An Employers Guide To Texas Workers Compensation


If you are an employer in Texas and want to know more about the worker’s compensation laws in place, then you have come to the right place. Understanding these regulations is essential for keeping your business compliant and ensuring that any of your employees who suffer from a workplace-related injury or illness receive coverage for their medical expenses and lost wages.

This guide will cover everything you need to know about Texas’ workers compensation policies, including eligibility requirements and filing procedures. We will provide insight into the various available benefits and legal obligations each employer must observe under state law.

After reading this guide, employers should feel confident they understand what workers compensation in Texas entails and how it can benefit employees and themselves, or you can find more at

How Is Workers Compensation Insurance Defined in Texas?

Texas ensures its workers are taken care of in the case of workplace injuries or illnesses with a state-regulated insurance program. This coverage pays medical bills, and dispatches lost wages benefits if an employee cannot make money for more than one week due to work-related injury or illness.

What Are The Laws Surrounding Texas Workers’ Comp?


In Texas, employers are not legally obligated to provide workers compensation coverage. However, some industries, including government and public entities, must have this insurance. So if you’re working for one of these organizations, it’s likely a given that they’ll be covering your back should anything go wrong while on the job.

Working with the right insurance coverage can be a lifesaver, especially regarding workers’ comp. In Texas, while most businesses aren’t legally obligated to carry this type of protection, opting in is usually still worth considering – not only for peace of mind but also because being caught without it could mean leaving you open and vulnerable to lawsuits or severe liability issues if an employee ever gets hurt on your watch. And that’s something any employer would want to avoid.

What Does Workers’ Compensation In Texas Cover?

The following benefits are covered in Texas workers compensation:

  • Medical Benefits: Employees are provided with emergency and lifelong coverage for any reasonable and necessary treatments associated with an injury or illness sustained during their job.
  • Lost Income Benefits: If you’ve been affected by a temporary, permanent, or otherwise impairing injury, lost income benefits are on hand to help. These can range from short-term replacements for lost wages to life support in cases of permanent damage.
  • Death benefits: This covers funeral & burial expenses as well as lost income.

Are There Penalties In Texas For Not Having Workers Comp?

For many employers in Texas, workers’ compensation insurance is not legally required – meaning no penalties if you opt-out. However, the DWC must be made aware of that decision through the written notice to take effect.

While business owners in Texas may not face legal repercussions if they don’t carry workers’ comp, the risks of going without it should be taken seriously. Not having coverage can expose employers to costly liabilities from injuries or illnesses on their watch.

What Injuries Are Covered By Texas Workers’ Comp?


In Texas, medical treatment for workplace injuries and illnesses is covered by workers’ compensation insurance. An injury must have happened at work or be directly related to the job to be eligible for coverage. Workers’ comp can only provide benefits if offered through your employer’s certified plan from the state Department of Insurance – so make sure you check.

What Are the Death Benefits Of Workers’ Comp In Texas?

Workers’ Comp insurance can offer a lifeline — literally. Suppose an employee covered by workers’ comp dies due to illness or injury in the workplace. In that case, their dependents are entitled to death benefits ranging from 75% of their average weekly wage to the set annual maximum determined by the state. The payment is split between all designated surviving relatives, so they have reliable financial security during this difficult time. Also included in payments are up to $10K in funeral and burial expenses.

How Do Workers’ Comp Settlements Work In Texas?

In Texas, employees can reach a mutually beneficial conclusion to workplace injury through workers’ comp settlements. It’s essentially an agreement where the party involved is paid out in predetermined installments and serves as full resolution – meaning they’ll be absolved from taking further action related to the claim at hand. That way, both sides benefit from closure for good.

How Soon Must You File A Workers’ Comp Claim?


After suffering an injury while at work in Texas, filing a workers’ comp claim quickly and ensuring your employer knows about the incident within 30 days is essential. To ensure all benefits are available for you, be sure to complete this process before one year passes from your injury or illness.

How Much Does Workers’ Comp Cost In Texas?

In Texas, employers need to consider several factors when sourcing the perfect Workers’ Comp Insurance. Private insurers have various rates that’ll allow you to pick the one best suited for your business needs. There are no cookie-cutter solutions here.

Factors That Will Determine Your Workers’ Comp Premiums

Before making any coverage decisions, it’s essential to understand how premiums are calculated. Factors such as the location of your business, its size & number of team members involved, and industry operations all play into rates set by insurers. If you want to lower costs but still get quality protection, investing in safety protocols like employee training sessions or following industry best practices can help reduce those premiums.

A Guide To Workers Compensation In Texas: Wrap Up

Workers’ compensation insurance is a vital part of doing business in Texas. By understanding how it works and your responsibilities as an employer, you can help keep your employees safe and protect yourself from potential liabilities.


If you have any more questions about workers’ compensation in Texas, you can contact a team of professionals who can help you with compliance with the law and help you create policies and procedures to reduce your liability risk. We hope this article has been helpful. Thank you for reading.