Cheap Liability Insurance In Texas: 4 Ways To Compare Cheap Liability Insurance

Cheap Liability Insurance In Texas: 4 Ways To Compare Cheap Liability Insurance

By In Uncategorized On April 22, 2020


If you’re looking for Texas liability insurance coverage, you want to keep your costs low. Cheap insurance can be found for all commercial businesses in the Great state of Texas. This guide will show you how to purchase cheap commercial liability insurance that protects you against all liability. If you want to insure your business, employees and equipment – we’ll help you find a cheap plan that won’t leave you hanging.

The insurance company you choose can have a significant impact on the annual premiums. For instance, it’s possible to save between $500-1000 by switching to the right insurer. If you opt for a regional Texas insurer, you can save even more money. We’ll show you the general guidelines to keep the costs low with full-coverage liability insurance for commercial purposes.

NOTE: The cheapest liability insurance plans are not always the best. Factors that may impact the insurance premiums include: Business financial standing, claims history and risk category (big business vs. small business).

Top 4 Ways To Compare Cheap Liability Insurance

If you’re on the fence about an insurance plan, you’re likely considering between few potential insurers. There are ways to find out whether the insurer is adequate for you without calling them and asking for a quote. Here are the top 4 ways to compare insurers for liability insurance.

1) Financial Ratings

Insurance companies have ratings given by financial companies that specialize in rating insurance companies based on their financial standing. If you analyze their finances and the company is doing great, chances are they’ll be able to serve you when it’s time to make a claim. 

The best indicator you’re dealing with a reliable insurer is that they have excellent financial ratings. If you opt for the cheapest liability insurance Texas from a company, you have to make sure they’re in good financial standing to support you when it’s time to make a claim.

2) Deductibles

Liability insurance plans have deductibles which are essentially costs you pay out of pocket before the insurance company starts paying you. Depending on the deductibles, your yearly premiums could be as much as 50% cheaper as long as you opt for the right insurer. 

Read commercial liability insurance page of your insurer. Deductibles can be very low even for plans with high coverage. Example: If you have a $100,000 claim and your deductible is $2000, you will only pay $2000 out of pocket before the insurance company pays $98,000. Deductibles are capped based on the total coverage and vary for each claim.

3) Policy Coverage

The coverage or limit is the amount you can get for each claim or for all claims in total. For instance, your policy coverage might be as low as $100,000 or as high as $10,000,000. All liability insurance plans have limits to cover your legal fees and settlements. This is why it’s recommended to purchase more coverage than you need. 

Example: If you’re a small 2-person start-up who works as painters you may need $500K-1M in coverage for a potential lawsuit if you get sued by a client. Large companies may need this coverage multiplied by a factor of ten. Find insurers that offer a large coverage with low deductibles and low annual premiums.

4) Inclusions & Exclusions

Each plan has individual policy terms called “inclusions” and “exclusions”. The company can cover you for certain forms of damage (inclusions) but it won’t cover you for others (exclusions). Example: The policy may cover you if one of your employees causes an accident at the workplace but it may not cover you if the employees cause an accident on the road. There are separate policies for automotive commercial insurance which insure your business vehicles on the road.

How To Save Money On Liability Insurance

If you want to get a cheap deal on liability insurance – fear not, it’s still possible to get quality insurance at a low price. The key to getting cheap quality plans is one word: Bundles. We all know that when we buy a combination of internet, cable, and phone we get a discount on the bundle. Liability insurance works on the same principle. You get a discount if you purchase a bundle for your commercial liability insurance.

The most popular form of commercial liability insurance in Texas is “BOP”: Business Owner’s Policy. BOP is a business bundle policy that offers all-around protection for business owners and combines popular general liability insurance and commercial property insurance. Overall, it’s much cheaper for business owners to purchase a BOP policy that offers complete coverage than purchase personal insurance plans.

Pro Tip: To bring your premiums down, consider getting a BOP bundle that will also include perks such as forced closures due to renovations, pandemics, and other uncontrollable events.

How To Lower Your Liability Insurance Bill

The insurance company will charge you based on the estimated risk-level your business poses for claims. If you’re a major general-contractor with hundreds of clients, you’re a high risk to the insurer because you might get sued by multiple partners, distributors or clients. Based on the sheer size of your operations, the chance of that happening are higher than those of a small company. The same applies to professional liability insurance as people working in medical, law, trades, etc, tend to become the subject of lawsuits.

Self-employed professionals can lower their insurance premiums by maintaining a high standard of work and having zero to no lawsuits filed against them. Businesses can lower their insurance bill by making upgrades to the business that deem them a lower security risk to insurers. The following are the best ways a business can lower its liability insurance premiums:

  • Upgrade Equipment. Each business has to invest in the finest equipment in order to keep their business up to code and protect employees and clients. If you’re a medical facility, you should invest in top-tier equipment to keep it at the highest standard. If you’re a construction company, you should invest in new equipment which keeps workers safe at the job site. This minimizes the risk of hazard and lowers your premiums and deductibles.
  • Security Systems. More than 10% of all business insurance claims are from slip and fall accidents that happen at the premise of a business. You should equip your business with adequate security systems that monitor the entire area and can provide evidence you were not at fault in the event a person injures themselves at your property. In general, 20% of all business claims are for theft and burglary. While liability insurance won’t protect you for damages caused to you, it can still lower your premiums if you have a security system put in place.
  • Deliver On Contracts. Respect the contracts you sign with business partners because failure to deliver on contracts is one of the most frequent reasons for business lawsuits. Your company may default if you get sued for breaking a contract and causing damage to business partners, which is why you should always go the extra mile to deliver on all written contracts.

Conclusion

The bottom line is that it’s possible to find cheap liability insurance plans in Texas with reliable insurers that will insure you against all potential perils and secure the livelihood of your business. If you compare the financial ratings, deductibles, premium coverage, and individual policy terms – you’ll find the cheapest rates that work for your business. 

There are ways to lower your insurance premiums by bringing your equipment up to code, installing security systems and having a history of few lawsuits. Similar rules apply for high-risk self-employed entrepreneurs. If you have an excellent credit standing and zero lawsuits against you, you’ll get the best premium rates on your commercial liability insurance.


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