Best Workers'CompensationTexasBest Workers' Compensation Insurance in Texas (2023)
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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.
Best Workers'CompensationTexasBest Workers’ Compensation Insurance in Texas
Best Overall in Texas - The Hartford
Cheapest in Texas - The Hartford
Best for Micro Businesses - The Hartford
Best for Midsize Businesses - Thimble
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.
How was this MoneyGeek score calculated?
1
The HartfordBest Overall in Texas
Score:99
- Offers average monthly premiums of $65
- Strong financial stability
- Outstanding customer service record
- Convenient online quote application
More About The Hartford
The Hartford offers Texas’ best workers’ compensation insurance, offering businesses reliable coverage with its A+ financial strength rating from AM Best. The company has demonstrated a commendable customer service record, earning few complaints from clients relative to other Texas providers. It also features a convenient online quote tool, allowing you to access rates in less than two minutes.
On top of all these benefits, The Hartford offers the lowest average monthly policy rates among any Texas provider we surveyed, at $65.
2
biBERK
Score:91
- Strong financial stability
- Offers monthly policies at $110 on average
- Provides quick access to online quotes
- Excellent customer satisfaction rates
More About biBERK
biBERK excels in two key areas: financial stability and customer satisfaction. With a solid financial foundation, Texas businesses can trust biBERK to meet their claims obligations reliably. The company also maintains an impressive average complaint index, reflecting its commitment to addressing customer concerns.
biBERK stands out for its efficiency in providing online quotes, allowing businesses to quickly access the information they need. However, its average premiums are more expensive than most providers we surveyed.
3
Thimble
Score:89
- Offers an average monthly rate of $88
- Lightning-fast online quote application
- Relatively poor customer satisfaction score
More About Thimble
Thimble offers affordable workers' compensation insurance policies to Texas businesses. The company received an A grade from AM Best for its financial stability, reassuring policyholders.
Thimble stands out for its quick online quote process, allowing customers to receive a custom quote in less than 30 seconds. Unfortunately, Thimble’s affordable rates come with its relatively high rates of customer complaints. These scores indicate that Thimble may need to improve its customer service approach.
4
Pie
Score:89
- Offers affordable average monthly rate of $80
- Provides online quotes in less than 30 seconds
- Poor customer satisfaction record
More About Pie
Pie provides affordable workers’ compensation policies in Texas at an average monthly cost of $80. Pie provides online quotes quickly and efficiently, streamlining the comparison process for businesses seeking workers’ compensation insurance.
However, the company scored low in financial stability, indicating that it may be unable to pay its claims promptly. It also received the worst customer satisfaction score of any Texas provider we reviewed. Businesses looking for quality customer service may want to look elsewhere.
5
Nationwide
Score:88
- Offers monthly policies at $102 on average
- Strong financial stability score
- Provides quality customer service
- Online quote application is sluggish
More About Nationwide
Nationwide demonstrates solid financial stability, assuring policyholders of their ability to fulfill workers' compensation obligations. It also features a record of providing excellent customer service with a low customer complaint rate. However, Nationwide has the slowest online quote application of any provider we surveyed in this study.
For businesses in Texas seeking workers' compensation insurance, Nationwide's competitive rates and robust financial backing make it a viable option to consider.
6
Next
Score:88
- Offers the most expensive monthly rate in our study at $116
- Shaky financial stability score
- Excellent customer satisfaction record
More About Next
In MoneyGeek’s analysis, Next earned outstanding scores in customer satisfaction. However, this quality customer service comes at high prices. Next offers the most expensive average rates of any Texas workers’ compensation insurance provider we reviewed, at $116 a month. Its financial stability rating is also relatively low, indicating the provider may not promptly payout claims.
Next provides efficient online quote applications, allowing you to access a custom quote in under two minutes.
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.
The Hartford
The Hartford excels in providing cost-effective workers’ compensation insurance coverage. It offers the lowest average monthly premium of $65, making it an affordable option for small businesses. It’s an excellent provider compared to other Texas companies we reviewed, demonstrating outstanding customer service and financial stability. You can access a custom online quote from the company in under two minutes, allowing you to compare rates quickly.
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.
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.
The Hartford
The Hartford excels in cost-effectiveness, offering an average monthly premium of $38. The company demonstrates strong financial stability, ensuring reliable coverage for policyholders. Additionally, The Hartford stands out for its efficient online quote process, providing timely access to insurance information. The company's commitment to managing complaints further enhances its customer satisfaction scores.
With The Hartford, businesses in Texas can benefit from competitively priced workers' compensation insurance without compromising on quality and service.
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.
Thimble
Thimble excels in affordability, offering midsize businesses a competitive average monthly cost of $169 for workers' compensation insurance. The company also demonstrates strong financial stability, ensuring that policyholders can rely on Thimble for long-term protection. Its efficient online quote process lets businesses obtain insurance quotes quickly and conveniently.
Thimble's commitment to managing complaints effectively highlights its dedication to customer satisfaction. With its affordability, financial stability and responsive service, Thimble stands out as a top choice for Texas businesses seeking workers' compensation insurance.
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.
How was this cost calculated?
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.
Payroll costs
Insurers typically charge businesses a specific rate for every $100 of payroll. Higher payroll costs result in higher premiums, as the insurer assumes a greater potential liability. Texas’ average premium index rate in 2022 was $0.88, the average rate charged for every $100 of payroll. This rate varies among states, reflecting regional differences in the cost of coverage.
Number of employees
The number of employees is a significant factor that affects the cost of workers' compensation insurance in Texas. Companies with a larger workforce generally face a higher risk of employee injuries, which can lead to increased insurance premiums.
Employee class code
Each industry or occupation is assigned a specific class code, which determines the rate charged for every $100 of payroll. Industries with a higher risk of injury, such as construction, typically have higher rates than lower-risk industries, like consulting. Insurers assess the risk associated with each class code based on historical claims data and adjust the premium rates accordingly.
Previous claims
Insurers consider businesses with histories of workers' compensation claims as higher risk, leading to increased premiums. Insurers consider the frequency and severity of past claims to assess the potential future claims of a business. By charging higher premiums, insurers mitigate the financial risk associated with employers who have a claims history.
In Texas, workplace injuries and illnesses remain a concern, with a total of 178,900 recordable incidents in the private industry sector. This statistic highlights the importance of workers' compensation insurance to protect employees and employers. Nationally, the private industry recorded 2,607,900 non-fatal cases.
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.
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:
- Notify Employer: Report the work-related injury or illness to the employer promptly, preferably in writing.
- Seek Medical Treatment: Seek appropriate medical care from an authorized healthcare provider designated by the employer or the workers' compensation insurance carrier.
- 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.
- Submit Claim: Submit the completed claim forms to the employer or insurance carrier within the designated time frame.
- 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.
About Melissa Wylie
sources
- U.S. Bureau of Labor Statistics. "Injuries, Illnesses and Fatalities: Latest Numbers." Accessed June 21, 2023.
- Insurance Information Institute, Inc. "Insuring Your Business: Small Business Owners' Guide to Insurance." Accessed June 21, 2023.
- Texas Department of Insurance. "Texas Workers' Compensation." Accessed May 27, 2023.