NEW NFIB REPORT: Texas Small Businesses Report Insurance Challenges Five Points Worse Than National Average

July 20, 2026 - 18:19

A new report from the National Federation of Independent Business shows that Texas small business owners are struggling with insurance costs and availability at a rate five points higher than the national average. The state-specific survey highlights a growing concern that is squeezing Main Street operations across the Lone Star State.

The NFIB report indicates that 28 percent of Texas small business owners cite insurance as their single most pressing problem. That figure compares to 23 percent for small businesses nationwide. The gap marks a significant divergence, suggesting that Texas faces unique pressures in the property and casualty insurance market.

Industry observers point to several factors driving the disparity. Texas has experienced a series of severe weather events in recent years, including hailstorms, winter freezes, and hurricanes. These events have led to higher claims and prompted some insurers to raise premiums or pull back from certain markets entirely. Small business owners in construction, retail, and hospitality have been especially affected.

Beyond affordability, availability is a growing issue. Some Texas business owners report difficulty finding any carrier willing to write a policy in their area. This forces them to turn to surplus lines or state-backed insurers, which often come with higher costs and less coverage.

The NFIB report also notes that insurance concerns are now outpacing other traditional headaches like taxes and government regulation for many Texas entrepreneurs. With no immediate relief in sight, small business advocates are calling on state lawmakers to explore ways to stabilize the market and attract more competition.