Workers' Comp Insurance for Construction Businesses in Texas
Construction is one of the most heavily regulated and highest-rate industries for workers' compensation. Class codes vary widely depending on the type of work — residential carpentry, commercial framing, masonry, and concrete each carry different rates. Many states require coverage starting at one employee for construction, even when other industries are exempt below 3-5 employees in Texas. The Texas workers' compensation market is governed by TDI, and the average rate statewide is approximately $1.04 per $100 of payroll.
Texas requirements for construction businesses
When required: OPTIONAL — Texas is the only state where private employers are NOT required to carry workers' comp.
Sole proprietors: Optional for sole proprietors.
Owner / officer exclusion: Officers may be excluded if employer chooses to carry coverage.
Construction class codes used in Texas
Why construction workers' comp is tricky in Texas
Construction class codes are routinely misclassified — operations often span multiple codes, and carriers frequently default to the highest-rated code for an entire payroll instead of properly splitting it. Florida and California have especially strict rules for construction sole proprietors. We do free policy reviews to ensure your codes and split are correct.
Tips for Texas construction businesses
- ✓ Get a Certificate of Insurance (COI) issued the same day for new job sites
- ✓ Maintain a clean experience mod by tracking near-misses and safety meetings
- ✓ Use ghost policies (where allowed) for sole-prop construction owners with no employees
- ✓ Verify all subcontractors carry their own coverage to avoid being charged on their payroll
- ✓ Audit your annual payroll declaration carefully — overstated payroll = overpaid premium
Get a Texas construction workers' comp quote in 60 seconds
We're licensed in Texas and work with carriers that actively want construction businesses accounts. Quote takes one minute.
Get My Quote →Construction workers' comp in other states
Rates and requirements for construction businesses vary widely by state. Compare Texas to other major markets:
Other industries in Texas
Texas workers' comp rates and requirements for other common industries:
More Texas workers' comp resources
- → Texas workers' comp overview — full state requirements, exemptions, average rates
- → Construction workers' comp (all states) — industry deep-dive
- → Cost calculator — estimate annual premium by class code
- → EMR calculator — experience modification rating
- → COI generator — same-day certificate of insurance
- → Workers' comp audit disputes — recover overpaid premium
- → 1099 vs. employee classification — avoid back-premium penalties