Are we protected from accidents? Are we insured? We cannot be protected, but we can be insured. Running a business in Texas is not an easy task, so learn about compensation insurance.

About Texas Workers Compensation

When it comes to the workers’ compensation Texas, the law of the state doesn’t make it obligatory for the businesses to have compensation insurances. In other words, this is optional, which is not a case in the other states. Yet it doesn’t mean the employers in Texas do not find it appealing to have such insurances.  It is a quite known fact that insurance based on injury-related conditions is protection for both parties. Being optional, given the Texas workers compensation law, still doesn’t free employers from the obligations.

Interestingly, according to the law of the state, business proprietors who do not have the comp insurances are known as non subscribers. Despite being a non compulsory choice, if it happens that a worker has undergone something unexpected leading to some health or injury condition that can be attributed to work-related situations, then he or she has the right to sue their employers.

However, the criteria for optional insurance have some exceptions. So, according to the Texas Workers Compensation Law, the following must-have Workers Compensation insurance:

  • Being a public employer
  • Jobs linked to the government
  • Companies related to motorbus
  • Natural gas dealers
  • Building and construction contractors (only relevant to public employers)

What Are Texas Workers Compensation Benefits?

If someone is working or about to work in Texas, they should understand that comp insurance is not obliged by the law. So, Texas workers’ compensation insurance works a bit differently. However, when such insurance is present, there are some benefits provided.  Texas worker compensation benefits are as follows:

  • Income benefit based on a temporary basis
  • Income benefit based on the job-related impairment
  • Supplemental benefits
  • Income benefit based on a permanent basis 

The Reason & Way This Comp Insurance Works

All private businesses are free from having comp insurance given the law of the state. Yet, as was mentioned, it is more advisable to have as the worker who has been injured because of the work he or she is doing can sue and demand compensation. Also, if the private business is doing their work with state entities, they are liable to provide comp insurance for their employees.

Things To Know About Texas Comp insurance

Actually, the flexible texas workers compensation law does not make it mandatory to have comp insurance. Yet, so what should an inured person do? Compensation for injury caused by the job is a very critical issue nowadays, and Texas has its own approach to the problem

No need to subscribe to workers compensation

It is up to the employer whether to provide insurance or not. If the accident happens in the workplace of nonsubscribers, then the injured side can seek legal help to get his or her compensation (e.g. Texas workplace accident lawyers can be a good choice)

Paying attention to the deadlines

30 days is the time set to report about the injury. Within this set deadline, the injured side has to notify the employer regarding the injury.

Citizenship is not important

What is nice about Texas insurance policies and regulations is that it is applied without bias or prejudice as to whether the injured person is American or not.

Texas comp laws have their limits

Federal workers and those working offshore are not under the protection of the Texas compensation insurance law.

Doctors should be from the list of Texas workers compensation

It is important to be careful with doctors, the injured side is going to apply or visit. Those doctors providing medical care are supposed to be in the list approved by the state of Texas.

Division of Workers Compensation Texas

There is an agency that is accountable for monitoring the administration responsible for compensation requests. It is a Texas Division Of Workers Compensation (DWC). It is also responsible for providing administrative and judicial services intended for helping in settling the cases caused by cases related to compensation and benefits to be paid.

Texas Workers Compensation Verification Of Coverage

Any worker has the right to verify his or her compensation coverage verification. The process of finding out is quite easy. One should ask the insurance representative to provide a workers’ comp certificate. All you need to give to that representative is your name and mailing address. Then, this certificate will be delivered to your address.

Legal Sides of The Comp Insurance In Texas

Workers Compensations Settlements in Texas

There is no settlement of the comp insurance as employers in Texas are not obliged to have comp insurance. Yet the injured person will receive benefits but when it comes to the settlement like, for example, receiving a lump sum, there is no such thing. Simply put, an injured person is to get benefits. They are paid in accordance with the expenses, but he or she will not receive settlement payments as the inured person cannot sue the employer.

 If to imagine that one person is working as a roof fixer and does not require equipment – this can be considered negligence of the employer. Then, this person falls and breaks his arms and legs. The bad thing is that he cannot sue his employer for not having workman’s comp insurance. Yet, he will receive benefits for his injuries. Regardless of the accident and who is guilty, the injured person has the right to receive benefits.

How To File A Case?

If the employer has the comp insurance and accident did happen. In that case, you have the right to file a case to get benefits for the injury. There are two important aspects of filing a case in Texas. First of all, there is the obligation of the worker to report about the injury that happened in the workplace. This should be done within 30 days. If this is not done on time, the injured side will lose the right to get benefits.

The other important point is to send Texas workers compensation forms. This should be done within 1 year. The form which is to be sent is DWC Form-041 (Worker’s claim for compensation in case of job-related injury or some other occupation disease). One should understand that deadlines set for informing and sending forms are very important and in case of failing to do so, the injured side can lose the right to claim the benefits.

The Average Cost Of Comp Insurance in Texas

The rates change from $0.57 per payroll of $100. The rates are regulated by the Texas Department of Insurance. The rates can change according to what extent the work entails and includes hazardous and arduous performance.

Briefly About Death Benefits

Unlike many other states, in Texas, the benefits are paid monthly. The amount to be paid is generally 75% of the Average Weekly Wage of the deceased employee. In other words, if the wage used to be $400 per week, after the death of that person, the death benefit would be $300 per week. Who will receive the benefits? As in many states, the dependents have the right to claim the benefits. generally, they are

  • Spouse
  • Children who have not reached 18
  • Children who are students and under the age of 25
  • Children with disabilities and of any age
  • Grandchildren provided that they were dependent on the deceased person


Is there a limit on the number of employers who are supposed to have comp insurance?

Actually, there is no such limit. In some states, such numbers exist. Yet in Texas, there is not an obligation of having the compensation insurance of the workers.

What types of settlements are there in Texas?

Actually, there is no such concept in Texas. This is because the injured side cannot sue the employer for not having such insurance.

If a construction company is working with government projects, does it have to have the workers’ compensation insurance?

Definitely, this is important when a private business is dealing with the government, the comp insurances are supposed to be arranged.

Are rates expensive in Texas?

Actually, the rates in the state are relatively cheap when comparing to other states. The rates change from $0.57 per payroll of $100.

How does worker’s compensation insurance work in Texas?

Almost in the same way as in other states, and this means it covers all medical expenses and payments which is adjusted according to the severity of the injury caused by the job.

Is lump sum possible in Texas?

According to the law of Texas, to reach an agreement within settlements is not required by the law. You cannot sue the employer. Yet, you still can get the benefits guaranteed by the insurance.

Are stress and other emotional injuries are covered by insurance in Texas?

According to the laws of the state, unfortunately, such injuries of emotional background are not covered by the insurance.


What makes Texas different is that here private businesses are not enforced to have workers compensation insurances. Yet, it is critical not to forget that they are encouraged to have such insurance for their workers. However, if you are an employee of the government, you get your insurance.