Workers Comp Insurance for Barbershops in Texas: Requirements and Average Costs

Texas is the only state in the country that does not require most private employers to carry workers comp insurance. Texas barbershop owners can legally operate without workers comp coverage. However, barbershops that opt out of the Texas workers comp system (known as "non-subscribers") lose tort liability protections and face unlimited civil liability for employee injuries. Most Texas barbershops with employees choose to carry workers comp for this reason.

Quick Answer

Estimated workers comp premiums for Texas barbershops:

Barbershop Type	Estimated Annual Workers Comp Premium
Solo barber or owner-only shop	Not required
Small barbershop (1 to 3 employees)	$800 to $2,000 per year
Mid-size barbershop (4 to 8 employees)	$1,800 to $4,500 per year

Texas barbershop workers comp premiums are near the national average for states where coverage is carried voluntarily.

What Workers Comp Covers for Texas Barbershops

Medical Benefits

Covers medical treatment, hospitalization, and rehabilitation costs for employees injured on the job:

• A barber cuts a hand while shaving a client and requires stitches
• An employee slips on a wet floor and fractures a wrist
• A barber develops a repetitive stress injury from cutting

Lost Wage Benefits

Covers a portion of wages for employees unable to work due to a work-related injury or illness.

Permanent Disability Benefits

Covers employees with permanent partial or total disability resulting from a work-related injury.

Death Benefits

Covers funeral expenses and survivor benefits if a work-related injury results in death.

Texas-Specific Considerations

Texas Non-Subscriber Status

Texas barbershops that opt out of the workers comp system are known as non-subscribers. Non-subscribers lose the exclusive remedy defense that prevents employees from suing the employer in civil court. A non-subscriber faces unlimited civil liability for employee injuries and cannot assert contributory negligence as a defense. Most barbershops with employees find workers comp more cost-effective than non-subscriber civil exposure.

Texas Department of Insurance - Division of Workers Compensation

Texas employers who elect to carry workers comp coverage are regulated by the Texas Department of Insurance Division of Workers Compensation (TDI-DWC). File a Notice of Coverage with TDI-DWC when you elect coverage.

NCCI Class Code 9586

Texas barbershops are classified under NCCI class code 9586 (Barber or Beauty Parlor). Payroll for all barber and stylist employees is rated under this code.

Booth Rental Barbers

Texas barbers renting booth space as independent contractors are generally not covered under the shop owner's workers comp policy. Confirm worker classification status with your carrier and legal counsel.

Frequently Asked Questions

Does Texas require workers comp insurance for barbershops?

No. Texas is the only state that does not require most private employers to carry workers comp. Barbershops may elect to carry coverage but are not mandated to do so.

What happens if a Texas barbershop is a non-subscriber?

Non-subscribers lose tort liability protections and face unlimited civil liability for employee injuries. Employees can sue in civil court without the exclusive remedy limitation that applies to workers comp subscribers.

What NCCI class code applies to barbershops in Texas?

Class code 9586 (Barber or Beauty Parlor) is the standard NCCI code for barbershop employees in Texas.

Does workers comp cover booth rental barbers in Texas?

Not automatically. Independent contractor booth renters are generally not covered under the shop owner's workers comp policy. Confirm worker classification with your carrier and legal counsel.

How much does workers comp cost for Texas barbershops?

Small Texas barbershops with 1 to 3 employees typically pay $800 to $2,000 per year, depending on payroll, claims history, and carrier.

Disclaimer

This article is for informational purposes only and does not constitute insurance or legal advice. Coverage details and costs vary by carrier and individual circumstances. Consult a licensed insurance agent for guidance specific to your situation.

Sources

• Texas Department of Insurance Division of Workers Compensation
• National Council on Compensation Insurance
• Insurance Information Institute
• Professional Beauty Association