Insurance and Finance

The Business Owner’s Guide to Commercial Insurance in Texas

By Abi Grise Morgan 12.15.21

Texas business owners are a resilient bunch. Even so, a particularly awful snowstorm or lawsuit can throw a costly curveball at businesses. Taking the time from your busy schedule to make sure you have the right commercial insurance coverage protects you and your business from the inevitable accidents that blow your way.

Texas Farm Bureau Insurance Agent Jake Scott has served small-business owners in Rockwall for three years. These are the three types of commercial insurance policies he recommends to clients.

1. Commercial Property Policy

This coverage includes the structures in which you conduct business, the personal property inside, and the loss of income if your business is unable to operate as usual due to structural damage.

“Being in Texas, we see a lot of wind and hail claims,” Scott says. “Last year, of course, there was a bad snowstorm. Unlike homes, a lot of commercial properties around here have flat roofs. Snow and ice accumulated, and the sheer weight damaged or brought down roofs. We were happy to be able to help business owners with commercial property coverage.”

2. Commercial General Liability

This coverage protects your business from lawsuits. A common example would be a customer slipping on a newly mopped floor or stumbling over an unmarked curb and breaking a bone. Less common would be if, for example, a customer sues a business that unknowingly sold a product tainted by listeria or other harmful bacteria.

“Sometimes business owners are completely taken by surprise with a lawsuit,” Scott says. “Take, for example, advertising. Maybe they made a claim that another product was inferior to theirs in an advertisement. Their competition might sue them in retaliation.”

3. Commercial Package Policy

This policy combines both commercial property coverage and commercial general liability with the added protection of commercial inland marine coverage.

Despite the sound of it, inland marine coverage has nothing to do with sea life. It protects equipment used for business operations: milking machines, agricultural equipment, and the like.

Protecting Small Businesses

 “New businesses and small businesses are the ones I want to reach the most,” Scott says. “If they get sued or lose weeks of business due to structural damage, they’re at risk of having to shut down or file for bankruptcy. I stress to all business owners the importance of avoiding the pitfalls of forgoing commercial coverage.”

As a business owner, you’ve got a lot on your mind every day. Having the peace of mind that your property, machinery, and good name are protected can keep you focused on what matters. Contact your Texas Farm Bureau Insurance Agent today to ensure that your business has the coverage it needs.

For more information on protecting a new business venture, read our insurance and finance guide on startups and small businesses.

Coverage and discounts are subject to qualifications and policy terms and may vary by situation. © 2021 Texas Farm Bureau Insurance