Workers’ Compensation Insurance Texas
Workers’ Compensation Insurance for Texas Businesses
Texas is the only state that doesn’t require workers’ comp for most private employers — but going without it puts all the risk on you if an employee is injured on the job.
What’s covered
- Medical expenses for work-related injuries and illness
- Lost wages while an employee recovers
- Employer liability — protects against employee lawsuits
- Death benefits for fatal workplace accidents
Best for
- Contractors and trade businesses with field employees
- Any employer that wants to limit liability for workplace injuries
- Businesses that need WC to qualify for contracts or job sites
Get a workers’ comp quote
Audit-based and guaranteed cost options available. Most standard classes quote same day.
How workers’ compensation works in Texas
Texas is the only state where most private employers are not legally required to carry workers’ compensation insurance — but that doesn’t mean going without it is a good idea. Employers who opt out are called “non-subscribers” and lose key legal protections. If an employee is injured and you’re a non-subscriber, you can be sued in civil court without the ability to use several standard defenses.
Most contractors, trade businesses, and businesses with employees choose to carry workers’ comp because contracts require it, because it limits liability exposure, and because it protects both the business and the workforce.
Covers medical treatment for work-related injuries and illnesses — doctor visits, surgery, physical therapy, and prescriptions.
Replaces a portion of an injured employee’s wages while they’re unable to work. Typically 70–75% of average weekly wage in Texas.
Part B of a WC policy — covers lawsuits from employees who claim the employer’s negligence caused their injury, above and beyond standard WC benefits.
Provides income replacement and burial expenses to dependents if a work-related death occurs.
Workers’ comp rates in Texas — what to expect
WC is priced per $100 of payroll using class codes assigned to each job type. Rates vary by carrier, experience modifier, and claims history. These are representative ranges.
| Trade / Class | Rate per $100 Payroll | Example: $200K Payroll |
|---|---|---|
| Roofing (5551) | $12 – $28 | $24,000 – $56,000/yr |
| Electrician (5190) | $3.50 – $7.00 | $7,000 – $14,000/yr |
| HVAC (5537) | $4.00 – $8.50 | $8,000 – $17,000/yr |
| Plumbing (5183) | $3.50 – $7.50 | $7,000 – $15,000/yr |
| Carpentry / Framing (5651) | $8.00 – $18.00 | $16,000 – $36,000/yr |
| Clerical (8810) | $0.18 – $0.40 | $360 – $800/yr |
Rates shown are estimates. Final premium depends on your experience mod, carrier, and actual payroll audit results.
Workers’ comp questions — answered
Does Texas require workers’ comp?
Most private employers in Texas are not legally required to carry it — but government contractors and businesses working on certain public projects are. More practically, most GC contracts and project owners require subcontractors to carry WC before setting foot on a job site.
What carriers do you work with for Texas WC?
We work with Texas Mutual, Pie Insurance, AmTrust, biBERK, Employers, and others depending on the class code and account size. Texas Mutual is the state’s largest WC carrier and is often competitive for trade contractors.
What is a workers’ comp audit?
WC policies are written on estimated payroll and audited at year end. If your actual payroll was higher than estimated, you owe additional premium. If lower, you may get a refund. Keeping accurate payroll records throughout the year prevents audit surprises.
Can I cover 1099 subcontractors under my WC policy?
Generally no — 1099 subs are considered independent contractors and aren’t covered under your WC. However, if a sub doesn’t have their own WC, your carrier may include their payroll in your audit and charge you for the exposure. Require certificates from all subs.
Get workers’ comp options for your business
We work with multiple WC carriers including Texas Mutual. Tell us about your payroll and trade and we’ll put together options.
Get WC Options →