Question 1

Is workers' comp required for Texas construction companies?

Accepted Answer

No — Texas is one of the few states where workers' compensation is not mandatory. However, non-subscribers lose critical legal protections: employees can sue for unlimited damages, you cannot use contributory negligence as a defense, and you must report to the Division of Workers' Compensation. Most general contractors require subcontractors to carry workers' comp regardless of state law.

Question 2

How much does construction insurance cost in Texas?

Accepted Answer

Texas construction insurance typically costs $6,000–$18,000/year for a comprehensive package — about 15-25% less than California. Workers' comp rates range from $3–$15 per $100 of payroll. General liability averages $2,500–$6,000/year. Your experience modification rate and safety record significantly impact pricing.

Question 3

What insurance do Texas subcontractors need?

Accepted Answer

While Texas law doesn't mandate workers' comp, most GCs require subcontractors to carry: workers' compensation, general liability ($1M–$2M), commercial auto, and often umbrella coverage. The GC typically requires additional insured status. Without these coverages, you'll be excluded from most commercial projects.

Texas Construction Insurance | RISKX