Are there any requirements for businesses to have insurance?

Yes, there are requirements for businesses to have insurance in Texas. All businesses that employ five or more individuals must carry workers’ compensation insurance, and employers with fewer employees can still choose to obtain it as a safety net. Additionally, certain businesses must carry specific types of insurance depending on their type of business. For example, professional practices such as law firms, accountants, architects, and engineers are generally required to have professional liability insurance. This insurance covers negligence claims against them and provides protection from financial losses should a client claim the professional was at fault for something. Businesses that sell tangible goods will typically have to carry product liability insurance in case their products cause damage. Businesses that handle clients’ personal information are often required to carry cyber liability insurance to protect against data breaches. Lastly, employers who hire subcontractors are typically required to carry commercial general liability insurance to protect the business from damages caused by the subcontractors’ services. All in all, whatever a business’s size or specialty, it is important to research and understand the type of insurance that is required by law for the specific business in Texas.

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Are there any requirements for businesses to have insurance?

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