Updated August 2026
Best Workers Compensation Insurance in Texas: 2026 Complete Guide
Workers' compensation insurance in Texas protects both employers and employees when a work-related injury or illness occurs. Texas premiums run 10–20% below the national average for most small businesses, making it one of the more affordable states for commercial insurance.
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Coverage Workers Compensation Businesses Need in Texas
Workers Compensation businesses in Texas face specific liability exposures and legal requirements. Here is what you need and why.
Workers' Compensation (Part A)
Required by lawCovers medical expenses and wage replacement (typically 60–70% of weekly wages) for employees injured on the job. Required in most states.
Employer's Liability (Part B)
Included with WCCovers employer liability lawsuits from injured workers who sue outside the workers' comp system. Standard coverage is $100K/$500K/$100K.
General Liability
Required (separate)WC only covers employee injuries. GL covers third-party injuries and property damage. Both are required — they address different risk categories.
Umbrella
RecommendedAdds excess coverage above your employer's liability and GL limits. Especially important for high-payroll businesses with significant WC exposure.
🏛️ Texas Workers' Comp Requirements
Texas is the only state where workers' compensation insurance is NOT mandatory. However, employers who opt out lose important legal protections and face direct negligence suits from injured workers.
Regulated by: Texas Department of Insurance (TDI)
What Does Workers Compensation Insurance Cost in Texas?
Texas premiums run 10–20% below the national average for most small businesses, making it one of the more affordable states for commercial insurance.
Solo / No Employees
N/A (WC typically not required for sole proprietors without employees)
GL only
Small Team (1–10 employees)
$1,500–$15,000+/year depending on industry and payroll
GL + WC
Workers' Comp
WC premiums are calculated as: (payroll ÷ 100) × class code rate × experience modifier
Estimated rate
Commercial Auto
$1,200–$3,500/year
Per vehicle
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