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Making Changes to Texas Commercial Liability Insurance

To make changes to its business liability insurance policy in Texas, it is advised that a business owner consults with a licensed commercial insurance agent who can handle the process for them. They will evaluate the insurance policy againsts the business’ insurance needs and advise on the kind of changes to make. Once the business owner agrees to such changes, the agent will prepare necessary paperwork and engage the insurer.

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

Yes, with the professional assistance of a Texas-licensed commercial insurance agent, the owner of an insured business or representatives can make changes to their business liability insurance policy. For instance, they can make changes to their premium payment structure, the scope of coverage, and some information about their business. They can also add people or other businesses to their business liability insurance coverage. While the changes to an active policy are possible, quite frequently it is easier to start a new policy with all the needed coverage anew, and cancel the outdated coverage.

What Can Be Changed in Business Liability Insurance?

Business owners in Texas can make the following changes to their business liability insurance:

  1. Payment structure: Payment structure is typically changed at the beginning of the new policy term. The coverage is either paid in full (which is the cheapest way) or financed through premium financing. A business owner can change the structure of their premium payment, for example, from bi-annuall payment to monthly payment or vice-versa. They can also change the amount of deductibles

  2. Details of business: Details such as a business address and the business’ legal entity status

  3. Scope of coverage: Business owners can change the scope of their business liability insurance coverage. For example, a home improvement business taking on larger scale jobs would need to change the scope of their coverage to cover new liability risks

It is essential to use the services of a licensed commercial insurance agent when making changes to a business liability insurance policy in Texas. Agents can leverage their experience to determine what and what not to be changed to avoid a gap in coverage.

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

To make changes to an active business liability insurance policy in Texas, an insured business owner or their representatives can take the following steps:

  • Contact their licensed commercial insurance agent and ask them to evaluate the business liability insurance coverage and make the necessary changes. If the agent knows any other insurer that would provide better coverage, they will not hesitate to advise the business owner to switch insurer

  • Contact the insurer directly and ask to make the required changes. If the business’s insurance agent finds a new insurer, the business representatives must immediately inform the current insurer and cancel the active policy

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

It is impossible to adjust the coverage amount after paying for a commercial liability insurance policy. If a business owner wishes to have an amount of coverage different from the current one, they will need to purchase a new policy of that coverage amount. For instance, a policyholder cannot add professional liability coverage to their commercial liability insurance policy after paying for it. A Texas-licensed commercial insurance agent is better positioned to advise and assist when getting additional business liability insurance coverage.

Can I Add People to Business Liability Insurance?

Yes, an insured business in Texas can add individuals to its business liability insurance coverage as additional insured. An additional insured person will have the same coverage as the named insured on the insurance policy. For example, if a business owner is a subcontractor hired by a construction company, the business may be required to add the construction company as an additional insured under its policy. Most business liability insurance policies offer the option of an additional insured and a business can add as many individuals as it wants. However, including an additional insured in an insurance policy may increase the cost of maintaining business liability insurance. A licensed commercial agent can help a business owner better understand how to add people to their business liability insurance coverage.

Can I Remove People from Commercial Liability Insurance?

Yes, people can be removed from a commercial liability insurance policy in Texas. When this is done, business liability insurance costs will go down. To remove an additional insured from a business liability insurance policy, the best option is for the business owner or representatives to speak with a licensed commercial insurance agent who is experienced to handle the process.

An insurer cannot change anything in a business liability insurance policy without the insured’s consent. The Consumer Bill of Rights adopted by the Texas Department of Insurance (TDI) stipulates that changes to an insurance policy must always be disclosed to insured. Business owners who notice any changes in their business liability insurance package made without their consent should contact their insurers immediately to seek clarifications.

To assess your current business liability needs and to suggest changes to best fit those needs - speak with a knowledgeable Texas-licensed commercial insurance agent.