Texas Contractor Insurance

Texas Contractor Workers’ Comp Insurance

Texas is the only state where WC is optional — but skipping it carries real risk. We quote WC for contractors across Texas, standalone or alongside your GL.

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Call 210-640-7050

Texas WC — What Every Contractor Needs to Know

Texas doesn’t require most private employers to carry workers’ compensation insurance. That sounds like good news — but non-subscribers give up major legal protections. If an uninsured employee is hurt on the job, they can sue you directly in civil court, and you lose your standard defenses.

The real exposure: A single serious injury — broken back, hospitalization, lost limbs — can run $200K–$500K+. Without WC, that’s a direct hit to your business assets.

When WC Is Required Even in Texas

  • Government contracts — state agencies, counties, and municipalities typically require WC
  • GC subcontracts — most general contractors require all subs to carry WC before stepping on site
  • Federal projects — required by federal law
  • Motor carriers — separate mandate applies

What WC Covers

Medical Expenses

All reasonable medical costs for a work-related injury or illness, including ER, surgery, and rehab.

Lost Wages

Partial income replacement while an injured employee is unable to work.

Permanent Disability

Long-term or permanent impairment benefits for serious injuries.

Death Benefits

Payments to surviving family members if a work-related death occurs.

Sole proprietor / partner note: Owners are typically excluded from WC by default in Texas. If you want coverage for yourself, you must elect it — otherwise the policy only covers your employees.

How Rates Are Calculated

Texas WC rates are based on payroll, class code (your trade), and your experience modifier (X-mod). Clean loss history = lower X-mod = lower premium. Carriers deviate from filed rates — shopping the market matters.

We work with multiple WC carriers for Texas contractors and can quote standalone WC or bundle it with your GL.

Ready to Get a WC Quote?

Talk to a specialist. We’ll review your payroll, trade, and loss history and quote the market for you.