# Business Insurance in Texas | Holley Insurance Agency > Texas business insurance: BOPs, general liability, commercial auto, hail-ready property and straight talk on workers' comp from a local Allstate agency. Source: https://holleyagency.com/business-insurance [Home](https://holleyagency.com/) / Business Insurance # Texas business insurance that Works Like You Do Texas lets most private employers skip workers' comp. What it doesn't mention: skip it, and an injured employee can sue you with your best defenses gone. Let's decide on purpose. [or call **(254) 669-6522**](tel:+12546696522) **Only** State Where Comp Is Optional **3** Legal Defenses You Lose Bare **~1 in 4** TX Employers Go Without **10+** Years Serving Texas [Get My Free Business Quote](https://holleyagency.com/quote?type=business) The Quick Answer **Texas is the only state where workers' compensation is optional for most private employers.** The catch: a ** non-subscriber** who gets sued by an injured employee loses the three classic defenses — contributory negligence, assumption of risk, and fellow-employee negligence — and faces ** uncapped civil damages**. Comp is still ** required on government construction contracts**, and many general contractors and commercial clients require it by contract before you start a job. Opting out also means ** annual notice to the state (DWC Form-005)** and required workplace notices. Beyond comp, most small businesses run on a ** Business Owners Policy** bundling general liability, commercial property, and business income. Two gaps catch owners constantly: ** personal auto policies exclude business use**, and ** homeowners policies largely exclude a home-based business**. Across Texas, ** hail and severe storms** make the property side, and its wind/hail deductible, worth a close look. ** Holley Insurance Agency**, an Allstate agency based in Killeen, Texas, offers free business coverage reviews at **[(254) 669-6522](tel:+12546696522)**. Workers' comp : Optional in TX — with real teeth Going bare : 3 defenses lost, damages uncapped Most small firms : BOP + a comp decision made on purpose Free quotes : [(254) 669-6522](tel:+12546696522) Texas Business Insurance, The Short Version ## Most business insurance is judgment. The comp decision is the judgment call of the decade. Start here, because everything else is a distant second. **Texas is the only state in the country where workers' compensation is optional for most private employers.** Roughly a quarter of Texas employers, by some counts, run as ** non-subscribers**. It sounds like freedom, and it is — the same way removing the guardrails is freedom. Here is what the brochure version leaves out. Carry comp, and an injured employee's claim runs through the comp system: defined benefits, no lawsuit, done. Go without, and that employee can **sue you directly in civil court** — and Texas law strips you of the three defenses that would normally protect an employer: ** contributory negligence, assumption of risk, and fellow-employee negligence**. Their lawyer needs to show your negligence contributed to the injury, and the damages are not capped the way comp benefits are. Pain and suffering is on the table. One bad morning on a ladder can outrun a decade of saved premiums. And "optional" comes with an asterisk anyway. Comp is **required on government construction work**, and many general contractors and commercial clients ** require it by contract** — no certificate, no start date. Even the opt-out itself is a formal status: annual notice to the state, written notice to employees, required postings on the wall. Everything after that is judgment, which is why we start by listening and looking at the full picture of your business — not just the cheapest quote. Most small Texas businesses run on a **Business Owners Policy**, packaging general liability, property, and business income, plus the comp decision made deliberately. Then it depends on what you do. Drive for work and you need commercial auto, because ** your personal policy excludes business use**. Run the business from home and your homeowners policy likely will not cover it. Own or lease a building in Texas and ** hail** belongs near the top of the property conversation. Give advice for money or hold customer data, and ask us what's available for professional liability or cyber. What we will not do is sell you the whole catalog. Tell us what your business actually does, and we will help you figure out what it actually needs. Nothing on this page is legal advice, and for the employment-law side, get an employment attorney. We handle the insurance. ## What a business actually needs. In the order it matters. One of these is the biggest decision on the page. The rest depend on what you do, who you employ, and what you would lose on your worst day. The big decision Optional\* ### Workers' Compensation Optional in Texas — the only state where that's true. Carry it, and injuries run through the comp system and you cannot be sued over them. Skip it, and you lose that shield plus your three best legal defenses. The asterisk: government construction contracts and many GC and client agreements require it anyway. Start here BOP ### Business Owners Policy Bundles general liability, commercial property, and business income into one package built for small and mid-sized firms. Often more efficient than assembling the pieces separately, and for many businesses it plus a deliberate comp decision is the core of the program. Core $1M / $2M ### General Liability The slip and fall, the damage you cause at a client's site, the advertising injury claim. Covers defense costs as well as the judgment. It is also what your landlord and your clients will demand a certificate for before you can sign anything. Core Reopen ### Business Income Property coverage rebuilds the building. This pays your rent, payroll, and lost profit while that happens. Set the restoration period to a realistic Texas timeline, because after a big hailstorm every roofer and contractor in the area is booked at once. If you advise E&O ### Professional Liability General liability covers bodily injury and property damage. It does not cover being wrong. If clients pay you for expertise and a mistake could cost them money, this is the coverage that responds, and your contracts may require it. Ask us what's available for your business. Texas hail Hail ### Commercial Property Your building, equipment, inventory, and signage. Texas is one of the most hail-prone states in the country, so check how your roof is valued and what your wind/hail deductible is before storm season, not after the claim. Not covered Your Car ### Business Use On A Personal Policy Personal auto excludes business use. Deliveries, tools between sites, clients in the car. If the vehicle is the business's, it needs commercial auto. If staff drive their own cars for you, you need hired and non-owned coverage. Not covered Home Office ### A Business On Your Homeowners Policy Business property in the house carries a tiny sub-limit and business liability is generally excluded outright. A client who trips on your front step is not a covered claim. Usually a simple fix with an endorsement or a small business policy. If you hold data Cyber ### Cyber Liability Breach notification, forensics, legal counsel, extortion, and the income you lose while locked out. Small businesses get targeted precisely because attackers assume the defenses are thinner. Texas's breach-notification rules add real deadlines. Ask us what's available for your business. ### Thinking about going without comp? Decide it on purpose. Non-subscriber status is a real strategy for some businesses and a slow-motion disaster for others. A free conversation about your actual payroll and contracts, with no pressure either way. [Check My Coverage](https://holleyagency.com/quote?type=business) [Call (254) 669-6522](tel:+12546696522) The Big Decision ## Texas workers' comp, in plain English. This is the section worth reading properly, because Texas runs the comp question differently from all forty-nine other states, and the freedom it offers is priced in a currency most owners never examine. ### The choice, and who actually has it Most private Texas employers may legally choose whether to carry workers' compensation. Carry it and you are a **subscriber**; decline and you are a ** non-subscriber**. The choice is narrower than it looks: comp is ** required for contractors on government building and construction contracts**, and in practice the rule-makers are often the general contractors and commercial clients who write comp requirements into their agreements. If your work comes through a GC on commercial projects anywhere in Texas, the state's permission to skip comp may be worth very little. ### What going bare actually costs A subscriber gets the **exclusive remedy**: injuries run through the comp system, benefits are defined, and the employee cannot sue. A non-subscriber loses that shield entirely, and Texas law goes further — it strips the three classic defenses an employer would otherwise raise: ** contributory negligence** (the employee was partly careless), ** assumption of risk** (they knew the job was dangerous), and ** fellow-employee negligence** (a coworker caused it). The injured employee's lawyer needs to show your negligence played a part, and the jury's number is not capped by any benefits schedule. Pain and suffering, mental anguish, and in egregious cases punitive damages are all in play. That is the trade: premium savings now, unlimited downside later. ### Non-subscriber, done properly Some businesses still reasonably choose it — very low-risk operations, or firms pairing the decision with an **occupational accident plan** that pays medical and wage benefits for injured workers and reduces the odds a claim becomes a lawsuit. If that is your road, take it deliberately: the status requires an ** annual filing with the state (DWC Form-005)**, written notice to every employee, and the required workplace notices. We will walk through both roads with you — carrying comp or a structured alternative — so you can see the difference in exposure, and we can tell you what workers' comp options are available for your business. ### The paperwork nobody mentions Comp pricing runs on **class codes** — clerical staff and roofers are priced very differently per $100 of payroll — and misclassified payroll is the most common way Texas businesses overpay, or get an ugly surprise at audit. Certificates of insurance, additional-insured endorsements, and waiver-of-subrogation requests are routine in contract work, and slow certificates stall invoices. We help with both. On employment-law questions, talk to an employment attorney; we do the insurance. ### Not sure if your class codes are right? Workers' comp is priced on payroll and classification, and a wrong code quietly overcharges you for years. It is one of the things we look at in a free coverage review. [Review My Policy](https://holleyagency.com/quote?type=business) [Call (254) 669-6522](tel:+12546696522) ## Whatever you built. We'll cover it properly. The right program depends on what you do, not what size you are. Here is where the differences bite. [### Contractors & trades GL, comp, commercial auto, tools and equipment. From new-home builds to commercial jobs across Texas, the GC usually sets the requirements, and we help you put together the certificates that get you on the job and paid.](https://holleyagency.com/quote) [### Restaurants, shops & salons From Main Street storefronts to strip-center suites, a BOP does the heavy lifting: the space, the gear, the slip-and-fall, the income if a storm closes you. Check the hail deductible on the building before spring.](https://holleyagency.com/quote) [### Businesses serving military families Moving and storage, auto services, cleaning, childcare, and professional services built around Texas military communities, from Fort Hood to Fort Bliss to Joint Base San Antonio. PCS-season swings, vehicles, and contract requirements all shape the program. Ask us what fits.](https://holleyagency.com/quote) [### Anyone with vehicles Delivery, mobile services, tools between sites. Personal auto excludes business use, and staff driving their own cars for you is a gap called hired and non-owned. Both are worth fixing before a claim, not after.](https://holleyagency.com/quote) [### Home-based & solo operators Side businesses, military spouses running a business from home, solo operators: your homeowners or renters policy was not built for your business. An endorsement or small business policy may fix it, and we will tell you honestly which fits.](https://holleyagency.com/quote) [### Growing teams First hires are exactly when the comp decision, payroll class codes, and employment-practices exposure deserve a real look. Grow the coverage with the headcount, not after it.](https://holleyagency.com/quote) ### Need a certificate of insurance today? Landlord, GC, or client waiting on one? Send us the contract language and we will help get it right, with the correct additional insured wording rather than a guess. [Get My Free Quote](https://holleyagency.com/quote?type=business) [Call (254) 669-6522](tel:+12546696522) ## Business insurance across Texas. Big cities to small towns. Our team works with small businesses across Texas, from big-city storefronts to small-town shops. Tell us where you operate. [Get Quote](https://holleyagency.com/quote) [Dallas–Fort Worth](https://holleyagency.com/quote) [Houston](https://holleyagency.com/quote) [San Antonio](https://holleyagency.com/quote) [Austin](https://holleyagency.com/quote) [El Paso](https://holleyagency.com/quote) [Gulf Coast](https://holleyagency.com/quote) [Hill Country](https://holleyagency.com/quote) [West Texas](https://holleyagency.com/quote) [East Texas](https://holleyagency.com/quote) [Panhandle](https://holleyagency.com/quote) [Rio Grande Valley](https://holleyagency.com/quote) [All of Texas](https://holleyagency.com/quote) ## Texas business insurance questions. Straight answers. Do I need workers' compensation insurance in Texas?+ Texas is the only state where workers' comp is optional for most private employers. That is the headline, and it is misleading. Comp is required for contractors on government construction work, and many general contractors and commercial clients require it by contract before you start a job. Going without — being a non-subscriber — is legal, but it strips your best legal defenses if an employee is hurt. Optional does not mean free. What actually happens if I skip workers' comp and someone gets hurt?+ An injured employee can sue you directly in civil court, and Texas law takes away your three strongest defenses: contributory negligence, assumption of risk, and fellow-employee negligence. The employee needs only to prove your negligence contributed to the injury, and damages are not capped the way comp benefits are — pain and suffering and, in egregious cases, punitive damages are on the table. One serious injury can outrun a decade of saved premiums. What paperwork does a Texas non-subscriber have to file?+ Opting out is a formal status, not a shrug. Non-subscribers must file an annual notice with the Texas Department of Insurance's Division of Workers' Compensation (the DWC Form-005), give written notice to employees, and post the required workplace notices stating that they carry no comp coverage. Skipping the paperwork adds administrative penalties on top of the lawsuit exposure. I'm a contractor with no employees. Do I need workers' comp?+ Legally, a true solo operator usually does not. Practically, the general contractors and commercial clients you work for — from new-home builds to commercial projects across Texas — will often require a certificate showing comp coverage before you start, and government construction work has its own coverage requirements. Many contractors carry comp not because the state makes them, but because the contracts that pay them do. What is a BOP, and is it enough?+ A Business Owners Policy bundles general liability, commercial property, and business income into one package built for small and mid-sized firms, often more efficiently than buying the pieces separately. For many main-street businesses, a BOP plus a deliberate workers' comp decision is the core of the program. It is not enough by itself if you own vehicles, give professional advice, or hold sensitive customer data — and in Texas it is worth checking how the property side handles hail and wind, including the deductible. Does my commercial property policy cover hail damage?+ Hail and wind are typically covered perils on a commercial property policy, but the details matter. Many policies carry a separate wind/hail deductible, sometimes a percentage of the building's insured value, and an older roof may be valued differently than a newer one. Texas is one of the most hail-prone states in the country, so review the roof, the deductible, and your business income limit before storm season. Flood is a different story: it is excluded from standard commercial property and needs its own policy. Does my personal auto policy cover me driving for work?+ No. Personal auto policies exclude business use: deliveries, hauling tools between sites, driving clients. If the vehicle belongs to the business, it needs commercial auto. If employees drive their own cars on your errands, you need hired and non-owned auto coverage, because their accident on your errand can become your claim. I run my business from home. Doesn't my homeowners policy cover it?+ Mostly no. Homeowners policies carry a small sub-limit for business property and generally exclude business liability outright — a client who trips on your front step is not a covered claim. The fix is usually simple: an endorsement or a small business policy, depending on what you do. The expensive version is finding out after the claim. A client wants a certificate of insurance naming them as additional insured. What is that?+ A certificate of insurance is proof of your coverage; naming a client as additional insured extends your liability policy to protect them for work you do for them. It is standard in construction, property management, and service work. Send us the contract language and we will help get the right certificate and additional insured wording in place, because a stalled certificate can stall your invoice. What is professional liability, and do I need it?+ General liability covers bodily injury and property damage. It does not cover being wrong. If clients pay you for expertise or advice — consulting, design, inspections, bookkeeping — and a mistake could cost them money, professional liability (errors and omissions) is what responds, and your contracts may require it. Availability depends on your line of work, so ask us what's available for your business. Do I need cyber insurance if I'm not a tech company?+ If you hold customer data, take cards, or run your operations through email and cloud software, you have cyber exposure. Small businesses are targeted precisely because attackers assume thin defenses. Texas's data breach notification law has real requirements and deadlines, and cyber coverage is built to help with forensics, notification, legal counsel, and lost income. Ask us what's available for your business. What does business income coverage actually pay?+ Property coverage rebuilds the building; business income pays your rent, payroll, and lost profit while that happens. In Texas, set the restoration period to a realistic timeline after a major hailstorm, when roofers and contractors across the area are booked at once. And remember that a business income limit means little if the peril that closed you was never covered — flood, for example, needs its own policy. How much does business insurance cost in Texas?+ It ranges too widely for one honest number: a home-based bookkeeper's program and a busy restaurant's program are different animals. Directionally, workers' comp is priced per $100 of payroll by class code, and property costs move with the building, the roof, and the area's storm history. The way to a real number is a conversation about your actual operation — what you do, who works for you, and what you drive — and a look at the Allstate business insurance options that fit it. Still have questions? [Call (254) 669-6522](tel:+12546696522). We will give you a straight answer. ## The business and the life behind it. [Get a business quote](https://holleyagency.com/quote?type=business) [Auto insurance](https://holleyagency.com/auto-insurance) [Life insurance for owners](https://holleyagency.com/life-insurance) [Call (254) 669-6522](tel:+12546696522) ## Tell us what you built. We'll tell you what it needs. What you do, who works for you, what you drive. We will listen, look at the full picture, and recommend coverage built around the business, including the parts you can skip. [Get My Free Business Quote](https://holleyagency.com/quote?type=business) [or call **(254) 669-6522**](tel:+12546696522) --- **Holley Insurance Agency** · 1801 Trimmier Rd, Suite A1, Killeen, TX 76541 · (254) 669-6522 · Mon–Fri 8:00 AM–5:00 PM CT Request a quote: https://holleyagency.com/quote-request (plain HTML form) or https://holleyagency.com/quote (guided).