Professional liability insurance in Texas

Any business that provides a professional service or expert advice should carry professional liability coverage, as a client could sue if your service or advice causes accidental harm. Even an unwarranted lawsuit can be expensive, between attorney’s fees, court costs, or a settlement.

Industries often at risk for professional liability claims include:

Texas law doesn't require most small business owners to have a professional liability insurance policy. However, you might need this coverage to sign a contract, rent a commercial space, or get a license in your field.

Professional liability insurance covers your legal defense costs if you’re sued for a mistake in your professional work, and it can be affordable for small businesses in Texas.

Even if you’ve done nothing wrong, a legal battle can be expensive. In addition to your attorney’s hourly rate, you’ll likely be charged for administrative costs such as copying, filing, and travel expenses. You may also have to pay for expert witnesses to testify on your behalf, a court-ordered legal judgment, or a settlement to avoid trial.

Professional liability insurance covers all of the above, up to the coverage limits of your policy. The policy limits you choose should take into account how expensive it can be to fight a professional liability lawsuit. You also need to determine the amount of coverage required to work in a certain field or obtain a contract.

Since professional liability insurance is a claims-made policy, continuous coverage is key. In order to file a claim, the policy must be active both when the claim is filed and when the incident occurred.

General liability insurance doesn’t include professional liability coverage. General liability covers common business risks and liability claims such as customer injuries, customer property damage, and advertising injuries.

If a customer falls and suffers an injury at your workplace, it would be covered by your general liability policy, including any legal defense costs. If someone sues you over unsatisfactory work, it would be covered by your professional liability coverage.

Read more about general liability vs. professional liability insurance.

General liability and professional liability are often the first policies bought by small business owners. However, they aren’t the only types of insurance you might need.

Workers’ compensation insurance covers work-related injuries and illnesses. While it's optional for Texas businesses, many choose to carry this coverage to protect against costly accidents.

Commercial property insurance is a type of property and casualty (P&C) insurance that covers your business’s physical location and equipment. It’s often required to sign leases.

A business owner’s policy (BOP) combines general liability coverage and commercial property insurance. It’s usually less expensive than buying each policy separately.

Commercial auto insurance is required in Texas for any vehicles used solely for work purposes.

Cyber insurance covers the cost of dealing with a data breach or malicious software attack.

Employment practices liability insurance (EPLI) is a type of management liability insurance that protects against legal expenses related to claims of harassment, discrimination, wrongful termination, and other violations of employees' rights.

Complete Insureon’s easy online application today to get quotes from top-rated U.S. insurance carriers. Our Texas-licensed insurance agents can help answer questions and provide advice about the best policies for your needs.

Once you find the right small business insurance, you'll have active coverage and access to your certificate of insurance, typically in less than 24 hours.