What type of insurance must security companies in Texas maintain?

In Texas, security companies are required to maintain general liability insurance. This type of insurance is crucial for protecting the company against claims of bodily injury, property damage, and personal injury that can arise as a result of the security services they provide. It covers legal fees and any payouts resulting from lawsuits, safeguarding the company’s financial stability and reputation.

General liability insurance is particularly important in the security industry because the nature of the job involves close interaction with the public and access to private properties, which increases the likelihood of incidents that could lead to claims. This requirement helps ensure that security firms can support themselves financially in the event of an accident or litigation.

Other types of insurance, such as workers' compensation insurance, are also important but serve a different purpose, focusing on employee protection for work-related injuries. Meanwhile, property insurance protects physical assets and health insurance for employees focuses on their well-being but does not specifically address liabilities arising from the services offered by the security company. Thus, maintaining general liability insurance is essential for legal compliance and operational risk management within the security sector in Texas.