Texas Mutual Insurance Company
Texas Mutual Insurance Company is the competitive state workers compensation fund in Texas, operating alongside private carriers. State funds typically serve as the carrier of last resort and also write voluntary policies for any qualifying employer. Verified 2026-05-09.
About Texas Mutual Insurance Company
Texas Mutual Insurance Company is the competitive state workers compensation fund in Texas, operating alongside private carriers. State funds typically serve as the carrier of last resort and also write voluntary policies for any qualifying employer.
State funds were originally created to ensure every employer can find workers comp coverage, even employers private carriers refuse to write. Texas preserved a competitive market, so the state fund competes with private carriers on price and service. Some employers prefer the state fund for stable rates and consistent claims handling; others prefer private carriers for industry specialization or pay-as-you-go billing.
Pricing on a state fund policy in Texas
State funds use the same NCCI class code rate filings as private carriers; the rate per $100 of payroll is the same. Differences come in at the schedule rating stage (where the underwriter applies discretionary credits or debits, capped at 25% in Texas) and the dividend programs (some state funds return a portion of premium to policyholders in good loss years).
Claims handling
Statutory benefits are set by Texas law and apply equally to state fund and private carrier policies. The state fund typically maintains its own in-house claims operation, while private carriers may use third-party administrators (TPAs). Some employers prefer the state fund for the consistency of a single in-state claims team; others prefer private carrier TPAs for specialization in their industry.
Related reading
FAQs
What is Texas Mutual Insurance Company?
Texas Mutual Insurance Company is the competitive state workers compensation fund in Texas, operating alongside private carriers. State funds typically serve as the carrier of last resort and also write voluntary policies for any qualifying employer.
Is Texas a monopolistic state for workers comp?
No. Texas is a competitive market where private carriers and Texas Mutual Insurance Company both write workers comp. The state fund typically serves as a carrier of last resort plus a voluntary writer for any qualifying employer.
Who is eligible to buy from Texas Mutual Insurance Company?
Texas Mutual Insurance Company typically writes any Texas employer the private market declines, plus voluntary submissions from employers who prefer the state fund for cost or service reasons. Some state funds have specialty programs for high-risk industries.
Who has to carry workers comp in Texas?
Workers' compensation coverage is generally optional for private employers in Texas.
What is the penalty for skipping coverage in Texas?
Must report to the state that they do not have coverage. Must also report to DWC any work-related injuries resulting in more than one day of lost time, as well as all work-related illnesses, and deaths.
What is the max weekly benefit on a Texas Mutual Insurance Company policy?
Statutory benefits are set by Texas law and apply equally on private and state-fund policies. The max weekly indemnity benefit is $1,271 (effective 2025-10-01), calculated as 70% of the average weekly wage.