Texas is the only state where workers comp is optional — but most commercial projects require it anyway. Get NCCI class code rates, understand non-subscriber rules, and get covered with same-day COI.
Texas is the only state where workers comp is optional for most private employers. However, non-subscribers cannot work on most commercial or public projects — GCs require COIs from all subs. Non-subscribers also lose key legal protections: injured employees can sue directly in civil court without the contributory negligence defense. If you work on commercial projects, you need workers comp regardless of the state law.
City-specific guides for contractors in major Texas markets
Largest city in Texas — major construction, energy, and healthcare market.
Major commercial construction and logistics hub in North Texas.
Fast-growing construction market with large Hispanic contractor base.
Booming tech and construction market — high demand for fast COIs.
Workers comp rates per $100 of payroll — Texas construction and non-construction codes
| Code | Description | Rate/$100 | Risk | Details |
|---|---|---|---|---|
| 5551 | Roofing — All Kinds | $6.42 | High | View → |
| 5645 | Carpentry — Detached Dwellings (Framing) | $7.31 | High | View → |
| 5213 | Concrete Construction NOC | $4.93 | High | View → |
| 5183 | Plumbing NOC and Drivers | $2.60 | Medium | View → |
| 5190 | Electrical Wiring Within Building | $2.82 | Medium | View → |
| 5537 | Heating, Ventilation, Air Conditioning and Refrigeration | $2.86 | Medium | View → |
Every GC in Texas requires all subs to provide a Certificate of Insurance before starting work. Without workers comp, you cannot work on commercial projects — period.
State agencies, school districts, municipalities, and TxDOT projects all require workers comp. Non-subscribers are disqualified from public work.
If an employee is injured and you are a non-subscriber, they can sue you in civil court without the contributory negligence defense. One lawsuit can exceed the cost of years of workers comp premiums.
Texas has the largest Spanish-speaking construction workforce in the US. Comp Ninjas provides bilingual enrollment, bilingual COI support, and Spanish-speaking account managers.
Texas is the only state in the US where workers comp is optional for most private employers. However, state agencies and public school districts are required to carry it. Many general contractors also require all subcontractors to carry workers comp as a condition of their contracts — even though the state does not require it. If you work on commercial projects, public projects, or for GCs, you will almost certainly need workers comp regardless of the state law.
A Texas non-subscriber is an employer who chooses not to carry workers comp insurance. Non-subscribers are not protected by the workers comp system — injured employees can sue the employer directly in civil court, and the employer cannot use the "contributory negligence" or "fellow employee" defenses. Many non-subscribers are self-insured or carry occupational accident insurance as an alternative. However, non-subscribers cannot work on most commercial or public projects in Texas.
Texas workers comp rates vary by industry and class code. Construction trades typically run $3–$8 per $100 of payroll. Office workers run $0.25–$0.50 per $100. The actual cost depends on your class code, payroll, experience modification factor, and carrier. Texas rates are generally slightly lower than Florida rates for the same class codes due to different loss experience.
Yes. With Comp Ninjas, most Texas clients receive their Certificate of Insurance the same business day. Our PEO program is designed for speed — Texas contractors often need proof of coverage before they can start a job, especially on commercial projects that require COIs.
The hardest-to-place industries in Texas include: roofing, demolition, tree trimming, towing and repossession, trucking, staffing agencies, home health care, and agricultural employers. Comp Ninjas specializes in exactly these industries through our PEO carrier relationships.
Yes. Texas has the Texas Workers Compensation Insurance Fund (Texas Mutual) and an assigned risk pool administered through NCCI. However, unlike Florida's JUA, Texas employers who are declined by the voluntary market have the option to remain non-subscribers. For employers who need coverage (for commercial contracts or public projects), a PEO program is often faster and cheaper than the assigned risk pool.
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