Core coverages in this program
- •Product Liability & Completed Operations
- •Commercial Property & Equipment Breakdown
- •Workers' Compensation
- •Business Income / Contingent Business Income
- •Product Recall Expense
- •Cargo & Inland Marine
- •Commercial Umbrella
Texas requirements for manufacturing businesses
Texas manufacturers operate under federal OSHA with TCEQ air and waste permitting. Texas is a comp-optional state, but nearly every OEM and big-box vendor agreement requires a subscribing workers' compensation policy plus vendors additional insured status.
Workers' compensation in Texas
Texas is the only state where private workers' compensation is optional. Going bare as a 'non-subscriber' removes the exclusive-remedy protection, which is why nearly every general contractor, landlord, and municipality requires subscription anyway. Rates are developed through TDI-approved carriers using NCCI class codes, and manufacturing payroll typically rates at $2 to $9 per $100 of payroll depending on machinery, materials, and whether fabrication or assembly dominates. Non-subscriber status must be reported to the Texas Department of Insurance annually and posted for employees. Most contracts override the choice — read the insurance exhibit before deciding to opt out.
What Texas operators actually pay in 2026
The ranges below reflect what KTL clients in Texas pay today for a small-to-midsize operation, adjusted for Texas rating. Your actual premium turns on payroll, revenue, loss history, and — more than anything — whether the risk was classified correctly to begin with.
| Coverage | What it covers | Typical TX annual cost |
|---|---|---|
| General & Product Liability | $1M/$2M, small manufacturer | $1,850 – $7,650 |
| Property & Equipment | Building contents, machinery, stock | $2,150 – $10,200 |
| Equipment Breakdown | CNC, presses, compressors, boilers | $600 – $2,700 |
| Business Income | 12-month indemnity period | $1,300 – $5,550 |
| Product Recall | First-party recall expense | $2,150 – $7,650 |
The Texas angle most brokers miss
Texas vendor agreements with national retailers require specific additional-insured wording and often $5M in limits. Winning the account is frequently an insurance question before it's a price question.
Exposures we underwrite for Texas accounts
Every submission we send out is built around the specific ways businesses in this class actually have claims. That is what separates a benchmarked program from a rate quote.
- •Product defect causing third-party injury or property damage
- •Machine guarding and amputation injuries on the floor
- •Equipment breakdown halting production for weeks
- •Supply-chain interruption from a key supplier's loss
- •Recall costs that dwarf the liability claim itself
Where we write in Texas
We serve Texas clients remotely by phone, email, and video — no office visit required — with concentrations in Houston, Dallas–Fort Worth, Austin, San Antonio, El Paso. New business, renewals, mid-term changes, and certificates are all handled directly by a licensed advisor rather than a call center.
Ready for a benchmarked quote?
A KTL specialist will shop your risk across multiple A-rated markets within one business day.