Top Workers Compensation Insurance Options in Texas
Workers’ compensation insurance is essential for any business and is mandated in nearly every state. In Texas alone, there are 2,679,964 small business owners, entrepreneurs, freelancers, and sole proprietors who require a workman’s comp policy.
But, what’s the best workers’ compensation insurance in Texas?
To help you navigate this important decision, we’ve created a straightforward guide that outlines the best workers’ compensation insurance companies in Texas, covering costs, coverage details, exclusions, and more.
Some Of The Best Companies For Workers Compensation Coverage In Texas Below…
Top Workers’ Compensation Insurance Companies in Texas (2025)
| Provider | Best For | Key Features | Availability |
| The Hartford | Established Businesses | Industry expertise, bundled policies, online quotes | Nationwide, including TX |
| Progressive Commercial | Quick Online Quotes & Small Businesses | Fast application process, broad coverage options | Nationwide |
| Thimble | Freelancers & Short-Term Policies | Flexible policies, app-based, instant proof of insurance | Texas + select states |
| Employers Insurance | Low-Risk Industries & Remote Teams | Competitive pricing, loss control services, return-to-work programs | Nationwide, including TX |
Workers Comp Insurance made easy!
Agents Available To Assist.
Get quotes and sign up online or get help from a licensed agent; we are here if you need us.
Unbiased, expert advice.
Get unbiased insurance education from licensed experts and avoid dodgy sales calls.
Coverage in minutes.
You can get workers comp insurance coverage within minutes of getting your quotes and applying.
Best Workers Compensation Insurance in Texas for Small Businesses
The Hartford is the top choice for small businesses in Texas, offering tailored policies that comply with the state’s strict labor laws. Benefits include:
- Bundled discounts for pairing workers’ comp with general liability insurance.
- Instant online quotes and policy activation for fast-moving businesses.
- Free workplace safety training aligned with Texas’s OSHA requirements.
- Dedicated claims specialists familiar with Texas’s disability and return-to-work regulations.
Best Workers’ Compensation Insurance for Micro Businesses in Texas
The Hartford also excels for micro businesses (1–10 employees), addressing unique challenges:
- No minimum payroll requirements, crucial for businesses with seasonal or gig workers.
- Rates as low as $50.00/month, making it affordable for micro-business budgets.
- Mobile app management for certificates of insurance and claims tracking.
- Compliance assurance with Texas’s exemption rules.
Best Workers’ Compensation Insurance for Midsize Businesses in Texas
The Hartford leads in providing scalable solutions for midsize businesses (50–250 employees):
- Experience Modification Rate (X-Mod) optimization to reduce premiums through safety programs.
- Multi-state coverage for businesses operating beyond Texas.
- Return-to-work programs that minimize lost productivity.
- Tailored risk management for high-risk industries like manufacturing and healthcare.
WORKERS COMPENSATION INSURANCE WHERE YOU LIVE
Workers comp insurance by state.
Keep your business safe with a Workers Comp Insurance Policy.
Workers Compensation insurance policies protect you against lawsuits, employee injuries, cyber security attacks, and property damage. Click on your state to get a free quote today.
Who Is The Cheapest Workers’ Comp Insurance Provider in Texas?
The Hartford offers the cheapest workers’ compensation insurance in Texas, with rates starting at $50.00 per month for micro and small businesses. Key reasons for its affordability include:
- Payroll-Based Pricing: Premiums scale directly with payroll size, avoiding overpayment for seasonal or part-time workers.
- Bundled Discounts: Save up to 15% by combining workers’ comp with other policies.
- X-Mod Savings: Businesses with strong safety records qualify for reduced premiums.
- No Broker Fees: Direct online quoting cuts out middlemen, lowering costs.
- Texas-Specific Efficiency: Streamlined claims processes minimize overhead, passing savings to businesses.
Why The Hartford Dominates Workers Comp Insurance Categories in Texas:
The Hartford excels in workers’ comp insurance in Texas due to its cost transparency, strong claims support, tailored small business coverage, and tech-driven tools. Its reputation for fast payouts and customer service makes it a top choice.
Key Reasons for Dominance:
- Cost Transparency: Clear, payroll-based pricing with no hidden fees.
- Compliance Expertise: Policies built for Texas’s unique mandates.
- Speed: Instant online quotes and same-day policy activation.
- Reputation: Backed by an A+ financial strength rating (AM Best).
- Tech-Driven Tools: AI-powered risk assessments streamline compliance.
Where to Get The Best Workers’ Compensation Insurance in Texas?
To find the best workers’ compensation insurance in Texas, compare top-rated providers like The Hartford, State Fund, and Employers Insurance. Look for companies offering fast claims, competitive premiums, and strong support for Texas labor laws. Use platforms like Simply Insurance to compare rates instantly.
Top Private Workers’ Compensation Insurance Companies in Texas
Private insurance companies provide a variety of workers’ compensation policies tailored to diverse business needs. Notable providers include:
- The Hartford: Known for comprehensive coverage options and strong customer service.
- Preferred Employers Insurance: Offers personalized services and competitive rates.
- Employers Insurance: Focuses on cost-effective solutions for small businesses.
When selecting a private insurer, compare coverage options, premium costs, and customer reviews to ensure the best fit for your business.
Who is the Largest Workers’ Compensation Insurance Company in Texas?
The largest workers’ compensation insurance company in Texas is The Hartford. Known for its financial stability and fast claims processing, The Hartford insures thousands of Texas businesses.
How Much Workers’ Compensation Insurance Do I Need in Texas?
Most states require at least $500,000 in workers comp coverage for your employees. However, the necessary amount depends on your business’s size, location, and type.
How Much Is Workers’ Compensation Insurance in Texas?
The average cost of workers’ comp insurance in Texas is $50.00 per month or $600.00 per year. In Texas, workers’ compensation insurance costs $0.80 per $100 of payroll, depending on industry risk, claims history, and employee roles. High-risk industries like construction pay more, while office-based businesses pay less.
Average Cost of Workers’ Comp Insurance in Texas
The table below provides illustrative examples of workers’ compensation insurance rates for various industries in Texas. These figures are approximate and can fluctuate based on specific circumstances and insurers.
| Industry | Job Role | Rate per $100 of Payroll | Monthly Premium Estimate* |
| Construction | General Contractor | $3.00 – $30.00 | $750 – $7,500 |
| Manufacturing | Machine Operator | $2.50 – $15.00 | $625 – $3,750 |
| Healthcare | Registered Nurse | $1.75 – $5.00 | $437.50 – $1,250 |
| Retail | Sales Associate | $1.00 – $3.00 | $250 – $750 |
| Clerical/Office | Administrative Assistant | $0.40 – $1.00 | $100 – $250 |
*Assuming a monthly payroll of $25,000.
These estimates highlight how industry classifications impact insurance premiums. Businesses in higher-risk industries, such as construction, face higher rates due to the increased likelihood of workplace injuries. Conversely, office-based roles typically attract lower premiums reflecting their reduced risk.
Workers’ Comp Rates in Texas (Per $100 Payroll)
Workers’ comp rates in Texas cost around $0.80 per $100 of payroll, based on job classification codes. Low-risk jobs like clerical work average $0.75–$1.50, while high-risk jobs like roofing can exceed $25. The Workers’ Compensation Insurance Rating Bureau sets advisory pure premium rates annually.
Texas Workers’ Comp Rates by Classification
The National Council on Compensation Insurance of Texas (WCIRB) assigns specific classification codes to various job types, each with its own advisory pure premium rate. Below is a table illustrating sample classification codes along with their corresponding advisory pure premium rates for 2025:
| Classification Code | Industry/Job Type | Advisory Pure Premium Rate per $100 Payroll |
| 0042 | Landscaping Gardening | $6.56 |
| 5183 | Plumbing | $1.68 |
| 8810 | Clerical Office Employees | $0.35 |
| 8742 | Salespersons – Outside | $0.65 |
| 7228 | Trucking – Local Hauling | $8.25 |
| 9015 | Building Operations by Owner | $0.97 |
| 8835 | Home Health Care Services | $5.32 |
| 8006 | Grocery Stores | $2.15 |
| 8017 | Retail Stores – NOC | $1.85 |
| 8387 | Automobile Service or Repair Centers | $3.30 |
These rates are subject to change and may vary based on the insurer and specific circumstances of the business. Employers should consult with their insurance providers or the NCCI for the most current and applicable rates for their classifications.
How Long Does Workers’ Comp Last?
If you’re wondering how long workers’ compensation will last, the answer varies for each individual. The severity of a work-related injury or illness determines the duration of payments. If you believe your employee will require future medical treatment beyond regular workers’ comp payouts, advise them to consult a lawyer regarding legal matters.
Workers Comp Insurance made easy!
Agents Available To Assist.
Get quotes and sign up online or get help from a licensed agent; we are here if you need us.
Unbiased, expert advice.
Get unbiased insurance education from licensed experts and avoid dodgy sales calls.
Coverage in minutes.
You can get workers comp insurance coverage within minutes of getting your quotes and applying.
Factors That Affect Workers’ Compensation Costs in Texas
Workers’ compensation costs in Texas are influenced by job classification, payroll size, claims history, and safety record. High-risk roles like construction increase premiums, while a clean safety record can lower them. Understanding these factors can help businesses manage their insurance costs effectively.
- Job Classification: Each occupation is assigned a classification code reflecting its risk level. High-risk roles typically incur higher premiums.
- Payroll Size: Premiums are calculated per $100 of payroll, meaning larger payrolls lead to higher overall premiums.
- Claims History: A history of frequent or severe claims can lead to increased premiums.
- Safety Record: A strong safety record can positively impact premium costs.
- Experience Modification Rate (X-Mod): This rate adjusts premiums based on a company’s claims history relative to industry averages.
Texas Workers’ Compensation Insurance Requirements
Texas mandates that all employers with one or more employees carry workers’ compensation insurance, regardless of hours worked. Coverage must be purchased from a licensed insurer or the State Fund. Sole proprietors are generally exempt but can opt in. Noncompliance can lead to fines and criminal penalties.
Who Needs Workers’ Comp Insurance in Texas?
Texas is unique in that it is optional for private companies to be covered by workers’ compensation, even if they have only one employee. However, if a company’s headquarters are in another state, Texas law requires it to carry workers’ comp coverage for employees working there regularly.
Which Industries Buy Workers’ Comp Policies in Texas the Most?
Industries that frequently purchase workman’s comp insurance include:
- Landscaping & Lawn Care
- Food & Beverage
- Legal
- Accounting & Finance
- Retail
- Hair & Beauty
- Fitness
- Day Care
- Commercial Cleaning
- Heating & Air Conditioning
What Are The Minimum Workers’ Comp Laws in Texas?
Employer liability in Texas is defined by the following minimums: $100,000 per occurrence for a workers’ compensation insurance policy, $100,000 per employee, and the total policy value must be at least $500,000.
Who Is Exempt from Workers’ Comp Insurance in Texas?
Workers’ compensation is not required for certain employees, including:
- Business owners/sole proprietors (except roofers)
- Contractors
- Domestic workers related to their employers
- Individuals working for aid rather than pay
- Specific volunteers, including those for non-profit organizations
- Deputy sheriffs and deputy clerks
- Students participating in amateur sports
Do Independent Contractors Need Workers’ Comp Insurance In Texas?
No, independent contractors are generally not required to carry workers’ compensation insurance for themselves. However, some clients may require it as a condition of their contract. Obtaining coverage can also provide financial protection for medical expenses and lost wages due to work-related injuries.
Is Workers Comp Required In Texas?
It depends. Even if you only have one employee, it is optional for private employers to have workers’ comp insurance. If your workers are injured or sick due to their job, you must reimburse them for workers’ compensation benefits.
Workers’ comp insurance covers essential services such as medical care, short-term disability payments, permanent disability pensions, additional job displacement benefits, and a return-to-work supplement. It also includes death benefits for final expenses.
How Workers’ Compensation Insurance Works in Texas?
Workers’ compensation insurance provides benefits to employees suffering from occupational injuries or illnesses. This coverage helps pay for medical costs and lost income due to missed work, supporting both employers and employees in avoiding financial harm caused by workplace injuries.
- Supports companies in various industries
- Promotes worker safety
- Facilitates employee return to work
- Provides access to training for new skills
What Does Workers’ Comp Insurance Cover in Texas?
Your insurance will cover medical care, temporary disability benefits, permanent disability benefits, additional job displacement benefits, and death payments. Most claims are resolved quickly, but disputes can arise regarding the cause of injury and benefit amounts.
Benefits include:
- Medical treatment fees
- Temporary disability payments
- Permanent disability payments
- Life pension payments
- Vocational retraining costs
- Burial death benefits
What Types Of Employee Injuries Does Workers’ Comp Insurance NOT Cover In Texas?
Workers’ comp insurance does not cover injuries from intoxication, self-inflicted harm, off-duty activities, or violations of company policy. Exclusions help prevent fraud and ensure claims relate directly to work-related duties. Examples include:
- Driving to/from work
- Intoxication/intentional acts
- Horseplay
- Illegal activities
- Policy violations
- Terminated employees
How Is Workers’ Comp Different from Health Insurance?
One major difference is that workers’ compensation insurance applies only to workplace injuries, while health insurance covers non-work injuries.
Workers’ Compensation Benefits in Texas
Workers’ compensation benefits include medical care, temporary disability payments, permanent disability benefits, supplemental job displacement vouchers, and death benefits. These benefits support injured workers during recovery and compensate for lost wages.
How to File a Workers’ Comp Claim in TX
To receive benefits, you must file a timely claim. The process typically involves:
- Reporting the injury
- Filing the claim with your employer
- Filing an “application for adjudication of claim” with the Workers’ Compensation Appeals Board (WTXB).
Be mindful of time restrictions for each phase. If you miss the deadline for the final step, you may lose your chance for compensation. For guidance, contact the Texas Department of Insurance.
Workers’ Comp Settlement Chart in Texas
Settlement amounts vary by disability rating, wages, and injury type. For example, a 10% permanent disability might yield $6,000–$8,000, while higher ratings can exceed $50,000. The Division of Workers’ Compensation uses a disability rating chart to determine payouts.
The table below illustrates common injury scenarios and estimated settlement ranges based on Texas’s 2025 guidelines:
| Disability Rating | Injury Type | Average Settlement Range* | Notes |
| 10% Permanent | Back Strain, Minor Fracture | 6,000–8,000 | Based on average weekly wage (TX minimum: $50.000.95/week). |
| 25% Permanent | Repetitive Motion Injury | 25,000–35,000 | Includes carpal tunnel, partial loss of limb function. |
| 50% Permanent | Severe Burns, Amputation | 50,000–90,000 | Payouts adjust for future medical care and lost earning capacity. |
| 75% Permanent | Spinal Cord Injury | 100,000–200,000+ | Lifetime disability pensions apply for total permanent disabilities. |
Why Ranges Vary:
- Pre-Impairment Earnings: Higher wages increase settlements.
- Injury Date: Rates adjust annually.
- Future Care Costs: Severe injuries include lifelong medical expenses.
How To Get Workman’s Compensation Insurance In Texas?
You can buy worker’s comp insurance for your business instantly online in Texas from an online insurance agency like Simply Insurance. There’s no need to wait for a pamphlet in the mail; we make purchasing worker’s comp plans easy, fast, and 100% online.
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Worker’s Compensation Insurance is a necessary cost for business owners who want to protect themselves and their employees from unexpected events. Business owners without coverage could end up paying out of pocket for mishaps that occur while operating their small businesses. Click here to get instant quotes and get covered today.
FAQs About Workers’ Compensation Insurance in Texas
How is worker’s comp insurance calculated in Texas?
The total amount of premiums collected is multiplied by $100 per employee per category. By multiplying each class’s payroll by $100, you can obtain an estimate for the payrolls in each class. The base premium is the sum of all premiums collected.
Do you need workers’ compensation coverage if you’re self-employed in Texas?
No, you don’t need a workman’s comp policy if you’re self-employed. However, individuals who operate their businesses or work as contractors should strongly consider purchasing it.
Is workman’s comp required for part-time employees in Texas?
This will depend on your needs; the company that offers the cheapest insurance in Texas will vary based on several factors, including the value of your home, the area you live in, and the type of coverage you select.
Can I use my own insurance instead of workman’s comp in Texas?
Yes, you can self-insure for workers’ compensation, but it isn’t usually recommended. You might need assistance from a commercial broker-agent who can provide information on State Fund and self-insurance.
Am I Required to Have Workers’ Comp Insurance in TX?
Yes, Texas law requires all employers with at least one employee to have workers’ compensation insurance, even for part-time or temporary staff. Failure to carry coverage can result in severe penalties, including fines and personal liability for workplace injuries.
What Is the Best Workers’ Comp Insurance in Texas?
The Hartford is the best workers’ compensation insurance provider for small businesses in Texas, combining industry-specific expertise with policies tailored to Texas’s strict labor laws.
How Much Does Workers’ Compensation Insurance Cost in Texas?
The average cost of worker’s comp insurance in Texas is $50.00 per month or $600.00 per year, depending on industry risk, claims history, and employee roles.
How Many Employees Trigger a Workers’ Comp Requirement?
In Texas, it is optional for private employers to be covered by workers’ comp insurance according to the Texas labor code.
Workers’ compensation insurance is essential for any business and is mandated in nearly every state. In Texas alone, there are 2,679,964 small business owners, entrepreneurs, freelancers, and sole proprietors who require a workman’s comp policy.
But, what’s the best workers’ compensation insurance in Texas?
To help you navigate this important decision, we’ve created a straightforward guide that outlines the best workers’ compensation insurance companies in Texas, covering costs, coverage details, exclusions, and more.
Some Of The Best Companies For Workers Compensation Coverage In Texas Below…
Top Workers’ Compensation Insurance Companies in Texas (2025)
| Provider | Best For | Key Features | Availability |
| The Hartford | Established Businesses | Industry expertise, bundled policies, online quotes | Nationwide, including TX |
| Progressive Commercial | Quick Online Quotes & Small Businesses | Fast application process, broad coverage options | Nationwide |
| Thimble | Freelancers & Short-Term Policies | Flexible policies, app-based, instant proof of insurance | Texas + select states |
| Employers Insurance | Low-Risk Industries & Remote Teams | Competitive pricing, loss control services, return-to-work programs | Nationwide, including TX |
Workers Comp Insurance made easy!
Agents Available To Assist.
Get quotes and sign up online or get help from a licensed agent; we are here if you need us.
Unbiased, expert advice.
Get unbiased insurance education from licensed experts and avoid dodgy sales calls.
Coverage in minutes.
You can get workers comp insurance coverage within minutes of getting your quotes and applying.
Best Workers Compensation Insurance in Texas for Small Businesses
The Hartford is the top choice for small businesses in Texas, offering tailored policies that comply with the state’s strict labor laws. Benefits include:
- Bundled discounts for pairing workers’ comp with general liability insurance.
- Instant online quotes and policy activation for fast-moving businesses.
- Free workplace safety training aligned with Texas’s OSHA requirements.
- Dedicated claims specialists familiar with Texas’s disability and return-to-work regulations.
Best Workers’ Compensation Insurance for Micro Businesses in Texas
The Hartford also excels for micro businesses (1–10 employees), addressing unique challenges:
- No minimum payroll requirements, crucial for businesses with seasonal or gig workers.
- Rates as low as $50.00/month, making it affordable for micro-business budgets.
- Mobile app management for certificates of insurance and claims tracking.
- Compliance assurance with Texas’s exemption rules.
Best Workers’ Compensation Insurance for Midsize Businesses in Texas
The Hartford leads in providing scalable solutions for midsize businesses (50–250 employees):
- Experience Modification Rate (X-Mod) optimization to reduce premiums through safety programs.
- Multi-state coverage for businesses operating beyond Texas.
- Return-to-work programs that minimize lost productivity.
- Tailored risk management for high-risk industries like manufacturing and healthcare.
WORKERS COMPENSATION INSURANCE WHERE YOU LIVE
Workers comp insurance by state.
Keep your business safe with a Workers Comp Insurance Policy.
Workers Compensation insurance policies protect you against lawsuits, employee injuries, cyber security attacks, and property damage. Click on your state to get a free quote today.
Who Is The Cheapest Workers’ Comp Insurance Provider in Texas?
The Hartford offers the cheapest workers’ compensation insurance in Texas, with rates starting at $50.00 per month for micro and small businesses. Key reasons for its affordability include:
- Payroll-Based Pricing: Premiums scale directly with payroll size, avoiding overpayment for seasonal or part-time workers.
- Bundled Discounts: Save up to 15% by combining workers’ comp with other policies.
- X-Mod Savings: Businesses with strong safety records qualify for reduced premiums.
- No Broker Fees: Direct online quoting cuts out middlemen, lowering costs.
- Texas-Specific Efficiency: Streamlined claims processes minimize overhead, passing savings to businesses.
Why The Hartford Dominates Workers Comp Insurance Categories in Texas:
The Hartford excels in workers’ comp insurance in Texas due to its cost transparency, strong claims support, tailored small business coverage, and tech-driven tools. Its reputation for fast payouts and customer service makes it a top choice.
Key Reasons for Dominance:
- Cost Transparency: Clear, payroll-based pricing with no hidden fees.
- Compliance Expertise: Policies built for Texas’s unique mandates.
- Speed: Instant online quotes and same-day policy activation.
- Reputation: Backed by an A+ financial strength rating (AM Best).
- Tech-Driven Tools: AI-powered risk assessments streamline compliance.
Where to Get The Best Workers’ Compensation Insurance in Texas?
To find the best workers’ compensation insurance in Texas, compare top-rated providers like The Hartford, State Fund, and Employers Insurance. Look for companies offering fast claims, competitive premiums, and strong support for Texas labor laws. Use platforms like Simply Insurance to compare rates instantly.
Top Private Workers’ Compensation Insurance Companies in Texas
Private insurance companies provide a variety of workers’ compensation policies tailored to diverse business needs. Notable providers include:
- The Hartford: Known for comprehensive coverage options and strong customer service.
- Preferred Employers Insurance: Offers personalized services and competitive rates.
- Employers Insurance: Focuses on cost-effective solutions for small businesses.
When selecting a private insurer, compare coverage options, premium costs, and customer reviews to ensure the best fit for your business.
Who is the Largest Workers’ Compensation Insurance Company in Texas?
The largest workers’ compensation insurance company in Texas is The Hartford. Known for its financial stability and fast claims processing, The Hartford insures thousands of Texas businesses.
How Much Workers’ Compensation Insurance Do I Need in Texas?
Most states require at least $500,000 in workers comp coverage for your employees. However, the necessary amount depends on your business’s size, location, and type.
How Much Is Workers’ Compensation Insurance in Texas?
The average cost of workers’ comp insurance in Texas is $50.00 per month or $600.00 per year. In Texas, workers’ compensation insurance costs $0.80 per $100 of payroll, depending on industry risk, claims history, and employee roles. High-risk industries like construction pay more, while office-based businesses pay less.
Average Cost of Workers’ Comp Insurance in Texas
The table below provides illustrative examples of workers’ compensation insurance rates for various industries in Texas. These figures are approximate and can fluctuate based on specific circumstances and insurers.
| Industry | Job Role | Rate per $100 of Payroll | Monthly Premium Estimate* |
| Construction | General Contractor | $3.00 – $30.00 | $750 – $7,500 |
| Manufacturing | Machine Operator | $2.50 – $15.00 | $625 – $3,750 |
| Healthcare | Registered Nurse | $1.75 – $5.00 | $437.50 – $1,250 |
| Retail | Sales Associate | $1.00 – $3.00 | $250 – $750 |
| Clerical/Office | Administrative Assistant | $0.40 – $1.00 | $100 – $250 |
*Assuming a monthly payroll of $25,000.
These estimates highlight how industry classifications impact insurance premiums. Businesses in higher-risk industries, such as construction, face higher rates due to the increased likelihood of workplace injuries. Conversely, office-based roles typically attract lower premiums reflecting their reduced risk.
Workers’ Comp Rates in Texas (Per $100 Payroll)
Workers’ comp rates in Texas cost around $0.80 per $100 of payroll, based on job classification codes. Low-risk jobs like clerical work average $0.75–$1.50, while high-risk jobs like roofing can exceed $25. The Workers’ Compensation Insurance Rating Bureau sets advisory pure premium rates annually.
Texas Workers’ Comp Rates by Classification
The National Council on Compensation Insurance of Texas (WCIRB) assigns specific classification codes to various job types, each with its own advisory pure premium rate. Below is a table illustrating sample classification codes along with their corresponding advisory pure premium rates for 2025:
| Classification Code | Industry/Job Type | Advisory Pure Premium Rate per $100 Payroll |
| 0042 | Landscaping Gardening | $6.56 |
| 5183 | Plumbing | $1.68 |
| 8810 | Clerical Office Employees | $0.35 |
| 8742 | Salespersons – Outside | $0.65 |
| 7228 | Trucking – Local Hauling | $8.25 |
| 9015 | Building Operations by Owner | $0.97 |
| 8835 | Home Health Care Services | $5.32 |
| 8006 | Grocery Stores | $2.15 |
| 8017 | Retail Stores – NOC | $1.85 |
| 8387 | Automobile Service or Repair Centers | $3.30 |
These rates are subject to change and may vary based on the insurer and specific circumstances of the business. Employers should consult with their insurance providers or the NCCI for the most current and applicable rates for their classifications.
How Long Does Workers’ Comp Last?
If you’re wondering how long workers’ compensation will last, the answer varies for each individual. The severity of a work-related injury or illness determines the duration of payments. If you believe your employee will require future medical treatment beyond regular workers’ comp payouts, advise them to consult a lawyer regarding legal matters.
Workers Comp Insurance made easy!
Agents Available To Assist.
Get quotes and sign up online or get help from a licensed agent; we are here if you need us.
Unbiased, expert advice.
Get unbiased insurance education from licensed experts and avoid dodgy sales calls.
Coverage in minutes.
You can get workers comp insurance coverage within minutes of getting your quotes and applying.
Factors That Affect Workers’ Compensation Costs in Texas
Workers’ compensation costs in Texas are influenced by job classification, payroll size, claims history, and safety record. High-risk roles like construction increase premiums, while a clean safety record can lower them. Understanding these factors can help businesses manage their insurance costs effectively.
- Job Classification: Each occupation is assigned a classification code reflecting its risk level. High-risk roles typically incur higher premiums.
- Payroll Size: Premiums are calculated per $100 of payroll, meaning larger payrolls lead to higher overall premiums.
- Claims History: A history of frequent or severe claims can lead to increased premiums.
- Safety Record: A strong safety record can positively impact premium costs.
- Experience Modification Rate (X-Mod): This rate adjusts premiums based on a company’s claims history relative to industry averages.
Texas Workers’ Compensation Insurance Requirements
Texas mandates that all employers with one or more employees carry workers’ compensation insurance, regardless of hours worked. Coverage must be purchased from a licensed insurer or the State Fund. Sole proprietors are generally exempt but can opt in. Noncompliance can lead to fines and criminal penalties.
Who Needs Workers’ Comp Insurance in Texas?
Texas is unique in that it is optional for private companies to be covered by workers’ compensation, even if they have only one employee. However, if a company’s headquarters are in another state, Texas law requires it to carry workers’ comp coverage for employees working there regularly.
Which Industries Buy Workers’ Comp Policies in Texas the Most?
Industries that frequently purchase workman’s comp insurance include:
- Landscaping & Lawn Care
- Food & Beverage
- Legal
- Accounting & Finance
- Retail
- Hair & Beauty
- Fitness
- Day Care
- Commercial Cleaning
- Heating & Air Conditioning
What Are The Minimum Workers’ Comp Laws in Texas?
Employer liability in Texas is defined by the following minimums: $100,000 per occurrence for a workers’ compensation insurance policy, $100,000 per employee, and the total policy value must be at least $500,000.
Who Is Exempt from Workers’ Comp Insurance in Texas?
Workers’ compensation is not required for certain employees, including:
- Business owners/sole proprietors (except roofers)
- Contractors
- Domestic workers related to their employers
- Individuals working for aid rather than pay
- Specific volunteers, including those for non-profit organizations
- Deputy sheriffs and deputy clerks
- Students participating in amateur sports
Do Independent Contractors Need Workers’ Comp Insurance In Texas?
No, independent contractors are generally not required to carry workers’ compensation insurance for themselves. However, some clients may require it as a condition of their contract. Obtaining coverage can also provide financial protection for medical expenses and lost wages due to work-related injuries.
Is Workers Comp Required In Texas?
It depends. Even if you only have one employee, it is optional for private employers to have workers’ comp insurance. If your workers are injured or sick due to their job, you must reimburse them for workers’ compensation benefits.
Workers’ comp insurance covers essential services such as medical care, short-term disability payments, permanent disability pensions, additional job displacement benefits, and a return-to-work supplement. It also includes death benefits for final expenses.
How Workers’ Compensation Insurance Works in Texas?
Workers’ compensation insurance provides benefits to employees suffering from occupational injuries or illnesses. This coverage helps pay for medical costs and lost income due to missed work, supporting both employers and employees in avoiding financial harm caused by workplace injuries.
- Supports companies in various industries
- Promotes worker safety
- Facilitates employee return to work
- Provides access to training for new skills
What Does Workers’ Comp Insurance Cover in Texas?
Your insurance will cover medical care, temporary disability benefits, permanent disability benefits, additional job displacement benefits, and death payments. Most claims are resolved quickly, but disputes can arise regarding the cause of injury and benefit amounts.
Benefits include:
- Medical treatment fees
- Temporary disability payments
- Permanent disability payments
- Life pension payments
- Vocational retraining costs
- Burial death benefits
What Types Of Employee Injuries Does Workers’ Comp Insurance NOT Cover In Texas?
Workers’ comp insurance does not cover injuries from intoxication, self-inflicted harm, off-duty activities, or violations of company policy. Exclusions help prevent fraud and ensure claims relate directly to work-related duties. Examples include:
- Driving to/from work
- Intoxication/intentional acts
- Horseplay
- Illegal activities
- Policy violations
- Terminated employees
How Is Workers’ Comp Different from Health Insurance?
One major difference is that workers’ compensation insurance applies only to workplace injuries, while health insurance covers non-work injuries.
Workers’ Compensation Benefits in Texas
Workers’ compensation benefits include medical care, temporary disability payments, permanent disability benefits, supplemental job displacement vouchers, and death benefits. These benefits support injured workers during recovery and compensate for lost wages.
How to File a Workers’ Comp Claim in TX
To receive benefits, you must file a timely claim. The process typically involves:
- Reporting the injury
- Filing the claim with your employer
- Filing an “application for adjudication of claim” with the Workers’ Compensation Appeals Board (WTXB).
Be mindful of time restrictions for each phase. If you miss the deadline for the final step, you may lose your chance for compensation. For guidance, contact the Texas Department of Insurance.
Workers’ Comp Settlement Chart in Texas
Settlement amounts vary by disability rating, wages, and injury type. For example, a 10% permanent disability might yield $6,000–$8,000, while higher ratings can exceed $50,000. The Division of Workers’ Compensation uses a disability rating chart to determine payouts.
The table below illustrates common injury scenarios and estimated settlement ranges based on Texas’s 2025 guidelines:
| Disability Rating | Injury Type | Average Settlement Range* | Notes |
| 10% Permanent | Back Strain, Minor Fracture | 6,000–8,000 | Based on average weekly wage (TX minimum: $50.000.95/week). |
| 25% Permanent | Repetitive Motion Injury | 25,000–35,000 | Includes carpal tunnel, partial loss of limb function. |
| 50% Permanent | Severe Burns, Amputation | 50,000–90,000 | Payouts adjust for future medical care and lost earning capacity. |
| 75% Permanent | Spinal Cord Injury | 100,000–200,000+ | Lifetime disability pensions apply for total permanent disabilities. |
Why Ranges Vary:
- Pre-Impairment Earnings: Higher wages increase settlements.
- Injury Date: Rates adjust annually.
- Future Care Costs: Severe injuries include lifelong medical expenses.
How To Get Workman’s Compensation Insurance In Texas?
You can buy worker’s comp insurance for your business instantly online in Texas from an online insurance agency like Simply Insurance. There’s no need to wait for a pamphlet in the mail; we make purchasing worker’s comp plans easy, fast, and 100% online.
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Worker’s Compensation Insurance is a necessary cost for business owners who want to protect themselves and their employees from unexpected events. Business owners without coverage could end up paying out of pocket for mishaps that occur while operating their small businesses. Click here to get instant quotes and get covered today.
FAQs About Workers’ Compensation Insurance in Texas
How is worker’s comp insurance calculated in Texas?
The total amount of premiums collected is multiplied by $100 per employee per category. By multiplying each class’s payroll by $100, you can obtain an estimate for the payrolls in each class. The base premium is the sum of all premiums collected.
Do you need workers’ compensation coverage if you’re self-employed in Texas?
No, you don’t need a workman’s comp policy if you’re self-employed. However, individuals who operate their businesses or work as contractors should strongly consider purchasing it.
Is workman’s comp required for part-time employees in Texas?
This will depend on your needs; the company that offers the cheapest insurance in Texas will vary based on several factors, including the value of your home, the area you live in, and the type of coverage you select.
Can I use my own insurance instead of workman’s comp in Texas?
Yes, you can self-insure for workers’ compensation, but it isn’t usually recommended. You might need assistance from a commercial broker-agent who can provide information on State Fund and self-insurance.
Am I Required to Have Workers’ Comp Insurance in TX?
Yes, Texas law requires all employers with at least one employee to have workers’ compensation insurance, even for part-time or temporary staff. Failure to carry coverage can result in severe penalties, including fines and personal liability for workplace injuries.
What Is the Best Workers’ Comp Insurance in Texas?
The Hartford is the best workers’ compensation insurance provider for small businesses in Texas, combining industry-specific expertise with policies tailored to Texas’s strict labor laws.
How Much Does Workers’ Compensation Insurance Cost in Texas?
The average cost of worker’s comp insurance in Texas is $50.00 per month or $600.00 per year, depending on industry risk, claims history, and employee roles.
How Many Employees Trigger a Workers’ Comp Requirement?
In Texas, it is optional for private employers to be covered by workers’ comp insurance according to the Texas labor code.
