DSP Insurance Insights

Winter is here, and with it comes one of the season’s biggest headaches for homeowners: ice dams. These ridges of ice form when warm air inside your home melts the snow on your roof, only for that melted snow to refreeze at the edges. Once that happens, the water behind the ice has nowhere to go. Eventually, it works its way under shingles and into your home, causing stains, leaks, warped materials, and costly frustration.

It’s a common winter issue in the Midwest, but the question we hear most often is simple: Does homeowners insurance cover this? In many cases, yes.

Insurance fraud isn’t just an industry problem, it’s a business problem. Fraud costs the U.S. an estimated $308 billion every year, with property and casualty fraud making up nearly $90 billion of that total. Those losses trickle down in the form of higher premiums, stricter terms, and challenges when it comes to securing coverage.

When it comes to business insurance in Texas, it’s definitely gotten tougher, especially for certain industries and locations. Carriers are tightening their underwriting, rates are rising, and some coverage lines are getting harder to secure altogether.

What's Making Business Insurance Harder to Get in Texas?

Weather-driven claims

Frequent hurricanes, hailstorms, and extreme heat have made Texas one of the most disaster-prone states. Commercial property carriers are responding by:
- Pulling back in high-risk areas
- Increasing deductibles for wind/hail
- Requiring more documentation or inspections
- Sometimes declining to quote at all

Fewer carriers, less competition

Some major insurers have reduced their appetite for commercial risks in Texas, particularly for:
- Construction
- Hospitality
- Real estate/lessors risk
- Coastal properties

This has shrunk the market and given the remaining carriers more pricing power.

Skyrocketing premiums

Rates are climbing across almost every line, especially commercial property, liability, auto, and umbrella. If your loss history isn’t clean or if you operate in a high-risk class, expect double-digit increases or stricter terms.

Legal environment

Texas has a reputation for high litigation frequency and big verdicts (especially in auto and general liability claims). This has caused umbrella and excess liability markets to recoil or raise rates sharply.

Surplus lines growth

Many businesses are being pushed into the excess & surplus market, especially for property and high-limit liability. These carriers aren’t admitted in Texas and may offer less flexible terms, but they’re increasingly the only option.

What Can Businesses Do?

- Work with an independent agent or broker who can access a wide range of markets (not just direct writers).
- Get ahead of your renewal - start marketing your policy 90+ days out, especially if you’ve had claims or operate in a tough class.
- Invest in risk management- carriers reward businesses that can demonstrate loss control, especially in safety, cybersecurity, and fleet management.

Yes, getting business insurance in Texas is harder than it used to be, especially for property-heavy, high-risk, or coastal operations. But with the right strategy, proactive planning, and a knowledgeable partner, it’s still very possible to secure solid protection at competitive rates.

Need help navigating the changing insurance landscape in Texas? Let’s talk about your options.

Most homeowners and companies know that property insurance rates are rising in this “hard” market over the past few years. Navigating co-insurance challenges shows that hard markets come with increased premiums, increased deductibles, and stricter coverage terms. Catastrophic property losses from weather events are becoming more frequent, and the dollar amounts per loss continue to rise, forcing insurance companies to re-evaluate their property insurance portfolios. At the same time, the cost to rebuild properties has increased dramatically due to rising construction costs for material and labor. Additionally, replacement costs on an insurance policy might be significantly higher than the market/retail value of the property. Now more than ever, property owners need to review their property coverage limits and make sure they are carrying adequate limits to avoid a co-insurance penalty, truly navigating co-insurance challenges.

In 2023, the U.S. trucking industry faced a series of overwhelming challenges, leading to the closure of nearly 88,000 trucking firms—around 10% of the nation’s total. The primary drivers were rising operational costs, especially as driver salaries and legal expenses soared. These factors, in turn, pushed up trucking insurance costs, creating a difficult cycle of shrinking profit margins and higher costs for goods transported by trucks. As these increased expenses trickled down, the impact was felt in prices for everyday goods, affecting both businesses and consumers alike. (Source: Legal System Abuse Hammers Truck Insurance)