Texas Business Insurance Guide 2026

Who must carry it: Optional for most private employers (Texas Department of Insurance, Division of Workers' Compensation, Employers); required for construction contractors on public projects (TDI-DWC employer rights and responsibilities fact sheet).

In Texas, private employers can choose to carry workers' compensation insurance coverage, but it is not required in most cases.

Source: Texas Department of Insurance, Division of Workers' Compensation, Employers

Employers without coverage

A private employer that chooses not to carry coverage still has a reporting duty: the division's employer FAQ says a non-covered employer with five or more non-exempt employees must report certain injuries to the Division of Workers' Compensation on Form DWC-007 (TDI-DWC employer FAQ).

Certain building or construction employers that contract with governmental entities are required to provide workers' compensation coverage for each employee working on the public project, according to the division's employer fact sheet (TDI-DWC employer rights and responsibilities fact sheet).

The agency to ask is the Texas Department of Insurance, Division of Workers' Compensation (DWC). Pricing is separate from the legal rule: the workers' comp calculator multiplies the payroll, rate and modifier you enter, and the workers' compensation guide explains the coverage.

Texas sets these minimum auto liability limits:

• Bodily injury liability: $30,000 per person and $60,000 per accident
• Property damage liability: $25,000 per accident
• Start date: not stated in the source; confirmed in force on October 3, 2026
• Source: Texas Department of Insurance, Auto insurance guide

Texas law requires you to have at least $30,000 of coverage for injuries per person, up to a total of $60,000 per accident, and $25,000 of coverage for property damage.

Source: Texas Department of Insurance, Auto insurance guide

Commercial and for-hire vehicles can face different or higher federal or state requirements. Our commercial auto guide covers owned, hired and non-owned vehicles.

Texas has no mandatory state-run paid family and medical leave insurance program and no state temporary disability insurance program, according to NCSL's table, last updated November 7, 2025 (NCSL: state family and medical leave laws; cross-checked on October 3, 2026 with the U.S. Department of Labor Women's Bureau).

The same NCSL page lists Texas among the states whose laws let employers buy optional paid leave coverage from private insurers; that option creates no employer mandate.

A 2026 law may not appear in that table yet, as Virginia's new program shows (Code of Virginia § 60.2-801); for a later payroll year, check with the state agency that handles labor and workforce matters.

Licenses, leases and client contracts in Texas can set their own general liability limits or certificate wording. The certificate of insurance checklist helps you track them, and the requirements-by-state guide compares states. Texas requires workers' compensation of construction employers on public projects, so contractors bidding for government work should check that rule alongside their license conditions.

• Workers' compensation: Texas Department of Insurance, Division of Workers' Compensation (DWC)
• Auto liability minimums: Texas Department of Insurance, Auto insurance guide
• Paid leave and disability insurance: NCSL state family and medical leave laws and the U.S. Department of Labor Women's Bureau

Before you call, the state requirements checklist lists the questions to ask. For a PolicyBenchmark follow-up about your Texas business, request coverage help.