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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.
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:
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.
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.
Policies include protection for full-time, part-time and temporary workers.
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.
Texas workers’ comp insurance provides three types of benefits for work injuries:
Workers’ compensation may not cover situations where an employee:
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.
In the event of a work-related injury or illness:
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.
The employee should immediately seek medical attention.
If an employer’s insurance provider accepts the claim, the worker should begin receiving benefits to cover medical expenses and lost wages if eligible.
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.
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.
If an employee is out of work for eight days they are eligible for lost time benefits.
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.
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.
In Texas, workers’ compensation is not required for businesses — meaning there are no penalties for not having coverage.
However, without workers’ compensation insurance coverage businesses leave themselves vulnerable financially and legally in the event of a work-related injury.
Generally, independent contractors aren’t covered by workers' compensation insurance in Texas. They must carry their own policy to receive coverage.
The incident should be reported immediately or within a few days of the occurrence. Prompt reporting helps ensure the necessary steps are taken to initiate the workers' compensation claims process.
Employees can verify online if their employer has coverage.