Business Insurance Requirements in Texas
- Businesses in Texas are required to have insurance in certain areas.texas proud image by buckwheat from Fotolia.com
Businesses operating in Texas are required to have a variety of different types of insurance depending on the nature of the business. However, there are also several general areas where insurance is mandatory or suggested despite the category of business. Insurance in these areas protects the businesses, their employees, business-owned property and customers from harm. The Texas Department of Insurance regulates all areas of business insurance in the state. - Health insurance for employees is, for many businesses, the largest and most complicated insurance requirement. There are many options that employers may choose to take advantage of in providing healthcare to employees, ranging from health maintenance organizations to cooperatives in which many employers group together to share costs in providing healthcare. Title 28 of the Texas legislature covers the requirements related to health insurance provided by employers.
- Another very important insurance requirement for Texas businesses is title insurance. Title insurance insures the right to ownership of all property owned by the business against claims from entities outside of the business, loss or damage from liens against the property and any defects of encumbrances associated with the title to the property. Title insurance is heavily regulated by the Texas Department of Insurance to ensure best practices amongst title insurance companies and agents.
- Though it is not necessarily required, but many Texas employers do purchase workers' compensation insurance for their own benefit in the event of a lawsuit, and for the benefit of workers to insure that they are indemnified for their suffering. Workers' compensation insurance protects employers from losses due to claims and from liability for worker injury. The Texas government only requires this insurance for private businesses that contract with the government. However, those companies who choose not to have the insurance must file an annual notice of no coverage with the Texas Department of Insurance.
- Another form of insurance that many Texas businesses obtain is commercial property insurance. This category of insurance is less broad than title insurance and generally insures only the buildings in which the business operates. Commercial property insurance protects against losses caused by destruction of or damage to the buildings themselves. This insurance can be purchased whether the building is rented, leased or owned by the business.
