Commercial Insurance Requirements in Texas

In Texas, there are few requirements for commercial insurance on Texas businesses. However, there are many types of commercial insurance that could be helpful for your business, even if they aren’t required. If you have questions about commercial insurance in Texas, give us a call today at Paragon Independent Insurance Agency in Plano, TX. 

Commercial Auto Insurance

The one required type of commercial insurance in the state is commercial auto coverage for any car that your business owns. This coverage has to meet the state standards, having two different types of auto coverage in one policy. In addition to those, there are many optional types of auto coverage that are often recommended for vehicles in the state. These can be extremely helpful in the event of an accident.

The required portion of your commercial auto policy must include bodily injury liability insurance to cover other parties who are injured when your vehicle causes an accident. This requires at least one set amount for one person who is injured and another minimum amount for everyone who has injuries from the accident. It is also required that you have property damage liability. This pays for the damage to someone else’s property in the accident but not yours. If you want to have your vehicle covered in case it causes an accident, you need collision coverage, though this type isn’t required. 

Workers’ Comp

Workers’ compensation is required for businesses in most states, but in Texas, it is only required when you contract with the government. Otherwise, it is highly encouraged but not required. Workers’ compensation insurance pays for the medical bills and lost wages for your employees who get injured at work.

Commercial Insurance in Texas

If you need insurance for your business, contact us at Paragon Independent Insurance Agency in Plano, TX.

Who Should Get Commercial Insurance?

If you live in Plano, TX area, becoming a business owner is a great career path. Starting your own business will help you to achieve your financial freedom and contribute to the local economy of the state.  However, regardless of the type of business you decide to start, it is important to have proper protection with the help of commercial insurance. Paragon Independent Insurance Agency prepared a list of those, who will benefit from commercial insurance: 

Business Owners Purchasing Expensive Assets

If you are planning to purchase important and expensive assets for your business, you definitely need commercial insurance. For example, if you are buying equipment to operate your business, you need to make sure that it will be repaired or replaced if it is stolen or broken. This is one of the main reasons why business owners decide to get business insurance. 

Business Owners Who Want to Protect Their Financial Future

Another reason why entrepreneurs purchase commercial insurance is the protection of the future of their company. If you decide to purchase a commercial insurance policy, it will help you protect your business assets and mitigate liability claim risk. Moreover, it also helps keep your business solvent if something happens and you incur a loss. 

Business Owners Who Hire Employees

One of the main purposes of commercial insurance is to protect employees who you hire. This type of coverage is called workers’ compensation. Even though it is not obligatory in the state of Texas, it is still recommended to get it as it provides financial compensation to employees if they get injured on the job. 

Paragon Independent Insurance Agency  – Your Insurance Agency For Protection of Your Business

If you decide to run a business in Plano, TX or any other nearby town, you should consider buying commercial insurance. Paragon Independent Insurance Agency is ready to help with that – our experienced and knowledgeable insurance agents will help you find the perfect policy addressing your personal commercial needs. Feel free to visit our website or give us a call – we are always here for you. 

What types of businesses must legally carry insurance?

What types of businesses must legally carry insurance?

The state of Texas differentiates itself in numerous ways, including how it handles business insurance requirements. While most states require commercial insurance for many types of businesses, Texas loosens those rules. Paragon Independent Insurance Agency wants Plano, TX business owners to understand the few policy types that TX law requires.

Complex Commercial Auto Requirements

Every business must carry commercial auto insurance on each of its vehicles. Whether your business owns one vehicle or a fleet of 100, each vehicle must carry insurance before you can use it. Just as with personal auto insurance, the state sets minimum amounts. Unlike most states, Texas varies the amount required, not by business type, but by vehicle weight.

If you drive a vehicle of less the 26,000 pounds, you must purchase commercial auto insurance in the following amounts:

  • Bodily injury per person in the amount of $30,000,
  • Bodily injury per accident in the amount of $60,000,
  • Property damage per accident in the amount of $25,000.

If your vehicle weighs 26,000 pounds or more, you must purchase at least $500,000 in liability insurance. For foreign businesses operating in the US, that increases to at least $750,000 in liability insurance.

Farming vehicles weighing 48,000 pounds or more require an insurance policy of at least $500,000 of continuous liability coverage.

Buses also carry varied minimum requirements. Rather than going by weight, buses use a capacity measure. Buses with a passenger capacity between 15 and 26 persons, not counting the driver, must carry liability coverage of $500,000, while buses with a passenger capacity of 26 or more persons, not counting the driver, must carry liability coverage of $5 million. Foreign businesses operating buses traveling to or operating inside the US have higher minimum requirements. Those buses capable of carrying a passenger capacity of 15 or fewer must carry insurance of $1.5 million, while those capable of a passenger capacity of 16 or more persons must carry liability coverage of at least $5 million.

Workers’ Compensation Requirements

Construction firms and motor carrier business owners must carry workers’ compensation insurance. No other type of business in the state of Texas must legally carry workers’ compensation policies, although it certainly makes a good idea to buy one anyway.

Malpractice Insurance

In Texas, doctors aren’t legally required to carry malpractice insurance, nor are attorneys. Hospitals, however, can mandate that a doctor or other medical practitioner purchase malpractice insurance before being allowed to practice medicine at its facility.

Contact Paragon Independent Insurance Agency serving Plano, TX to learn more about the commercial coverage your business must carry to comply with Texas law. Call us today!

Biggest Risks Business Owners Face

Business owners know there are risks associated with operating a Plano, TX business. Because there are risks, it is essential to have proper insurance coverage to protect yourself against any risks your business faces, including losing the business. Continue reading to learn more about the different risks business owners face, and then reach out to Paragon Independent Insurance Agency agents for more information about protecting your business. 

Business Interruption

Some businesses suffer the loss of profits due to having to stop business operations. There are several reasons why a company may need to cease operations, including severe storms and federal emergencies/mandates.

Business Liability Insurance

There is always a possibility of someone getting injured at your business. The chance of injury to a customer puts your business at risk of being sued for medical bills and other damages. 

Commercial Property Insurance

Regardless if you own the building or rent for your business, you can significantly benefit from having commercial property insurance. The benefit of this is everything you need to run your business is at risk of getting damaged or stolen. 

Data Breaches

With advancements in technology, almost all businesses today rely on computer networks to store and retrieve business-related data. As a result, cybersecurity crimes are on the rise, and all companies working online risk data breaches. 

Worker’s Injuries

There is a risk that one of your employees will get injured at work. Workers’ compensation protects business owners by covering the employee’s lost wages, medical bills, and other financial needs while recovering from the injury. 

Plano, TX business owners understand there are risks when going into business. To ensure you and your business are fully protected, call the Paragon Independent Insurance Agency experts today for additional information. 

Why do companies in Texas need commercial insurance?

The Plano, TX area has been one of the fastest-growing areas of the state for the past decade. Those that are in this area could find it is a great place to start and run a business. If you are going to start a business in this area of the state, you need to insure it as well as you can. A commercial insurance plan could be needed for a few different reasons. 

Coverage Will Protect Business

A reason that you should get a commercial plan for your business in Texas is that it can protect the organization. Insurance for a business protects a business in many ways. One form of coverage you will receive is liability support, which will be helpful if you are ever named liable in an accident. You will also benefit by having insurance protection that will cover your commercial assets if they are damaged or stolen.

Coverage is Required

You should also get a commercial plan because it is a requirement. There are many situations in which a business in this state will need to carry insurance. If your business has taken out a loan or raised outside capital, the investor or lender will likely want you to be fully insured. Further, having insurance could be required for you to provide services to certain commercial clients. 

Business owners that operate out of the Plano, TX area are going to have a lot of opportunities for success. To ensure that your business is covered, getting commercial insurance is important. The team with Paragon Independent Insurance Agency can help any business owner build and maintain a commercial insurance plan. When you call Paragon Independent Insurance Agency, you can learn a lot about your different options to ensure you remain fully covered and protected going forward. 

Why would a Plano business want commercial insurance?

A Plano, TX business owner will find that the local market and economy is strong and offers a lot of opportunities to be successful. While this can be a great place to run a business, Plano business owners do need to make sure that they are mitigating business risks as well as they can. A great way that this can be done is by getting a full commercial insurance plan. A business will want to have this coverage for a few reasons. 

Coverage Protects Company Assets

One of the reasons that you will want to have commercial insurance is to ensure that your company’s assets are properly covered. A business will have to own a variety of assets to ensure that it can operate and grow. With a commercial insurance plan, you will have coverage for these assets in case they are stolen or damaged in any type of accident.

Coverage Offers Liability Protection

You will also want to have a commercial insurance plan to ensure that you are covered for liability risk. Businesses of all sizes are going to regularly take on commercial liability risk. As a liability claim can threaten the financial viability of a company, mitigating this risk is important. With commercial insurance, you can receive coverage for this risk. 

In the Plano, TX area, a small business can benefit a lot by having proper insurance coverage. As you are looking for a commercial insurance plan here, you will want to ensure that you are properly covered and protected, and working with Paragon Independent Insurance Agency can help. The team with Paragon Independent Insurance Agency will offer you the support you need to ensure you understand all your options and needs so you can pick a new insurance plan. 

When Does A Small Business Need Commercial Insurance?

Small businesses come in all sizes in Plano, TX. A business taking in six figures a year may technically be a small business, but so is a business that earns you just a few hundred bucks for groceries here and there. So when are you ready for commercial insurance?

Different businesses have different insurance needs, but it generally comes down to one thing:

Liability

The big question here: If something happens, is it going to come out of your pocket?

If you run a small eShop, you may have some protection through the platform you use. If you’re only earning a little extra money on items and services with no major liability concerns, you might not need to worry about it.

But at a certain point, you’ll likely cross a threshold where you have too much at risk to leave your business uninsured, and that’s when you should call Paragon Independent Insurance Agency to see about getting covered.

It’s nice to have your inventory and your equipment covered by commercial insurance, but the main reason you want to be covered is so that you won’t be left paying thousands of dollars in damages out of pocket if someone is injured on your premises or suffers losses that have to do with your product or service.

The question of when you’ve crossed that threshold, that’s a little trickier, and it varies from business to business. Some people like to buy commercial insurance as soon as they can afford it while still turning a profit, but your mileage may vary. So if you have any questions, get in touch with Paragon Independent Insurance Agency to see if your small business in Plano, TX is ready to get protected.

Common Errors Business Owners Should Avoid While Researching Workers Compensation

Paragon Independent Insurance Agency offers coverage to the Plano, TX community, as well as the surrounding areas. We help our clients find the coverage they need to avoid a significant loss. We have working relationships with multiple carriers throughout Texas.

Errors To Avoid While Researching Workers Compensation

As a Plano, TX business owner, it’s important that you take care of your investment. Commercial insurance helps alleviate some of the stress involved with operating your business on a day-to-day basis. The policy covers any property or inventory damage. You are also covered if your business suffers an emergency and has to cease operations for a few days. Liability coverage is also important. If one of your customers suffers an accidental injury while visiting your business, liability coverage protects you from potentially having serious losses. Another important part of your liability coverage is workers’ compensation. Worker’s compensation protects your business and your employees if there is an employee injury in the workplace. While you are figuring out which type of worker’s compensation policy is the right fit for your business, avoid some of these common errors.

Failing To Thoroughly Research The Policy

Keep in mind that worker’s compensation policies cover more than just your employee’s injuries. The policy also covers your employee’s rehabilitation as they prepare to re-enter the workforce.

Additional Insured

Many businesses make the mistake of trying to put additional insured coverage on their worker’s compensation policies. Additional insured is a better fit for traditional liability coverage. You cannot put additional insured on your worker’s compensation policy because you are seeking to directly cover your employees if they get injured on the job.

Paragon Independent Insurance Agency Will Help You Protect Your Business

Visit our website today to learn more information about commercial insurance.

Does Your Business Have a Disaster Prep Plan?

Whether your business is small or large, having a disaster prep plan is essential to your survival. In the event of a disaster, your workforce can act quickly and decisively to protect your business interests. These tips from Paragon Independent Insurance Agency can be helpful in developing a disaster prep plan for your Plano, TX business.

Review Your Commercial Coverage

Review your commercial policy to ensure your Plano, TX business has adequate protection against disasters. This includes property coverage to protect your building, equipment, and inventory and business interruption to cover your losses if you have to close temporarily for repairs after a disaster. Your policy should protect you against common disasters in your local area.

Mobilize Your Workforce

Prepare your team by educating them on disaster readiness. Make sure your building has clearly marked escape routes and that your employees know what to do in the event of a disaster. Delegate specific duties to your managers to ensure essential tasks get done both during and after a disaster.

Protect Sensitive Documents

Make sure your sensitive documents are safely backed up in the cloud or copies stored in a separate location to prevent their loss in a disaster. This includes personnel files, customer data, financial records, business contracts, etc.

Set Up a Communications System to Handle Disasters

Set up a system for communicating with your employees, customers, suppliers, and business associates so they will know the status of your business after a disaster. This could include hiring a call center to take customer calls or using social media to keep the public informed of your situation.

By preparing for disasters in advance, your business is in a better position to handle and recover from the aftermath of a disaster. For commercial coverage protection against natural disasters, contact Paragon Independent Insurance Agency today.

Who in Plano should get commercial insurance?

In the Plano, TX area there will continue to be a lot of opportunities for success for small businesses. While there is a lot of potential here, businesses in this area of Texas do still have certain business risks. If you are going to start a company here, you can mitigate these risks with insurance. There are several scenarios when your business should obtain commercial insurance. 

Those With Insurance Requirements

One situation when a business owner here will need to get commercial insurance is when they have insurance requirements. There are a lot of situations when having commercial insurance will be required. If you have taken out a business loan, lease a building, or have raised capital from investors, you likely will have commercial insurance requirements. All of these stakeholders will require you to get coverage due to the protection it provides. 

Those Looking to Build Credibility

No matter what industry you operate in, there will always be the competition that you need to beat out to win new business. When a new customer is evaluating a potential vendor, they will want to ensure that the company is properly insured. If you have a quality commercial insurance policy in place, it can make your organization appear more credible, will reduce the risk for the customer, and could help you win more business.

Anyone that is looking for a commercial insurance policy in the Plano, TX area will have a lot of important decisions to make When you are looking for a new policy here, you should call the Paragon Independent Insurance Agency. It is always very challenging to know what coverage you should get for your company. The Paragon Independent Insurance Agency will be able to evaluate your organization and determine the best way to insure your company against certain risks.