If you're running a business in Frisco, you've picked one of the fastest-growing cities in America to plant your flag. With the PGA of America's $33.5 million headquarters, FC Dallas bringing thousands of soccer fans to Toyota Stadium, and over $10 billion in development projects transforming the northern part of the city, Frisco is absolutely booming. But here's what many business owners learn the hard way: rapid growth and sports entertainment hubs bring unique insurance challenges you won't find in sleepier Texas towns.
Whether you're opening a retail shop near The Star, running a hospitality business serving PGA Frisco's 510-room Omni Resort, or operating a service company that works with the city's exploding corporate sector, understanding your insurance needs isn't optional—it's essential. Let's break down what you actually need, what Texas requires, and how to protect your business without overpaying.
What Texas Law Actually Requires (Less Than You Think)
Here's something that surprises most business owners: Texas doesn't mandate workers' compensation insurance for private employers. You read that right. Unlike 49 other states, Texas gives you the choice. But before you celebrate, understand what that choice really means.
If you skip workers' comp and an employee gets injured on the job, they can sue you directly. No lawsuit protection. No cap on damages. If you're running a construction crew, operating a restaurant kitchen, or managing warehouse staff, that's a massive risk. Workers' comp costs an average of just $32 per month in Texas—a bargain compared to a single workplace injury lawsuit. The exception? If you're contracting with any government entity, workers' comp becomes mandatory for employees on that project.
Commercial auto insurance is required if you operate any business vehicles. Texas mandates minimum liability limits of $30,000 per person, $60,000 per accident for injuries, and $25,000 for property damage. If you're running deliveries, service calls, or transportation for your hospitality business near PGA Frisco, this coverage is non-negotiable.
General liability insurance isn't required by state law, but try finding a commercial lease without it in your contract. Most landlords in Frisco's retail corridors and office parks demand proof of general liability before you sign. Contractors face even stricter requirements—typically $1 million per occurrence and $2 million aggregate. For electricians, it's $300,000 per occurrence minimum. Your lease agreement or client contracts will dictate what you need more than Texas law will.
Why Frisco's Growth Changes Your Insurance Game
The PGA of America's headquarters isn't just a golf story—it's a $2.5 billion economic impact over 20 years. That means championship tournaments, corporate events, thousands of visitors, and relentless development. For Frisco businesses, this creates opportunities and exposures you need to insure against.
If you're in hospitality, retail, or events, spectator liability becomes critical. FC Dallas games at Toyota Stadium draw huge crowds. PGA tournaments bring national attention. One slip-and-fall lawsuit from a customer injured in your establishment during a major event can devastate your finances. General liability insurance covers third-party bodily injury and property damage—the foundation of protecting your business when crowds surge.
Corporate relocations mean B2B opportunities. Professional liability (errors and omissions) insurance becomes essential if you're consulting, providing professional services, or handling corporate clients. If your advice or work causes a financial loss to a client, professional liability coverage protects you. At an average of $71 per month in Texas, it's affordable protection against expensive claims.
Commercial property insurance protects your physical assets—your building, equipment, inventory, and furniture. For Frisco businesses, this isn't just about fire or theft. It's about hail. North Texas hailstorms have caused catastrophic damage, including one Dallas-Fort Worth storm that generated $7 to $10 billion in insured losses. If your roof, windows, or outdoor equipment get pummeled by hail, property coverage pays for repairs and replacement.
The Hail Problem Every Frisco Business Must Address
Let's talk about the risk nobody mentions until it's too late: hail damage. Texas leads the nation in hail-related weather events. In 2024, Frisco experienced multiple hail reports, and businesses across North Texas filed countless claims. The problem isn't just the initial damage—it's the claim filing deadlines and proving which storm caused what damage.
Texas law gives you two years from the date of damage to file a hailstorm claim, but most commercial policies dramatically shorten that window. If a second hailstorm hits before you file your first claim, you're stuck proving which storm caused each specific piece of damage—and that burden falls on you, not the insurance company. File your claim immediately after any indication of damage. Waiting costs you leverage and potentially your entire claim.
For large or complex hail claims, consider hiring a public adjuster or legal advocate early in the process. Insurance companies have their own adjusters protecting their interests—you need someone protecting yours. The difference between a well-documented claim and a rushed one can be tens of thousands of dollars.
Bundling Coverage: The Business Owner's Policy (BOP)
If you're running a small to mid-sized business, a Business Owner's Policy (BOP) bundles general liability and commercial property insurance into one package, usually at a lower cost than buying each separately. It's designed for businesses with relatively standard risks—retail shops, offices, restaurants, and service businesses.
A BOP covers property damage to your building and contents, liability claims from third parties, and often includes business interruption coverage—critical if a hailstorm or fire shuts down your operation for weeks. Given Frisco's severe weather risks and high-traffic retail environment, business interruption coverage can be the difference between recovering from a disaster and closing your doors permanently.
Specialized Coverage for Frisco's Unique Business Landscape
Cyber liability insurance is becoming essential as Frisco attracts tech companies and corporate headquarters. A data breach or ransomware attack can cripple your business, and general liability won't cover it. Cyber insurance covers breach response costs, legal fees, customer notification, and sometimes ransom payments.
Inland marine insurance protects business property that moves—tools, equipment, inventory in transit. If you're a contractor working on Frisco's booming construction projects or a delivery business serving the PGA district, inland marine coverage ensures your equipment is protected whether it's in your truck, at a job site, or in storage.
Directors and officers (D&O) insurance protects your leadership team from lawsuits alleging mismanagement or breach of duty. As Frisco businesses scale rapidly alongside the city's growth, D&O coverage becomes increasingly important for protecting personal assets of executives and board members.
How to Get Started Without Overpaying
Start by identifying what's required versus what's recommended. Review your commercial lease, client contracts, and any government contracts to see exactly what coverage and limits you need. Don't guess—missing required coverage can void your lease or contract.
Get quotes from multiple carriers. Insurance pricing varies wildly based on your industry, location, claims history, and coverage limits. The average costs in Texas—$42/month for general liability, $32/month for workers' comp—are just averages. Your actual rates depend on your specific risk profile.
Work with an independent agent who understands Frisco's business environment. An agent familiar with local risks—hail damage, sports entertainment liability, corporate client expectations—can tailor coverage to your actual needs rather than selling you a generic package. They can also bundle policies for discounts and ensure you're not paying for redundant coverage.
Finally, review your coverage annually. As your business grows—maybe you land a contract with a PGA event, expand your retail footprint, or hire more employees—your insurance needs change. An annual review ensures you're neither underinsured (risking financial catastrophe) nor overinsured (wasting money on coverage you don't need). In a city growing as fast as Frisco, standing still with last year's policy is a recipe for gaps in protection.
