Best Workers' Comp Insurance in Texas (2026)

The Hartford has the best workers' comp insurance in Texas with competitive rates, strong customer support and comprehensive coverage options. ERGO NEXT and Thimble are reliable alternatives for small business owners.

The Hartford offers the cheapest workers’ compensation insurance in Texas at about $59 per employee monthly ($708 annually), roughly 8% below the state average of $64 per month. ERGO NEXT matches The Hartford at $59 monthly, while Thimble ranks third at $65.

The price difference between lower-cost providers and higher-priced insurers can be great. For example, Chubb averages about $102 monthly per employee, or roughly $516 more per year than The Hartford. Savings matter most for small businesses with tighter payroll budgets, though pricing differences between providers often narrow in higher-risk industries where underwriting plays a larger role in final premiums.

The Hartford and ERGO NEXT provide the lowest workers’ compensation rates in 24 of the 25 Texas industries we analyzed. ERGO NEXT leads on price in 14 industries, while The Hartford offers the cheapest rates in 10. biBerk ranks lowest for childcare businesses at about $22 monthly per employee.

The Hartford is generally the more affordable option for lower-risk, office-based industries, including financial services ($8/month), consulting ($11), real estate ($12) and tech/IT ($23). ERGO NEXT has lower pricing in industries with greater physical labor or workplace exposure, like cleaning services ($66), construction ($138) and transportation ($174).

Texas workers’ compensation rates average about $76 monthly per employee, slightly above the national average of $74. But costs vary widely by industry. The gap between the cheapest and most expensive industries in our analysis reaches roughly $213 per employee monthly, with cleaning service businesses paying about seven times more than financial services firms for the same required coverage.

Rates rise steeply in industries involving physical labor and higher workplace risk. Office-based and client-facing businesses fall between $13 and $50 monthly per employee, while industries such as cleaning, manufacturing, agriculture and construction see much higher premiums. The two most expensive industries in our analysis, construction and transporation, both exceed $200 monthly per employee.

Texas workers' comp rates are set in a private competitive market regulated by the Texas Department of Insurance, Division of Workers' Compensation. NCCI class codes are the primary rating tool, and the state's non-subscriber option creates a unique cost dynamic not found in other states.

Texas law doesn't require most private employers to carry workers' comp. You decide whether to provide it. The exception is if you contract with government entities, you're required to have workers' compensation insurance for employees working those projects. When you buy coverage, your policy covers all eligible employees based on your payroll and industry classification, including full medical care, two-thirds of wages during disability and permanent injury benefits.

Skip coverage and you lose legal protections. Injured employees can sue for medical bills, lost wages and damages. File annual reports with Texas Department of Insurance and notify employees about your non-coverage status.

Some businesses in Texas are exempt from workers' comp requirements:

• Sole proprietors and partners: You can exclude yourself from coverage if you run your business alone or with partners. Buying a policy covers medical expenses if you are injured on the job.
• Self-employed professionals: Working for yourself without employees means you're automatically exempt, but many self-employed Texans choose coverage to avoid paying medical bills out of pocket.
• LLC members and corporate officers: Texas includes you in workers' comp by default, but you can opt out.
• Independent contractors: You're exempt as long as you're a true individual contractor, having control of your own work schedule, handling your own expenses and maintaining relationships with multiple clients rather than working like an employee.
• Domestic and agricultural workers: Household employees and farm workers fall outside workers' comp requirements, even when the employer carries a policy.
• Casual and temporary workers: Short-term hires and seasonal help generally aren't covered under workers' comp rules.
• Volunteers: Volunteers are exempt from coverage requirements. You can cover volunteer firefighters and emergency responders.
• Certain real estate agents: Those who meet specific Texas criteria don't need workers' comp coverage.

The Hartford and ERGO NEXT have the best workers' compensation insurance for most Texas employers, tied at $59/month per employee. Thimble is a competitive third option for businesses that want a digital-first experience at $65/month. The right choice depends on your industry, claims history, and how much weight you place on claims support versus buying convenience.

After identifying your top Texas workers' comp providers, take these steps to finalize your coverage and keep costs under control.