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.