Small-business cover in Texas.
In Texas, workers’ comp is required at Workers' comp is generally optional for private employers (Texas is the only state where private-sector employers may opt out)[S]Texas workers' compensation threshold. Texas is the only state where private employers may opt out of workers' compensation (non-subscriber status), though doing so removes key liability protections. Governmental entities and private employers contracting with government must provide coverage. Many contractor and trade licenses are issued at the state or municipal level. Regulated by the Texas Department of Insurance.
Updated 2026-05-16 · Beaconcover editorialThe short answer: Business insurance in Texas starts with workers' compensation, required at Workers' comp is generally optional for private employers (Texas is the only state where private-sector employers may opt out), plus the general liability that most clients and licenses ask for before you can take a job.
What does Texas require?
Workers' comp is generally optional for private employers (Texas is the only state where private-sector employers may opt out)[C]Texas workers' compensation threshold
Texas is the only state where private employers may opt out of workers' compensation (non-subscriber status), though doing so removes key liability protections. Governmental entities and private employers contracting with government must provide coverage. Many contractor and trade licenses are issued at the state or municipal level. Regulated by the Texas Department of Insurance.
What licensing and bonding does Texas require?
- Non-subscriber employers face expanded employer liability — confirm before advising clients
- Electrical and some trades require state licensing; many trades licensed locally