Texas Restaurant Insurance 2026: Liquor Laws, WC Codes, and the 5-Employee Rule

Texas restaurant insurance 2026: liquor liability (dram shop), the 5-employee WC threshold, TABC compliance, auto minimums, and what coverage costs.

State + Industry Guides | 10 min read | 2026-04-19

Texas is one of the few states where workers' comp is legally optional — but for restaurants, that 'optional' label is misleading. Here's the full 2026 Texas restaurant insurance playbook: dram shop exposure, the 5-employee rule, TABC compliance, and what it actually costs.

Texas restaurants operate in a regulatory environment that looks deceptively friendly on paper. There's no state income tax, workers' compensation is technically optional, and the 2026 commercial auto liability minimums still sit at 30/60/25 — among the lowest in the country. Compared to California, where every employee triggers mandatory workers' comp, or New York, where scaffold law and strict…

In This Article

• Why Texas Restaurant Insurance Is Different
• The 5-Employee Rule: Optional Workers' Comp That Isn't
• TABC Requirements and Dram Shop Liability
• General Liability, Property, and the Texas Landlord Standard
• Commercial Auto: 30/60/25 Minimums and Food Truck Considerations
• Employment Practices Liability in Texas

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