Do you have to have Worker's Comp. or is Liability insurance enough?

Question

I started a small business in Texas, and need to know if it is required. Please help!!

Answer 1

If you have employees, you need WC.

Answer 2

It's not actually required that you have work comp coverages in Texas.  See the links below for details but basically, you have the right to opt out unless your business is a public entity.  You do still have to follow certain rules, like posting a notice that says you are not carrying WC coverage - again, see the links from the TX department of insurance for more info and it would probably be worthwhile to talk with your agent on the subject further.

Answer 3

Well, NEITHER is required by law, in Texas.  Yep, (I'm a licensed TX agent) Texas does NOT require you to carry WC for your employees, and you don't have to carry liability coverage, either.

HOWEVER.   If your employer is injured on the job, you are still on the hook for their lost wages and medical costs, EVEN IF YOU DON'T HAVE INSURANCE.   So it's kinda dumb to NOT carry the WC.  The more expensive the WC, the more likely that your employee will get injured.