Updated: December 19, 2024
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MoneyGeek evaluated Texas’ best workers' compensation insurance by considering providers’ performance in customer satisfaction, financial stability and efficiency in online quote applications. The Hartford emerged as the best overall company, excelling in financial stability and offering convenient online quotes.
Small business owners need workers' compensation insurance to comply with state requirements and protect against the liabilities of work-related injuries and illnesses.
For businesses in Texas looking for workers' compensation insurance, The Hartford stands out as the top provider. According to MoneyGeek, The Hartford excels in areas such as financial stability and customer satisfaction, and it offers efficient online quote services. Here’s a summary of key information about The Hartford:
Ranking and Score:
- Ranked the best overall workers' compensation insurance provider in Texas.
- Achieved a MoneyGeek score of 99 out of 100.
Average Monthly Premium:
- The average cost is $65 per month, making it not only the best but also the cheapest option for many businesses.
Financial Stability:
- The Hartford is recognized for its robust financial stability, ensuring that it can reliably cover claims and provide consistent service.
Customer Service:
- Known for excellent customer satisfaction, The Hartford provides convenient online quoting tools, making the process swift and user-friendly for business owners.
Additional Highlights:
- Offers tailored coverage for various business sizes, including micro businesses with one to nine employees.
- For businesses with 20 employees, The Hartford provides a competitive premium of $94 per month, which is substantially lower than the national average.
- Provides a comprehensive policy with a $1 million total policy limit, a $1 million per accident limit, and a $1 million per employee limit.
The Hartford is a strong choice for Texas businesses needing workers' compensation insurance due to its affordability, financial reliability, and excellent customer service.
For businesses seeking the most cost-effective workers' compensation insurance in Texas, The Hartford stands out as the cheapest provider. Offering an average monthly premium of $65, The Hartford provides affordable coverage that caters to businesses with 20 employees and an annual payroll of $1,250,000.
From a cost-conscious business perspective, The Hartford is an excellent choice due to several reasons:
1. Competitive Rates: At $65 per month, The Hartford's premiums are much lower than both the Texas average of $94 and the national average of $168. This makes it an attractive choice for Texas businesses looking to minimize costs.
2. Strong Financial Stability and Customer Satisfaction: The Hartford has been recognized for its robust financial stability and high customer satisfaction. This indicates reliable service and fiscal security, ensuring that businesses can trust The Hartford to handle claims efficiently and professionally.
3. Convenient Online Quote Process: The Hartford excels in offering an easy and efficient online quote process. This ease of access allows businesses to swiftly obtain estimates and understand coverage options, saving time and reducing administrative burdens.
4. Tailored Coverage: The Hartford's ability to provide tailored coverage according to business size and needs means that even smaller enterprises can benefit from plans that fit their specific requirements, particularly those with micro teams of one to nine employees.
For these reasons, The Hartford is an ideal option for businesses in Texas prioritizing both affordability and comprehensive service in workers' compensation insurance.
When evaluating workers' compensation insurance premiums in Texas, several factors can influence the rates. Understanding these factors is crucial for businesses seeking the most suitable and cost-effective coverage.
Key Factors Influencing Workers' Compensation Insurance Premiums in Texas:
1. Payroll Costs:
- Payroll has a significant impact on premiums since it reflects the level of financial risk for the insurer. Higher payrolls generally result in higher insurance costs, as they usually correlate with more employees who could potentially file claims.
2. Number of Employees:
- The total employee count also affects insurance costs. As the number of employees increases, the risk of potential claims rises, leading to an increase in the overall premium. This is especially evident in businesses with larger workforces.
3. Employee Class Code:
- Jobs are assigned specific class codes based on their risk level. For instance, jobs with a higher risk of injury typically incur higher premiums. Class codes help insurers evaluate the risk associated with different job types and set appropriate rates.
4. Previous Claims History:
- A company's history of work-related injury claims can influence its insurance premium. Businesses with a history of frequent or severe claims may face higher premiums. Insurers use this data to assess future risk and adjust pricing accordingly.
How Rates Can Vary:
- Workforce Size and Costs:
- For a small business in Texas with five employees and an annual payroll of $312,500, the premium could be around $38 per month with a provider like The Hartford.
- For medium-sized enterprises with 20 employees and a payroll of $1,250,000, the cost with The Hartford averages $65 monthly.
- Larger companies with 100 employees and a payroll of $6,250,000 might consider providers like Thimble, offering premiums around $169 per month.
- State Comparisons:
- Texas generally offers lower workers' compensation premiums compared to the national average. For example, the average monthly cost in Texas for a business with 20 employees is $94, while the national average is $168.
Policy Limits:
- Standard Limits:
- Policies often have limits such as $1 million total, per accident, and per employee. These limits indicate the maximum amount an insurer will cover, which helps in assessing and managing the potential financial risk of claims.
Regulatory Context:
- State Requirements:
- In Texas, businesses contracted by a government entity need coverage, but there are exemptions, especially for sole proprietors and certain executive roles.
Understanding these elements can help Texas businesses navigate their options and select an appropriate workers' compensation insurance policy. Consulting resources like the Texas Department of Insurance can provide further tailored guidance.
Why Trust MoneyGeek? We collected 677 workers’ compensation insurance quotes and analyzed cost information alongside customer satisfaction and financial stability reports to determine the best workers’ compensation insurance companies for small businesses in Texas.
Coverage costs and company information for workers' compensation insurance providers in Texas were last updated in 2023.
The Hartford was ranked the best overall workers' compensation insurance company in Texas, earning a MoneyGeek score of 99 out of 100. With an average monthly cost of $65, The Hartford offers reliable and affordable coverage for businesses in Texas.
How was this MoneyGeek score calculated?
MoneyGeek used the following weights to score and rank insurers:
MoneyGeek used the following business profile to gather quotes:
The Hartford offers Texas’ best workers’ compensation insurance, offering businesses reliable coverage with its A+ financial strength rating from AM Best. The company has demonstrated a commendable customer service record, earning few complaints from clients relative to other Texas providers. It also features a convenient online quote tool, allowing you to access rates in less than two minutes.
On top of all these benefits, The Hartford offers the lowest average monthly policy rates among any Texas provider we surveyed, at $65.
biBERK excels in two key areas: financial stability and customer satisfaction. With a solid financial foundation, Texas businesses can trust biBERK to meet their claims obligations reliably. The company also maintains an impressive average complaint index, reflecting its commitment to addressing customer concerns.
biBERK stands out for its efficiency in providing online quotes, allowing businesses to quickly access the information they need. However, its average premiums are more expensive than most providers we surveyed.
Texas’ cheapest workers' compensation insurance company is The Hartford, providing an average monthly premium of $65. This company offers the most affordable rates for businesses with 20 employees and an annual payroll of $1,250,000. It's important to note that the size of your workforce and payroll expenses can significantly impact the cost of workers' compensation insurance.
The Hartford excels in providing cost-effective workers’ compensation insurance coverage. It offers the lowest average monthly premium of $65, making it an affordable option for small businesses. It’s an excellent provider compared to other Texas companies we reviewed, demonstrating outstanding customer service and financial stability. You can access a custom online quote from the company in under two minutes, allowing you to compare rates quickly.
While we ranked companies based on their average monthly cost to identify the cheapest insurer in Texas, it's important to note that the best option for your small business may vary depending on other factors.
The table below showcases the annual and monthly costs for insuring a business with 20 employees from all the companies analyzed in Texas. The companies are ranked based on their average monthly rates.
| The Hartford | $65 | $785 |
| Pie | $80 | $955 |
| Thimble | $88 | $930 |
| Nationwide | $102 | $1,227 |
| biBERK | $110 | $1,240 |
| Next | $116 | $1,390 |
The Hartford is the top-ranked choice for businesses with five employees, offering a monthly premium of $38 based on an annual payroll of $312,500. The Hartford provides tailored coverage to meet the specific needs of micro businesses with one to nine employees.
Although employee count influences the cost of workers' compensation insurance, payroll has a more significant impact on premiums as it reflects the level of risk for the insurer. Businesses can secure reliable and affordable coverage for their Texas workforce with The Hartford.
The Hartford excels in cost-effectiveness, offering an average monthly premium of $38. The company demonstrates strong financial stability, ensuring reliable coverage for policyholders. Additionally, The Hartford stands out for its efficient online quote process, providing timely access to insurance information. The company's commitment to managing complaints further enhances its customer satisfaction scores.
With The Hartford, businesses in Texas can benefit from competitively priced workers' compensation insurance without compromising on quality and service.
Thimble emerges as the top choice for businesses with 100 employees, offering a monthly premium of $169 for a sample company with an annual payroll of $6,250,000.
Employee count informs the average cost of workers’ compensation insurance, but a company’s payroll expenses are even more important in influencing rates.
Thimble excels in affordability, offering midsize businesses a competitive average monthly cost of $169 for workers' compensation insurance. The company also demonstrates strong financial stability, ensuring that policyholders can rely on Thimble for long-term protection. Its efficient online quote process lets businesses obtain insurance quotes quickly and conveniently.
Thimble's commitment to managing complaints effectively highlights its dedication to customer satisfaction. With its affordability, financial stability and responsive service, Thimble stands out as a top choice for Texas businesses seeking workers' compensation insurance.
The average monthly cost of workers' compensation insurance in Texas for a business with 20 employees is $94. Compared to the national average rate of $168 monthly, average costs in Texas are significantly lower.
The policy limits we set for workers' compensation insurance include a $1 million total policy limit, a $1 million per accident limit and a $1 million per employee limit. These limits define the maximum coverage amounts provided by the insurance policy.
The total policy limit is the maximum amount the insurer will pay for all claims. The per accident limit is the maximum amount the insurer will cover for a single incident, regardless of the number of employees affected. The per-employee limit is the maximum amount the insurer will pay for an individual employee's claim.
The table below displays the average rates of workers' compensation insurance for businesses with five, 20 and 100 employees, highlighting how employee count influences insurance costs.
Note that employee count and payroll are significant factors impacting workers' compensation insurance costs. As the number of employees increases, the risk of potential claims and the overall insurance cost tends to rise.
How was this cost calculated?
To find the average cost of workers’ compensation insurance in Arkansas, we gathered quotes for three types of software development businesses:
| 5 | $45 | $515 |
| 20 | $94 | $1,088 |
| 100 | $337 | $3,961 |
The cost of workers' compensation insurance varies for each business depending on several factors. These factors include payroll costs, the number of employees, employee class code and previous claims. Understanding how these factors influence insurance costs is essential for Texas businesses when evaluating workers' compensation insurance options.
Insurers typically charge businesses a specific rate for every $100 of payroll. Higher payroll costs result in higher premiums, as the insurer assumes a greater potential liability. Texas’ average premium index rate in 2022 was $0.88, the average rate charged for every $100 of payroll. This rate varies among states, reflecting regional differences in the cost of coverage.
The number of employees is a significant factor that affects the cost of workers' compensation insurance in Texas. Companies with a larger workforce generally face a higher risk of employee injuries, which can lead to increased insurance premiums.
Each industry or occupation is assigned a specific class code, which determines the rate charged for every $100 of payroll. Industries with a higher risk of injury, such as construction, typically have higher rates than lower-risk industries, like consulting. Insurers assess the risk associated with each class code based on historical claims data and adjust the premium rates accordingly.
Insurers consider businesses with histories of workers' compensation claims as higher risk, leading to increased premiums. Insurers consider the frequency and severity of past claims to assess the potential future claims of a business. By charging higher premiums, insurers mitigate the financial risk associated with employers who have a claims history.
In Texas, workplace injuries and illnesses remain a concern, with a total of 178,900 recordable incidents in the private industry sector. This statistic highlights the importance of workers' compensation insurance to protect employees and employers. Nationally, the private industry recorded 2,607,900 non-fatal cases.
Texas businesses only need workers' compensation insurance if a government entity contracts with them. There are additional exemptions from workers' compensation coverage. Sole proprietors and partners in a partnership are not required to carry workers' compensation insurance. Certain executive officers of corporations may elect to exclude themselves from coverage.
It's important to note that exemptions can vary based on different factors, such as the business’s legal structure or the specific industry. Employers are encouraged to consult the Texas Department of Insurance for guidance on their particular circumstances.
In Texas, employers who fail to provide legally required workers' compensation insurance or fail to comply with workers' comp laws may face the following penalties:
The penalties can vary depending on the specific circumstances and severity of the violation.
Workers' compensation insurance provides several benefits for employees who experience work-related injuries or illnesses. These benefits include:
It is important to note that the employer is the policyholder of workers' compensation insurance and is responsible for providing coverage for their employees. Workers' comp insurance ensures that employees receive the necessary support and financial protection in case of work-related injuries or illnesses.
The Department of Labor's Office of Workers' Compensation Programs (OWCP) oversees workers' compensation in Texas.
To file a claim for workers' compensation benefits in Texas, employees typically follow these steps:
Employees in Texas can find more information about workers' compensation by visiting the Texas Department of Insurance Workers' Compensation website.
MoneyGeek aims to answer common questions about workers' comp insurance coverage. This resource will provide valuable information to help you navigate Texas’ workers' compensation landscape.
MoneyGeek ranked The Hartford as #best-workers-comp. It provides affordable rates and a quick online quote process. Note that the best insurance provider for you will depend on factors such as your specific industry, number of employees and the state's requirements.
Texas’ cheapest workers' compensation insurance policy is offered by The Hartford, with an average monthly cost of $65. This affordable company scores high in financial stability and provides quick online quotes. Remember that the cheapest insurance for you may vary depending on factors unique to your business, including location, payroll and employee count.
Texas only requires businesses contracting with government entities to obtain workers’ compensation insurance.
The average workers' compensation insurance policy in Texas costs $94 monthly.
About Melissa Wylie
Melissa Wylie is the Content and SEO Manager at MoneyGeek, with nearly a decade of editorial experience and six years of work in financial content focused on small businesses. She previously held SEO positions at Bankrate and LendingTree, with bylines on ValuePenguin and MagnifyMoney.
Wylie has a journalism degree from the University of North Texas. Her strong foundation in journalism helps her craft content that simplifies complex financial topics to help everyone feel confident when making decisions with their money.
