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Making Changes to Business Interruption Insurance in Texas

The representatives of an insured business in Texas can make changes to their business interruption insurance policy by informing the insurer of the required changes. A Texas-licensed commercial insurance agent can also make changes on behalf of the business.

Can I Make Changes to the Coverage of Business Interruption Insurance Policy?

Yes, a business can change an existing business interruption policy coverage in Texas as long as the business and the policy provider mutually agree on making such changes.

What Can Be Changed in Business Interruption Insurance?

Some of the changes that businesses can make to their business interruption insurance in Texas are:

  1. The scope of coverage: Depending on the premiums charged, some business interruption insurance providers may provide coverage for expenses like payroll to ensure the continued well-being of insured business employees. A business interruption insurance policy can be expanded to include such coverage and any other available coverage.

  2. The deductible: Businesses can opt for a longer or shorter waiting period deductible. 24 to 72 hours - 1 to 3 days. The shorter the waiting period, the sooner the business can start getting coverage payments. The longer the waiting period, the cheaper the coverage.

  3. The payment structure: Business operators and owners can sometimes realize that sticking with the adopted premium payment structure is challenging. They can make changes to the payment structure in such a situation. For example, a business with seasonal income might seek to change the payment structure to allow for premium payments during their peak revenue generating period.

How Can I Make Changes to an Active Business Interruption Insurance Policy?

A business that operates in Texas can make changes to its active business interruption insurance policy by:

  • Engaging the services of a Texas-licensed commercial insurance agent and asking them to initiate changes to the policy. The agent will assess the changes required and handle all the paperwork. The insurance agent can also recommend an alternative insurance provider to cater to the business needs if it can provide similar or more comprehensive coverage compared to the existing, and/or at a more affordable cost.

  • Contacting the insurer directly and asking to make changes to the existing business interruption insurance policy

Changes made to an active business interruption policy will often change the costs of the policy. If the changes lead to more coverage, there will be an increase in the policy premiums and vice versa.

Can I Change Coverage Amount after Paying for Business Interruption Insurance Policy?

In Texas, the business interruption coverage amount cannot be altered after payments have been made. However, the representatives of a business can discuss the needed changes with their commercial insurance agent or insurer and begin making payments towards the new policy.

Can I Add Businesses to Business Interruption Insurance?

Yes, it is possible to add additional businesses to an active business interruption insurance in Texas, as long as they are owned by the same entity. However, this will increase the cost of insurance premiums and alter the existing policy terms. If the businesses have different employer identification numbers (EINs), they will most likely require separate coverages.

Can I Remove Business from Business Interruption Insurance?

It is possible to remove business entities that are insured under the same active business interruption insurance policy. By removing a business property from a business interruption insurance policy premiums are lowered.

An insurer in Texas cannot change a business interruption insurance policy without the consent of the policy owner(s). If there are changes in the policy not approved by the business, individuals representing the business should immediately contact the insurer or their licensed commercial insurance agent.