Texas Workers’ compensation insurance
Texas workers’ compensation is one of the most misunderstood areas of business insurance. Between classification codes, audits, claims history, and subcontractor exposure, small mistakes can become expensive quickly. Wayne Lilly Insurance helps Texas business owners review workers’ compensation options, identify risk exposure, and build smarter coverage strategies that align with how their business actually operates.
What We Review in Your Workers’ Comp Coverage
Employee classification codes and audit exposure
Claims history and experience modifier impact
Subcontractor and 1099 worker risk
Coverage requirements vs. Texas non-subscriber options
Payroll accuracy and premium drivers
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Texas does not require most private employers to carry workers’ compensation, but not having it can significantly increase liability exposure in the event of a workplace injury.
iMPORTANT NOTE: Not having workers comp puts more of a burden of proof on the business rather than the emplouyee.
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A non-subscriber is a business that chooses not to carry workers’ compensation coverage and instead assumes direct responsibility for employee injury claims and related liability.
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Premiums are based on payroll, classification codes, industry risk, claims history, and experience modifiers assigned to the business.
IMPORTANT NOTE: The correct classification codes are imperative. Often a workers’ comp policy that seems overly inexpensive might be a good deal, or it might be that the class codes are incorrect— this is an invaluable part of our review.
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An experience modifier adjusts your premium based on your claims history compared to similar businesses. A higher modifier increases cost, while a lower one can reduce it.
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Not always. Misclassification of subcontractors can create major exposure during audits or claims, making this one of the most important areas to review.