In Texas, Texas Mutual and the private carriers all compete in the same open market, but they play different roles. Texas Mutual is a policyholder-owned mutual with a legal duty to be the state's insurer of last resort, so it must stay available even to hard-to-place employers. Private carriers such as The Hartford, AmTrust, and biBERK choose the business they want to write. For most businesses the smart move is to compare Texas Mutual against several private carriers rather than defaulting to any one of them.
Who this is for: Texas owners deciding between Texas Mutual and a private carrier, or trying to find the best home for a hard-to-place risk.
The short version
- Texas Mutual is the guaranteed option. Its last-resort mandate keeps it available to everyone.
- Private carriers pick their business. They can be very competitive for classes they want.
- Price goes both ways. Either can be cheaper depending on your class, size, and history.
- Dividends are a factor. Texas Mutual has a dividend history; some private carriers offer programs too.
- Compare, do not default. An agent can quote them side by side from one application.
Who each one is
Texas Mutual is the largest workers comp writer in the state and, by statute, the guaranteed insurer of last resort. It is owned by its policyholders and known for returning value through dividends when results allow. The private carriers are the rest of the competitive market: national and regional insurers like The Hartford, AmTrust, biBERK, Employers, and Berkshire Hathaway GUARD, each with its own appetite, pricing, and service model. None of them is obligated to write you the way Texas Mutual is.
Feature by feature
| Feature | Texas Mutual | Private carriers |
|---|---|---|
| Role in the market | Guaranteed insurer of last resort | Choose the business they write |
| Availability if declined elsewhere | Must remain available | Varies by carrier appetite |
| Pricing | Competitive, risk-based | Competitive, risk-based, varies by class |
| Dividends | Long history, subject to terms | Some offer dividend or safety-group programs |
| How you buy | Through an appointed agent | Through agents, some also direct |
| Best fit | Hard-to-place risks, and anyone it prices well | Classes a carrier actively wants to write |
When to lean toward Texas Mutual
If you have been declined, have a rough claims history, or work in a class carriers avoid, Texas Mutual's guaranteed availability is the point. It keeps you covered and compliant when the private market hesitates. For a clean, in-appetite risk, it still competes well, but so do the private carriers, which is why you compare. See what to do when you cannot find coverage if you are getting declined.
When a private carrier may win
For a business a private carrier actively wants, that carrier may offer a sharper price, a better package, or service features that fit your operation. The only way to know is to put the quotes next to each other. An independent agent markets one application to Texas Mutual and several private carriers at once, so you decide on real numbers. Our how to get coverage in Texas guide covers the process.
A quick Texas example
Illustrative, not a quote. A 20-employee plumbing company in Houston has a clean record. An agent quotes Texas Mutual and three private carriers from one application. A private carrier comes back lowest this year, with Texas Mutual close behind and a dividend history worth weighing. The owner picks the private carrier but keeps the comparison on file for renewal. A year later, after a claim, the agent re-shops and Texas Mutual becomes the better home. Same business, different winner each year, because they compared. Trade detail is on our workers comp for contractors and trades page.
Real questions Massachusetts owners ask
What is the difference between Texas Mutual and a private carrier?
Texas Mutual is a policyholder-owned mutual with a legal duty to be the state's insurer of last resort, so it must remain available even to hard-to-place employers. Private carriers like The Hartford, AmTrust, and biBERK choose the business they write. All compete in the same open Texas market.
Is Texas Mutual cheaper than private carriers?
Sometimes yes, sometimes no. It competes on price and has a history of policyholder dividends, but private carriers can be more competitive for certain classes. We do not promise a number; the right answer comes from having an agent compare quotes for your specific business.
Which private carriers write workers comp in Texas?
Many. Common names include The Hartford, AmTrust, biBERK, Employers, and Berkshire Hathaway GUARD, among others. An independent agent can market your business to several at once and put Texas Mutual in the same comparison.
If Texas Mutual is guaranteed, why use a private carrier at all?
Because a private carrier may offer a better price, package, or service for your particular class or size. Texas Mutual's guarantee matters most when you have been declined; when you are insurable, the whole market is worth comparing.
Can I get Texas Mutual and a private carrier quote at the same time?
Yes. An independent agent can quote Texas Mutual alongside private carriers from one application, so you see the options side by side rather than applying one at a time.
Does Texas Mutual pay dividends and do private carriers?
Texas Mutual has a long record of policyholder dividends when results allow, subject to its terms. Some private carriers offer dividend or safety-group programs too. Dividends are never guaranteed, so weigh them alongside base price and service.
I have a rough claims history. Who should I go with?
Start with an agent who can market the account, including to Texas Mutual, whose last-resort mandate keeps it available for difficult risks. As your record improves, re-shopping the private market often brings the price down.
Why Texas owners choose Morrow
- We shop the whole Texas market for you. Texas has an open, competitive private market, plus Texas Mutual Insurance Company as the guaranteed insurer of last resort. We market your business to private carriers first, so the last-resort option is a floor, not your only choice.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a client before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Texas guides
Every Texas business is set up a little differently. These companion guides answer the same coverage question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Texas (start here)
- Texas workers comp: the owner's overview
- How do I get workers comp in Texas?
- How much does workers comp cost in Texas?
- What happens if I go without workers comp?
- My workers are 1099: do I still need it?
- I'm a sole proprietor: do I need it?
- I own an LLC: do I need workers comp?
- I own a corporation: do I need it?
- What insurance do I need for contracting work?
- Does Texas have a state workers comp fund?
- Texas Mutual: the insurer of last resort
- Can't find workers comp anywhere in Texas?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- What is an experience mod, and how do I lower it?
- Workers comp vs employers liability
- Workers comp for contractors and trades
This guide is general information, not legal advice. Texas rules and carrier practices can change, so verify current requirements with the Texas Department of Insurance, its Division of Workers' Compensation, or a licensed advisor before you rely on them. Last updated: September 2026.