TexasWorkers' Compensation Insurance

Unlike most states, Texas does not regulate workers' compensation base rates. Insurance companies are permitted to choose the rates they want to charge and do not need approval from the state. This means there can be a lot of variance in costs, so it pays to shop around for the most competitive rate.

The more likely an employee is to suffer a significant injury on the job, the more coverage will cost. Let's look at some workers' compensation insurance cost ranges for a few different jobs in Texas. These are rates per every $100 employee payroll.

• Landscapers: $1.88 to $6.76
• Plumbers: $2.45 to $11.96
• Roofing contractors: $4.36 to $21.28
• Retail store workers: $0.69 to $2.31
• Clerical workers: $0.07 to $0.26
• Restaurant workers: $0.58 to $1.94

Your quoted costs will be based primarily on the number of employees you have, how much they are paid, the types of jobs they do, and your company's claims history. Maintaining a safe work environment can help you save money on your workers’ compensation insurance.

In Texas, all construction companies working on contract for governmental entities are required to carry workers’ compensation insurance. Otherwise, this insurance is optional but is useful to consider for almost all operations.

Policies can be purchased from a commercial provider or the Texas state-administered fund. With approval, businesses on solid financial footing may opt to self-insure.

Workers' compensation insurance can shield your business against financial losses and potential liability lawsuits by ensuring that if your workers are injured on the job, they will receive the medical benefits and compensation for lost wages they deserve. 

If your employees are injured on the job or are diagnosed with an occupational illness, workers' compensation insurance can provide:

• Full coverage for all medical treatment and hospital stays
• Full coverage for related medical expenses like ambulance rides, medications, physical therapy, and supplies like crutches, slings, and wheelchairs
• Reimbursement for travel expenses if an injured worker must travel more than 30 miles round trip to receive necessary medical care
• Disability pay if the employee must take time off work to recuperate
• Additional monetary awards for injuries that result in permanent impairment or disfigurement
• In the event of a fatal work accident, assistance with funeral and burial costs and ongoing death benefits to the employee's spouse and dependents

Sometimes, workers’ compensation claims are denied. Some of the most common reasons for claims denial include:

• The occupational illness or injury was a preexisting condition.
• The injury occurred outside of working hours, such as while on a lunch break or driving to and from work.
• The accident happened while an employee was under the influence of illegal drugs or alcohol.
• There is reason to believe that the injury was intentionally self-inflicted.
• The claim is suspected to be fraudulent.

If injured employees believe that a claim was unjustly denied, they can appeal the decision by requesting a benefit review conference (BRC) with the Texas Division of Workers’ Compensation.

Although workers’ compensation insurance is not required by law in Texas, contractors are often asked to show proof of coverage before being hired to do a job. This is because their clients want to be sure they cannot be named in a liability lawsuit if a worker is injured while working on their property.

One way to show proof of coverage is with a workers’ compensation certificate. Most insurance companies will issue this certificate when you purchase or renew your policy. Another way prospective clients can verify that your company is covered is by doing an online search since the state keeps a database of all covered employers.

Independent insurance agents make it easy to find the best workers’ compensation insurance coverage. This is because these agents are dedicated to helping you find a competitively priced policy from a company that specializes in covering businesses in your industry.

No business is too small to benefit from working with an independent agent. Let one of these experienced professionals help you obtain and compare customized quotes from some of the best insurance companies in Texas. Arrange an obligation-free consultation with an independent insurance agent near you to get started.

Workers’ compensation benefits are not considered taxable income at the state or federal level.

However, employees simultaneously receiving Social Security Disability Insurance benefits (SSDI) or Supplemental Security Income benefits (SSI) may have tax implications and should consult a tax or financial advisor.