Buying Business Interruption Insurance in Texas

Assess your business needs and the risks prevalent in your industry before getting Business Interruption Insurance in Texas. This would help you choose the right coverage when purchasing your policy. There are several Business Interruption Insurance options and plans available in Texas from which you can choose depending on your business needs. They are:

• Extra Expense coverage

• Civil Authority

• Contingent Business Interruption insurance

It is good to shop around and compare quotes from multiple insurers to get Business Interruption Insurance at a competitive price. You can do this online or in person. Still, it is better to seek the help of a Texas-licensed commercial insurance agent when comparing quotes to avoid unnecessary waste of time and get a policy specifically customized for your business. Also, feel free to combine your Business Interruption Insurance with other business insurance or add it as part of your Business Owners Policy (BOP) to get a cheaper policy.

Do you Actually Need Business Interruption Insurance?

Most businesses may find it difficult to operate on their business premises when their properties are damaged due to a disastrous event like a natural or man-made disaster. Hence, you need business interruption insurance in Texas to avoid paying out of pocket for financial losses caused by a direct physical loss of or damage to your company’s property. You can bundle your Business Interruption Insurance policy with a standard commercial business policy to have comprehensive coverage or buy more Business Interruption Insurance coverage if you run a high-risk business. Typically, the amount of coverage you purchase should be able to restore your business to the state it was before the event that interrupted business operations.

As your business expands, your business needs will change. You may need to add different coverage types or adjust your limits or other coverage options to match your needs. Talk to a knowledgeable Texas-licensed insurance professional who can accurately assess your business needs and offer multiple choices of products (including coverage and cost) to meet those needs.

How to Shop for Business Interruption Insurance in Texas

You can shop for Business Interruption Insurance online or through a Texas-licensed commercial insurance agent. However, there are several things you should do while shopping for a policy. They include:

• Consider your business risks: Before shopping around for a Business Interruption Insurance policy, assess the risks like accidents and natural disasters that may interrupt your business operation. For instance, Texas businesses located in a Tornado Alley area of the state are at a risk for tornado damage, which can affect business operations if one runs through. Meanwhile, Houston-based businesses may be more in danger of floods from the storms coming in from the Gulf of Mexico.

• Shop around for quotes: Obtain quotes from multiple insurance providers and compare business interruption insurance policies with similar coverages.

• Find a knowledgeable insurance agent: You can also seek the service of a commercial insurance agent to help you compare quotes from multiple insurers. Experienced agents can assess your Business Interruption Insurance needs and match you with the most balanced coverages to fit those needs at the best price.

• Do annual reassessment of your policy: Contact your insurance agent as your business expands to discuss changes in your business and how they affect your Business Interruption coverage.

What are my Business Interruption Insurance Options?

The common Business Interruption Insurance options you will find in Texas include:

• Extra expense coverage: This covers necessary expenditures that you have incurred beyond your normal daily expenses due to the physical loss or damage to the property by a peril covered under the policy. This coverage includes:

  • Renting a temporary office space while the primary place of business is undergoing repairs

  • Leasing equipment

  • Replacement of damaged equipment like hardware, technology, and furniture

  • Paying staff to work overtime or employing more staff

• Civil authority: This covers loss of income and any additional expenditures due to a government ban on your business premises due to damages experienced in a nearby location. This coverage usually ends between 7 and 30 days.

• Contingent business interruption insurance: This covers lost income due to insurable loss to your supplier or customer’s business

Talk to a Texas insurance agent who can educate you on the available Business Interruption Insurance options. A knowledgeable commercial agent can recommend the best option to give you the right amount of coverage for your business.

How to Qualify for Business Interruption Insurance

If you own a business in Texas, you qualify for business interruption insurance. Additionally, you must be resident in the United States as a citizen or lawful resident.

Speak to a Texas insurance agent who can help you determine your eligibility for a Business Interruption Insurance policy.

Where to Buy Business Interruption Insurance?

In Texas, you can purchase Business Interruption Insurance online or directly from an insurer. In either way you are buying it through an insurance agent licensed by the Texas Department of Insurance. Commercial insurance agents are familiar with the policy language, coverages, and costs, and most of them have access to multiple insurers that operate in the state.

Where to Get Business Interruption Insurance?

If you already have other commercial insurance policies but wish to get Business Interruption Insurance in Texas, you should first contact your current agent. If your current insurer offers Business Interruption Insurance and you are comfortable with their coverage and quotes, you can purchase it from them. Ask your agent to fill out the application paperwork and run the numbers. However, you do not have to purchase the policy from your current insurance provider.

If you do not have a current commercial insurance policy: Contact a knowledgeable commercial insurance agent licensed in Texas who can assess your needs and then help you compare quotes from multiple insurers to get you a customized policy with the most comprehensive and affordable coverage.

An alternative way to get Business Interruption Insurance is to shop for it by yourself online. Although getting online quotes may be good, it is best to discuss your options with a Texas-based insurance agent to get the right coverage. You might be tempted to choose the cheapest policy while shopping for quotes online. However, such a policy may not provide the needed Business Interruption coverage, which could cost you more in the long run. Carefully check through the suggested terms to understand what the policy includes and excludes to avoid paying out of pocket for any financial loss due to business interruption. Even though you may be doing all the research by yourself, in order to activate the policy, you will need to talk to a Texas-licensed agent who works at your chosen insurer. In most cases, you get a call back from an agent after requesting a quote. Such agents will go over the selected coverages and the legal disclaimers but usually cannot offer you any information about the competitor’s offerings. If you want to compare multiple options, it is best to use the services of an independent agent. It is advisable to engage the services of a Texas-licensed insurance agent who can help you handle the entire process and ensure all eventualities are covered.

Where Can I Buy Affordable Business Interruption Insurance in Texas?

The cost of Business Interruption Insurance varies among insurance providers, and several factors like commercial property value, industry, revenue, coverage limits, and claims history are used to determine the price. However, purchasing your Business Interruption Insurance through a licensed insurance agent can help you get the most affordable policy. Insurance agents will help you:

• Assess your commercial insurance coverage needs and search through the plans currently being offered in Texas to fill those needs,

• Compare quotes from multiple insurers that fit your needs, so you can settle for a policy that suits your needs at a competitive price,

• Purchase Business Interruption Insurance as part of a Business Owners Policy (BOP) or bundle your policy with other business insurance policies like Commercial Crime Insurance, to reduce the premium,

• Provide information on how to purchase your Business Interruption Insurance through your business association to reduce costs.

The services of commercial insurance agents are free for the insured.

How to Apply for Business Interruption Insurance

There are different ways to apply for Business Interruption Insurance in Texas:

• Online: Most insurers have online portals where you can apply for Business Interruption Insurance in Texas. You may be required to provide the following information:

• Business name, address, email address, website, and phone number

• Occupancy status of your business premise and its size

• Number of employees

• The estimated value of business assets

• Estimated annual revenue

• The type of product or service you provide and your industry

After inputting the necessary information, you will get a quote and will be advised to choose your preferred payment frequency. If you opt to make your first payment, your policy documents will be sent to your email. Prior to the start of coverage, a commercial insurance agent who works for the selected insurer and is licensed in Texas reaches out to confirm the selected coverages and to go over the legal disclaimers. Such agents usually can only answer questions about the coverage offered by their employer.

• In-person: You can go to a local brick-and-mortar office of an insurance company and apply for your Business Interruption Insurance in person. You will be required to complete an application form to specify the nature of your business and your business needs. Coverage can begin immediately after you pay your first premium.

• Independent commercial insurance agent: Applying for Business Interruption Insurance through a licensed agent is the best way to find a policy that matches your business needs. Generally, you can get a business interruption insurance agent:

  • Online

  • Through referrals from friends, business partners, suppliers, trade or professional organizations

  • By contacting insurance companies to get the details of the agents that work with them

  • By checking the insurance company website or social network sites for agent information

  • Contacting agent associations to assist you in finding a local agent

Once you have identified the agent, you would like to work with, verify their licensure status and ask about their experience with Business Interruption Insurance. Once satisfied, provide them with the information required to complete your application. A knowledgeable agent would help you all through the application process and ensure you get the right Business Interruption Insurance coverage at an affordable price.

Who Can Help with Application for Business Interruption Insurance?

Business owners can get help for Business Interruption Insurance applications from:

• insurance agents or

• brokers.

Insurance agents and brokers help you throughout the application process and compare quotes from multiple insurers for an affordable policy. The insurance agent does all this at no cost because they represent the insurance company (no matter which one you choose). Applying through an experienced commercial insurance agent is generally faster and better because they know all the nitty-gritty of the process and how you can save costs.

Should I Use an Insurance Agent to Buy Business Interruption Insurance?

Yes, using a state-licensed commercial insurance agent is the best thing you can do. Regardless of how you decide to get quotes or purchase your Business Interruption Insurance in Texas - directly from an insurance company, online, or over the phone - you will end up interacting with an agent. Using an insurance agent is faster and more cost-effective because they understand the insurance market and the underwriting process. In addition, insurance agents are knowledgeable about the available coverages and will ensure you get the best policy that suits your business needs at an affordable price. Just remember that employee (Captive) agents usually cannot discuss competition, while Independent agents can work with the insurers they choose.

Can you Purchase Business Interruption Insurance through an Agent?

Yes, you can. Purchasing Business Interruption Insurance through an agent provides you with a better chance of saving money and time. Independent agents can also stay with you even if you switch insurance providers.

Why Do I Need an Agent for Business Interruption Insurance?

You need an insurance agent for business interruption insurance in Texas because, unlike some residential coverages, purchasing commercial insurance always requires a conversation with an insurance professional licensed in Texas. Agents assess your business needs, validate the necessity of such coverage, research locally available options, and provide you with a choice of the best solutions at an affordable rate. Commercial insurance agents can also provide you with ways to cover potential gaps in your Business Interruption coverage by bundling your policy with other business insurance policies leading to reduced premiums. In case of a claim, the agent can help you with the process by taking care of the communications between the insurer and the insured.

Why is an Insurance Agent Important for Business Interruption Insurance?

An insurance agent is important for Business Interruption Insurance in Texas for the following reasons:

• Affordable premium deals: Independent commercial insurance agents work with multiple insurers and can leverage the relationships to get affordable rates

• Multiple coverage packages: Insurance agents can help you bundle your Business Interruption Insurance policy with other business policies to get possible discounts

• Claims: When it is time to file a claim, you do not need to go through all the paperwork alone. Your insurance agent can help you with the entire process

• Risk assessment: Insurance agents are proficient in assessing your business risks and can guide you in choosing the appropriate Business Interruption Insurance coverage

What Kind of Insurance Agents Work with Business Interruption Insurance?

Commercial property insurance agents are responsible for selling and negotiating Business Interruption Insurance in Texas to match the needs of their clients. There are two major kinds of Texas commercial property insurance agents that work with Business Interruption Insurance providers:

• Independent agents

• Captive agents

Independent commercial insurance agents typically work with multiple commercial insurers that offer Business Interruption Insurance to interested businesses. One major benefit of working with independent agents is that they can help you shop for insurance quotes from multiple insurers. This helps save time and money for a comprehensive policy that is within your budget. In addition, they can help you determine if staying with your current insurer or switching to another would be better anytime your policy is due for renewal.

In contrast, captive commercial insurance agents work with only one employer and solely sell products offered by the insurance company they represent. They are well versed in the company they represent, including the available discounts, the type of Business Interruption coverage the company offers, and how to get the best deal with the insurance company. But do not expect them to offer competitive products, even if they are a better match for the insured.

How to Choose an Agent for Business Interruption Insurance in Texas

The kind of agent to purchase your Business Interruption Insurance from is primarily based on your preference. You can get referrals from friends, business partners, or suppliers or conduct an online search for insurance agents. Eventually, you will either end up with a captive agent, an independent agent, or both. Independent agents sell Business Interruption Insurance policies for several insurers, while captive agents work exclusively with a specific insurance company. Ensure you choose an agent with extensive experience with the Business Interruption Insurance product.

How Can I Find an Agent Who is Proficient in Business Interruption Insurance?

Below are several ways you can find an insurance agent who is proficient in Business Interruption Insurance in Texas:

• Online: You can find a proficient insurance agent in your locality online

• Contact the insurance company directly: You can retrieve the phone number of an insurance company from their website and ask to connect with one of the best Business Interruptions insurance agents representing them

• Referrals: Get recommendations from business partners, organizations, friends, and suppliers who purchased their Business Interruption Insurance policy through an insurance agent

• Texas Department of Insurance (TDI) website: Check the "How to find a licensed insurance agent or adjuster" page on the TDI website for the list of agents who are proficient in Business Interruption Insurance in Texas

• Contact an Agent Association: agent associations can assist you in finding a local agent proficient in Business Interruption Insurance

Once you find an agent with whom you would like to work, it is important to verify their expertise in Business Interruption Insurance policy and confirm if they have the requisite education for the profession. Also, verify that they are duly licensed by the Texas Department of Insurance (TDI). Use the agent's name or license number to obtain valuable information concerning their licensing history. You can contact the TDI Helpline at (800) 252-3439 or look up a company or agent to check if any complaints have been filed against your intended insurance agent.

How Can I Find an Agent Who is Proficient in Implementing a Business Interruption Insurance Properly?

You can find a Texas commercial agent proficient in properly implementing Business Interruption Insurance:

• Online and

• By getting recommendations from business partners, friends, suppliers, or agent associations.

What Do Insurance Agents Do for you in Business Interruption Insurance?

A good insurance agent will guide you through your Business Interruption Insurance application process, purchasing the policy, as well as regular check-ins once your policy is established. They also help with the claims filing process.

What Should your Insurance Agent Do for you?

Your insurance agent should do the following for you:

• Understand the scope of your business and help you assess the business insurance needs.

• Educate you on Business Interruption Insurance coverage and make recommendations based on your business needs.

• Compare quotes from multiple insurance providers and help you select the best and most affordable option that suits your business needs.

• Evaluate business needs from time to time and recommend changes in coverage when necessary.

• Contact you when your Business Interruption Insurance coverage is about to expire and provide you with the information required for policy renewal.

• Help you with the claims filing process in the event that your business suffers any damage or loss leading to business interruptions.

How to Compare Business Interruption Insurance Quotes

When shopping for Business Interruption Insurance in Texas, you may want to compare quotes from multiple insurers to help you find the best policy for your needs. Try to determine the type of coverage and the amount of coverage you need before comparing quotes. You can do this online, and if you are good at it, you can find a good deal. However, if you are a novice and/or do not understand how to shop for quotes, you might run into problems. For instance, you may end up choosing the cheapest policy without verifying if it provides the right coverage for your business needs. Or you may not realize that some bundle of coverages can solve your coverage issues more effectively, than choosing the single coverage a-la-carte.

It is always helpful to use the services of a Texas-licensed commercial insurance agent to compare Business Interruption Insurance quotes. They would leverage their experience to help you compare quotes from several insurers and ensure you get a policy that suits your needs at an affordable price. Agents usually compare multiple quotes by matching them to your needs across similar coverage.

How Many Business Interruption Insurance Quotes Should I Compare?

Compare Business Interruption Insurance quotes from several insurance companies to determine the average market price. Also, ensure you are comparing policies with similar coverage.

How Many Business Interruption Quotes Should I Get?

Get at least 2 to 3 quotes from different insurance companies. Make sure to compare quotes with the same coverages. If the coverage terms are not an exact match, making it hard to compare - ask a licensed commercial insurance agent for help.

How Important is to Have a Local Agent for Business Interruption Insurance?

It is common to have insurance agents licensed in Texas but operate from another state. However, having a local commercial insurance agent to help you find a Business Interruption Insurance policy can be important. This is because they are aware of the prevalent disasters that affect business operations in your community and can recommend the right amount of coverage for your business needs. In addition, local agents understand the prevailing insurance needs in their locality. Furthermore, there is a probability of building a lifelong relationship with your local agents because they know you in person, where your business is located, and can even patronize your business.

Does it Cost me Extra to Use an Insurance Agent for Business Interruption Insurance in Texas?

No. Insurance agents will not charge you for purchasing Business Interruption insurance through them. Instead, the insurer that you end up selecting pays the agent a fee for taking care of the application process and verifying that all documentation was done properly.

How Does a Texas Business Interruption Insurance Agent Get Paid?

Independent commercial insurance agents are paid commissions for every policy they sell by the insurers they are legally allowed to represent. They also get commissions on renewals or policy adjustments. On the other hand, most captive insurance agents receive commissions, salaries, and other benefits from the insurance company they represent.

The use of the insurance agent for the insured does not cost anything.

Can I Buy Business Interruption Coverage Online?

Yes. There are a lot of online marketplaces where you can purchase a Business Interruption Insurance policy in Texas. Getting your policy online comes with many conveniences because most insurance companies’ websites are available 24 hours a day all through the week. You are at liberty to complete your application whenever you like, and you can get quotes immediately or during the operator's normal business hours. One major disadvantage with getting Business Interruption coverage online is that you can make poor choices. For instance, you can buy the wrong coverage or an insufficient coverage limit. When you get a confirmation call from the online insurer’s captive agent, they will be able to talk to you only about the coverages available through their employer. This is why it is better to research and purchase your Business Interruption coverage through an independent insurance agent. You can find such an agent online.

Can Anyone Get Business Interruption Insurance?

Anyone who owns a business in Texas can get Business Interruption Insurance. Talk to a Texas-licensed insurance agent who can give you detailed information on how Business Interruption Insurance can meet your business needs.

Can you Obtain Business Interruption Insurance at Any Time?

Yes, you can obtain your Business Interruption Insurance at any time. However, it is better to get it as soon as you commence your business because Texas is generally prone to natural disasters that can interrupt your business operations. Discuss with a Texas commercial insurance agent to know when and how to get a Business Interruption Insurance policy that can cover financial losses due to business interruption.

Can I Over-Insure my Company with Business Interruption Insurance?

Over insurance happens when your coverage exceeds the amount needed to keep the business running in the event of business interruption or what your insurer will payout during that period. Over-insuring your company with Business Interruption Insurance is not ideal because your insurer will only payout based on the income of the business, the payrolls, rents, etc. What you should do is have enough coverage to restore your business to its original state before the event that led to its interruption. Speak to a Texas commercial insurance agent whenever there is a need for added coverage for your business instead of over-insuring it with Business Interruption Insurance.

What Happens if I Over Insure my Company with Business Interruption Insurance?

If you over-insure your Texas Business Interruption insurance, you will be paying too much for coverage that would not payout more than the cost to sustain your business operations. Your insurance provider will only payout based on the agreed-upon valuation. It is advisable to discuss your needs with a knowledgeable and experienced agent so they can get you business interruption coverage that will just be good enough for your business.

Should I Over Insure my Company with Business Interruption Insurance?

It is not a wise thing to do because the payout is meant to sustain business operations and it depends on the income of the business, the payroll, rents, etc. If there is a need for additional protection, discuss your options with a licensed insurance agent.

Is Buying Too Much Business Interruption Insurance a Smart Decision?

Buying too much Business Interruption Insurance is not a smart decision, except if you want to expand your coverage due to business growth or prevalent natural disasters in your locality.

How Do I Renew my Business Interruption Insurance?

A typical Texas Business Interruption Insurance policy is due for renewal annually, and your insurer will send you a renewal notice a month before it expires. This can be in the form of a renewal letter containing instructions on renewing your policy and information on coverage and premium change. During the renewal process, your insurer will request an audit of the financial reports to verify that the coverages you have in place are justified by the business operations. If the insurer deems that you require more coverage, the premium gets adjusted higher.

Always review your policy carefully during the renewal process to ensure you have the right coverage. Speak to a Texas insurance agent to help you handle the renewal process and ensure your business growth matches your coverage.

What Kind of Business Interruption Insurance is Best?

All kinds of Business Interruption Insurance options are good in Texas. Your specific business needs will determine what is best for you.

What Kind of Business Interruption Insurance Plans are Available?

The kind of Business Interruption Insurance plans available in Texas include:

• Extra expense coverage: This covers additional costs beyond normal operating expenses that a business incurs for continued operations while undergoing repairs or replacement due to damage caused by a covered peril

• Civil authority: This covers for loss incurred when a government entity denies access to business premises due to the impact of a covered event on another business property in your neighborhood

• Contingent business interruption insurance: This provides coverage when you cannot do business due to a loss incurred by your supplier, customer, or partner.

Speak to a Texas-licensed insurance agent who can give you more information on the Business Interruption Insurance plans available for your type of business.

Can I Bundle Business Interruption Insurance?

Can I Bundle Business Interruption Insurance and Commercial Property Insurance?

Yes, you can bundle Business Interruption Insurance and Commercial Property insurance. It may save you on costs.

Can I Bundle Business Interruption Insurance and Business Owner’s Policy?

Texas Business Interruption Insurance is frequently bundled as a part of the Business Owner’s Policy (BOP), which includes:

• Business property insurance,

• Business liability coverages,

• Large selection of optional business-specific commercial coverages, which can be all placed under a single unifying master policy - Business Owner’s Policy.

Can I Bundle Business Interruption Insurance and Commercial Multi Peril (CMP)?

Yes, you can bundle business interruption insurance and commercial multi-peril (CMP). Similar to the BOP, it is possible to add coverages a-la carte. One of the possible add-ons to CMP is Business Interruption coverage. The more coverages you add-in, the higher the overall discount you may see in the price. Talk to a Texas-licensed insurance agent who can help you bundle your Business Interruption Insurance appropriately to suit your business needs.

How to Reinstate Business Interruption Insurance that you Stopped Paying

To reinstate lapsed Business Interruption Insurance coverage, you must re-apply to the insurer, preferably using a knowledgeable and well-connected commercial insurance agent. If the canceled policy has any debt on it, monies must be repaid before the coverage may resume.

The consequences of allowing your Business Interruption Insurance to lapse can be devastating. Always speak to your insurance agent if you know you might be late on your premium payment to find possible ways out of the situation and avoid the gap in coverage.

How to Find Out What Business Interruption Insurance I Have

The best way to find out what Business Interruption insurance you have is to speak to the insurance agent who helped you purchase the policy. You can also contact your insurer or check your policy documents.

How Do I Know if I Have Business Interruption Insurance?

The best way to know if you have Business Interruption Insurance is to review your policy, especially if you have a commercial multiple peril (CMP) policy. This is because not all CMPs include Business Interruption Insurance. Check your policy exclusions, coverage limits, and applicable waiting period. Additionally, contact your insurer to find out if your policy coverage includes Business Interruption Insurance.

Can Business Interruption Insurance Be Combined with Other Insurance to Become More Affordable?

Yes. Purchasing your Business Interruption Insurance policy as part of a Business Owners Policy (BOP) is less expensive than getting it as a separate policy. The BOP combines General Liability Insurance, Commercial Property Insurance, and Business Interruption Insurance coverages for businesses. Discuss with a Texas insurance agent who can help you combine your Business Interruption Insurance policy with other commercial insurance products to have comprehensive coverage at the most competitive price.

Is Business Interruption Insurance a Good Deal in Texas?

Yes, it is. A typical Business Interruption Insurance policy will help cover financial losses in the event of a covered peril. The sole aim is to ensure your business operates in the same trading position it was in before the event occurred. However, if you do not have a Business Interruption Insurance policy, you may have to pay out of pocket to keep your business running while going through repairs or relocation.

To get the most up-to-date information about business interruption coverage and about any other business insurance in Texas, contact a knowledgeable and state-licensed commercial insurance professional with access to multiple insurers and types of plans. Let them assess your business needs, review the existing policies, and give them a chance to come up with a better structured solution.