2022, 25 percent of Texas private-sector employers were non-subscribers, the lowest share in six years, per state data

• Non-subscribers have duties. They must notify their employees and the state that they have no coverage, and opting out has legal consequences, so talk to an attorney before you decide

• Public construction is different. Under the Texas Labor Code, a state or local government that signs a building or construction contract must require the contractor to certify workers' compensation coverage for its employees on the project, and subcontractors must provide certificates too

• Contracts often decide it. Many general contractors, landlords, and clients ask for proof of coverage regardless of state law

Commercial Auto

If employees drive for work, or your business owns vehicles, you need commercial auto insurance. A personal auto policy generally isn't written for vehicles used in business. Hired and non-owned auto coverage addresses the exposure when employees use their own cars on company errands.

Professional Liability

Professional liability insurance covers claims that your advice, design, or service caused a client financial harm. It's common for consultants, agencies, accountants, technology firms, and any business that sells expertise. General liability generally doesn't respond to these claims.

Cyber Liability

Cyber liability insurance helps with recovery, notification, and legal costs after a breach or cyberattack. Texas law sets deadlines: under the Texas breach law, a business that suffers a breach of sensitive personal information must notify affected individuals without unreasonable delay and no later than 60 days after discovering it. If the breach involves at least 250 Texas residents, it must also notify the attorney general as soon as practicable and no later than 30 days after determining the breach occurred.

Umbrella and Other Coverage

• Higher limits: commercial umbrella insurance adds liability limits above your primary policies, which larger contracts often require

• Employee claims: employment practices liability can help with claims about termination, harassment, or discrimination

• Board decisions: directors and officers coverage protects the people who run a company or nonprofit

• Contract guarantees: surety bonds guarantee your performance and aren't insurance for your own business

• Employee benefits: group health insurance can help you compete for staff

• One-time events: special event insurance covers a festival, market, or fundraiser

• Construction projects: builders risk covers materials and work in progress

Statistics and rules in this section come from the Texas Department of Insurance, the Texas Labor Code, and the Texas Business and Commerce Code, summarized in plain terms. They aren't legal advice, and rules can change, so confirm with each source or an attorney.

Texas Business Insurance Requirements

Texas does not generally require a business to carry general liability or commercial property insurance by law. In practice, requirements come from other places:

• Leases and lenders: commercial landlords and lenders usually set minimum coverage and ask for proof

• Client and vendor contracts: larger customers often require liability limits, additional insured status, and a current certificate

• Public construction contracts: workers' compensation certificates are required, as described above

• Licensed trades: electricians, heating and air conditioning contractors, and plumbers must carry minimum liability insurance as a condition of their Texas licenses (our contractors insurance page lists the figures)

• Data you handle: Texas breach law applies to businesses that hold sensitive personal information, whether or not they carry cyber insurance

Going without coverage usually means paying defense costs and any judgment yourself, out of business assets or, depending on your structure, personal assets.

Texas Risks Your Policy Should Account For

Texas weather and growth create specific exposures, and the right policy accounts for them. Here's what the record shows:

• Hail across the state: Texas recorded 878 hail events with stones one inch or larger in 2024, the most of any state, according to the Insurance Information Institute

• Hail claims: from 2017 to 2019, Texas led the nation with 637,977 hail-loss claims, and Dallas and McKinney ranked among the five U.S. cities with the most, according to the National Insurance Crime Bureau's claims data. Nationally, most of those claims were homeowners and auto claims, but they show how often Texas roofs and vehicles get hit

These figures are reported by the Insurance Information Institute and the National Insurance Crime Bureau for the years shown. We haven't adjusted them, and newer data may differ.

Three policy terms decide how a storm loss feels to a Texas business:

• Wind and hail deductible: some Texas property policies use a percentage deductible instead of a flat dollar amount. For example (hypothetical), a 2 percent deductible on a $1 million building is $20,000 out of pocket before the policy pays

• Roof payment basis: some policies pay roof damage at replacement cost, while others pay actual cash value, which subtracts for age and wear

• Flood and named storms: standard commercial property policies typically exclude flood, and some policies use a separate deductible for named storms. Gulf Coast businesses should ask about both

Texas heat, freezes, and growth add smaller exposures: failed air conditioning, burst pipes, theft, and new locations or vehicles that aren't yet on your policy. Tell your advisor when your operation changes.

How Much Does Business Insurance Cost in Texas?

Business insurance costs depend on what your company does. Here are Thumann Agency's general starting ranges for common Texas coverages:

• General liability: around $65 to $90 per month

• Professional liability: around $55 to $110 per month

• Commercial property: around $75 to $120 per month

• Business owners policy: around $73 per month to start

• Commercial auto: around $150 to $400+ per vehicle, per month

• Cyber liability: around $80 to $150 per month

• Workers' compensation: not a flat rate. It is priced on payroll, job classifications, and claims history

These are Thumann Agency's general starting ranges for common Texas commercial policies, the same ones we list across our site. They aren't quotes or guarantees, and they don't come from third-party comparison sites. Your actual price depends on your business.

What Moves Your Premium

• Your industry and day-to-day operations

• Your location and exposure to local risks, such as hail or Gulf Coast storms

• Number of employees and total payroll

• Annual revenue

• Vehicles and driver records

• The coverage types, limits, and deductibles you choose

• Claims history

Ways to Keep Costs Manageable

• Compare carriers instead of renewing on autopilot

• Bundle coverages where it makes sense, such as a business owners policy

• Report payroll and revenue accurately, so a year-end audit doesn't surprise you

• Choose a deductible your cash flow can handle, not just the lowest premium

• Document safety practices and keep claims out of your record where you can

• Review your limits every year as the business grows

The lowest premium isn't always the lowest cost after a claim. Compare what each policy restricts, not just what it charges.

Want an actual quote for your business? Submit a quote and we'll come back with options, or call (972) 991-9100.

Business Insurance for Small Businesses and Startups

Most small Texas businesses don't need every policy on day one. A common order looks like this:

1. Start with liability. General liability, or a business owners policy that bundles it with property coverage, satisfies most first leases and contracts.

2. Add property coverage for what you own. Equipment, inventory, and a buildout are real money, even in leased space.

3. Add workers' compensation or a plan for employee injuries when you hire. Decide before your first employee starts, not after.

4. Add commercial auto when vehicles enter the picture. That includes employees who drive for work.

5. Add cyber and professional liability as you hold data or sell expertise.

6. Add an umbrella when contracts or growth call for higher limits.

Tell us your stage and your next milestone, and we'll build the program in the right order.

How to Choose a Business Insurance Company or Broker in Texas

Not every carrier writes every business, and the lowest quote can hide the narrowest policy. Before you sign, ask:

1. Does this carrier regularly write my industry and size of business?

2. What does the policy exclude or restrict for my kind of work?

3. How are wind, hail, and named-storm losses handled, and what is the deductible in dollars?

4. Does the policy meet the insurance requirements in my lease and contracts?

5. How fast can I get a certificate when someone asks?

6. Who will I talk to at renewal and when something changes?

7. Is my broker licensed in Texas? You can check with the Texas Department of Insurance agent lookup

An independent broker like Thumann Agency asks these across 80+ carriers and puts the answers side by side, instead of quoting one company.

How to Get Business Insurance in Texas

​1. Tell us about your business. Share what you do, your revenue and payroll, your employees, vehicles, and locations, and any lease or contract requirements.

2. We compare carriers. We shop your business across 80+ carriers instead of quoting one company.

3. You review the options with your advisor. We walk through limits, deductibles, and exclusions before you decide.

4. We bind your policy and issue your certificate. Existing clients get same-day certificates of insurance in most cases.

Have these ready to speed things up:

• Your business name, structure, and a short description of what you do

• Annual revenue, payroll, and number of employees

• Locations you own or lease, and vehicles and drivers

• Your current policies and renewal dates, if any

• Prior claims or loss runs

• Any lease, loan, or contract insurance requirements

Already a client? Request a renewal review or a certificate through our support pages.

Business Insurance Across Texas

Our office is at 12770 Coit Road, Suite 110, Dallas, TX 75251. We're licensed in Texas and serve businesses across the state, including Houston, Austin, San Antonio, Corpus Christi, and Galveston. In North Texas, see our local pages for Dallas business insurance, Plano, and Frisco, and for the Gulf Coast see Houston.

Not sure we cover your city or your industry? Call (972) 991-9100.

Frequently Asked Questions

What is a certificate of insurance, and how do I get one?

A certificate of insurance is a one-page summary of your coverage that you give to a landlord, client, or general contractor as proof you're insured. It lists your carrier, policy numbers, limits, and dates, and can name the other party. Existing clients can request a certificate online, and we deliver it the same day in most cases.

Can a Dallas-based broker serve a business in Houston, Austin, or San Antonio?

Yes. Thumann Agency is licensed in Texas and serves businesses across the state, and we work with clients by phone, email, and online forms. Texas insurance rules apply statewide, though leases, local permits, and weather exposure differ by city. Tell us your city and industry and we'll compare carriers that write your area.

Is my home-based business covered by my homeowners policy?

Often only in a limited way. Homeowners policies commonly restrict business equipment, business liability, and customer visits, so a home-based business can have gaps. Depending on your size, a business owners policy or separate liability and property coverage may fit better. Tell us what you do from home and who visits, and we'll show you where your homeowners policy stops.

What should I do about insurance when I hire my first employee?

Talk to us before the first day. Hiring raises workers' compensation, employment practices, and payroll reporting questions, and Texas lets you choose whether to carry workers' compensation. Many clients and contracts still ask for proof of coverage. We'll walk through your options, update your policies, and make sure your payroll is reported correctly.

Will my premium go up after a claim?

Usually, yes, though how much depends on the carrier, the size of the claim, and your overall history. One small claim on an otherwise clean account typically has less effect than several claims. Your broker can help you understand how a specific carrier weighs claims at renewal, and comparing carriers can change the outcome.

Can I change my coverage in the middle of the year?

Yes. Most policies can be updated when your business changes, such as a new location, vehicle, employee, or contract. Don't wait for renewal, since coverage should reflect how you operate today. Send us the details through our policy change form, and we'll confirm what changes and how it affects your premium before the change takes effect.

Ready to Get Business Insurance in Texas?

Whether you're starting up, renewing, or comparing carriers, we'll walk through your options without jargon. Get a Quote, Call (972) 991-9100, or Talk to Us and we'll take it from there.

Last Reviewed: October 2026

Author: Steve Thumann, Licensed Texas Insurance Broker

Sources: Small Business Administration, Texas Department of Insurance, Texas Labor Code, Texas Business and Commerce Code, Insurance Information Institute, National Insurance Crime Bureau

Disclaimer: This information is for general educational purposes only and is not legal, tax, or insurance advice or a full description of any policy. Coverage terms, limits, and exclusions vary by carrier and by state, including Texas. Prices shown are general starting ranges, not a guaranteed quote. Texas workers' compensation rules are set by the Texas Department of Insurance, Division of Workers' Compensation, and can change. Wind, hail, flood, and named-storm terms vary by policy. Reviews reflect customers' own experiences. Contact Thumann Agency for details about your needs. Thumann Agency is licensed under Texas Department of Insurance regulations.