Texas Workers Comp Insurance

With limited exceptions, every employer in Texas with one or more employee(s) is required by law to have a valid workers' compensation policy at all times. This "no fault" insurance not only provides injured workers with medical care and partial wage replacement, but also protects the policyholders from potentially damaging lawsuits. Although most companies in TX purchase a traditional commercial insurance policy, there are alternative methods of coverage which include licensing as a self insurer, gaining membership in a self insurance group, or obtaining coverage in the Assigned Risk Pool.

TX Workers Comp Insurance Specific Regulations

• In Texas, companies are not required to have workers’ compensation insurance, but must have liability insurance, but must have insurance to have employees work in other states
• Texas offers a private insurance market and also offers a state fund to compete with the private market. In addition to this, Texas has an assigned risk pool.
• Sole proprietors, corporate officers, or members of LLCs in Texas are included in coverage, but have the option to opt out