Get several quotes at once, because every Texas insurer marks up the base numbers its own way. Fix your job categories, payroll, and subcontractor paperwork first, so every insurer is pricing the same facts. Texas is unusual: private employers here do not have to carry workers comp at all. Most contractors do, because general contractors and public jobs require it. Who this is for: Texas contractors who carry workers comp by choice, for a public project, or because a general contractor requires it, and want the same coverage for less.
The short version
- Most Texas insurers start from the same published base numbers and add their own markup, and some file their own numbers instead. That is why quotes for the same crew come out so far apart.
- Fix job categories, payroll estimates, and sub agreements before quoting. Insurers price what you send them.
- Texas Mutual must take any employer that pays the premium, but it is not always the cheapest. Compare it to others.
- Dropping workers comp is legal for most private employers in Texas, but for a contractor it rarely saves money once you count the risk and the lost work.
Why do Texas workers comp quotes for the same crew come out so different?
Most Texas insurers start from the same published base numbers, and some file their own instead. Those numbers cover expected injury costs only. Each insurer then adds its own factor for expenses and profit, applies your experience modification (a multiplier on your price based on your claims history), a credit or charge for your safety record, and sometimes a year-end dividend. That is four places where the same crew gets priced differently.
A national illustrative example, not Texas filed rates: four quotes for the same plumbing contractor, on the same payroll and the same job categories.
| Quote | Premium before credits | Credits, charges, dividend | Illustrative real cost |
|---|---|---|---|
| Insurer A (current) | $18,400 | None | $18,400 |
| Insurer B | $16,400 | 5 percent safety credit | $15,580 |
| Insurer C | $17,400 | Dividend averaging 8 percent in recent years | About $16,000 |
| Insurer D | $15,600 | 10 percent surcharge for a 2024 claim | $17,160 |
Four insurers, four answers, a spread of nearly $3,000 on the same payroll. Only a side by side comparison finds the low one. See what workers comp costs in Texas.
Is Texas Mutual the cheapest place to buy workers comp?
Not automatically. Texas Mutual Insurance Company, the state-created carrier, must insure any employer that pays the premium, so it is the answer when nobody else will quote you. It writes roughly 38 percent of the Texas market, per state data cited by Texas Mutual, and pays dividends to many policyholders. But the law also lets it charge more to an employer that falls below its normal standards. Texas has no separate assigned-risk pool, so treat Texas Mutual as one strong quote among several. If you are new to coverage, start with how to get workers comp in Texas.
What should I fix before I ask for quotes?
| Fix | Why it lowers the quote |
|---|---|
| Job categories | Office staff belong in the clerical category, which costs a small fraction of any trade. Estimators and project managers have their own, cheaper categories. Wrong categories inflate every quote you get. |
| Payroll estimate | Overestimate and you lend the insurer money all year. Underestimate and the premium audit (the insurer's year-end check of your real payroll) bites. Use last year's actual payroll adjusted for known changes. |
| Sub agreements | Sign DWC Form-085 or Form-083 with independent subs and collect certificates from insured ones, so their payroll is not added at audit. A Texas general contractor can instead buy the coverage for its subs and deduct the payroll-based premium from the subcontract price, using DWC Form-081 filed with its own insurer within 10 days of signing (Labor Code Section 406.123). |
| Owner status | An owner who stays in the office can be excluded by policy endorsement or rated clerical. Decide before the quote, not after. |
| Claims story | Send five years of loss runs (your claims history report) with a one paragraph note on any large claim and what changed since. |
Fix the categories and the payroll estimate first, then send one application to a broker who submits it to several Texas insurers at the same time, including Texas Mutual. Compare the real cost after credits, charges, and expected dividends, and ask about pay-as-you-go billing, where payroll is reported each pay period, so there is no large audit bill. Each fix is covered in more depth at how can I reduce my workers comp costs in Texas, and the national version is at how to find cheaper workers comp insurance.
Would going without workers comp be cheaper in Texas?
On paper, sometimes. In practice, for a contractor, rarely. Workers comp is elective in Texas: private employers may choose whether to buy it, and there is no employee-count threshold. An employer that goes without is a non-subscriber. It has to file DWC Form-005 with the state and post the state's notice for employees, and it gives up the legal defenses an employer normally has. If an employee sues, you cannot argue that the worker was careless, that he knew the job was risky, or that a coworker caused it. There is also one construction exception: a contractor or subcontractor on a building or construction contract for the State of Texas, a city, a county, a school district, or any other political subdivision has to certify in writing that it carries workers comp for every employee on that project (Labor Code Section 406.096).
So a non-subscribing contractor gives up public work, most general contractor work, and its main defenses in an injury lawsuit, to save a premium that shopping might have cut anyway. If a contract now requires coverage, a broker can usually have a policy in place within a week.
What this looks like in real life
Illustrative example. It is typical of what we see and is not a promise of how any specific situation would be handled.
The setup: A plumbing contractor in Corpus Christi has renewed with the same insurer for six years at about $20,800, illustrative. The office manager is rated as a plumber.
What went wrong: The owner assumes every Texas insurer charges about the same. The renewal quote arrives alone, and the state base number decreases in 2025 and 2026 never show up on his bill.
What it cost: A broker moved the office manager to clerical, gathered loss runs, and sent one application to four insurers. The low quote was about $15,700 after a safety credit, with pay-as-you-go billing. Saving: roughly $5,100 a year for the same coverage, illustrative.
The fix: When insurers mark up the same base numbers differently, one quote is not a price. It is one insurer's opinion.
Frequently asked questions
Q: How can I find cheaper workers comp insurance in Texas?
Compare quotes from several Texas insurers at once, because each marks up the same base numbers its own way. Fix your job categories, payroll estimate, and sub agreements first, then compare real cost after credits and dividends.
Q: Did Texas workers comp prices go down recently?
The base numbers insurers start from fell an average of 11.5 percent on July 1, 2025 and 3.8 percent on July 1, 2026, per the Texas Department of Insurance. What you actually pay depends on your insurer's markup, your claims history, and your categories.
Q: Is Texas Mutual cheaper than other insurers?
Sometimes, not always. Texas Mutual must insure any employer that pays the premium and often pays dividends, but it can charge more to an employer below its normal standards, so compare it side by side.
Q: What if no Texas insurer will quote me?
There is no separate plan of last resort in Texas. Instead the state requires Texas Mutual to insure any employer that pays the premium and any accident prevention service fee it charges. A hard account still gets written, but at a higher price.
Q: Would I save money by becoming a non-subscriber in Texas?
Rarely, for a contractor. Going without means giving up your main defenses if an employee sues, public building work, and most general contractor work. Shopping the policy usually saves more than dropping it.
Q: How long does it take to switch workers comp insurers in Texas?
Usually a week or less once your application and loss runs are ready. Switching mid-year is possible, but the cleanest time is your renewal date, so start 60 to 90 days before.
How Morrow helps
Morrow is a licensed independent commercial insurance brokerage that works with contractors and trades every day. Comparing a Texas contractor's workers comp across several insurers, with categories and sub paperwork fixed first, is a service we provide at no charge.
- Free contract review. Send us the contract or bid documents and we mark up the insurance section in plain English, whether or not you buy anything from us.
- Free, instant certificates. Clients issue their own certificates of insurance online in about a minute, any hour, any day, at no charge.
- Markets you cannot reach online. One application, shopped across many insurance companies for general liability, workers comp, auto, umbrella, and pollution coverage.
One more thing. This article is general information and is not legal advice or a statement of coverage. Your contract and your policy wording control in every case. Requirements vary by customer, by state, and by insurance company, so have a licensed advisor review your own contract and your own policy before relying on any of it.
Last updated: Reviewed by the Morrow commercial lines team. Last updated September 2026.