Texas workers' compensation insurance: Your ultimate resource
Everything to know about workers’ compensation for
Texas
businesses
What does workers’ compensation cover?
A standard workers’ comp policy covers four primary areas: medical expenses, lost wages, employer liability and ongoing rehabilitation. EverPeak policies ensure your crew gets the care they need to return to work safely while protecting your business from the costs of workplace accidents.
Medical care
Coverage for the necessary treatment resulting from a work-related injury or illness.
Lost wages
Partial pay for employees unable to work while recovering from an injury.
Legal protection
Financial support for your business if an employee files a lawsuit related to an accident.
Ongoing care
Rehabilitation and training to support employees re-enter the workforce, and ongoing benefits for permanent injuries.
Death benefits
Financial support for the families.
What are
Texas
's workers' comp laws?
Texas, famed for its unique allure and history, is filled with diverse landscapes, from bustling cities like Houston and Dallas to the picturesque Hill Country.
With a diverse and robust economy, Texas offers numerous opportunities for businesses to thrive. Securing the appropriate workers' compensation insurance is crucial for protecting your business and employees in the Lone Star State.
What is workers' compensation?
Workers' compensation is not required by law — but having coverage is smart business for employers. Policies are designed to provide medical and financial protection for employees who suffer work-related injuries or illnesses.
In Texas, workers' compensation also serves as a protection for employers, defending against claims related to:
- Assumption of risk
- Contributory negligence
- "Last clear chance"
- Co-worker negligence
Without workers' compensation insurance in Texas, the business owner may be financially responsible for all expenses associated with a personal injury lawsuit. Even if the injury or illness resulted from your employee's actions, you may still be liable for covering the costs of the legal proceedings.
Texas workers' compensation rules and laws
The Texas Department of Insurance Division of Workers’ Compensation (DWC) is responsible for administering the workers’ comp law in Texas. The law does not require that employers carry a workers’ comp policy but operating a business without coverage could leave employers financially vulnerable in the event of an injury lawsuit.
Employers can obtain workers’ comp coverage through a partner like EverPeak Insurance.
Employees can verify online if their employer has coverage.
Who is covered and exempt from
Texas
workers' comp?
Who is covered?
Policies include protection for full-time, part-time and temporary workers.
Covered injuries and illnesses
Workers' compensation covers a range of work-related injuries and illnesses, including physical injuries resulting from an accident and occupational diseases developed over time due to job conditions.
Benefits provided
Texas workers’ comp insurance provides three types of benefits for work injuries:
- Medical benefits
- Lost wages
- Death benefits
- Medical treatment for work-related accidents, injuries and/or illnesses
- Temporary disability benefits
- Permanent disability benefits
- Death and burial benefits
Workers’ compensation may not cover situations where an employee:
- intentionally caused their own injuries.
- were injured while playing around or while intoxicated.
- were injured outside work or while voluntarily participating in an off-duty sports or social event.
- were injured by someone else for personal reasons not related to the job.
- were injured by an “act of God,” like a flood or hurricane, unless the job had a high exposure to these types of events.
Texas workers’ compensation rates
As of October 1, 2023, the weekly compensation rate in Texas for temporary income benefits (TIBS), lifetime income benefits (LIBs) and death benefits ranges from a minimum of $176 and a maximum of $1,174.
Weekly rates for impairment income benefits and supplemental income benefits (SIBs) range from a minimum of $176 and a maximum of $822
Find more information on Texas’s workers’ compensation rates.
How much does workers’ comp cost in
Texas
?
How do you file a workers’ compensation claim in
Texas
?
Filing a workers' compensation claim
In the event of a work-related injury or illness:
Step 1: Employee reports injury to employer
Employees in Texas should report their injury to their employer and the Texas Department of Insurance Division of Workers’ Compensation as soon as possible.
Workers have 30 days after the date of their incident to report the injury to their employer before risking the loss of benefits.
Using the Employee Claim for Compensation form, injured workers must file their claim with the Texas Department of Insurance Division of Workers’ Compensation within one year of the date of the injury.
Step 2: Seek medical care
The employee should immediately seek medical attention.
Step 3: Receive benefits
If an employer’s insurance provider accepts the claim, the worker should begin receiving benefits to cover medical expenses and lost wages if eligible.
Step 4: Return to work safely or receive permanent disability benefits
Following their recovery, a worker is expected to resume work safely. In cases where the worker cannot fully recover to the extent that they can perform their job duties, they may be eligible to receive permanent disability payments.
Choosing a healthcare provider
In Texas, employers can opt for, but are not obligated to use, the state’s certified workers' compensation network. The Texas Department of Insurance is responsible for regulating the Texas Workers' Compensation Health Care Networks.
Compensation for missed work
If an employee is out of work for eight days they are eligible for lost time benefits.
Resolving disputes
To resolve a workers’ compensation claim dispute, an employer or employee can request a benefit review conference with the Texas Division of Workers’ Claims. The Division will assign a benefits review officer to the conference to discuss your dispute and try to reach a resolution.
How to get workers' compensation
Choosing the right insurance provider
When selecting a workers' compensation insurance provider, consider factors such as the provider's experience in the industry, financial stability, coverage options, claims process, customer service, and cost.
We recommend requesting multiple quotes and comparing the offerings before making a decision.
Covering your business and employees with a trusted insurance partner — like EverPeak — brings peace of mind so you can focus on your bottom line.
FAQs
Enforcing safety protocols, providing proper employee training, maintaining a clean and hazard-free work environment, and regularly reviewing safety practices can significantly reduce workplace injuries.
Your premium is primarily determined by your industry payroll classifications, geographic location and total annual payroll. Your business’s safety history can also play a major role in determining your final rate. Three key factors influence your base insurance rate:
- Industry classification codes: Higher-hazard trades naturally carry higher baseline rates.
- Geographic location: Rates and statutory benefit structures fluctuate heavily by state lines.
- Historical safety record: Maintaining an accident-free workplace lowers your Experience Modification Rate (E-mod), resulting in built-in premium discounts.
Most states require businesses with employees to carry workers’ compensation insurance to stay compliant. Requirements vary by location, but having coverage ensures your business is protected and your team has access to benefits if an injury occurs.
Employees can verify online if their employer has coverage through the state’s online search tool.
Ideally, the incident should be reported immediately or within a few days of the occurrence. Prompt reporting helps ensures the necessary steps are taken to initiate the workers' compensation claims process.
Whether you need coverage for contractors depends entirely on your state’s specific regulatory definitions and formal worker classification tests. Since misclassification regulations are highly complex and can lead to severe audits or stop-work orders, it’s vital to ensure your entire labor force is properly verified and protected based on the actual day-to-day work they do.
Learn more: Do independent contractors need workers’ compensation?
In most cases, employees in Virginia are barred from suing their employers for work-related injuries or illnesses. The workers' compensation system provides an exclusive remedy, meaning that employees typically cannot file a lawsuit against their employers. Instead, they must pursue a workers' compensation claim to receive benefits for their injuries or illnesses.
In Virginia, employers who fail to procure or sustain the appropriate workers' compensation coverage for their employees may face civil fines of up to $250 per day of non-compliance. Failure to adhere to this requirement can reach a maximum of $50,000 in fines.
Workers’ compensation is a form of insurance that benefits employers and employees in the case of a work-related injury or illness.
Why choose EverPeak for workers’ comp coverage?
EverPeak protects the hardest-working businesses in (state) with simple, reliable workers’ comp starting as low as $18 a month. Backed by over a century of specialized experience, customers get multi-state coverage, fast and easy claims support, and a vast network of brokers.