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Workers Compensation Insurance in Texas — Coverage for Your Crew

Workers compensation insurance in Texas — medical coverage, wage replacement, and employer's liability protection for businesses that choose to subscribe.

Get a Free Quote Houston coverage area

Benefits

What workers compensation includes.

  • Medical coverage for work injuries
  • Wage replacement benefits
  • Employer's liability protection
  • Return-to-work program support
  • Pay-as-you-go premium options
  • Class code and experience mod review

Texas is the only state where workers comp is optional

Texas does not require private employers to carry workers compensation. That freedom comes with a serious trade-off: employers who go without — called non-subscribers — lose the exclusive remedy protection that workers compensation provides. A non-subscriber can be sued directly by an injured employee, cannot use the common-law defenses of contributory negligence or assumption of risk, and faces damages with no statutory cap. One serious injury can end an uninsured business.

What the policy covers

Workers compensation pays 100% of reasonable and necessary medical treatment for a work-related injury or illness with no deductible or copay to the employee, plus income benefits replacing a portion of lost wages, plus death and burial benefits. Part Two of the policy — employer's liability — defends the business against related lawsuits such as third-party-over actions and claims brought by an injured worker's spouse.

Class codes, payroll, and your experience mod

Premium is calculated per $100 of payroll, multiplied by a rate assigned to each job classification, then adjusted by your experience modification factor. Two things drive the bill more than anything else: whether your employees are coded correctly (clerical staff coded as field labor is expensive and common) and whether your mod reflects your actual loss history. We audit both before we market the account, and a corrected class code alone has saved clients thousands per year.

Contracts will require it regardless

Even though the state does not mandate coverage, general contractors, property owners, oil and gas operators, and government entities almost universally require subscribing status and a certificate before allowing crews on site. For most Houston-area contractors, workers compensation is a prerequisite for bidding work, not an optional expense.

Pricing

What drives your premium in Texas.

  • Total annual payroll by job classification
  • Assigned class codes for each role
  • Experience modification factor
  • Claims history and severity
  • Documented safety program and training
  • Return-to-work program availability
  • State-approved carrier rate deviations

Frequently Asked

Workers Compensation questions, answered.

Is workers compensation required in Texas?

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No — Texas is the only state where it is optional for private employers. But going without means losing exclusive remedy protection, so an injured employee can sue the business directly with no cap on damages.

What happens if I don't carry workers comp in Texas?

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You become a non-subscriber. You must notify employees and file with the Division of Workers' Compensation, you lose key legal defenses in an injury lawsuit, and most contracts and clients will refuse to work with you.

How is workers compensation premium calculated?

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Rate per $100 of payroll for each job class code, multiplied by your payroll, adjusted by your experience modification factor. Misclassified employees and an unreviewed mod are the two most common sources of overpayment.

Does workers comp cover owners and officers?

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Sole proprietors, partners, and corporate officers can generally elect to include or exclude themselves. Including yourself raises the premium but provides medical and wage benefits if you are injured on the job.