If you own a small business in Round Rock, TX—or in surrounding areas like Pflugerville, Hutto, Georgetown, or North Austin—you know that insurance is a key part of protecting what you’ve worked so hard to build. But having a policy doesn’t always mean you’re fully protected.
At Safe Beacon Insurance, we work with local business owners every day to help them identify and close costly insurance gaps. These gaps can lead to denied claims, out-of-pocket expenses, and even business closure in the event of a major incident.
Here are the 9 most common insurance gaps we see—and how you can avoid them.
1. Undervalued Property Coverage
One of the most frequent mistakes we see is not having accurate coverage for your building, inventory, or equipment.
Why it matters:
- If your property is insured for less than it’s worth, you may not get enough to rebuild or replace after a disaster.
- Many policies include a coinsurance clause, which means being underinsured could reduce your payout.
Local Tip: Round Rock businesses impacted by hail, fires, or water damage often discover their policy limits don’t reflect today’s rebuilding costs. We help you get those numbers right—before it’s too late.
2. No Business Interruption Coverage
If a storm, fire, or utility outage shuts down your business temporarily, how will you pay the bills?
Business Interruption Insurance:
- Covers lost income during downtime caused by a covered event
- Helps pay rent, payroll, and other fixed costs
It’s one of the most important—and most overlooked—types of coverage for small businesses in Central Texas.
3. Lack of Cyber Liability Protection
If your business stores customer information, takes payments online, or uses email for work—you’re at risk for a cyberattack.
Cyber Liability Insurance covers:
- Data breaches
- Ransomware attacks
- Legal fees and notifications
- Business interruption due to a hack
Round Rock may not be Silicon Valley, but even small local businesses are targets. Cyber policies are affordable—and worth every penny.
4. No Professional Liability (Errors & Omissions)
If you provide advice, consulting, or services—this coverage is essential.
What it protects:
- Claims of negligence or mistakes in your work
- Legal defense costs
- Settlements and judgments
This is vital for accountants, real estate agents, marketing consultants, IT providers, and other professional services in the Round Rock area.
5. Inadequate General Liability Limits
Most small business owners carry general liability—but not all have enough of it.
Why it’s risky:
- Legal settlements or medical bills can easily exceed standard limits
- If someone is seriously injured on your property, you could face lawsuits
We often recommend increasing your limits—or adding a commercial umbrella policy—to protect against worst-case scenarios.
6. Missing Workers’ Compensation
Texas doesn’t require private employers to carry workers’ comp—but that doesn’t mean you should skip it.
Without it:
- You may be sued by injured employees
- You’re on the hook for medical bills and lost wages
Even if you have a small team, one injury could bankrupt your business. Safe Beacon can help you weigh your options and secure affordable workers’ comp coverage.
7. No Employment Practices Liability (EPLI)
Think a harassment or discrimination lawsuit could never happen in your business? Think again.
EPLI covers:
- Claims of wrongful termination
- Harassment or hostile work environment
- Discrimination (age, race, gender, etc.)
Small businesses in Round Rock are not immune. Just one claim—even if it’s baseless—can cost tens of thousands in legal fees.
8. Not Listing Subcontractors or 1099s Properly
If your business uses subcontractors, 1099 workers, or freelancers, you need to be careful how they’re handled on your policy.
What to watch for:
- Many policies require proof of their insurance
- If not documented correctly, you could be liable for their actions
- You may face extra charges during your annual audit
Safe Beacon helps businesses track Certificates of Insurance (COIs) and properly classify all labor.
9. No Commercial Auto or Hired/Non-Owned Auto Coverage
If you or your employees drive for work—even in personal vehicles—your personal auto insurance won’t cover it.
You need:
- Commercial auto insurance if the vehicle is titled to your business
- Hired and non-owned auto coverage if employees use personal or rented vehicles for business purposes
Many small businesses in Central Texas overlook this risk. One accident can trigger major liability issues if coverage isn’t in place.
Bonus: You Haven’t Reviewed Your Policy in Over a Year
Your business changes. Your insurance should too. If it’s been more than 12 months since your last review, you could be paying too much—or missing critical protection.
At Safe Beacon Insurance, we offer free annual reviews to all of our small business clients in Round Rock, TX and beyond. We make sure your policy grows with your business.
Final Thoughts: Coverage Gaps Can Cost You More Than Premiums Ever Will
Running a small business means taking smart risks—but skipping the right insurance coverage isn’t one of them. These gaps can put everything you’ve built at risk.
The good news? You don’t have to figure it out alone.
Let Safe Beacon Insurance in Round Rock help you review your current coverage, identify gaps, and build a policy that truly protects your future.
Let’s Review Your Small Business Insurance Today
Call Safe Beacon Insurance in Round Rock, TX.
Call: (512) 535-1918
Visit: https://www.safebeaconinsurance.com
We’ll give you clear answers, honest advice, and real coverage options for your business.