Business Insurance for Workers Compensation

Workers compensation insurance provides coverage when your employees are injured or become ill due to their job. Texas is unique because it's the only state where workers compensation insurance is not mandatory for most private employers. However, carrying this coverage protects your business from potentially devastating lawsuits and provides essential financial support to employees during recovery. It demonstrates your commitment to employee welfare and responsible business operations.

Why Your Business Needs This

• Without coverage, injured employees can sue your business for full damages including pain and suffering


• Medical costs for workplace injuries can quickly escalate into tens of thousands of expense


• Workers comp provides wage replacement so injured employees can focus on recovery


• Having coverage attracts quality employees who value workplace protections


• Many clients and general contractors require workers comp before allowing you on job sites

What It Covers

Workers compensation insurance covers medical expenses for work-related injuries and illnesses, wage replacement benefits while the employee recovers and cannot work, vocational rehabilitation if the employee needs retraining for different work, and death benefits to dependents if a workplace incident results in fatality. Importantly, it also provides your business with legal protection by limiting your liability when an employee is injured on the job.

How Workers Comp Protects Your Business

When you carry workers compensation insurance, your employees generally cannot sue your business for workplace injuries. They receive benefits through the insurance policy instead. Without workers comp, Texas employers lose these lawsuit protections. An injured employee can sue for full damages, and you cannot use common law defenses. This exposure can result in devastating financial judgments against your business.

Who Should Carry Workers Compensation?

While not required in Texas for most businesses, workers compensation makes sense for nearly every employer. Businesses with physical work environments, those in construction or manufacturing, companies with multiple employees, and any business wanting to attract quality workers should strongly consider coverage. Even office environments face injury risks from slips, falls, and repetitive motion injuries.

How Are Workers Comp Premiums Calculated?

Premiums are based on your payroll, the type of work your employees perform, and your claims history. Higher-risk industries like construction pay more than lower-risk operations like retail or office work. Your rate is calculated per hundred of payroll, so as your payroll grows, your premium adjusts accordingly. Maintaining a safe workplace and minimizing claims helps keep your rates lower over time.