Why Every Texas Contractor Should Carry Workers’ Comp, Even if It’s Not Required

Chris Osullivan | Aug 01 2025 18:00

Why Every Texas Contractor Should Carry Workers’ Comp, Even if It’s Not Required

Protecting Your Crew and Your Business

 

Contractors across Texas know that job sites come with risks. From roofing accidents in Tomball to electrical mishaps on Houston commercial projects, injuries can happen even when safety protocols are in place. While Texas is unique in not requiring most private employers to carry workers' compensation insurance, that doesn't mean you should go without it. At O'Sullivan Integra, we help contractors understand the value of workers' comp and secure coverage that protects both their employees and their livelihood.

 

 

What Is Workers' Compensation Insurance?

 

Workers' compensation insurance is a policy that provides benefits to employees who suffer job-related injuries or illnesses. It covers:

 

  • Medical expenses related to treatment.
  • Lost wages during recovery.
  • Rehabilitation services to help workers get back on the job.
  • Employers' liability protection, shielding businesses from certain lawsuits.

In Texas, workers' comp is optional for many private employers. However, certain industries, contracts, and public projects may require it.

 

 

Why Workers' Comp Matters for Texas Contractors

 

Financial Protection

Without workers' comp, a serious workplace injury could leave your business paying out of pocket for hospital bills, surgeries, or long-term care. These costs can easily exceed six figures.

 

Legal Protection

Subscribing to workers' comp generally limits an employee's right to sue you for workplace injuries, protecting your company from costly litigation.

 

Competitive Advantage

Many general contractors, project owners, and municipalities require subcontractors to carry workers' comp before they're allowed on a job site. Having coverage ensures you don't miss out on lucrative projects.

 

 

Key Steps to Understanding Workers' Comp in Texas

 

  1. Evaluate Risk: Consider the type of work your crews perform. Roofing, electrical, and construction trades carry higher risk than office-based work.
  2. Know the Requirements: Even if not legally required, contracts may mandate coverage. Always review contract terms before bidding.
  3. Calculate Payroll: Premiums are based partly on payroll and job classification codes. The more accurate your payroll reporting, the fairer your rate will be.
  4. Work With an Independent Agent: At O'Sullivan Integra, we compare multiple carriers to secure competitive quotes and coverage that fits your operation.

 

 

Real-Life Scenarios Contractors Face

 

  • A roofing subcontractor in Houston has an employee fall from a ladder. With workers' comp, medical bills and lost wages are covered, and the business avoids a potential lawsuit.
  • A small landscaping crew in Cypress suffers heat-related illness during summer work. Workers' comp ensures quick access to treatment and wage replacement while the employee recovers.
  • An electrician working on a commercial build in Tomball is injured by faulty wiring. Workers' comp covers rehabilitation, allowing them to return to work sooner.

 

 

Common Challenges Contractors Encounter

 

  • Cost Concerns: Some small contractors avoid workers' comp due to cost, but even a single injury can cost far more than premiums.
  • Confusion About "Non-Subscriber" Status: In Texas, businesses that choose not to carry workers' comp must disclose this to employees, and they may face increased legal exposure.
  • Understanding Class Codes: Misclassification of employees can lead to higher premiums or denied claims. Guidance from an agent ensures accuracy.

 

 

How O'Sullivan Integra Supports Contractors

 

Our team specializes in helping Texas contractors navigate the unique landscape of workers' comp. We:

 

  • Assess your business risks and contract requirements.
  • Shop policies from multiple carriers to find competitive pricing.
  • Explain policy terms clearly, so you understand what's covered.
  • Provide ongoing support, including helping with audits and renewals.

With O'Sullivan Integra, you don't just get a policy-you get a partner who understands your trade and your needs.

 

 

Protect Your Business and Your Crew

 

Workplace accidents happen in every trade, and the financial and legal consequences of going without coverage can be devastating. Workers' comp provides peace of mind for both you and your employees.

 

Contact O'Sullivan Integra today to request a workers' compensation insurance quote. We proudly serve contractors in Tomball, Cypress, Houston, and across Texas, helping local businesses stay competitive and protected.