How Much is Workers’ Comp in Texas? 2025 Rate Guide
How much workers' compensation insurance costs in Texas depends on several factors, including the type of industry you work in, your payroll figures, and your company’s claim history.
To give you a rough estimate of how much you can expect to pay for workers’ comp insurance, we’ve compiled a list of the most common industries in Texas, complete with rates from one of our partner carriers. We've also provided sample annual premiums per employee.
Texas Workers' Compensation Rates 2025
Here’s a list of the state's most common industries and the corresponding rates from one of our partner carriers:
*Premiums are estimated based on a hypothetical $25,000 annual payroll.
Keep in mind that these figures are estimates to give you a general idea of potential costs.
To calculate an estimated premium quote for your business, you can use our instant quote tool. Or you can consult with an insurance agent who can evaluate your specific payroll, industry classification, and claims history to determine what the exact premium would be.
How are Workers’ Compensation Rates set in Texas?
In Texas, the Texas Department of Insurance (TDI) sets the base rates for workers' compensation insurance, but individual insurance companies can adjust these rates. They will consider the state's guidelines, their own loss experiences, and the employer's business operations and then set their unique rates.
Estimating Your Workers’ Compensation Insurance Costs in Texas
If you want to know how much a workers’ comp insurance policy will cost, you can get a rough idea by doing a bit of math. It’s simpler than it looks, just follow the steps below.
Follow a simple formula: (Annual Employee Payroll / $100) x Industry Rate = Your Estimated Premium
First, take your total annual payroll and divide by $100..
Next, find your estimated rate - reach out to an insurance agent or refer to the provided rate chart above.
For example, if you manage an HVAC business with a $100,000 annual payroll for two employees, and the industry rate is $1.66, your equation would be the following.
Annual Payroll: $100,000
HVAC Industry Rate: $1.66
Calculation: ($100,000 / $100) x $1.66 = $1,660
In this case, an HVAC company with a $100,000 payroll for two employees might expect an estimated annual workers' compensation premium of roughly $1,660.
Remember that this is an approximation, and the actual premium will also include fees and taxes and other things like that.
Watch this video to learn more about calculating your workers’ comp rate.
Additional factors that can affect your Workers' Compensation Premium
The basic formula for estimating your workers' compensation premium is a helpful starting point, but it's important to be aware that various other elements can affect the final price of your insurance. Here are some of the key factors that affect your premium:
Experience Modification Rate (ExMod):
Your company's safety record and past claims history are analyzed to determine your ExMod, which can adjust your premium up or down. A lower ExMod, indicating fewer or less severe claims, can reduce your premium, while a higher ExMod can increase it.
Workplace Safety Programs:
Implementing and maintaining safety programs can not only prevent accidents but also potentially qualify your business for discounts on your workers' comp premium.
Insurance Carrier Discounts:
Some insurance carriers offer various discounts that can affect your premium. These may include multi-policy discounts, early payment discounts, or group rates through professional associations.
Claims Management:
Efficient management of workers' compensation claims can help control costs. Prompt reporting of incidents, proper claims handling, and a focus on return-to-work programs can keep premiums from snowballing.
How to get the best rates for Workers’ Comp in Texas
If you have a bit of time and you want to get the best rate for your workers' compensation insurance policy, you should get quotes from several insurance companies so you can compare the quotes. This will give you a broader perspective on the cost and coverage options available to you.
If you want a policy that is tailored to your business's unique needs, reach out to us. You can start by filling out our online form for an instant quote. Our streamlined process makes it easy to see what you could be paying for workers' compensation coverage. Alternatively, give us a call at (866) 338-8823—we're here to assist you every step of the way. Let us help you find a rate that fits your budget while providing the protection your business needs.
Note: The rates listed provided above have been provided by one of our partner insurance carriers, were are accurate at the time of publishing and for illustrative purposes only and may not reflect actual current rates for workers' compensation insurance in Texas at this time. Various factors, such as claim history and business experience can affect the rate as well. Business owners should consult with an insurance agent or the NCCI for accurate and up-to-date rate information.
Note: The information provided in this blog is intended for general informational purposes only and is not a substitute for professional legal or insurance advice. Laws and regulations regarding workers' compensation insurance are complex and vary by state and by specific circumstances. Therefore, readers are encouraged to consult with a qualified legal or insurance professional to obtain advice with respect to any particular issue or problem they might have.
Mordechai Kamenetsky, co-founder and lead agent of Kickstand, is recognized as an expert in workers' compensation. He is passionate about helping small businesses manage risks and lower their workers' comp costs. In his articles, he educates readers and clients on the intricacies of workers' comp insurance.
