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Workers' Comp Insurance for Contractors

Coverage for your crew, proof for your general contractors, and straight answers on what Texas, California and Nevada actually require.

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What Workers' Compensation Covers

Workers' compensation pays medical bills and part of lost wages when an employee is hurt on the job, and death benefits if the worst happens. It generally pays regardless of who was at fault.

Policies also typically include employers liability, which helps defend your business if an injury leads to a lawsuit. For a contractor, that combination protects both your people and your balance sheet.

It is also often the document that gets you on the job. General contractors commonly ask for a certificate of insurance before a subcontractor starts, and many want it to show specific limits or endorsements.

What Each State Requires

Texas

Most private employers can choose whether to carry workers' comp. Choosing not to has real consequences.

  • Non-subscribers must notify their employees and the state
  • Injured employees can sue, and the employer loses key defenses
  • Government construction projects require coverage

California

Every employer must carry it, even with one employee, and the Contractors State License Board can suspend a license without it.

  • C-8, C-20, C-22, C-39 and C-61/D-49 licenses need it even with no employees
  • All active licensees are scheduled to need it from January 1, 2028
  • Work during a suspension counts as unlicensed work

Nevada

Coverage is mandatory for employers with one or more employees, unless a statute excludes them.

  • Fines can reach $15,000, plus premium penalties
  • The state can order a business closed until it is insured
  • A principal contractor can be responsible for an uninsured sub's claim

Working Across State Lines

A crew that crosses into another state can create gaps a one-state policy does not address. Tell us where you are working before the job starts so we can check how your policy applies.

What Drives Your Premium

Premium starts with payroll and the classification codes assigned to your work. A roofer and a carpenter with the same payroll can pay very different amounts, so getting your crew classified correctly matters.

Your experience modification, or mod, then adjusts the price based on your claims history against similar businesses. It is calculated by NCCI in Texas and Nevada and by WCIRB in California, where a business qualifies for one.

After the policy term, carriers usually audit your actual payroll. Subcontractors without their own coverage can be added to your payroll at audit, which is the surprise bill many contractors run into. Collecting certificates from your subs up front is the simple way to avoid it.

We shop more than 100 carriers, including markets that focus on construction, and we can usually issue certificates the same day.

Frequently Asked Questions

Is workers' comp required for contractors in Texas?

Private employers in Texas can generally choose whether to carry it. Employers that opt out must notify their employees and the Texas Division of Workers' Compensation, and an injured employee can sue them without the employer being able to argue contributory negligence, assumption of risk or a co-worker's negligence. Contractors on building or construction projects for government entities must have coverage, and many general contractors require it by contract.

Do California contractors with no employees need workers' comp?

It depends on the license. C-8 Concrete, C-20 HVAC, C-22 Asbestos Abatement, C-39 Roofing and C-61/D-49 Tree Service licensees need it whether or not they have employees. Other licensees with no employees can currently file an exemption with the CSLB. Under current law, the requirement is scheduled to extend to all active licensees on January 1, 2028.

Is workers' comp required in Nevada?

Yes, for an employer with one or more employees unless a statute excludes them. Penalties for going without include fines up to $15,000, premium penalties and a possible order to close until insured. The uninsured employer is also responsible for the costs of a work injury.

Do I pay for my subcontractors on my workers' comp?

You can, if they do not carry their own coverage. Carriers commonly add uninsured subcontractors to your payroll at audit. Keep a current certificate of insurance on file for each sub to help avoid that charge.

How fast can I get a certificate?

Once a policy is in place, we can usually issue certificates the same day. Send us the certificate holder's details and any wording the contract requires.

Related coverage

Official sources

Written by Andrew Hallworth, Hallworth Insurance Services LLC, 101 Cooperative Way, Ste 510, Georgetown, TX 78626. Last reviewed November 2026.

This page is general information, not legal advice. Requirements change and coverage depends on your policy, so confirm the details for your business with us.

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