Texas Workers’ Compensation Insurance

You can save up to 25% in discounts on business insurance.*

Workers’ Compensation can help pay for:

Medical expenses

Medical expenses

Includes examinations, treatments and rehabilitation.

Lost wages

Lost wages

Gives employees time to recover from an injury before returning to work.



Helps employees who need to learn skills and enter a new field.

Permanent injury

Permanent injury

Provides benefits for employees who can no longer work due to injury.

Is workers’ compensation insurance required in Texas?

Unlike most other states, Texas does not require businesses to have workers’ compensation insurance. That might sound like a good deal for your business, but not having coverage also means that you could be held responsible for expenses if you or an employee gets hurt on the job.

If you consider the potential out-of-pocket expenses for an injury vs. the cost of workers’ comp in Texas, you might find that it’s a worthwhile investment. If you or an employee is injured on the job, a workers’ comp policy can help pay for:

  • Emergency treatment
  • Medical bills
  • Lost wages
  • Death benefits

Keep in mind, while state law in Texas does not require workers’ compensation, it might be required by the city where you work or for certain business licenses and certifications.

Your clients might also ask for proof of coverage before signing a contract to work with you, so it’s good to be prepared.

Start a free online instant quote to explore options for your business or continue reading to learn more. Next Insurance offers a painless and seamless way to explore coverage and cost options for thousands of different types of businesses in about 10 minutes. Our Texas-based insurance advisors are standing by to help you throughout the process.

Businesses that work with state agencies need workers’ compensation

If your company plans to work with government agencies, you’ll most likely need to have workers’ comp in Texas. It’s required for:

  • Contractors or vendors with any public employer, such as city, county and state agencies
  • State universities
  • Building and construction contractors for public employers
  • Buses and companies that provide transportation on public highways
  • Liquid propane gas and compressed natural gas dealers
  • Businesses that employ inmates in work furlough programs

How does workers’ compensation work in Texas?

Workers’ comp can help pay for expenses related to work-related injuries. In the event of a work-related death, it also covers death and burial costs up to the coverage limits.

Typically, workers’ compensation coverage includes medical expenses, loss of income, retraining, permanent injury and survivor benefits up to the policy limit.

Workers’ compensation does not cover incidents that are not job-related or situations when the injured person violates company policies, commits misconduct, or uses drugs or alcohol.

Workers’ comp income benefits in Texas

Income benefits with workers’ compensation in Texas include one of four options with a maximum annual amount that is determined by the Texas Workforce Commission:

Temporary income: 70% of the insured’s average weekly wage

Impairment income: 70% of the insured’s average weekly wage

Supplemental income: 80% of the insured’s average weekly wage

Lifetime income: 75% of the insured’s average weekly wage

What are the risks of not having workers’ comp coverage?

Under Texas workers’ compensation law, if your company does not provide workers’ compensation insurance, employees can file a lawsuit to recover medical expenses or lost wages after a workplace injury.

For example, if one of your employees falls off a ladder and injures his back, your workers’ compensation insurance could provide coverage. If you don’t have an active policy, your employee could take legal action and ask you to pay for medical expenses, which could result in significant long-term financial losses.

How much does workers’ comp insurance cost in Texas?

Because the risk of a job-related injury is greater for certain professions, workers’ compensation costs vary across industries. Other factors that influence price include:

  • The number of employees and the type of work they do
  • Your insurance claims history
  • The locations where you do business

Next Insurance offers workers’ compensation insurance that is designed to meet the needs of thousands of different businesses in Texas.

Start a free instant quote online to see how much coverage will cost for your business. You’ll just need to answer a few questions to get a quote in about 10 minutes.

What types of businesses buy workers’ comp in Texas?

Almost every type of business in Texas can benefit from the financial protection offered by workers’ compensation insurance.

Many general contractor and construction businesses purchase coverage with Next Insurance because a certificate of insurance is often required to get a general contractor license in Texas cities. Construction businesses also typically have a greater risk of workplace injuries than other types of businesses.

However, professional services, consultants and other businesses with a lower risk of workplace injuries also opt for coverage. That’s because accidents that cause injuries can happen anywhere — even at desk jobs.

Many clients and professional organizations, regardless of the industry, might also ask you to provide a certificate of insurance for workers’ comp before they’ll do business with you.

Workers’ compensation death benefits in Texas

In the unfortunate event of the death of an employee, workers’ compensation provides 75% of the deceased worker’s average weekly wage, up to an amount that changes yearly and is provided by the state.

These benefits are available to eligible family members who fall into the following categories:

  • Spouse
  • Child under 18 or under 25 if a full-time student
  • Child of any age who was dependent on the worker at the time of the worker’s death
  • Grandchild who was at least 20% dependent, if the child’s parent is not eligible for death benefits
  • Other family members who relied on the worker for financial support, if none of the above are applicable

It also covers burial expenses up to $10,000 and any transportation costs if the death occurred away from the usual place of employment.

How NEXT Insurance helps Texas businesses find the right workers’ comp coverage

NEXT Insurance offers workers’ compensation insurance designed for small businesses and self-employed workers.

With our online services, you can get a quote, review coverage options, purchase insurance and have your certificate of insurance in about 10 minutes.

Start an instant quote online today.

If you need some help during the process, our team of licensed NEXT Insurance advisors is standing by to assist you.

Other business insurance policies that are important in Texas

Workers’ compensation insurance provides many important protections, but you’ll need to include additional coverage with your Texas business insurance package to make sure you are protected from all the risks you face every day. Most Texas businesses also consider these options:
We typically recommend:
General Liability
General Liability Insurance

General liability insurance in Texas protects your business from common mistakes or accidents that can occur in your industry, such as customer injury or damages to someone’s property.

Commercial Auto
Commercial Auto insurance

In Texas, all business-owned vehicles must be covered by commercial auto insurance. If you’re driving and using your personal vehicle for work-related purposes, commercial auto insurance also protects your business from unexpected expenses if you are involved in an accident.

Errors & Omissions
Professional liability insurance (a.k.a. E&O insurance)

Professional liability insurance provides financial protection against claims of professional mistakes and negligence.

Get customized insurance wherever you do business

Learn more about workers’ compensation insurance options in the state where you work.

Customer reviews

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I needed liability insurance for my new small business brick & mortar location. I got the run around from another company, but NEXT provided a competitive insurance quote in a timely manner. I now have the insurance that I need and it was stress-free!
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Let’s find the coverage you need for your business

Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.

General Liability insurance
General Liability

Protect yourself from accidents that cause physical injury or damaged property.

Professional Liability or Error and Omissions Insurance
Professional Liability/E&O

Shield yourself from lawsuits that claim your work errors caused financial losses.

Workers' Compensation Insurance
Workers’ Compensation

Cover medical bills and lost wages if your employees have an accident at work.

Commercial Auto Insurance
Commercial Auto

Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.

Tools & Equipment Insurance
Tools & Equipment

Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.

Commercial Property Insurance
Commercial Property

Keep your building, inventory and equipment protected from fire or water damage.

Business Owner’s Policy Insurance
Business Owner’s Policy

Combine general liability and commercial property into one policy to protect your business.

Check out our blog
Workplace safety tips every business owner should practice

Workplace safety tips every business owner should practice

Starting a business in Texas: Everything you need to know

Starting a business in Texas: Everything you need to know

Workers’ Compensation laws every business owner should know

Workers’ Compensation laws every business owner should know

* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
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Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.