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Texas Workers' Compensation Insurance
Protect your business and employees with Texas workers' comp
Texas workers' compensation insurance protects employees when job-related injuries and illnesses occur. It also helps companies in the Lone Star State minimize liability and meet contractual requirements.
Unlike most states, Texas doesn’t require businesses to have workers' comp coverage in most cases. However, having workers’ comp insurance is the best way to safeguard your team and protect you from lawsuits.
Let Progressive Commercial help you get the right Texas workers' compensation insurance for your business.
Who needs workers' compensation insurance in Texas?
Texas workers' compensation laws only require businesses that work on government contracts to have workers’ comp insurance. These companies must provide coverage for each employee until the project is completed.
Other businesses may need workers' compensation insurance to meet private contract terms. For example, clients might ask contractors to have this coverage before they can start work.
All businesses should consider Texas workers’ compensation insurance even if it’s not legally required. It demonstrates financial responsibility, which can lead to more job opportunities, and enhance reputation. Most importantly, it protects from employee lawsuits that arise from work-related incidents.
What are the penalties for not having workers' comp in Texas?
Since it's not required, private companies in Texas aren't penalized for not having workers' comp insurance. However, it's important to maintain a safe workplace and take reasonable steps to protect your employees to avoid the financial risks associated with a workers’ comp claim.
How much does workers' comp cost in Texas?
Texas workers' compensation rates are determined by several factors, including:
- Job classification code: The National Council on Compensation Insurance (NCCI) sets specific class codes for different jobs in Texas based on their risk levels.
- Payroll: Workers' compensation rates are calculated per every $100 of payroll. A higher payroll can mean a more expensive policy.
- Claims history: The amount you pay for workers' comp is influenced by your claims history. A higher number of claims can lead to higher premiums.
- Insurance carrier: Texas workers' comp insurance companies may establish different rates based on their unique risk assessments and pricing policies.
How can you get workers' comp in Texas?
There are several ways you can get workers' compensation coverage in Texas:
- Private insurers: Many businesses in Texas choose to buy workers' comp from private insurers. These providers can customize coverage options and may offer extra benefits. Talk to one of our specialists or start a quote online to learn more about your choices.
- Self-insurance: Texas companies can apply for self-insurance to handle workers' comp claims independently. This requires approval from the Department of Workers' Compensation.
- Group self-insurance: In some industries, businesses can join group self-insurance trusts to share resources and provide coverage. This option requires approval from the Texas Department of Insurance.
- Assigned risk pool: Businesses that are new, high-risk, or have a history of frequent claims might have a hard time securing coverage. In these cases, workers' comp is available through the Texas Mutual Insurance Company.
Understanding the different ways to secure Texas workers' comp insurance helps you find the right coverage for your business.
How does workers' comp work in Texas?
Workers' comp insurance aids employees with work-related injuries or illnesses. Once an incident is reported, the employer files a claim. If approved, the employee receives financial support. How long it lasts depends on the severity of the incident.
Texas workers' compensation benefits include:
- Medical expenses
- Disability benefits
- Lost wages
- Rehabilitation costs
Workers' compensation helps resolve disputes and supports employees in returning to work. It also prevents employers from fines and lawsuits since employees accepting benefits typically can't take legal action.
Texas workers' comp death benefits
Texas workers' compensation death benefits provide support to a deceased employee's spouse and dependents. Eligible family members can receive:
- A lump-sum payment of up to $10,000 for funeral expenses
- Payments equaling 75% of the workers' weekly wages split among beneficiaries
Protecting your employees and their families in the event of a tragedy is a big responsibility. Texas workers' comp death benefits provide peace of mind during tough times and show your commitment to your team's well-being.
Texas workers' compensation statute of limitations
According to Texas workers' compensation rules, the statute of limitations gives you one year from the date of injury or illness to file a claim. Remind your employees to report incidents as early as possible to protect their right to benefits.
Get a Texas workers' comp quote with Progressive Commercial
Progressive Commercial makes it easy to get Texas workers' comp. You can count on us to provide excellent customer service and help you find the right coverage for your business.
Connect with one of our expert agents or start an online quote today.
