Business insurance in Texas
Texas is the one state where most private employers can opt out of workers' comp.
Most business insurance works the same way in Texas as elsewhere: general liability, commercial property, commercial auto and professional liability. The big difference is workers' compensation.
Workers' compensation is optional for most private employers
In Texas, private employers can choose whether to carry workers' compensation insurance; it isn't required in most cases. Employers without it, often called nonsubscribers, must report to the state that they don't have coverage, and must report work-related injuries resulting in more than one day of lost time, illnesses and deaths.
Going without coverage has tradeoffs: nonsubscribers can be sued by injured employees and may lose some legal defenses. Some contracts, especially government work, require coverage. Talk to a licensed professional before deciding.
Storms and your property
Commercial property policies may exclude or limit wind and hail on the coast; TWIA sells commercial wind and hail coverage in its designated area. Flood needs separate coverage. Business income coverage can replace lost revenue after a covered loss.
Common questions
Not for most private employers. Those that opt out must report to the Texas Department of Insurance, Division of Workers' Compensation.
Want this priced for your part of Texas?
Rates in Texas vary a lot by ZIP code, especially for home and auto. Tell us where you are and what you need, and a licensed insurance professional can show you what’s actually available.
Sources
- Employer workers' compensation information, Texas Department of Insurance, Division of Workers' Compensation. Checked September 30, 2026.
- Coverage and eligibility, Texas Windstorm Insurance Association. Checked September 30, 2026.
General information only, not insurance advice. Coverage, availability and terms vary by insurer and are subject to underwriting. Local figures come from public data sources listed on each page. Quote My Policy is operated by an insurance agent licensed in Texas. Nothing here binds coverage.