General Liability Insurance in Beaumont, TX

Small businesses in Beaumont, TX are advised to take out General Liability insurance cover to ensure that they have the right protection from financial loss.

The laws in Texas make it clear that they may be liable for any personal injury and property damage that were caused by their services, business operations or employees that can be attributed to negligence.

Understanding General Liability insurance coverage is an important first step in managing any business in Beaumont, TX.

All businesses must accept the possibility of being sued for accidental injury or damage to third parties.

General Liability Insurance in Beaumont

What does Commercial General Liability Insurance in Beaumont, TX cover?

A comprehensive Commercial General Liability insurance policy should at the very least cover the following possible claims against the definitions of liability in Beaumont, TX:

  • All damages awarded by a court in Texas if you are found liable, or settlements negotiated with a claimant, up to the limits of the policy.
    This cover provides protection against your legal liability as defined in Texas legislation for any bodily injury or property damage to third parties due to negligent acts arising in the course of business, including any liability arising out of the state of your premises or business operations.

    • Pollution liability and liquor liability may be excluded but could be purchased in Beaumont, TX as an endorsement.
    • Professional liability and product liability are separate issues and must be covered by Professional Liability or Error & Omissions insurance or by Product Liability insurance.
      An insurance professional can help you to determine endorsements that are right for your type of business.
  • The costs of any legal defense in the event that a claim is made.
    The provision of legal cover is regardless of fault.
    Your own defense costs, and any costs awarded by a court, up to your policy limit, is fully covered.
  • Costs for replacing or fixing property damaged or destroyed
  • Damages claimed can include offenses such as libel, slander, infringing on copyright through the use of a third-party’s advertising materials
  • Medical expenses including for injuries sustained by any non-employee caused by an accident that takes place on your premises or place where your business operations occur.
    Medical payments coverage includes all reasonable medical, surgical, hospital, professional nursing, ambulance, and funeral expenses as well as loss of income for missed workdays.
    Mental injuries and emotional distress can be included, even in the absence of physical bodily harm.

A few examples of occurrences in which your business could be responsible for paying various costs, such as medical and legal expenses, as well as compensatory and punitive damages:

  • While visiting your premises, a customer trips on loose carpeting and is injured.
  • An employee in your business engaged in painting and repairs accidentally leaves water running overnight, causing substantial damage to your customer’s home
  • A class action lawsuit is filed against your business, alleging that your adverts comprise misleading information as defined in Texas law.

Do I need business insurance in Beaumont, TX?

We are here to guide you in deciding on the proper levels of insurance at the best available cost.

Even before you start a business in Beaumont, TX, your planned business practices should take into account protection against unforeseen risks.

There have been too many instances in Texas where an unexpected event caught even the most properly run small enterprise by surprise and ended up costing the owners far too much.

What are the main terms in General Liability insurance policies?

General Liability is a general term that covers a wide range of different cases.

Insurance companies will define their own terms and conditions, and there are some specifics relating to your own business that you should be looking out for to ensure that your policy matches your own requirements.

  • General liability limits are described in the insurance policy.
    The general aggregate limit is the most the insurer will pay for damages in the covered period.
    For example, $2 million total claims in the insurance period, with a limit of $1 million per individual claim
  • Claims up to the liability limits are guaranteed. As well, all associated legal costs for claims up to the limit are carried by the insurer
  • There is a risk of potentially exhausting the cover if claims run over either of these limits. If a policy is exhausted, you could end up covering claims yourself, including legal expenses.
  • The general aggregate is the maximum limit of coverage supplied by your general liability policy within the term of the policy.

How to find the right small business insurance in Beaumont, TX

There is a large amount of information and help that you should take advantage of when you first begin the search process.

Small business insurance in Texas is becoming increasingly specialized, so it’s advisable for you to gather information and guidance from every source before you make your decisions.

Before you sign-up on any policy, it’s good practice to check that all of them are issued by companies that comply with the regulations in Texas – here is a link to the guide issued by the National Association of Insurance Commissioners.

  • Start with a search on the internet. You will quickly locate experts in this field in Beaumont, TX offering a wide range of policies.
    Comparing what they offer on their websites will quickly bring you the basic information that you will need in order to make the right choice.
    One good way to find them is to use
    google maps, with the relevant search phrase insurance agent in Beaumont, TX
  • Locating the best insurance agent or broker in Beaumont, TX makes the decisions easier and quicker.
    It’s important to understand the difference between independent agents/brokers and company agents.
    A broker or agent may represent more than one insurance company.
    Agents represent insurance companies located in Beaumont, TX and are only providing policies from that company. 
  • One way to quickly find a listing of the agents, brokers and insurance companies nearby in Texas is to use the power of the Yellow Pages.
  • Take some time to ask around in your social network and amongst neighboring Beaumont, TX businesses for referrals.
  • Make sure to calculate the required limits. The consequences of under-insuring could be devastating, whereas increasing limits does not substantially increase the premiums.
    For example, doubling aggregate cover normally only increases premiums by 30-40%.

Why is liability insurance essential in Beaumont, TX?

Any and all businesses operating in Texas have accepted the state’s laws concerning liability.

These laws determine your responsibility towards the general public in case some accidental injury or damage occurs to anyone in the course of your business operation.

All businesses in Beaumont, TX should have this fundamental protection.

The coverage provided by the General Liability insurance policy will protect your business from claims from a third party that you caused accidental bodily injury or property damage.

With the right cover, you can also protect yourself from claims of personal damages coming from libel or slander.

The important definition of this kind of insurance is that it covers only for accidental injury to a third-party or loss sustained by a third party as the result of negligence in your business activity.

What is covered by a Business Owners Policy BOP?

Many insurance companies based in Texas are offering a single policy BOP that covers both General Liability and Commercial insurance in a one-size-fits-all package, which makes it cheaper and easier to negotiate.

It is also possible to bundle into the BOP other business covers, such as:

  • Data loss or theft
  • Employee theft or misappropriation
  • Business Interruption

How much does general liability insurance cost for an average small business in Texas?

Keep in mind that insurance companies always take care to cover the level of risk that they can expect.

They will assess standard factors such as the industry and type of business operations and the location of your business, using statistics in Beaumont, TX. 

Specifics of your business, such as the size and condition of your premises, the number of years you’ve been in business, and the number of workers you employ will be required.

Usually, insurance companies in Texas have access to shared data about claims history and this can be a significant factor in your own premiums.

The other main factor that affects how much you’ll pay for general liability insurance is the coverage limits of your policy.

Higher limits will mean higher premiums, but you can offset this with the size of your deductibles. 

Higher premiums are more usual in industries that involve heavy equipment, chemicals and on-site work.

for example, contracting, construction, metalworks, cleaning services and landscaping.

Lowest premiums are usual in office activities, such as accountants, computer consultants, banking and insurance.

While it’s not possible for us to give exact costs, here are some general guidelines.

High-risk group

For example, contracting, construction, metalworks, cleaning services and landscaping.

Insurance Type Price Range
$2 million aggregate
$1 million single incident
$735 – $1335
$4 million aggregate
$2 million single incident
$1330 – $1575

Standard-risk group

Insurance Type Price Range
$4 million aggregate
$2 million single incident
$840 – $1075
$2 million aggregate
$1 million single incident
$455 – $690

Low-risk group

For example, accountants, computer consultants, banking and insurance offices, photographers.

Insurance Type Price Range
$2 million aggregate
$1 million single incident
$380 – $550

Final thoughts

You can search for more information about your general liability insurance in Beaumont, TX in the search box below, and follow the relevant links.

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