Texas workers compensation policy information for the State of Texas



Related Pages: More About Texas Rules

State: Texas

Updated: 01-9-2019

Authority/State Rating Bureau: NCCI

National Council on Compensation Insurance (NCCI)
901 Peninsula Corporate Circle
Boca Raton, FL 33487-1362
800-622-4123

Compulsory: No, Work Comp is elective for all employments

Private Insurance: Allowed

Self-Insurance: Allowed

State Fund: There is a competitive state fund, Texas Mutual Insurance Company. Contact them at:

Texas Mutual Insurance Company
6210 East Highway 290
Austin, TX 78723-1098
800-859-5995 or 512-224-3800

 Assigned Risk: Texas Mutual Insurance Company. Previously known as the Texas Workers Compensation Insurance Fund.

Assigned Risk Contact Information: Texas Mutual Insurance Company – Texas Assigned Risk Market ; Use this link to contact the Assigned Risk Plan, Pool or Residual Market Administrator for Texas.

Texas Mutual Insurance Company
6210 East Highway 290
Austin, TX 78723-1098
800-859-5995 or 512-224-3800

Numerical Exceptions:  None

Individual Waivers Allowed: Not permitted.

Sole Proprietor:  Included in coverage/may elect to be excluded – When included the sole proprietor rating payroll is $51,200 as of 10-1-11, $53,200 as of 10-1-2012. Rating payroll is a flat amount that is calculated each year in October using the Texas State Average Weekly Wage x 1.25 x 52 weeks. $55,243 as of 10-1-2013. $55,934 as of 10-1-2014. For 2017, 2018, 2019 refer to appendix F in the NCCI basic manual. 

Partners:  Included in coverage/may elect to be excluded – When included the sole proprietor rating payroll is $51,200 as of 10-1-11, $53,200 as of 10-1-2012. Rating payroll is a flat amount that is calculated each year in October using the Texas State Average Weekly Wage x 1.25 x 52 weeks. $55,243 as of 10-1-2013. $55,934 as of 10-1-2014. For 2017, 2018, 2019 refer to appendix F in the NCCI basic manual.

Corporate Officers:  Included in coverage/may elect to be excluded – When included, a corporate officers rating payroll is banded between a minimum of $7,800 and a maximum of $62,400 as of 10-1-11. $7,800 / $62,400 as of 10-1-2013. $7,800 / $62,400 as of 10-1-2014. $150 min / $1,200 max per week as of 7-1-2017. $150 min / $1,200 max per week as of 7-1-2018. 

LLC Members:  Treated same as corporate officers.

Election or Rejection of Coverage Forms: Texas Workers Compensation Forms This is a link to the Texas Department of Insurance Website workers compensation forms page. You should contact the Department of Insurance with questions you may have about specific forms used for exclusion or inclusion of coverage.

Notes About Forms: Also, be sure to contact your insurance company for information about additional forms they may use for exclusion or inclusion of coverage.


Contractors: “General contractor” means a person who undertakes to procure the performance of work or a service, either separately or through the use of subcontractors. The term includes a “principal contractor,” “original contractor,” “prime contractor,” or other analogous term. The term does not include a motor carrier that provides a transportation service through the use of an owner operator.

“Independent contractor” means a person who contracts to perform work or provide a service for the benefit of another and who ordinarily:

  • acts as the employer of any employee of the contractor by paying wages, directing activities, and performing other similar functions characteristic of an employer-employee relationship;
  • is free to determine the manner in which the work or service is performed, including the hours of labor of or method of payment to any employee;
  • is required to furnish or to have employees, if any, furnish necessary tools, supplies, or materials to perform the work or service; and
  • possesses the skills required for the specific work or service.

Contractor status as employee:

  • For purposes of workers’ compensation insurance coverage, a person who performs work or provides a service for a general contractor or motor carrier who is an employer under this subtitle is an employee of that general contractor or motor carrier, unless the person is:
    • operating as an independent contractor; or
    • hired to perform the work or provide the service as an employee of a person operating as an independent contractor.
  • A subcontractor and the subcontractor’s employees are not employees of the general contractor for purposes of this subtitle if the subcontractor:
    • is operating as an independent contractor; and
    • has entered into a written agreement with the general contractor that evidences a relationship in which the subcontractor assumes the responsibilities of an employer for the performance of work.

Special Notes:  Participation in the workers compensation system in Texas is voluntary for most employers. Employers who choose to have workers compensation insurance may:

  • purchase a workers compensation insurance policy from a private insurance company;
  • self-insure, if the employer can meet the requirements to self-insure under the Texas Workers Compensation Act (the Act) and is certified through the Division;
  • self -insure through the Texas Department of Insurance with a group of same or similar private employers; or.
  • if a governmental entity, purchase a workers compensation policy from a private insurance company, or self-insure either individually or as a group.

If you buy workers’ compensation insurance, you are considered a “subscriber.” As a subscriber, you will be required to post a notice at your work place that provides your insurance carrier’s name, information regarding the Ombudsman program at the Texas Department of Insurance, Division of Workers’ Compensation (Division), and a contact number for reporting unsafe work conditions. This notice must be placed in the employer’s personnel office and in a prominent place where employees can see it regularly.

You are also required to give written notice of your coverage to new employees upon hire and inform them of their right to reject your workers’ compensation coverage and retain their common law right for action in district court. If at any time your coverage lapses and then you obtain coverage again, you are required to give all employees this change of coverage information in writing.

If you do not carry workers’ compensation insurance coverage, you are considered a “non-subscriber,” and you must notify your employees and the Division that you do not have workers’ compensation insurance.

Some employers who call themselves “self-insured” have actually opted out of the workers’ compensation system. Instead, they are providing an alternate coverage that does not carry the same protections offered to employers that have purchased a workers’ compensation policy or that are certified to self-insure by the Division.

And finally, Texas is a special place! They allow an employer to participate in downward negotiation of experience modifiers with their individual insurance carriers.

Experience Rating Eligibility: Employers in Colorado become eligible for an experience modification rate or EMR when they meet one of these triggers:

  • $10,000 in policy premium is generated during the last year or last two years.
  • $5,000 is the average policy premium generated for more than two years.

Texas Workers Compensation Subrogation:  Texas state statute 417.001-004 is where you’ll find subrogation of workers compensation information for this state. The subrogation statute consists of four sections. 417.001 known as Third Party Liability; 417.002 known as Recovery in Third Party Action; 417.003 known as Attorney’s fee for Representation of Insurance Carrier’s Interest; and 417.004 Employer Liability to Third Party. You can access this statute by using the link below. When viewing this statute just scroll down to find each of the four sections.    Texas – Workers Compensation Subrogation Statute

 




Regulated By: Texas Division of Workers Compensation

Texas Division of Workers’ Compensation
Central Office
7551 Metro Center Drive, Suite 100
Austin, TX 78744-1609

http://www.tdi.state.tx.us/wc/indexwc.html 

Texas Workers Compensation Statute:

When on this site choose – Texas Statutes, Labor Code, Title 5 Workers Compensation, Subtitle A – Texas Workers Compensation Act to get to the actual state statutes.

Texas Workers Compensation Statute

________________________________
Didn’t find what you’re looking for?
Use the site search or just drop us an email to find out more about Texas workers compensation laws and rules or our website, blog and services.
________________________________
Information on this page is provided only as a reference. While we strive to mantain accurate information on this site please realize workers compensation laws are complicated and subject to change at any time. No warranty as to the accuracy or completeness of this information is provided or to be implied. You must verify this data before use with the individual governing authority for this state. If you need help with a workers compensation problem or have a specific situation or question please contact our office. Otherwise please consult your states governing authority or an attorney in your state of residency for assistance.

Contact Us:
WORKERS COMPENSATION CONSULTANT
Voice: (573) 489-8323
Fax: (573) 447-4998
Click to Email