The recent federal government shutdown, the longest in U.S. history, put millions of Americans under financial strain and uncertainty. For small businesses especially those tied to federal contracts or funding the impact was significant.
Many business owners found themselves asking:
“Does my insurance cover losses from a government shutdown?”
The short answer is usually not, but the details matter.
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.
In today’s business environment, a single misstep by an employee can result in significant liability from workplace injuries and harassment claims to data breaches and regulatory fines. Many of these incidents are preventable with proper training.
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.
