What to Know
You are required to carry workers' compensation insurance in Texas if:
- If you enter into a building or construction contract with a government entity.
- If your employees are going to perform work outside of Texas.
- If you are an independent contractor, you might not be covered by the hiring company’s insurance policy and may need to provide proof of work comp. Are you an employee or an independent contractor? 10 ways to tell >>
Where to buy insurance:
- Texas has a private market. You can purchase a workers' compensation policy from any private insurance carrier or agency that is licensed to write in that state. Get started on a policy with WorkCompOne >>
- Texas has a state fund that competes with the private market. You can contact the Texas Mutual Insurance Company if you are unable to secure coverage from a private insurance carrier. State funds accept higher-risk businesses, and their rates are often higher.
Where to Get It
Factors That Impact Coverage
- Texas employers who do not carry workers’ compensation insurance coverage are required to report their non-coverage status and work-related injuries and occupational diseases to the Texas Department of Insurance, Division of Workers’ Compensation.
- Workers’ compensation insurance limits the employer’s liability for work-related injuries. Employers without coverage could be forced to pay punitive damages if they lose injury lawsuits.
- Who needs to be covered by the policy, where you can buy it and how much it will cost are influenced by state legislation and the state's current legal and political climate.
- Your business must comply with the state where your employees perform work - not necessarily where the business was founded or is based.
- If your business operates in multiple states, or employees travel across state lines to work, you may need to modify your policy to guarantee coverage.
- Work comp covers wage replacement and medical bills for employees injured on the job. To protect against other injuries at your place of business, you may need general liability insurance. Learn more about general liability >>
Texas Key Resources
If you employ workers in multiple states or your employees are temporarily working out-of-state, you need to purchase insurance for all the states where your workers are located, according to each state’s laws.
Call 1-800-416-0285 and let us walk you through it.
The nature of your business, number of employees being covered and past coverage and claims are all factors in how much your premium will cost. Learn more about workers' comp insurance rates >>