MoneyGeek evaluated Texas’ best workers' compensation insurance by considering providers’ performance in customer satisfaction, financial stability and efficiency in online quote applications. The Hartford emerged as the best overall company, excelling in financial stability and offering convenient online quotes.

Small business owners need workers' compensation insurance to comply with state requirements and protect against the liabilities of work-related injuries and illnesses.

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Best Workers’ Compensation Insurance in Texas

The Hartford was ranked the best overall workers' compensation insurance company in Texas, earning a MoneyGeek score of 99 out of 100. With an average monthly cost of $65, The Hartford offers reliable and affordable coverage for businesses in Texas.

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Cheapest Workers’ Compensation Insurance in Texas

Texas’ cheapest workers' compensation insurance company is The Hartford, providing an average monthly premium of $65. This company offers the most affordable rates for businesses with 20 employees and an annual payroll of $1,250,000. It's important to note that the size of your workforce and payroll expenses can significantly impact the cost of workers' compensation insurance.

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While we ranked companies based on their average monthly cost to identify the cheapest insurer in Texas, it's important to note that the best option for your small business may vary depending on other factors.

The table below showcases the annual and monthly costs for insuring a business with 20 employees from all the companies analyzed in Texas. The companies are ranked based on their average monthly rates.

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Best Workers’ Compensation Insurance for Micro Businesses in Texas

The Hartford is the top-ranked choice for businesses with five employees, offering a monthly premium of $38 based on an annual payroll of $312,500. The Hartford provides tailored coverage to meet the specific needs of micro businesses with one to nine employees.

Although employee count influences the cost of workers' compensation insurance, payroll has a more significant impact on premiums as it reflects the level of risk for the insurer. Businesses can secure reliable and affordable coverage for their Texas workforce with The Hartford.

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Best Workers’ Compensation Insurance for Midsize Businesses in Texas

Thimble emerges as the top choice for businesses with 100 employees, offering a monthly premium of $169 for a sample company with an annual payroll of $6,250,000.

Employee count informs the average cost of workers’ compensation insurance, but a company’s payroll expenses are even more important in influencing rates.

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How Much Is Workers’ Compensation Insurance in Texas?

The average monthly cost of workers' compensation insurance in Texas for a business with 20 employees is $94. Compared to the national average rate of $168 monthly, average costs in Texas are significantly lower.

The policy limits we set for workers' compensation insurance include a $1 million total policy limit, a $1 million per accident limit and a $1 million per employee limit. These limits define the maximum coverage amounts provided by the insurance policy.

The total policy limit is the maximum amount the insurer will pay for all claims. The per accident limit is the maximum amount the insurer will cover for a single incident, regardless of the number of employees affected. The per-employee limit is the maximum amount the insurer will pay for an individual employee's claim.

The table below displays the average rates of workers' compensation insurance for businesses with five, 20 and 100 employees, highlighting how employee count influences insurance costs.

Note that employee count and payroll are significant factors impacting workers' compensation insurance costs. As the number of employees increases, the risk of potential claims and the overall insurance cost tends to rise.

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Factors That Impact Workers’ Compensation Costs in Texas

The cost of workers' compensation insurance varies for each business depending on several factors. These factors include payroll costs, the number of employees, employee class code and previous claims. Understanding how these factors influence insurance costs is essential for Texas businesses when evaluating workers' compensation insurance options.

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Do You Need Workers’ Compensation Insurance in Texas?

Texas businesses only need workers' compensation insurance if a government entity contracts with them. There are additional exemptions from workers' compensation coverage. Sole proprietors and partners in a partnership are not required to carry workers' compensation insurance. Certain executive officers of corporations may elect to exclude themselves from coverage.

It's important to note that exemptions can vary based on different factors, such as the business’s legal structure or the specific industry. Employers are encouraged to consult the Texas Department of Insurance for guidance on their particular circumstances.

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WORKERS’ COMP PENALTIES IN TEXAS

In Texas, employers who fail to provide legally required workers' compensation insurance or fail to comply with workers' comp laws may face the following penalties:

  • Administrative penalties of up to $25,000 per day for each violation.
  • Stop-work orders that prohibit the employer from continuing operations until they obtain workers' compensation coverage.
  • Personal liability of corporate officers and agents for unpaid workers' compensation benefits.
  • Ineligibility for state grants and public contracts.
  • Possible criminal charges and fines.

The penalties can vary depending on the specific circumstances and severity of the violation.

What Does Workers’ Compensation Insurance Cover in Texas?

Workers' compensation insurance provides several benefits for employees who experience work-related injuries or illnesses. These benefits include:

  • Medical Care: Coverage for medical treatments, doctor visits, hospitalization, medications and rehabilitation services necessary for the employee's recovery.
  • Disability Benefits: Financial compensation for temporary or permanent disabilities resulting from workplace injury or illness.
  • Lost Wages: Reimbursement for a portion of the employee's lost wages while they cannot work due to injury or illness.
  • Vocational Rehabilitation: Assistance and training to help injured employees return to work or find suitable employment if they cannot perform their previous job.
  • Death Benefits: Financial support provided to the dependents of an employee who dies due to a work-related incident, including burial expenses.

It is important to note that the employer is the policyholder of workers' compensation insurance and is responsible for providing coverage for their employees. Workers' comp insurance ensures that employees receive the necessary support and financial protection in case of work-related injuries or illnesses.

Workers’ Compensation Insurance Resources for Employees in Texas

The Department of Labor's Office of Workers' Compensation Programs (OWCP) oversees workers' compensation in Texas.

To file a claim for workers' compensation benefits in Texas, employees typically follow these steps:

  1. Notify Employer: Report the work-related injury or illness to the employer promptly, preferably in writing.
  2. Seek Medical Treatment: Seek appropriate medical care from an authorized healthcare provider designated by the employer or the workers' compensation insurance carrier.
  3. Complete Claim Forms: Complete the necessary claim forms provided by the employer or insurance carrier, providing detailed information about the injury, illness and circumstances of the incident.
  4. Submit Claim: Submit the completed claim forms to the employer or insurance carrier within the designated time frame.
  5. Follow Up: Cooperate with any investigations or requests for additional information from the employer or insurance carrier.

Employees in Texas can find more information about workers' compensation by visiting the Texas Department of Insurance Workers' Compensation website.

Frequently Asked Questions About Workers’ Compensation Insurance in Texas

MoneyGeek aims to answer common questions about workers' comp insurance coverage. This resource will provide valuable information to help you navigate Texas’ workers' compensation landscape.

MoneyGeek ranked The Hartford as #best-workers-comp. It provides affordable rates and a quick online quote process. Note that the best insurance provider for you will depend on factors such as your specific industry, number of employees and the state's requirements.

Texas’ cheapest workers' compensation insurance policy is offered by The Hartford, with an average monthly cost of $65. This affordable company scores high in financial stability and provides quick online quotes. Remember that the cheapest insurance for you may vary depending on factors unique to your business, including location, payroll and employee count.

Texas only requires businesses contracting with government entities to obtain workers’ compensation insurance.

The average workers' compensation insurance policy in Texas costs $94 monthly.

About Melissa Wylie


Melissa Wylie headshot

Melissa Wylie is a Content and SEO Manager at MoneyGeek. Melissa has worked in the financial content space since 2018 and has spent much of that time focused on all things small business.

Prior to joining MoneyGeek, Melissa held SEO positions at Bankrate and LendingTree. Melissa’s work has also appeared on LendingTree-owned websites ValuePenguin and MagnifyMoney.

Melissa began her career at American City Business Journals in 2015 as a reporter for the company’s women-focused publication Bizwomen. Melissa has a Bachelor of Arts in Journalism from the University of North Texas. Melissa relies on her foundation in journalism to craft content that simplifies complex financial topics to help everyone feel confident when making decisions with their money.

Melissa's other work can be read on LendingTree and Bizwomen.


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