Do you know whether your Roanoke business really needs workers’ compensation insurance?
Have you considered the financial and legal risks of opting out in Texas, the only state where coverage is optional?
In this guide, you’ll learn exactly how Texas’s unique system works, what workers’ compensation covers, how much it costs, and the hidden risks of being a non-subscriber. You’ll also see practical safety strategies and coverage options tailored to Roanoke business owners.
Here’s what we’ll cover:
- Texas’s unique workers’ compensation landscape
- Who must carry coverage in Roanoke
- What workers’ comp really costs in Texas
- What it covers for your employees
- The serious risks of being a non-subscriber
- How safety programs can reduce costs
- Coverage options and key questions to ask insurers
- Recent legislative changes affecting Texas businesses
- How to decide if coverage is right for you
Understanding Texas’s Unique Workers’ Compensation Landscape
Texas is the only state where private employers can choose whether to provide workers’ comp. This creates both flexibility and risk.
- 83% of employees are covered by workers’ compensation—the highest in a decade.
- One-third of Texas employers are non-subscribers.
- About 75,000 non-subscriber claims are filed each year.
- As of July 1, 2025, the statewide average loss cost dropped 11.5%, lowering premiums for many employers.
Who Must Have Workers’ Compensation Coverage in Roanoke
While Texas doesn’t require most businesses to carry coverage, there are situations where it becomes mandatory:
- Government contractors – Coverage required for employees on public projects.
- Construction subcontractors – Many general contractors require proof of insurance.
- Client-driven requirements – Some clients demand coverage before doing business.
Most other Roanoke industries—retail, professional services, light manufacturing—can choose voluntarily. But choosing to go without coverage comes with major risks.
The True Cost of Workers’ Compensation in Texas
Average Costs
- Texas small business average: $32/month
- National average: $45/month
- Cost per $100 payroll: About $0.41
Example: Roanoke Retail Store
- Payroll: $200,000
- Classification Rate: 0.25%
- Annual premium: $500 (~$42/month)
Industry-Specific Rates
- Low risk (offices, retail): $0.20–$0.50 per $100 payroll
- Medium risk (light manufacturing): $1–$3 per $100 payroll
- High risk (construction, heavy manufacturing): $3–$8+ per $100 payroll
Rates vary, but for most Roanoke businesses, coverage is surprisingly affordable compared to potential risks.
What Workers’ Compensation Covers
Workers’ comp provides medical, income, and additional benefits for injured employees:
- Medical: ER visits, hospitalization, surgery, rehab, prescriptions, medical equipment.
- Income: Up to 70% of wages (temporary), permanent impairment benefits, lifetime benefits for catastrophic injuries.
- Additional: Vocational rehab, travel expenses, death and burial benefits.
For employees, it’s peace of mind. For employers, it’s protection against lawsuits.
The Hidden Risks of Being a Non-Subscriber
Choosing not to carry coverage removes key legal protections:
- You can’t argue employee negligence, assumption of risk, or co-worker fault.
- You face unlimited liability for damages.
Cost Example: Construction Back Injury
- With workers’ comp: ~$23,000 total
- Without workers’ comp: $300,000+ potential liability
That’s why even large companies like Walmart, Amazon, and Home Depot—who opt out—face constant litigation.
How Safety Programs Reduce Costs
Strong safety programs not only protect employees but cut workers’ comp costs dramatically:
- Safety training: Cuts injuries by 66%
- Regular inspections: Average 26% savings
- Return-to-work programs: Lower claim duration and expense
- OSHA training ROI: $4–$6 for every $1 invested
Texas Resources
- Texas Mutual Safety Grants – Funding for safety improvements
- Lone Star Safety Program – Recognition for exemplary records
For Roanoke employers, safety is both a financial and cultural investment.
Choosing the Right Coverage
Coverage Options
- Traditional guaranteed cost – Predictable premiums
- Pay-as-you-go – Payments tied to payroll
- Group policies – Discounts through associations
- Self-insurance – For larger employers
Key Factors to Consider
- Employee classification accuracy
- Coverage limits matching potential risks
- Carrier reputation for claims handling
- Payment flexibility
Questions to Ask Insurers
- What classification codes apply to my employees?
- Do you offer discounts for safety programs?
- How fast are claims resolved?
- What additional safety resources do you provide?
Legislative Updates Affecting Texas Employers
- 2025 rate reductions: 11.5% decrease effective July 1, 2025.
- Construction proposals: Ongoing discussions about mandatory coverage for contractors.
- Expanded first responder benefits: HB 331 extends coverage for heart attacks/strokes within eight hours of duty.
Making the Right Decision for Your Business
When Coverage Makes Sense
- You have employees in physical or public-facing roles.
- You want predictable insurance costs.
- You value lawsuit protection.
- Your contracts require it.
When to Consider Non-Subscriber Status
- Your workplace is extremely low-risk.
- You have resources to self-fund claims.
- You’re willing to accept unlimited liability.
But here’s the reality: With average monthly premiums of $32 and falling, most Roanoke employers find the peace of mind is worth the price.
The Bottom Line for Roanoke Business Owners
At the end of the day, Roanoke business owners face a pivotal decision: protect your employees and business with workers’ compensation—or risk financial devastation by going without.
You came here wondering whether workers’ comp is worth it. Now you know that coverage not only shields your business from lawsuits but also gives your team security if the unexpected happens.
At Neill Insurance, we specialize in guiding North Texas businesses through workers’ compensation decisions, comparing carriers, and helping you implement cost-saving safety programs.
Don’t wait until an injury tests your business’s future, take action now to protect what you’ve built.
