2019 Premium Overview for Texas Employers
In 2019 Texas workers' compensation premiums averaged $1.38 per $100 of payroll, but rates varied sharply by industry classification and experience rating. Employers in high‑risk sectors such as construction paid upwards of $4.20, while low‑hazard offices often saw rates below $0.70. The state's non‑mandatory system means each employer negotiates directly with private insurers, so the exact cost depends on the company's loss history, safety programs, and the insurer's underwriting criteria.
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How Classification Affects the Rate
Every job is assigned a NCCI classification code that determines the base rate. Below is a snapshot of typical 2019 base rates for common Texas classifications:
| Classification | Base Rate (per $100 payroll) | Typical Industry |
|---|---|---|
| 5401 – Office Employees | 0.66 | Administrative, clerical |
| 5406 – Retail Sales | 1.12 | Stores, boutiques |
| 5410 – Construction – General | 4.21 | Residential, commercial building |
| 5425 – Manufacturing – Metal | 2.84 | Fabrication, machining |
| 5430 – Transportation – Trucking | 2.37 | Freight, delivery services |
Experience Rating: The Adjuster of Cost
Texas insurers apply an experience modification factor (EMF) that rewards safety or penalizes frequent claims. An EMF below 1.00 reduces the base premium, sometimes by 20 % or more, while an EMF above 1.00 can increase costs proportionally. Companies that invested in injury‑prevention training, ergonomic assessments, and swift claim handling typically secured lower EMFs in 2019.
Statewide Trends Influencing 2019 Rates
- Growth in the energy sector drove modest premium increases for related classifications.
- Improved safety technology (wearables, telematics) helped some insurers offer discounts.
- Legislative stability kept the underlying rating formula unchanged from 2018, limiting abrupt spikes.
Choosing a Carrier in Texas
Because coverage is optional, employers compare carriers on price, claim‑handling speed, and value‑added services such as return‑to‑work programs. In 2019, the largest private carriers—Travelers, The Hartford, and Chubb—held the majority of market share, but regional insurers often provided more flexible EMF adjustments for niche industries.
Practical Steps for Employers
To manage 2019 rates effectively, Texas businesses should:
- Verify that each employee is correctly classified; mis‑classification can inflate premiums.
- Review the EMF report and address any claim patterns that raise the factor.
- Invest in documented safety initiatives that insurers can recognize during rating.
- Shop quotes annually, even if the same carrier was used previously.