Texas Workers Compensation Insurance: Costs & Quotes from $42/mo

Texas workers compensation insurance is a vital safety net for employees and employers alike. It provides financial protection in the event of workplace injuries and ensures that employees receive proper medical care and compensation for lost wages. Read this guide that answers all your questions about workers compensation insurance in the Lone Star State. 

What is Texas Workers Compensation Insurance?

Texas Workers Compensation Insurance, frequently abbreviated as workers’ comp, constitutes a crucial and mandatory program within Texas. It is meticulously designed to extend financial security and access to medical benefits to employees who encounter injuries or illnesses directly related to their job responsibilities. By operating within the ambit of Texas workers compensation law, this insurance coverage assumes paramount importance for the majority of employers across the state. 

It serves a dual purpose: first, it aids employers in fulfilling their legal obligations as per the state’s labor regulations, and second, it acts as a robust shield safeguarding the physical and financial well-being of their workforce. In essence, Texas workers compensation insurance is a cornerstone of workplace safety and employee welfare, ensuring that individuals are adequately supported in times of adversity while simultaneously ensuring compliance with the law.


When Do You Need to Get Workers Compensation Texas?

Determining the necessity of obtaining workers compensation Texas coverage hinges on a thorough comprehension of the intricacies embedded within the state of Texas workers compensation law. Following these legal provisions, businesses operating in Texas are bound by a vital obligation—to furnish their employees with this indispensable form of protection. The mandate is clear: employers must procure workers compensation. 

Texas coverage to ensure the well-being of their workforce. The need for this coverage arises as soon as a business commences its operations within the state, and it remains an ongoing commitment to prioritize the safety and security of employees in the event of work-related injuries or illnesses. Therefore, businesses should be well-versed in the nuances of Texas workers compensation law to meet their legal obligations while safeguarding their invaluable human capital.


What Government Agency Oversees Texas Workers Compensation Insurance?

The oversight and administration of Texas workers compensation insurance fall under the purview of the Texas Department of Insurance, specifically its Division of Workers’ Compensation (DWC). 

This agency, following the comprehensive Texas workers compensation commission, plays a pivotal role in ensuring the smooth functioning of the workers’ compensation system within the Lone Star State:

  • Regulation and compliance: One of its primary functions is to regulate the workers’ compensation system to ensure that employers comply with the mandatory insurance requirements stipulated by Texas state law. The DWC sets forth the rules and regulations that businesses must adhere to, promoting fairness and consistency in the provision of benefits to injured employees.

  • Dispute resolution: The DWC mediates disputes between injured employees and their employers or insurance carriers. This crucial function helps in resolving disagreements regarding the eligibility for benefits, the extent of coverage, and other related matters through a structured dispute resolution process.

  • Benefits administration: It oversees the administration of benefits to injured workers, ensuring that they receive timely and appropriate medical care, wage replacement, and other entitlements as per Texas workmans comp laws. This includes monitoring the delivery of medical services to guarantee quality care.

  • Provider certification: The DWC also certifies healthcare providers who are eligible to offer medical services to injured employees. This certification process ensures that workers receive care from qualified professionals, further enhancing the overall standard of medical treatment.

  • Data collection and reporting: To continually improve the workers’ compensation system, the DWC collects and analyzes data on workplace injuries, insurance claims, and other relevant statistics. This data-driven approach helps in making informed policy decisions and promoting safety in the workplace.

  • Education and outreach: The agency is actively involved in educating both employers and employees about their rights and responsibilities under Texas workers compensation law. The DWC seeks to foster a deeper understanding of the system through outreach programs and educational initiatives.

Compare Cheap Workers Compensation Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Which Businesses Are Exempt from Getting Texas Workers Compensation Insurance?

While most businesses are required to obtain Texas workers compensation coverage, there are exceptions. It’s essential to research which businesses are exempt from this requirement by visiting the state’s workers comp page. Common exemptions may include small businesses with fewer employees, such as:


Agricultural Employers

Agricultural businesses in Texas navigate specific regulations regarding workers’ compensation insurance. While some are obligated to provide coverage, exemptions apply to particular categories. Small family-owned farms and ranches, primarily employing family members with limited external workforce participation, may be exempt from the requirement of providing workers compensation Texas coverage. This exemption is designed to bolster family-based agricultural operations.


Certain Non-Profit Organizations

Certain non-profit organizations in Texas may qualify for exemptions from workers compensation Texas requirements. These exemptions are generally applicable to religious organizations, particularly those with a limited workforce engaged in non-commercial activities and charitable entities operating exclusively for charitable, educational, or religious purposes with a limited workforce. These exemptions aim to support the mission of these organizations while streamlining administrative processes and reducing financial burdens related to workers compensation coverage.


Sole Proprietors and Partnerships

Sole proprietors and partnerships in Texas, provided they do not employ individuals other than the sole proprietors or partners themselves, may be eligible for an exemption from the requirement of obtaining a Texas workers compensation coverage. In these instances, business owners take on the responsibility of managing and mitigating the risks associated with workplace injuries or illnesses, as no additional employees are covered under workers compensation insurance. 


Workers Compensation Insurance Opt-Out Programs

In Texas, select employers have the opportunity to opt out of the conventional workers compensation system and adopt alternative injury benefit plans. However, these alternative programs must adhere to stringent legal criteria, ensuring they offer benefits equal to or greater than those mandated by Texas workers compensation law. This opt-out provision allows employers to explore innovative approaches to providing injury coverage while maintaining a commitment to safeguarding the well-being of their employees.


How Much Money Does Workers Compensation Insurance Give for Texas Employees?

When it comes to workers compensation in Texas, understanding the precise financial benefits employees can receive is essential. Texas workers compensation rates and coverage vary depending on the nature and severity of the injury, and state regulations govern them. Below, we delve into the specific amounts for different categories of benefits:

  • Temporary Partial Disability Benefits: Temporary Partial Disability Benefits in Texas provide essential financial support to injured workers. This compensation equals 70% of the discrepancy between their average weekly earnings and their wage-earning capacity following the injury. This ensures that individuals receive assistance while transitioning back to work during their recovery process, reflecting the state’s commitment to worker well-being.

  • Temporary Total Disability Benefits: Temporary Total Disability Benefits in Texas serve as a critical safety net for injured employees. This compensation entails receiving 70% of their average weekly income before the injury, capped at a statutory maximum limit. This system ensures that individuals coping with temporary total disability continue to receive financial support, helping them during their recovery and rehabilitation process while maintaining their financial stability.

  • Permanent Partial Disability Benefits: Permanent Partial Disability Benefits in Texas are structured to provide compensation for employees who suffer lasting impairments. The compensation is determined through a predefined schedule that assigns specific monetary values to various injuries. The precise amount awarded varies according to the nature and severity of the impairment, ensuring that injured workers receive appropriate financial support tailored to their specific circumstances, promoting fairness and equity in the workers compensation system.

  • Permanent Total Disability Benefits: Permanent Total Disability Benefits in Texas offer lifelong financial support to workers facing debilitating injuries. In the unfortunate event of permanent total disability, individuals are eligible to receive income benefits throughout their lifetime. The precise benefit amount is calculated based on the injured employee’s average weekly wage before the injury, with consideration for statutory maximum limits. This long-term assistance aims to provide economic security and stability for those who can no longer engage in gainful employment due to injuries.


How Long Will an Employee Wait Before Receiving Benefits?

A waiting period is typically involved when an employee in Texas sustains a workplace injury and seeks workers comp insurance Texas insurance benefits. This waiting period serves as a crucial component of the claims process, and its duration depends on various factors:

  • Notification and reporting: The first step in initiating a workers compensation claim is notifying the employer about the injury. Once informed, the employer must report the injury to their workers comp insurance carrier. This notification process ideally occurs promptly, ensuring that the claim progresses efficiently.

  • Employer verification: After receiving the injury report, the employer, along with the workers comp insurance carrier, will investigate to verify the authenticity and circumstances of the claim. This step aims to prevent fraudulent claims and confirm that the injury occurred during employment.

  • State regulations: Texas workers compensation laws have established specific timelines for employers to report injuries to their insurance carriers. Employers must do so within eight days of learning about the injury.

  • Processing time: Once the claim is verified and reported, the workers comp insurance carrier will begin processing it. The time frame for this process can vary depending on the complexity of the claim. Still, it generally involves assessing the nature and extent of the injury, determining benefit eligibility, and calculating the benefit amount.

  • Waiting period: In Texas, injured employees typically must wait seven days before receiving compensation for lost wages. This means that benefits for wage replacement will not begin until after the seventh day following the date of the injury, provided the disability continues.

  • Retroactive payments: It’s important to note that if the disability lasts more than 14 days, the injured employee may receive retroactive payments dating back to the date of the injury. These retroactive payments are designed to cover the initial waiting period.

Rank and Review Insurance Companies

Help others make better decisions

Show more

Penalties for Not Getting Workers Compensation for Texas Employees

In Texas, adhering to workers compensation requirements and Texas workmans comp laws is paramount for employers and employees. Failing to purchase workers’ compensation insurance can result in significant legal consequences, as outlined in the state’s workers comp laws:

  • Civil penalties: Employers who do not provide the required workers compensation coverage can face civil penalties imposed by the Texas Department of Insurance (TDI). These penalties can be substantial and vary depending on the duration of non-compliance, the number of violations, and the size of the workforce.

  • Criminal penalties: In more severe cases of non-compliance, employers may be subject to criminal penalties under Texas law. These penalties can include fines and, in extreme cases, imprisonment. The severity of the penalties depends on the specific violations and their impact on employees.

  • Lawsuits: If an employer does not have workers compensation insurance, an injured employee may have the right to file a lawsuit against the employer to seek compensation for their injuries. This can result in significant financial liabilities for the employer, including potential legal fees and damages.

  • Loss of legal protections: Employers who fail to provide workers compensation insurance may lose certain legal protections. For example, without workers comp coverage, an employer may not have immunity from personal injury lawsuits filed by employees for workplace injuries.

  • Liability for medical expenses and wage loss: Employers without workers comp coverage may be held personally responsible for covering an injured employee’s medical expenses and wage loss resulting from a workplace injury or illness. This can place a substantial financial burden on the employer.

  • Reputation and business impact: Non-compliance with workers compensation Texas requirements can harm a business’s reputation and credibility. It may deter potential employees and customers, negatively impacting the company’s overall success.


Texas Workers Compensation Insurance Cost

Texas workers compensation insurance is $32 per month or $384 per year. Factors that affect premiums are claims history, business history, number of employees, payroll, and location. Here’s a table summarizing the average monthly costs for the mentioned workers compensation insurance companies in Texas:

Company Cost per Month Cost per Year Best for
NEXT $26 $312 Best overall; Fastest workers compensation insurance.
Thimble $28 $336 Businesses with variable insurance needs.
The Hartford $30 $360 Established businesses seeking reliable coverage.
Tivly $32 $384 Comparing workers compensation insurance quotes over the phone.
Hiscox $44 $528 Businesses seeking industry-specific insurance expertise.

Compare Cheap Workers Compensation Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Best Texas Workers Compensation Insurance Companies

When it comes to finding the optimal Texas workers compensation insurance companies, several crucial factors warrant consideration, including cost-effectiveness, the extent of coverage, and overall customer satisfaction. This comprehensive review evaluates prominent choices in the market, taking into account these pivotal aspects. 


By doing so, we aim to assist you in making a well-informed decision that aligns with your business’s specific needs and priorities, ensuring that you secure the best possible protection for your employees while maintaining cost efficiency and high satisfaction. Here’s a review of some prominent options:


NEXT

Pros

  • Competitive rates.

  • Comprehensive coverage.

  • User-friendly online platform.

  • Bundle workers comp with other policies and enjoy a premium discount.


Cons

  • Couldn’t find any. 

NEXT offers a wide range of coverage options tailored to Texas businesses’ specific needs. Their digital platform simplifies the application process, making getting a quote and purchasing coverage easy.

Best for: Best overall; Fastest workers compensation insurance.

Average cost: $26 per month

Our rating: 10/10


The Hartford 

Pros

  • Extensive industry experience.

  • Strong financial stability.

  • Customizable coverage options.


Cons

  • Their application process is more traditional.


With a long history of providing insurance solutions, The Hartford is a trusted name in the industry. They offer flexible policies designed to protect businesses of all sizes.

Best for: Established businesses seeking reliable coverage.

Average cost: $30 per month 

Our rating: 8/10


Tivly 

Pros

  • Specialized coverage for niche industries.

  • Quick and easy online application.

  • Competitive pricing. 


Cons

  • Limited coverage options for larger enterprises.


Tivly specializes in providing insurance solutions for specific industries, offering tailored coverage options to meet unique business needs. Call now and talk with a representative to compare workers compensation insurance quotes over the phone. 

Best for: Comparing workers compensation insurance quotes over the phone. 

Average cost: $32 per month 

Our rating: 9/10 


Thimble 

Pros

  • On-demand coverage.

  • Flexible payment options.

  • Fast and easy application process.


Cons

  • It may not be suitable for businesses with continuous insurance needs.

Thimble offers on-demand insurance coverage, allowing businesses to purchase policies for specific durations as needed. This flexibility is ideal for companies with fluctuating insurance requirements.

Best for: Businesses with variable insurance needs.

Average cost: $28 per month 

Our rating: 10/10


Hiscox 

Pros

  • Specialized industry knowledge.

  • High financial strength ratings.

  • Customizable policies.


Cons

  • May not offer some policies.

Hiscox specializes in providing insurance solutions tailored to the unique needs of various industries. They offer customizable policies that allow businesses to adapt their coverage as circumstances change.

Best for: Businesses seeking industry-specific insurance expertise.

Average cost: $44 per month 

Our rating: 9/10

Recent Reviews

Recent Posts


Additional Business Insurance posts