Get instant
small business insurance quotes

Home >

Texas approves 'loser pays' reform for lawsuits


Texas Governor Rick Perry recently signed his approval for the state's "loser pays" bill, which will require any party that a court case rules against to pay for the other's court fees.

The intention of this reform is to reduce the significant amount of cases being brought to court, many of which are considered low-merit and frivolous.

For small businesses, this reform isn't necessarily a good move, however. According to the National Federation of Independent Businesses, litigation costs totaled more than $105 billion annually for small businesses. Furthermore, one-third of these costs are paid by the small business' owner.

Now, because of the potentially high costs involved with a lawsuit, larger companies can threaten smaller businesses with court cases in an effort to dissuade them. Furthermore, in cases with the law is not entirely clear, small businesses run the chance of having to pay exorbitant amounts, even if they wanted to file the lawsuit in the first place.

Thus, for small businesses, having an increased amount of professional liability insurance might soon become a necessity if they want to both protect themselves from lawsuits in the future. 

WHY Business Insurance Now?

Learn why thousands of small businesses trust Business Insurance Now as their insurance agency.

Take 15 minutes to see how we can help you protect your business.

  • FREE, no-obligation quotes.
  • Complete one online application to compare multiple quotes.
  • Fast response—typically less than 24 hours on week days.
  • We are a nationwide insurance agency covering 48 states.
  • We work directly with you to evaluate your insurance options.
  • We only work with the top business insurance carriers in the country.
  • Expert, licensed insurance agents to guide you through the process.