Texas Workers’ Compensation

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

What can be covered by Texas Workers’ Compensation insurance?

Medical expenses

Medical expenses

Like exams, treatment and rehabilitation.
Lost wages

Lost wages

For employee recovery after a work injury.
Retraining

Retraining

To teach injured employees new skills if they can no longer do their jobs.
Permanent injury

Permanent injury

Benefits for employees who can no longer work due to injury.

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Is Texas Workers’ Compensation insurance required?

Unlike most other states, Texas law does not require most businesses to carry workers’ compensation insurance.

That said, if your company plans to work with government agencies, you’ll most likely need to have workers’ comp. Workers’ compensation insurance is a requirement in Texas 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.

Almost every type of business in Texas — whether you have employees or not — can benefit from the financial protection offered by workers’ compensation insurance.

Many general contractor and construction businesses purchase coverage with NEXT because a certificate of insurance is often required to get a general contractor license in Texas cities.

But accidents that cause injuries can happen anywhere — even at desk jobs.

Going without workers’ compensation insurance in the state means you could be held responsible for expenses if you or an employee get 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.

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How does Workers’ Comp work in Texas?

If you or an employee are injured on the job, a workers’ compensation policy can help your business pay for:

  • Medical expenses
  • Loss of income
  • Retraining
  • Permanent injury
  • Death and survivor benefits

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.

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 your employee injures their back at work, your workers’ compensation insurance could provide coverage for emergency care, medical bills, and lost wages. If you don’t have an active policy, your employee could take legal action and ask you to pay for all associated expenses. The result could be a significant long-term financial loss for your business.

Workers’ comp death benefits in Texas

In the unfortunate event of the death of an employee, the Texas Department of Insurance death and burial benefits for workers’ compensation provides 75% of the deceased worker’s average weekly wage, up to an amount provided by the state.

These benefits are available to family members who relied on the worker for financial support, including:

  • A spouse.
  • Children under 18, under 25 if they’re a full-time student or any dependent child.
  • A grandchild who was at least 20% dependent if the child’s parent is not eligible for death benefits.

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

Learn more about workers’ compensation coverage.

How much is Texas Workers’ Compensation?

Workers’ compensation costs vary across industries. Factors that influence price include:

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

Get a free instant quote in about 10 minutes from NEXT to see your workers’ comp insurance costs.

How NEXT helps Texas small business owners

NEXT offers an easy way to get a free workers’ compensation insurance quote, purchase coverage and instantly share a certificate of insurance in about 10 minutes.

NEXT strives to resolve every claim quickly. Learn more about our claims process and how our claims advocates will work with you after an employee injury.

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Other important small business insurance policies in Texas

Workers’ compensation insurance provides many important protections, but you’ll need additional coverage to protect from all the risks your small business can face.
Many Texas small businesses also consider:
General Liability
General Liability insurance

General liability insurance protects your business from common mistakes or accidents, such as customer injury or damages to someone’s property.

Commercial Auto
Commercial Auto insurance

If you or your employees drive vehicles for work, you probably need commercial auto insurance. This provides coverage for accident-related expenses in a business-owned vehicle or a personal vehicle being used for work purposes.

Commercial Property
Commercial Property insurance

Commercial property insurance can provide financial help if your business structures, goods, gear or inventory are damaged or destroyed by a covered event.

Errors & Omissions
Professional Liability insurance

Professional liability insurance, also called errors & omissions insurance, provides financial protection against claims of professional mistakes and negligence.

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* 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.

Any starting prices or premiums represented before an actual customer quote are not guaranteed and are representations of existing premiums of active policies as of December 6, 2023. 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.