Is commercial insurance required by law in Texas?

Beaumont, TX is a great place to own a small business. Most of the companies in Texas are considered small businesses, with fewer than 100 employees. Texas has a large, strong economy that encourages companies to thrive.

There aren’t many legal requirements in Texas when it comes to commercial insurance. Automobile insurance is treated differently because of its ability to affect others, and a commercial insurance policy must cover all company-owned vehicles in Texas. Keep in mind that if you are using a personal vehicle for company business, your insurance will probably not protect you in the event you are in a motor vehicle crash.

At Carruth Insurance, we understand how important it is to protect your small business. If anything were ever to happen, such as a fire or burglary, you need the protection that insurance provides. Without insurance, you have to pay out of pocket for any damages, including damage to your building, damage to your supplies and equipment, and liability claims from outside parties. One big claim could bankrupt a small business.

Another thing to keep in mind is that you may be required to carry insurance on anything you still owe money on. Whether for personal property, automobiles, or equipment, most loans require the borrower to maintain full coverage until the loan is completely paid off. If you fail to do so, the lender can purchase a policy and add it to the loan amount. The insurance chosen by lenders won’t necessarily be the best deal for you. 

If you have a small business in Beaumont, TX, don’t wait too late to get the protection you need. Call Carruth Insurance today so we can help you find a policy that works for you.