Here we cover the specific state laws and requirements for small business employers and their Texas Workers’ Comp Insurance obligations.
First, who needs to be covered by Workers’ Comp coverage? Second, where can you get it? Also, how much does it cost? All of this is covered by state law.
Additionally, are you headquartered or based in Texas, but have employees working, or transiting on the clock, to or through another state to perform work? Further, the Workers’ Compensation laws in THAT or THOSE states will also determine coverage requirements. Finally, if your employees are working in more than one state, you will need coverage in each state.
WorkersComp4SmallBusiness can help with just that.
Workers Compensation Insurance in Texas
The state of Texas is the only state in the Union that does not require employers to carry Workers’ Compensation Insurance.
Workers’ Compensation Insurance provides wage replacement and medical bills for employees injured on-the-job, sustain an occupational illness, and it limits an employer’s liability should an employee sue for damages resulting from such an on-the-job injury or occupational illness.
You will need Commercial General Liability (CGL) Insurance, and perhaps other types of liability insurance, in order to protect against other injuries at your place of business.
Does Texas Require Workers' Compensation Insurance?
No. Workers’ Comp coverage is not required by law in Texas. This is unique in that businesses are not required to carry Workers’ Compensation insurance. However, there are some limited exceptions:
- Companies that enter into a building or construction contract with a government entity.
- Public or educational employers.
- Independent contractors may not be covered by the hiring company’s insurance policy and may need to provide proof of Workers’ Compensation coverage
If you are a small business employer in the state of Texas that does not carry Workers’ Compensation Insurance, then you are required to report your non-coverage status. Also, you must still report any work-related injuries and occupational diseases to the Texas Division of Workers’ Compensation.
You must also inform your employees that you do not provide Workers’ Compensation Insurance. Failure to do so could result in fines from the state of Texas for non-compliance with the state’s annual reporting requirement.
If your small business opts out of the state of Texas’ Workers’ Compensation system, then you and your business are called “non-subscribers.” Non-subscribers are not fined or penalized by the state of Texas for not carrying coverage, but those businesses ARE at greater risk for liability if an employee is injured or becomes ill.
Workers’ Comp coverage limits the employer’s liability for work-related injuries and illnesses, and purchasing Workers’ Compensation Insurance legally limits the amount and type of compensation and/or benefits an employee may collect. Non-subscribers have virtually UNLIMITED exposure for damages, benefits, legal fees and court costs via a regular tort personal injury suit. The vast majority of Texas employers purchase this valuable coverage to protect their employees AND their businesses.
Independent Contractors
Most subcontractors and independent contractors are sole proprietors or partnerships. Unless they are an employee, they will not be covered by their insurance policy, and they may need proof of workers comp insurance.
Are they an independent contractor or an employee? Great Question. Let’s get some idea.
Where to Buy Workers Comp Insurance?
The state of Texas has a private, voluntary Workers’ Compensation Insurance market. A business can purchase a Workers’ Compensation policy from any private insurance company, agent and/or broker that is properly licensed and admitted to do business in the state of Texas.
Request a quote from WorkersComp4SmallBusiness.com
Self-insuring or applying to a self-insured group is an option, but is usually only possible or advisable for larger employers. Self-insured applicants must meet stringent state requirements.
Texas Workers' Compensation Rates
Workers’ Compensation rates in the state of Texas are recommended by the National Council on Compensation Insurance (NCCI). Texas only began using the NCCI in 2014.
Texas Work Comp Resources
There is a competitive state assigned risk fund, the Texas Workers Compensation Insurance Fund, Texas Mutual Insurance. They may be contacted at:
Texas Mutual Insurance Company
800-859-5995 or 512-224-3800
If you are having problems getting Workers’ Compensation Insurance, contact Texas Mutual Insurance Company and they can assist you with coverage for high-risk exposures.
The Texas Department of Insurance provides resources to help employers keep the workplace safe. The Occupational Safety and Health Consultation Program (OSHCON) assists small business employers with compliance with OSHA requirements – training them how to maintain safe workplaces.
Areas We Serve in Texas
- Houston
- San Antonio
- Dallas
- Austin
- Fort Worth
- El Paso
- Arlington
- Corpus Christi
- Plano
- Laredo
- Lubbock
- Garland
- Irving
- Frisco
- McKinney
- Amarillo
- Grand Prairie
- Brownsville
- Killeen
- Pasadena
