Workers Comp Insurance for Landscapers in Texas: What the Law Requires

Texas is the only state in the country where private employers can choose not to carry workers compensation insurance. For landscapers, this creates a genuine choice: subscribe to workers comp and get statutory protection, or opt out and become a non-subscriber. The right answer depends on who your clients are, how many people you employ, and how much personal financial risk you are willing to accept.

Quick Answer

Texas workers comp costs for landscaping companies:

Business Size	Annual Premium Range
1-3 employees	$2,500 to $5,000 per year
4-10 employees	$5,000 to $12,000 per year
10-25 employees	$12,000 to $28,000 per year

Premiums are based on payroll, not headcount. Landscaping class codes (NCCI 0042 for landscaping, 0050 for tree pruning) carry moderate to high rates reflecting the physical risk of outdoor work with power equipment.

The Texas Non-Subscriber System Explained

Texas allows private employers to opt out of the state workers comp system. A non-subscribing employer does not provide workers comp benefits but also does not pay workers comp premiums. At first glance, this sounds like a cost savings. The risk is significant.

Non-subscribers lose three major legal protections:

1. Fellow-servant defense: Workers comp bars employees from suing employers for most on-the-job injuries. Non-subscribers lose this protection. A landscaping employee injured by a negligent co-worker can sue the employer directly.

2. Assumed risk defense: Under workers comp, employees generally accept the inherent risks of their job. Non-subscribers cannot use assumed risk as a defense in a negligence lawsuit.

3. Contributory negligence defense: Workers comp replaces negligence-based claims with no-fault benefits. Non-subscribing employers can be sued for negligence, and the employee does not need to prove the employer was fully at fault to recover.

For a landscaping company with multiple employees using chainsaws, riding mowers, and chemical applicators, non-subscriber status creates substantial lawsuit exposure.

What Workers Comp Covers for Texas Landscapers

If you subscribe to Texas workers comp, the policy covers:

Medical Benefits

All reasonable and necessary medical treatment for work-related injuries or illnesses, including emergency care, surgery, physical therapy, and prescription medications.

Income Benefits

• Temporary income benefits: approximately 70% of pre-injury average weekly wage during recovery
• Impairment income benefits: paid based on the impairment rating after maximum medical improvement
• Supplemental income benefits: for workers with significant permanent impairment
• Lifetime income benefits: for catastrophic injuries

Death Benefits

Burial expenses and income benefits for surviving dependents.

Common Landscaping Injuries Covered

• Lacerations from mower blades, edgers, and pruning equipment
• Back and shoulder injuries from lifting, bending, and equipment operation
• Heat stroke and heat exhaustion from outdoor work in Texas summers
• Chemical exposure from pesticide and herbicide application
• Eye injuries from debris and chemical splash
• Equipment rollovers and falls

Texas-Specific Rules

Reporting Requirements

Texas landscaping employers who choose not to carry workers comp must file an annual report with the Texas Division of Workers' Compensation (DWC) indicating non-subscriber status. Failure to file this report is itself a violation.

Commercial Contract Requirements

Most large commercial landscaping contracts in Texas require workers comp as a contract condition, regardless of whether it is legally required. Property management companies, HOAs, commercial real estate operators, school districts, and municipalities will not sign a landscaping contract with a non-subscribing company. If you want to bid on commercial landscaping contracts, workers comp is effectively required.

Immigration and Labor Law Context

Texas landscaping employers use a significant percentage of workers who may be in various immigration statuses. Workers comp applies to all employees regardless of immigration status under Texas law.

NCCI Class Codes for Landscaping in Texas

The standard NCCI class codes used for landscaping in Texas:

• 0042: Landscaping (lawn care, mowing, maintenance)
• 0050: Tree pruning, trimming, and removal

Workers doing pesticide application may be rated under a different code depending on the carrier.

How to Get Coverage

Texas landscaping employers seeking workers comp will be asked for:

• Business name, years in operation, and county of primary work
• Annual payroll per employee, broken down by job function
• Number of full-time and seasonal workers
• Types of work: mowing and maintenance, installation, tree work, chemical application
• Claims history for the past three to five years

Frequently Asked Questions

Is workers comp legally required for Texas landscapers?

No. Texas is the only state where workers comp is optional for private employers. However, non-subscribing employers lose critical legal defenses and face personal liability for worker injury lawsuits. Most commercial landscaping clients require workers comp as a contract condition regardless of state law.

What is the biggest risk of being a non-subscriber?

A seriously injured landscaping employee can sue a non-subscribing employer directly for negligence without needing to prove fault. In Texas, a catastrophic injury claim, such as a mower accident that causes permanent disability, can result in a multi-million dollar lawsuit that an uninsured employer must defend and potentially pay personally.

How are Texas workers comp premiums calculated?

Premiums are based on your total payroll, the applicable class code rate (per $100 of payroll), and your experience modifier. A new business starts with a 1.00 experience modifier. Safe operations over time reduce the modifier below 1.00, lowering premiums.

Do seasonal workers count toward my payroll calculation?

Yes. All W-2 employee payroll, including seasonal workers, is included in the workers comp premium calculation. Contractors paid on a 1099 basis are generally not included, but Texas law scrutinizes 1099 classifications in landscaping carefully.

Can non-subscribers provide an alternative benefit plan?

Some Texas non-subscribing employers set up occupational accident insurance or employer-funded benefit plans as an alternative to workers comp. These plans do not provide the same protections as statutory workers comp and do not restore the legal defenses that non-subscriber status removes. Consult a Texas employment attorney before relying on an alternative plan.

Disclaimer

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

Sources

• Texas Department of Insurance
• Texas Division of Workers' Compensation
• NAIC