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.