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How much does a workers’ compensation bond cost in Texas?
The Texas Department of Insurance requires that all qualified claims servicing contractors be bonded in an amount of $250,000 prior to conducting business. Workers’ compensation bonds are strictly underwritten. However, highly qualified applicants may be approved for as little as 3% of the total bond amount.
Ready to get bonded quickly, easily and accurately? Call 1 (800) 308-4358 or apply for your free bond quote now!
Why do I need this bond?
By posting a Texas bond of administrator or service company for a workers’ compensation self-insured group, principals guarantee to perform all duties and obligations lawfully and ethically. If the principal fails to comply with these terms, the bond protects harmed parties from financial loss up to the full amount of the bond. The principal must reimburse the surety for all damages paid out.
What’s the fine print?
Bonds of administrator or service company for a workers’ compensation self-insured group in Texas remain in full force and effect. The surety can cancel the bond by giving written notice of cancellation to the Commissioner of the Texas Department of Insurance and the principal at least 60 days prior to the effective cancellation date.
How to become a workers’ compensation self-insured group in Texas
Associations of employers that wish to organize as workers’ compensation self-insured groups must submit an application to the Department of Insurance for a certificate of approval. Applications must be completed in full and include the following information:
- a statement that demonstrates all members of the group are in the same type of business
- copies of all documents relating to the governance, operation and organization of the association
- copies of all documents relation to the governance, operation and organization of the group
- projected financial statements from the group’s start of operations
- surety bond in the proper amount