Workers' Compensation Insurance in Texas
Texas gives most private employers a choice about carrying workers' compensation, which can help pay medical costs and some lost income after a job related injury or illness. Tell us about your business, and a licensed team member reviews it first.
What is workers' compensation insurance?
Workers' compensation insurance is coverage built around your employees, not your building or vehicles. It responds when someone who works for you is hurt or becomes ill because of the job.
The Texas Department of Insurance describes it as coverage that pays benefits like medical care to treat employees injured or made ill because of their jobs, and says it might also pay some lost income. If an employee dies from a work related injury or illness, the Department says it pays some burial expenses and benefits to the family.
It is a different product than general liability or health insurance, even though the three are sometimes confused.
Does Texas require a business to carry workers' compensation insurance?
Texas Labor Code Section 406.002 says an employer may elect to obtain workers' compensation coverage, except for public employers and except as another law provides. The Texas Department of Insurance puts it plainly: private employers can choose to carry it, it is not required in most cases, and every Texas governmental entity must carry it.
Texas Labor Code Section 406.096 requires a contractor on a public construction project to certify coverage for its own employees, with each subcontractor certifying the same up the chain. The Texas Department of Insurance puts it plainly: private employers who contract with government entities must provide coverage for employees on that project. Outside a government contract, the Texas Department of Insurance notes that some contractors require subcontractors to carry coverage as a private contract term, not a state law requirement.
When you hire contractors, coverage depends on the working relationship, the type of project and any agreement to provide coverage. Bring us the details so we can check how your policy applies. Texas Labor Code Section 406.097 says an owner, partner, or corporate officer of a business that elects coverage is entitled to it as an employee, unless excluded by endorsement.
Source: Texas Department of Insurance and Texas Labor Code Sections 406.002, 406.096, 406.097, and 406.143, read September 7, 2026.
What can workers' compensation insurance help pay for?
What this typically helps with depends on your specific employees and the work they do; the cards below spell it out.
Medical care for a job injury
Can typically help pay for medical care when an employee is hurt or made ill because of the job.
Some lost income replaced
Can typically help replace some lost income while an employee recovers from a covered injury or illness.
Death and burial benefits
If a work related injury or illness causes an employee's death, coverage can typically help pay burial expenses and benefits to the family.
Protection from most lawsuits
The Texas Department of Insurance says an employer who carries coverage is typically protected from most lawsuits by an injured employee.
What it usually does not address
- Injuries caused on purpose, during horseplay, or by someone with an unrelated personal grudge are typically excluded. Bring us the situation and we will explain how a policy would treat it.
- An off duty activity unrelated to the job, or severe weather outside the job's normal exposure, is typically excluded too. Ask us about your work and we will walk through what applies.
- Coverage does not automatically extend to a contractor's own employees. Bring us how you work with contractors, and we will sort out what each side needs.
- Certain higher risk trades, including roofing, need a closer look before we can say what is possible. Bring us the specifics, and we will find out together.
How we review your workers' compensation submission
A licensed team member reviews your business before anything is quoted or bound, looking at your business structure, who works for you, and any paperwork a client or general contractor has sent you.
We ask about your entity type and ownership, your employee count, and whether any are 1099 contractors, and whether the business already carries coverage. Bring what you have, and we will ask about anything missing.
Not every company writes every policy type, and availability changes by risk, location, and underwriting.
Bring what you have
- 01Entity type (sole proprietor, LLC, or corporation) and ownership
- 02Current employee count, and whether any are 1099 contractors
- 03General contractor or client paperwork asking for a certificate
- 04Whether you have coverage today, or none at all
- 05Payroll information for each role
- 06Recent claims or injuries, if any
What affects the cost of workers' compensation insurance in Texas?
A number of factors shape what a policy costs: job duties and classification, total payroll, claims history, the limits you choose, and whether contractors are covered under your policy or carry their own.
Online estimates for the same coverage in Texas can differ widely, so a licensed review of your actual payroll and classifications is more reliable than a number found online.
Before you compare the price
- How your work is classified
Compare which classification each quote assigns to your work, since that drives most of the price.
- Which payroll figures are used
Check that each quote uses the same payroll figures before you compare the price.
- How claims history is treated
Ask whether each quote reflects your claims history the same way.
- Whether contractors need coverage too
See whether each quote assumes your contractors carry their own coverage or need to be included in yours.
Business types with a page of their own
- Auto Repair Shops
- Daycares and Child Care Centers
- HVAC Contractors
- Oil and Gas Operators and Contractors
- Plumbing Contractors
- Electrical Contractors
- Painting Contractors
- Flooring Contractors
- Landscaping and Lawn Care
- Restaurants and Cafes
- Salons and Barber Shops
- Photographers
- Medical Offices
- Business insurance by industry
Common questions from Texas business owners about workers' compensation insurance
Do I have to carry workers compensation insurance in Texas?
Texas Labor Code Section 406.002 says an employer may elect to obtain coverage, except for public employers, and the Texas Department of Insurance describes it as not required in most cases. Government construction work can require coverage, and private contracts may require it too.
Does the number of employees I have change whether I need it?
Not by itself. Texas Labor Code Section 406.002 makes coverage elective for most private employers, and the Texas Department of Insurance describes it as not required in most cases. Government construction work and private contracts can still require it at any headcount, so bring us your situation.
What happens if I do not carry it and an employee gets hurt?
The Texas Department of Insurance says that without coverage, you lose legal protection against most lawsuits from an injured employee, and Texas Labor Code Section 406.033 says you cannot raise certain common defenses. Not carrying coverage also brings notice duties to the state and your employees under Texas Labor Code Sections 406.004 and 406.005.
If I hire subcontractors or 1099 contractors, does my policy cover them?
Not automatically. Coverage depends on the working relationship, the type of project and any agreement to provide coverage. Bring us your contractor agreements and policy information so we can check who is covered.
Am I covered as the business owner?
Texas Labor Code Section 406.097 says an owner, partner, or corporate officer of a business that elects coverage is entitled to it as an employee, unless excluded by endorsement. Bring us your ownership structure, and we will walk through how that applies to you.
Does a client or general contractor asking for a certificate mean I am required to carry it?
Not by itself. The Texas Department of Insurance notes that some contractors require subcontractors to carry workers' compensation as a term of the private contract, not because state law requires it. Bring us the paperwork, and we will sort out what it means.
Is workers compensation the same as general liability, or the same as health insurance?
No. Workers compensation responds to a job related injury or illness for your own employees, while general liability responds to a claim from someone outside your business, such as a customer. Health insurance is a separate benefit not tied to whether an injury happened on the job.
Does it cover someone hurt while working from home?
It can, depending on the policy and the facts, since the question is usually whether the injury or illness happened because of the job, not where someone was sitting. Bring us the details of any remote or hybrid work, and we will help you understand how it could apply.
Start with your business and your employees
Tell us about your business, and a licensed team member at our Madisonville office will walk through what workers' compensation could look like for you. Nothing is bound or quoted before that conversation.
A website request does not bind, change, cancel, reinstate, or confirm coverage.