Updated October 2026
Texas Business Insurance Requirements 2026: Complete Legal Guide
Every Texas business must meet specific insurance requirements. Here is a complete guide to what is legally required — workers comp thresholds, auto minimums, contractor bonds, and non-compliance penalties.
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Texas Business Insurance Requirements at a Glance
Workers' Comp Threshold
No mandate — voluntary. Government contractors on public projects may be required to carry WC.
Commercial Auto Minimums
$30,000/$60,000/$25,000 (30/60/25)
Contractor Bonds
HVAC requires TDI registration; electricians licensed through TDLR; plumbers through TSBPE; most cit…
Regulator
Texas Department of Insurance (TDI)
Workers' Compensation in Texas
Texas has the broadest workers' compensation opt-out provisions of any state — private employers are not required to carry WC. Employers who opt out (non-subscribers) face direct negligence lawsuits from injured workers with no cap on damages.
Regulated by: Texas Department of Insurance (TDI)
Non-Compliance Penalties
Non-subscribers face unlimited negligence suits from injured workers. Voluntary WC non-compliance: misdemeanor, fines up to $25,000
Contractor Licensing & Bond Requirements
HVAC requires TDI registration; electricians licensed through TDLR; plumbers through TSBPE; most cities require contractor bonds for permits
State Insurance Regulator
Texas Department of Insurance (TDI)
https://www.tdi.texas.gov
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