How to Choose Commercial Auto Insurance for Small Businesses in Texas

The Lonestar State is rich in both history and entrepreneurial spirit. Thanks to robust economic growth and lenient tax laws, Texas is home to over 3 million small businesses. While Texas may be steadfastly pro-business, there are challenges associated with setting up shop here. As a small business owner, you must understand the legal requirements of doing business in Texas. Whether you are a landscaper or run a flower delivery service, you may need commercial auto insurance if you utilize a vehicle for work activities. Commercial auto insurance for small businesses is an important tool that can provide financial relief in instances of theft, damage, or accident. As Texas locals, Agencia de Seguros de Accesso, LLC. (A Abana) has a well-versed business perspective and can help you choose commercial auto insurance for your small business!

Understanding your business needs

Before you start searching for the ‘best small business insurance in Texas,’ it's essential that you have a basic understanding of your business’s needs. A two-person floral delivery service utilizing one sedan will most likely require different coverage than a ten-person landscaping team driving multiple cargo vans. Furthermore, small businesses that regularly travel long distances or maintain their vehicles in densely populated urban areas may require more coverage.

Take a moment to examine the potential liabilities and risks your small business may face such as:

Driver experience and number of drivers
Type of business
Business size and revenue
The volume of travel and travel radius
Vehicle type
Cargo type

Types of Coverage

Wondering what types of commercial auto insurance coverage will be available to your small business? The most common types of auto insurance coverage offered by A Abana include:

Bodily injury liability - is required by the state of Texas and is part of the minimum liability coverage. This type of coverage may help cover medical expenses for third-party injuries sustained as the result of an accident you or your employee caused.
Property damage liability - also considered part of minimum liability coverage and required by the state. This type of coverage can potentially cover the expenses of repair/replacement if you or your employee are at fault for damaging the property of others due to an accident.
Comprehensive and Collision - these coverages are not required by the state but can be useful in potentially covering damages sustained to your vehicle from a collision, weather event, and possibly even theft.
Uninsured/Underinsured Motorist Coverage - these two coverages can provide coverage up to your policy limit for injuries or damaged property due to an accident with an at-fault individual who does not have sufficient (or any) auto insurance coverage.

Evaluating insurance providers

Your small business is your baby, so don’t leave your commercial auto insurance in the hands of someone you don’t trust. Conducting sufficient research on Texas insurance companies can save you a lot of stress later. Seek out local providers who have a vast understanding of the legal requirements and considerations of doing business in the Lonestar State.

Evaluate potential companies by examining their:

Financial stability - insurance companies receive ratings that reflect the insurer’s ability to pay out on claims and meet other financial obligations.
Reputation and reviews - customer feedback is important! You can learn a lot about your potential insurance company by reading what past and current customers say about their business.
Claims handling - one of the most important facets of picking a trusted insurance company is to research the efficacy of their claims process. Make sure you select a provider that prides itself on a responsive and efficient claims process.
Specialty - if you run a niche small business, it could be helpful to select a provider who focuses on that area. At A Abana for example, we specialize in many small to medium-sized businesses such as contracting, landscaping, and cleaning with their commercial auto needs.

Cost-effectiveness

Worried commercial car insurance will cost your small business a small fortune? Luckily there are ways to potentially keep your coverage cost-effective:

Premium comparison - shop around with different insurance companies and compare the costs and benefits between different policies.
Work with a trusted agent - experienced agents can help you properly evaluate your business’s needs and help you select the most fitting coverage.
Discount opportunities - depending on your business’s needs you could be eligible to bundle policies or obtain other discounts through telematics, avoiding accidents, and flexible payment plans.

Remember to review your coverage regularly! As your business grows and changes, so will your auto insurance needs, and it is your responsibility to work with your agent to ensure your coverage remains sufficient and up to date.

Legal considerations

Unsure about Texas commercial auto insurance requirements? Whether you live in Dallas or Corpus Christi, business owners should seek to obtain the minimum automobile liability coverage requirements of $30,000 per person, and $60,000 per accident for bodily injury, and $25,000 for property damage. This is usually represented as a split limit of 30/60/25. Please note that some policies may be required to carry higher limits based on their vehicle types.

To check that your insurance meets the Texas legal standard you can contact the Texas Department of Insurance or your insurance agent. Failure to carry adequate coverage for your small business may leave you vulnerable to financial risk and/or legal consequences. It’s important to select limits that are best for your business in addition to what is required by Texas state law.

Ready to select the best commercial car insurance for your small business? Consult with the professionals at Agencia de Seguros de Accesso, LLC at 888-449-0174 or visit one of our Texas locations to discover a tailored insurance plan that's right for you.