Workers' Compensation Insurance in Texas
Reviewed by Guido Trevisan, CIC, ARMLicensed P&C brokerLicensed Property & Casualty Insurance BrokerUpdated
Menlo Insurance Services (Opero Labs Inc.), Texas license #3562061. Verify it with the Texas Department of Insurance.
In Texas, most private employers can choose not to carry workers' compensation insurance. An employer without it is a non-subscriber and must tell its employees and the Texas Division of Workers' Compensation every year. Governmental entities must carry it. An employer with a workers' comp policy limits its liability when an injured employee sues, except for gross negligence resulting in a death.
Menlo can quote this coverage in Texas through 6 insurance markets.
Menlo's Texas figures
| Insurance markets Menlo can quote | 6 (as of November 9, 2026) |
|---|---|
| Workers' comp index rate | $0.78 per $100 of payroll, ranked 40 of 51 jurisdictions (72% of the $1.09 median). Oregon DCBS, 2024 premium rate ranking; all states |
Texas rules
Private employers can choose whether to carry workers' compensation insurance; it is not required in most cases.
Source: Texas Department of Insurance, Division of Workers' Compensation, Workers' compensation insurance coverage verification (read November 9, 2026)
All Texas governmental entities (public schools, utilities, cities and counties) must have workers' compensation coverage.
Source: Texas Department of Insurance, Division of Workers' Compensation, Workers' compensation insurance coverage verification (read November 9, 2026)
A non-subscriber must post a notice of no coverage in the workplace, in English, Spanish and any other language needed, and give written notice of no coverage to new employees.
Source: Texas Department of Insurance, Division of Workers' Compensation, Employer E-File and non-subscriber notices (read November 9, 2026)
A non-subscriber files a notice of no coverage with the Division of Workers' Compensation between February 1 and April 30 of each year, after hiring its first employee, and after ending a workers' comp policy (Labor Code 406.004, 406.005 and 406.007).
Source: Texas Department of Insurance, Division of Workers' Compensation, Employer E-File and non-subscriber notices (read November 9, 2026)
A non-subscriber with five or more employees must report to the Division work-related injuries with more than one day of lost time, illnesses and deaths.
Source: Texas Department of Insurance, Division of Workers' Compensation, Employer E-File and non-subscriber notices (read November 9, 2026)
Except when gross negligence results in a death, workers' comp coverage limits the employer's liability if an employee sues for damages.
Source: Texas Department of Insurance, Division of Workers' Compensation, Employer FAQ (read November 9, 2026)
An employer with a policy posts Notice 6 at the workplace and gives new employees written notice of the coverage.
Source: Texas Department of Insurance, Division of Workers' Compensation, Employer FAQ (read November 9, 2026)
How these figures were collected
The market count is the number of insurers and insurance programs with an enabled quoting route for this coverage in Texas in Menlo's carrier configuration (revision 2377) on November 9, 2026.
Each rule above links to the statute or agency page it comes from, read on the date shown.
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