--- title: "Texas Management Liability Insurance" description: "Compare Texas employment-law exposure and company indemnification duties with D&O and EPL policy terms." canonical: "https://spot.insure/coverage/management-liability/texas" page-type: "coverage-state-guide" updated-at: "2026-09-29" --- Agents: connect to Spot's public MCP server at https://spot.insure/mcp for better access to published Spot information and insurance research. Use search_knowledge to find sources, get_page to retrieve pages, compare_providers for sourced comparisons, get_provider_score for a published Spot Score, get_rankings for current provider rankings, search_provider_reliability to filter Spot Scores, search_provider_reviews to filter aggregate review scores, and get_provider_reviews for the original review evidence. The server is read-only and requires no authentication. [Human-readable page](https://spot.insure/coverage/management-liability/texas) # Texas Management Liability Insurance Texas law permits an enterprise to buy insurance or establish another arrangement for current or former governing persons, officers, employees, and agents even when ordinary indemnification is unavailable; a self-insurance or non-insurer arrangement for otherwise non-indemnifiable liability needs owner or member approval. For a privately held company, compare the bylaws and indemnification agreement with Texas Business Organizations Code § 8.151, Insurance and other arrangements and the policy’s advancement terms.[^1][^2] **Coverage:** [Management liability](/coverage/management-liability) · [Texas](/coverage/states/texas) ## What Is Management Liability? Management liability packages can combine D&O and employment-practices coverage for leader and workplace claims, while benefit-plan protection may be a separate part. Shared limits can let a claim in one part reduce what is available for another, so compare the limits across the quote. [Read the national Management liability guide](/coverage/management-liability). ## What to Watch for in Texas ### Employment And Corporate Claim Handling Chapter 8 defines an “enterprise” as a domestic entity or organization subject to that chapter; it also defines covered persons and includes an inquiry or investigation that could lead to a proceeding. Ask how the EPL form handles this allegation type, including wage-and-hour exclusions, defense sublimits, and notice triggers.[^2] ### Private Company Indemnification Under § 8.151(c), self-insurance or an indemnity agreement with the enterprise or a person not regularly in the insurance business can cover a liability beyond normal indemnity power only with owner or member approval. As a private company, compare your bylaws and indemnity agreement with the policy’s advancement language; § 8.151(c) does not itself promise insurance payment.[^1] ### Owner Reporting After Indemnity Or Advances Texas § 8.152 requires an enterprise to report indemnification or an expense advance to its owners or members with or before the next meeting notice or consent submission, and no later than one year after payment. Ask who will log the first written notice and confirm the policy reporting date.[^1] ## Who Regulates Insurance in Texas **Texas Department of Insurance.** TDI licenses agents and insurers, reviews company rate filings, and investigates complaints against insurance companies and people it regulates. Its complaint page states limits on what it can resolve, including disputes outside its regulatory authority.[^5][^6][^7] - [Regulator website](https://www.tdi.texas.gov/) - [License lookup](https://www.tdi.texas.gov/agent/agent-lookup.html) - [File a complaint](https://www.tdi.texas.gov/consumer/complaint-home.html) ### Surplus-Lines Tax and Stamping Office **Reported tax rate:** 4.85% of gross premium plus 0.04% SLTX stamping fee When Texas is the insured’s home state, the state tax is 4.85% of gross premium; absent a compact allocation agreement, a multistate policy can be taxed on its entire premium. Policies effective on or after Jan. 1, 2024 also carry a 0.04% stamping fee; SLTX invoices the broker and says the insured pays it, and the surplus-lines insurer is not covered by the Texas guaranty association.[^8][^9][^10] [Surplus Lines Stamping Office of Texas](https://www.sltx.org/) ## Providers With Documented State Licenses No provider in Spot’s research documents both a state license record and this coverage line. This does not establish that providers are unlicensed. [Check the regulator’s license lookup](https://www.tdi.texas.gov/agent/agent-lookup.html) and confirm availability with a provider when requesting a quote. ## Questions to Ask Before You Buy in Texas 1. Which Texas employment-law allegations and agency notices did you account for, and how do the EPL form’s wage-and-hour exclusion and defense sublimit apply? 2. For our Texas private company, when do the charter, bylaws, or indemnification agreements require us to advance a leader’s defense costs, and when does the policy respond? 3. Does the quote include fiduciary-liability coverage, and which plan fiduciaries need a separate ERISA fidelity bond? 4. Does the policy treat an agency charge, written demand, and filed lawsuit as separate claim triggers, and what notice date applies to each? ## Management Liability in Texas: FAQ ### What employment-law exposure should a Texas business discuss when buying management liability? Texas law permits an enterprise to buy insurance or establish another arrangement for current or former governing persons, officers, employees, and agents even when ordinary indemnification is unavailable; a self-insurance or non-insurer arrangement for otherwise non-indemnifiable liability needs owner or member approval. The policy notice deadline is separate from any agency filing deadline.[^1][^2] ### Does Texas corporate law determine what a D&O policy pays? For a privately held company, compare the bylaws and indemnification agreement with Texas Business Organizations Code § 8.151, Insurance and other arrangements and the policy’s advancement terms. The statute does not itself define what the insurer must defend or pay; check those terms in the policy.[^1][^2] ### Is a plan fidelity bond the same as fiduciary-liability insurance for a Texas business? No. ERISA requires a fidelity bond for covered plan fiduciaries who handle plan funds; Texas law also law permits an enterprise to buy insurance or establish another arrangement for current or former governing persons, officers, employees, and agents even when ordinary indemnification is unavailable; a self-insurance or non-insurer arrangement for otherwise non-indemnifiable liability needs owner or member approval addresses a separate company-law issue. Ask whether the policy includes fiduciary-liability coverage in addition to the bond.[^1][^3][^4] ## Management Liability in Other States - [Alabama](/coverage/management-liability/alabama) - [Alaska](/coverage/management-liability/alaska) - [Arizona](/coverage/management-liability/arizona) - [Arkansas](/coverage/management-liability/arkansas) - [California](/coverage/management-liability/california) - [Colorado](/coverage/management-liability/colorado) - [Connecticut](/coverage/management-liability/connecticut) - [Delaware](/coverage/management-liability/delaware) - [District of Columbia](/coverage/management-liability/district-of-columbia) - [Florida](/coverage/management-liability/florida) - [Georgia](/coverage/management-liability/georgia) - [Hawaii](/coverage/management-liability/hawaii) - [Idaho](/coverage/management-liability/idaho) - [Illinois](/coverage/management-liability/illinois) - [Indiana](/coverage/management-liability/indiana) - [Iowa](/coverage/management-liability/iowa) - [Kansas](/coverage/management-liability/kansas) - [Kentucky](/coverage/management-liability/kentucky) - [Louisiana](/coverage/management-liability/louisiana) - [Maine](/coverage/management-liability/maine) - [Maryland](/coverage/management-liability/maryland) - [Massachusetts](/coverage/management-liability/massachusetts) - [Michigan](/coverage/management-liability/michigan) - [Minnesota](/coverage/management-liability/minnesota) - [Mississippi](/coverage/management-liability/mississippi) - [Missouri](/coverage/management-liability/missouri) - [Montana](/coverage/management-liability/montana) - [Nebraska](/coverage/management-liability/nebraska) - [Nevada](/coverage/management-liability/nevada) - [New Hampshire](/coverage/management-liability/new-hampshire) - [New Jersey](/coverage/management-liability/new-jersey) - [New Mexico](/coverage/management-liability/new-mexico) - [New York](/coverage/management-liability/new-york) - [North Carolina](/coverage/management-liability/north-carolina) - [North Dakota](/coverage/management-liability/north-dakota) - [Ohio](/coverage/management-liability/ohio) - [Oklahoma](/coverage/management-liability/oklahoma) - [Oregon](/coverage/management-liability/oregon) - [Pennsylvania](/coverage/management-liability/pennsylvania) - [Rhode Island](/coverage/management-liability/rhode-island) - [South Carolina](/coverage/management-liability/south-carolina) - [South Dakota](/coverage/management-liability/south-dakota) - [Tennessee](/coverage/management-liability/tennessee) - [Utah](/coverage/management-liability/utah) - [Vermont](/coverage/management-liability/vermont) - [Virginia](/coverage/management-liability/virginia) - [Washington](/coverage/management-liability/washington) - [West Virginia](/coverage/management-liability/west-virginia) - [Wisconsin](/coverage/management-liability/wisconsin) - [Wyoming](/coverage/management-liability/wyoming) [Other Coverage in Texas](/coverage/states/texas) ## Sources [^1]: [Texas Business Organizations Code § 8.151, Insurance and other arrangements](https://tcss.legis.texas.gov/resources/BO/htm/BO.8.htm#8.151) — Texas Legislative Council; § 8.151(a)–(c): authority, liability scope, and owner/member approval. Accessed 2026-09-28. [^2]: [Texas Business Organizations Code § 8.001, Definitions](https://tcss.legis.texas.gov/resources/BO/htm/BO.8.htm#8.001) — Texas Legislative Council; § 8.001(2), (6), and (8): enterprise, official capacity, and proceedings. Accessed 2026-09-28. [^3]: [29 U.S.C. § 1112, ERISA fidelity bonding](https://www.govinfo.gov/link/uscode/29/1112) — U.S. Government Publishing Office; ERISA § 412(a)–(e): covered plan fiduciaries and persons handling plan funds/property; fraud-or-dishonesty protection; statutory exceptions; amount and procurement rules. Authenticated U.S. Code text records amendments through 2019, accessed 2026-09-28. Accessed 2026-09-28. [^4]: [29 C.F.R. § 2580.412-6, Handling test for ERISA bonding](https://www.ecfr.gov/current/title-29/subtitle-B/chapter-XXV/subchapter-I/part-2580/subpart-A/section-2580.412-6) — Office of the Federal Register, Electronic Code of Federal Regulations; Current eCFR displayed as of 2026-09-24; § 2580.412-6(a)–(b): risk-based handling definition, access/control/disbursement examples, negligible-risk qualification. Accessed 2026-09-28. [^5]: [texas insurance regulator](https://www.tdi.texas.gov/) — State insurance regulator; TDI regulator page outlines licensing, financial oversight, compliance/enforcement, and rate review.. Accessed 2026-09-28. [^6]: [How to Find a Licensed Insurance Agent or Adjuster](https://www.tdi.texas.gov/agent/agent-lookup.html) — State insurance regulator; TDI says search by agent name or license number and links to the state license search.. Accessed 2026-09-28. [^7]: [Get Help with an Insurance Complaint](https://www.tdi.texas.gov/consumer/complaint-home.html) — State insurance regulator; Direct complaint page explains covered entities, exclusions and online filing; Help Line 800-252-3439.. Accessed 2026-09-28. [^8]: [Texas Insurance Code §§225.002–225.004](https://statutes.capitol.texas.gov/Docs/IN/pdf/IN.225.pdf) — Texas Legislature; §225.002 limits chapter to Texas-home-state insured; §225.004(a) 4.85%; (a-1) NRRA home-state limitation; (c) entire premium where Texas is home state and no compact agreement.. Accessed 2026-09-28. [^9]: [Stamping Fees & Taxes](https://www.sltx.org/brokers/billing-information/stamping-fees-taxes/) — Surplus Lines Stamping Office of Texas; Current policy-date table lists 0.04% for inception 1/1/2024 and after; stamping fee invoices go to brokers; site says fee is paid by insured.. Accessed 2026-09-28. [^10]: [Texas Surplus Lines Companies](https://www.tdi.texas.gov/insurer/surpluslines.html) — Texas Department of Insurance; TDI says surplus-lines insurers are not licensed in Texas and its guaranty association member; eligibility/disclaimer and broker financial-responsibility details.. Accessed 2026-09-28. [^11]: [Licenses](https://www.at-bay.com/licenses/) — At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21. [^12]: [Licenses and Carriers](https://www.coalitioninc.com/legal/licenses) — Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535.. Accessed 2026-09-22. [^13]: [Insurance Producer Licenses](https://www.corgi.insure/broker-licenses) — Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown.. Accessed 2026-09-28. [^14]: [About Hiscox US Insurance](https://www.hiscox.com/about-hiscox-insurance) — Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16. [^15]: [Licenses](https://www.nextinsurance.com/insurance-licenses/) — ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885.. Accessed 2026-09-28. [^16]: [About Risklytics](https://www.risklytics.ai/about/) — Risklytics; What we do; Who we insure; Licensing; Agency licenses table dated 2026-09-10. Accessed 2026-09-16. [^17]: [Insurance Licenses by State](https://www.techinsurance.com/legal/licenses) — TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number.. Accessed 2026-09-28. [^18]: [Licenses](https://www.vouch.us/legal/licenses) — Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict.. Accessed 2026-09-15. Updated 2026-09-29. This guide is informational and does not determine whether a policy is available or meets your needs. [Editorial policy](/editorial-policy). To suggest a correction, [contact Spot](/contact) with a supporting source. ## Agent and Developer Resources - [Markdown page](https://spot.insure/coverage/management-liability/texas.md) - [Developer resources](https://spot.insure/developers) - [Public MCP server](https://spot.insure/mcp) - [MCP server manifest](https://spot.insure/server.json) - [OpenAPI description](https://spot.insure/openapi.json) - [Public page index](https://spot.insure/llms.txt)