Texas Workers’ Compensation

• Is Texas Workers’ Compensation insurance required?
• How does Workers’ Comp work in Texas?
• How much is Texas Workers’ Compensation?
• How NEXT helps Texas small business owners

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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