Commercial Insurance in Texas: Why Business Interruption Coverage Matters

Running a business in Central Texas—whether you’re in Fredericksburg, Kerrville, Marble Falls, or right here in Canyon Lake—means enjoying the charm of the Hill Country and dealing with Texas-sized risks. From hailstorms to flash floods, wildfires to utility outages, your operations can be shut down in a heartbeat. That’s where Business Interruption Coverage—a key part of commercial insurance in Texas—comes in.

At Dowd Insurance Agency, we help local business owners understand that while standard property insurance pays for physical damage, it doesn’t always cover the lost income or ongoing expenses when you’re forced to close your doors. Business Interruption Insurance fills that gap.

What Is Business Interruption Insurance in Texas?

Also called business income coverage, this protection helps replace income and cover expenses when a covered loss forces your business to temporarily shut down. It’s often included in a Business Owner’s Policy (BOP)—a common package of commercial insurance in Texas for small and mid-sized businesses.

What Business Interruption Insurance Covers

When your operations are paused, these are the core financial lifelines BI insurance provides:

• Lost income — Revenue you would have earned if operations continued normally.
• Fixed costs — Rent or mortgage, property taxes, and loan payments that never stop.
• Payroll — Keeps employees paid so you don’t lose valuable staff.

Endorsements That Strengthen Your Texas Commercial Insurance

Every business is different, so endorsements (policy add-ons) can help tailor your coverage:

• Extra Expense Coverage — Covers costs like renting temporary space or expediting supplies.
• Civil Authority Coverage — Protects income when the government orders a shutdown.
• Service Interruption — Kicks in when off-site utility damage (like power lines) halts your business.
• Contingent Business Interruption (CBI) — Protects you when a supplier or vendor can’t deliver.

Why Texas Businesses Need Business Interruption Coverage

• Severe weather risks — The Hill Country is prone to hail, flooding, and high winds.
• Ongoing costs — Payroll, rent, and loans don’t stop, even when your income does.
• Peace of mind — With the right commercial insurance in Texas, you can recover faster and focus on customers, not financial stress.

Choosing the Right Commercial Insurance in Texas

1. Evaluate your risks — Which perils threaten your operations most?
2. Estimate your exposure — How much income would you lose per day?
3. Customize coverage — Add endorsements that fit your operations.
4. Review regularly — As your business grows, update your commercial insurance portfolio.

The Bottom Line

Business Interruption Insurance is an essential piece of commercial insurance in Texas, especially for Hill Country businesses. It helps protect your income, cover fixed costs, and keep your team intact when the unexpected strikes.

At Dowd Insurance Agency, we specialize in helping local businesses build tailored commercial insurance plans—from property and liability to business interruption—so you can weather any storm.

👉 Ready to protect your Texas business? Contact us today for a free policy review.