Texas is the second-largest small-business market in the country, and Insureon’s small business customers here pay a median of $43 a month for general liability, a little under the national $45 and well under Florida’s $55. Below are the 2026 numbers by coverage, trade and headcount, what drives them, and the rule that makes Texas different from every other state. For the 50-state picture, see average business insurance cost by state.
Average business insurance cost in Texas by coverage
The table shows what a Texas business of two to five people in a middling risk class pays for the three policies most small businesses carry. Professional liability, also sold as errors and omissions, responds when a client says your work cost them money. A business owner’s policy adds property cover on your own equipment and premises.
| Coverage | Typical monthly | Typical annual | What it covers |
|---|---|---|---|
| General liability ($1M per occurrence) | $29–$57/mo | $348–$684/yr | Third-party injury and property damage; the policy a client or landlord asks for by name. |
| Professional liability (E&O) | $72–$143/mo | $864–$1,716/yr | Claims that your advice or work cost a client money, legal defence included. |
| Business owner’s policy (BOP) | $48–$96/mo | $576–$1,152/yr | General liability plus commercial property, usually with business-interruption cover. |
| Hiscox advertised starting price | from $22.50/mo | from $270/yr | E&O from $22.50, general liability from about $29, a BOP from about $42. |
Estimates from Insureon’s published medians for Texas, for a business of two to five people at standard $1M/$2M limits. Not quotes; your insurer prices your specific business. Hiscox writes coverage in 49 states plus Washington DC (not Alaska).
See these costs for your own business size, revenue and state
Most Texas businesses start with general liability because somebody else demands it: a Dallas landlord, a Houston property manager who wants a certificate before your crew cleans, an Austin general contractor who will not let a subcontractor on site without one. A business owner’s policy earns its higher price once you own equipment, stock or a lease, because it adds property and business-interruption cover for less than two separate policies. Our guide to general liability vs professional liability vs BOP explains which to buy first.
Texas business insurance cost by trade
Your trade moves the premium more than your address. A consultant who never leaves the laptop is a cheaper risk than a roofer, and insurers price that gap with a risk class. Here are twelve common trades in Texas, two to five people, $1M/$2M limits.
| Trade | General liability | Business owner’s policy |
|---|---|---|
| Consultant | $20–$41/mo | $35–$70/mo |
| IT or software developer | $24–$47/mo | $26–$53/mo |
| Accountant or bookkeeper | $19–$38/mo | $35–$69/mo |
| Photographer or videographer | $18–$37/mo | $27–$54/mo |
| Real estate agent | $21–$42/mo | $33–$67/mo |
| Online store (e-commerce) | $27–$54/mo | $55–$109/mo |
| Personal trainer or fitness | $18–$37/mo | $34–$68/mo |
| Cleaning or janitorial | $31–$61/mo | $44–$87/mo |
| Landscaping or lawn care | $32–$65/mo | $54–$108/mo |
| Auto repair shop | $34–$69/mo | $86–$172/mo |
| Restaurant or café | $90–$180/mo | $144–$289/mo |
| General contractor | $103–$206/mo | $48–$96/mo |
Estimates from Insureon’s published medians for each business type for Texas, for two to five people at the standard $1M/$2M limits. Not quotes.
We cover five of these trades in their own Texas guides: cleaning businesses in Texas, personal trainers in Texas, photographers in Texas, real estate agents in Texas and IT consultants in Texas.
Cost by business size
Headcount matters too: every hire is another pair of hands that can drop a client’s server or leave a wet floor unsigned, and Insureon says more staff and more revenue generally mean higher premiums. It publishes no prices by headcount, so the table below only shows where in the Texas range a business of each size is likely to sit.
| Business size | General liability |
|---|---|
| Just me | $29–$43/mo |
| 2 to 5 people | $29–$57/mo |
| 6 or more people | $43–$57/mo |
Estimates from Insureon’s published medians for Texas, not quotes. No source publishes prices by headcount, so we show the lower half of the range for a one-person business under $100k in revenue, the whole range for two to five people, and the upper half for six or more. Larger businesses often pay more than this, especially for workers’ comp.
Business insurance cost in Houston, Dallas, Austin and other Texas cities
No source publishes prices by city, so our estimate is statewide: a business in Houston and one in a small Panhandle town get the same estimate of $29–$57 a month for the same trade, size and limits. Texas has no general state business license, so what actually differs city to city is which local permit or county filing applies, not the insurance rate.
| City | General liability | Local registration |
|---|---|---|
| Houston | $29–$57/mo | Harris County Clerk, assumed name (DBA) filing |
| San Antonio | $29–$57/mo | Bexar County Clerk, assumed name (DBA) filing |
| Dallas | $29–$57/mo | Dallas County Clerk, assumed name (DBA) filing |
| Austin | $29–$57/mo | Travis County Clerk, assumed name (DBA) filing |
| Fort Worth | $29–$57/mo | Tarrant County Clerk, assumed name (DBA) filing |
Statewide estimate from Insureon’s published medians for Texas, not a quote; no source publishes prices by city. Local registration shown is where you file a trade name, not where you buy insurance, and specific permits vary by trade.
Coastal cities like Houston carry more hail, flood and windstorm exposure in a BOP's property section than inland cities like Austin or Fort Worth, so the property side of the $48–$96 BOP range tends to run higher along the Gulf Coast even though general liability pricing does not move by city.
Why Texas costs what it does
Insureon’s Texas customers pay a median of $43 a month for general liability, a little under the national $45, and $34 a month for workers’ comp, against $54. Four things shape Texas premiums.
- Hail and windstorm losses. North Texas is hail country and the Gulf coast adds hurricane wind, so any policy that covers property pays for both.
- A very large commercial market. Texas has more small businesses than any state except California, which means more contractors on more sites and more claims, though scale also keeps carriers competing.
- Litigation costs. Defending a liability claim in Texas costs more than in most states, and that cost is baked into every trade’s liability rates.
- No state income tax. Texas does not tax personal income. That does not change the premium, but it does change what a sole proprietor keeps after paying it.
What Texas requires
The Texas Department of Insurance (TDI) regulates insurers and licenses agents, and its Division of Workers’ Compensation administers the rule below.
Texas is the one state where workers’ compensation is optional for most private employers. An employer that opts out must file the annual notice with TDI’s Division of Workers’ Compensation post notices to its employees, and give up the common-law defences it would otherwise have if an injured worker sues. Many contracts require coverage anyway, so read yours before opting out.
Some trades, electricians and HVAC contractors among them, are licensed by the Texas Department of Licensing and Regulation (TDLR). Texas also charges sales tax on certain services, including janitorial work and some repair, which the Texas Comptroller can confirm. Licensing rules change, so check the named body for current specifics before you rely on this page.
How to lower your premium in Texas
These are the levers that most often bring a Texas premium down.
- Get the classification right. A bookkeeper rated as a general consultant pays for a risk they do not carry. Describe the work precisely when you quote.
- Quote real revenue. Premiums scale with revenue, and quoting projections instead of actual figures means overpaying until renewal.
- Buy the limits the contract asks for, not more. $1M/$2M satisfies nearly every Texas lease and vendor agreement.
- Take a higher property deductible. Hail and wind exposure sits in the property side of a BOP, and a higher wind and hail deductible is the most direct way to bring that part down.
- Bundle into a BOP. If you need property cover at all, a BOP is almost always cheaper than general liability plus a standalone property policy.
- Stay claims-free and pay annually. Carriers price a clean loss history lower at renewal, and most charge less for one annual payment than for twelve monthly ones.
Where these numbers come from
The figures at the top of this page and in the main cost table come from the same data as our cost estimator, so the two always agree. The starting point is the median premium that Insureon, an online insurance agency, publishes for its small business customers (see its Texas page). We adjust it for the state using Insureon’s state medians, and show the band that Insureon’s own price distribution says most businesses fall in. Every figure is an estimate, not a quote. The full method and source list is on the estimator page.
Frequently asked questions
How much is business insurance in Texas per month?
A Texas business of two to five people typically pays about $29–$57 a month for general liability, $72–$143 for professional liability and $48–$96 for a business owner’s policy.
Is business insurance more expensive in Texas than the national average?
No, it is slightly cheaper for general liability. Insureon’s small business customers in Texas pay a median of $43 a month for general liability, against $45 nationally, so a two to five person business typically pays about $29–$57 a month here against $30–$60 nationally. Hail and windstorm losses push property rates up, but Texas stays well below Florida, where the median is $55.
Do I need workers’ compensation in Texas?
Not by law, in most cases. Texas is the one state where workers’ compensation is optional for most private employers, but an employer that opts out must file the annual notice with the Texas Department of Insurance, post notices to employees, and loses its common-law defences if an injured worker sues. Many contracts require it regardless.
How much does $1 million liability insurance cost in Texas?
A $1 million per occurrence, $2 million aggregate general liability policy costs a typical Texas business of two to five people about $29–$57 a month, or $348–$684 a year. That is the standard limit a landlord or commercial contract asks for, and a one-person business under $100k in revenue pays closer to $29–$43 a month.
What is the cheapest business insurance in Texas?
General liability on its own is the cheapest policy for most Texas businesses, and desk-based businesses such as a one-person consultancy are among the cheapest to insure. Insureon’s figures put general liability for a one-person consultancy in Texas at about $20–$31 a month.
How much is business insurance in Houston?
The same as anywhere else in Texas: about $29–$57 a month for general liability for a two to five person business; no source publishes prices by city, so our estimate is statewide. Houston’s hurricane, flood and hail exposure shows up in the property side of a business owner’s policy rather than in general liability itself, so a Houston business tends to land toward the higher end of the $48–$96 BOP range.
Do I have to buy through you?
No. This site publishes cost guides and earns a commission if you get a quote through a partner link. We are not an insurer or a broker, we do not sell your details, and a quote costs you nothing and commits you to nothing.
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Disclaimer: Informational only, not insurance advice or a substitute for a licensed agent. Licensing and regulatory details change; confirm current requirements with the bodies named above. Coverage descriptions are summaries; policy terms govern. Availability and pricing vary by state and business, and prices are illustrative. Hiscox is available in 49 states and DC, not Alaska.