Workers’ Compensation Insurance for Your Business
Protect your employees and your business with workers’ compensation coverage designed around your company’s operations, employees, payroll, and workplace risks.
What Is Workers’ Compensation Insurance?
Workers’ compensation insurance helps provide benefits when an employee suffers a covered work-related injury or illness. Depending on the claim and applicable policy provisions, benefits can include medical care and partial replacement of lost wages.
For Texas employers, workers’ compensation is a state-regulated system. Private employers generally have the option to provide coverage or operate as a non-subscriber, subject to specific legal and reporting requirements. Governmental entities and certain situations can have different requirements.
What Does Workers’ Compensation Cover?
Workers’ compensation benefits are designed to help employees and employers when a covered work-related injury or illness occurs.
Medical Benefits
Coverage can help pay for reasonable and necessary medical treatment related to a covered work-related injury or illness.
Income Benefits
An employee who loses income because of a qualifying work-related injury or illness may be eligible for workers’ compensation income benefits.
Recovery & Rehabilitation
Depending on the circumstances and applicable benefits, workers’ compensation can support an injured employee’s treatment and recovery.
Death Benefits
When a covered work-related injury or illness results in an employee’s death, eligible beneficiaries may receive death benefits under Texas workers’ compensation law.
Employer Protection
Employers that provide workers’ compensation coverage receive important liability protections under Texas law, subject to statutory exceptions and limitations.
Claims Support
A workers’ compensation policy also provides a structured process for reporting and handling covered workplace injury claims.
Why Texas Businesses Consider Workers’ Compensation
For Your Employees
- Helps provide medical benefits for covered work-related injuries and illnesses.
- Can provide income benefits when a qualifying injury affects an employee’s ability to work.
- Provides a defined workers’ compensation system for handling workplace injuries.
- Can help employees focus on treatment and recovery after a workplace injury.
For Your Business
- Provides workers’ compensation coverage through a licensed insurance carrier.
- Can provide important statutory liability protections for subscribing employers.
- May be required by certain contracts, customers, or project owners.
- Helps establish a formal process for reporting and managing workplace injury claims.
Is Workers’ Compensation Required in Texas?
For most private Texas employers, workers’ compensation insurance is not mandatory.
Texas allows most private employers to choose whether to provide workers’ compensation coverage. Employers that do not provide coverage are generally considered non-subscribers and have specific notification and reporting obligations.
Some employers and situations are subject to different requirements. For example, Texas governmental entities are required to have workers’ compensation coverage, and certain construction or government-contract situations can involve additional requirements.
If you are unsure whether your business should carry workers’ compensation insurance, we can help you evaluate your insurance needs and explain the coverage options available to your business.
Businesses That May Need Workers’ Compensation
Workers’ compensation can be relevant to businesses across many industries. The appropriate coverage depends on your operations, employees, payroll, classifications, contracts, and other factors.
Construction & Contractors
Contractors and construction companies often face significant workplace injury exposures and may encounter contract requirements for workers’ compensation.
Restaurants
Restaurants may have employee exposures involving kitchens, hot equipment, slips and falls, lifting, and other workplace hazards.
Retail Businesses
Retail employees can face risks associated with lifting, stocking, equipment, customer areas, and other workplace activities.
Professional Services
Offices and professional service businesses can still have workplace injuries, even when employees primarily work at desks or in office environments.
Manufacturing
Manufacturing operations can involve machinery, material handling, repetitive tasks, and other workplace exposures.
Small Businesses
Workers’ compensation isn’t only for large employers. Small businesses with employees may also benefit from evaluating workers’ compensation coverage.
Workers’ Compensation and Your Business Insurance
Workers’ compensation is one part of a broader commercial insurance program. Depending on your business, you may also need general liability, commercial property, commercial auto, cyber insurance, or other coverage.
Workers’ Compensation
Primarily addresses covered work-related employee injuries and illnesses and the benefits provided under the workers’ compensation system.
General Liability
Generally addresses covered third-party claims involving bodily injury, property damage, and certain other liabilities arising from your business operations.
What Can Affect Workers’ Compensation Premium?
Workers’ compensation pricing can vary from one business to another. Factors used in determining premiums can include the type of work employees perform, payroll, employee classifications, claims history, experience rating, and applicable rating plans.
Employee Classifications
The type of work employees perform can affect how their payroll is classified for workers’ compensation purposes.
Payroll
Estimated payroll is an important component of workers’ compensation premium calculations and policy administration.
Claims History
A business’s prior loss experience can affect how its workers’ compensation coverage is evaluated and priced.
Actual pricing and eligibility depend on the insurance company, applicable Texas rating rules, business characteristics, and policy details.
How to Reduce Workplace Injury Risk
Insurance is only one part of an effective workplace risk-management strategy. Businesses can also work to reduce workplace injuries through safety practices and employee training.
Employee Training
Provide employees with appropriate training for the equipment, tasks, and hazards associated with their jobs.
Safety Procedures
Establish clear procedures for identifying hazards and responding to unsafe workplace conditions.
Incident Reporting
Maintain a clear process for employees and managers to report workplace injuries and incidents promptly.
How Lavon Insurance Can Help
As an independent insurance agency, Lavon Insurance can help you evaluate workers’ compensation options based on your business rather than starting with a single insurance company.
Tell Us About Your Business
We’ll learn about your employees, operations, payroll, industry, and insurance needs.
We Compare Options
We can compare available insurance options from carriers that may fit your business and coverage requirements.
You Choose Your Coverage
We explain the available options so you can make an informed decision about your business insurance.
Workers’ Compensation Insurance in Lavon and North Texas
Lavon Insurance serves businesses throughout Lavon and surrounding North Texas communities. If your business has employees, contractors, or commercial contracts that require workers’ compensation coverage, we can help you evaluate your options.
We serve businesses in and around:
Lavon & Wylie
Workers’ compensation insurance for businesses in Lavon, Wylie, and surrounding communities.
Royse City & Rockwall
Commercial insurance solutions for businesses throughout the growing Rockwall-area market.
Princeton & Farmersville
Workers’ compensation options for businesses throughout the eastern Collin County area.
Josephine & Greenville
Insurance solutions for employers throughout the surrounding North Texas communities.
Murphy & Sachse
Commercial insurance options for established businesses and growing companies.
Melissa & Rowlett
Workers’ compensation and commercial insurance options for businesses across North Texas.
Serving Texas businesses with independent, local, personal insurance service.
Workers’ Compensation Insurance FAQs
Is workers’ compensation required in Texas?
Texas does not require most private employers to carry workers’ compensation insurance. Employers that choose not to provide coverage have specific legal notification and reporting responsibilities. Certain employers and circumstances can have different requirements.
What does workers’ compensation insurance cover?
Workers’ compensation can provide medical and income benefits for covered work-related injuries and illnesses. Depending on the circumstances, benefits may also be available to eligible family members following a work-related death.
Does workers’ compensation cover illnesses?
It can cover qualifying work-related illnesses as well as injuries. Whether a particular condition qualifies depends on the circumstances and applicable Texas workers’ compensation rules.
Does workers’ compensation cover lost wages?
Workers’ compensation can provide income benefits when a qualifying work-related injury or illness affects an employee’s ability to work. The amount and duration depend on applicable Texas rules and the circumstances of the claim.
Does workers’ compensation cover medical expenses?
Workers’ compensation can pay for medical treatment related to covered work-related injuries or illnesses.
Is workers’ compensation the same as health insurance?
No. Workers’ compensation is designed for covered work-related injuries and illnesses. It is not a replacement for an employee health insurance plan.
Can a small business get workers’ compensation insurance?
Yes. Workers’ compensation is available to businesses of many sizes. Insurance eligibility and pricing depend on the business, employees, operations, classifications, payroll, claims history, and insurance company.
Can a business owner be covered by workers’ compensation?
Business-owner and executive-officer treatment can depend on the business structure, policy, and applicable rules. We can help you discuss who should be included when obtaining a quote.
Can a customer require my business to have workers’ compensation?
Some contracts, customers, general contractors, or project owners may require a business to carry workers’ compensation even when state law does not generally require it. Contract requirements should be reviewed carefully before beginning work.
What information is needed for a workers’ compensation quote?
Information may include your business operations, employee job duties, estimated payroll, number of employees, locations, prior insurance information, and claims history. Additional information may be required depending on the business.
How much does workers’ compensation insurance cost in Texas?
There is no single price for workers’ compensation insurance. Premiums can vary based on factors such as employee classifications, payroll, claims history, experience rating, and the applicable insurance company’s rating and underwriting rules.
What should I do if an employee is injured at work?
Follow your company’s injury-reporting procedures and promptly report the injury according to the requirements of your workers’ compensation policy and Texas law. The Texas Department of Insurance provides employer resources and forms for reporting workplace injuries.
Let’s Talk About Workers’ Compensation
Whether you’re starting a business, hiring your first employees, renewing an existing policy, or reviewing your commercial insurance program, Lavon Insurance can help you compare your options.
Insurance Disclaimer: Coverage, eligibility, exclusions, limitations, benefits, and pricing vary by insurance company, policy, business classification, and individual circumstances. This page is provided for general educational purposes and is not a contract, legal advice, or a guarantee of coverage. Texas workers’ compensation requirements can vary based on the employer and circumstances. Please consult the Texas Department of Insurance or qualified legal counsel for questions about your specific legal obligations.