Workplace injuries are happening less often, but when they do occur, Houston businesses are seeing longer recovery times and much higher workers’ comp costs, especially from overexertion, slips and falls, and motor vehicle accidents. First-year and older employees are driving a disproportionate share of claims, which means onboarding and return‑to‑work planning matter just as much as the policy you buy. In Texas, where workers’ comp is optional and many employers operate as non‑subscribers, one serious injury can turn into a six‑figure lawsuit if the program is not structured correctly. A proactive safety culture, formal training for new hires, and a well‑designed workers’ comp or non‑subscriber program built with McDade Insurance can significantly reduce both claim frequency and financial impact.
The numbers are out, and they're worth paying attention to. Travelers—one of the largest workers' compensation insurers in the country—just released its 2025 Injury Impact Report, and the findings paint a clear picture: while workplace injuries are happening less often, they are costing businesses significantly more when they do occur.
For business owners in Houston and across the Greater Houston area, that's not just a national headline. It's a risk management conversation worth having right now.
Here's what makes the Travelers data so compelling. Over the past decade, the number of workers' compensation claims has declined—from 1.4 million claims in the 2015–2019 window down to 1.2 million in the most recent five-year period. On its surface, that sounds like good news.
But the costs tell a different story. Injured workers are now missing an average of 80 workdays per injury—an increase of more than seven days compared to the prior five-year period. When you factor in lost productivity, the cost of temporary replacements, OSHA compliance exposure, and potential litigation, a single workplace injury can become a serious financial event for any business.
And if you're in the construction, transportation, or manufacturing industries—all of which are deeply embedded in Houston's economy—the numbers are even more pronounced. Construction workers are missing an average of 114 days per injury. Transportation workers are out an average of 94 days. Those aren't just statistics. For a mid-size Houston contractor or logistics company, that kind of lost time can disrupt project timelines, client relationships, and bottom lines.
Two workforce trends are reshaping who is most likely to file a workers' comp claim, and both are directly relevant to businesses in the Houston metro.
First-year workers accounted for approximately 37% of all injuries and 34% of overall claim costs during the most recent five-year window in the Travelers report—a rise from the previous period. In industries like construction and restaurants, the numbers are even sharper. New hires in construction accounted for 44% of all injuries in the sector.
Think about what that means for a growing Houston business that's been onboarding new crews or front-of-house staff. The onboarding process isn't just an HR function—it's a liability management issue.
The other trend hitting employers hard is the aging workforce. Workers aged 60 and older now represent 16% of all lost-time claims, and when they are injured, they miss an average of 97 days—17 more days than the overall average. Older workers often deal with more complex recoveries, higher rates of fractures and dislocations, and longer rehabilitation timelines.
If your workforce includes experienced, long-tenured employees—which many Houston energy, healthcare, and professional services firms do—this is a risk factor worth building into your insurance strategy.
The Travelers data shows that the most common causes of workplace injuries are also the most expensive:
Slips, trips, and falls alone are responsible for a disproportionate share of catastrophic claims. For Houston businesses with warehouse operations, service vehicles on the road, or any outdoor work environment, these aren't abstract risks.
This is where the Texas conversation gets different from everywhere else in the country. Texas is the only state where private employers are not required to carry workers' compensation insurance. That gives businesses flexibility—but it also means some employers are taking on significant exposure without fully understanding it.
Approximately 22–24% of Texas businesses are currently operating as non-subscribers. For some, that's a deliberate, well-structured decision backed by an occupational injury benefit plan. For others, it's a gap in their risk management program waiting to become a problem.
Here's what non-subscriber status actually means legally: you lose the liability shield that subscribers have. If an injured worker sues a non-subscribing employer, Texas law prohibits the employer from using contributory negligence as a defense. That means even if the employee played a partial role in causing the injury, you can still be held fully liable. Non-subscribers in Houston can face lawsuit costs ranging from $150,000 to $275,000 per workplace injury claim, with no caps on liability.
That's a very different conversation than just comparing premium costs.
One detail from the Travelers report often flies under the radar: employees at small businesses miss an average of 86 workdays per injury—six days more than the overall average. When your team is already lean and every role matters, a single injury that sidelines a key employee for three or four months can have compounding effects on operations.
Many small and mid-size businesses in Houston—particularly those in the 10–100 employee range—are underinsured or operating with a basic workers' comp policy that hasn't been reviewed in years. If your business has grown, changed operations, or hired significantly since your last policy review, your current coverage may not reflect your actual exposure.
The Travelers report recommends three areas of focus for employers serious about reducing injury frequency and managing claim costs:
These aren't just feel-good recommendations. They directly affect your experience modification rate (EMR), which in turn affects your workers' comp premiums.
Do Houston businesses have to carry workers' compensation insurance?
No. Texas is the only state that makes workers' comp optional for most private employers. However, opting out as a "non-subscriber" comes with significant legal exposure—you lose liability protections and can be sued directly for workplace injuries.
What are the most common workplace injuries in Houston-area businesses?
Based on Travelers' claims data, overexertion, slips/trips/falls, and being struck by objects are the leading causes. Slips and falls drive the costliest claims—those exceeding $250,000.
Why are workplace injury costs going up even though injuries are declining?
Longer recovery times are the main driver. The average injured worker is now missing 80 workdays per injury—an increase of more than seven days compared to five years ago. Older workers and more complex injuries are adding to that trend.
How can I lower my workers' comp premiums in Texas?
Implementing a formal safety program, reducing your claims history, and working with a broker who can help you manage your experience modification rate (EMR) are the most effective levers. A risk management strategy built before injuries happen is far less expensive than managing claims after the fact.
What should I do if my workers' comp coverage hasn't been reviewed recently?
Schedule a policy review with a broker who understands your industry and your specific risk profile. Coverage needs change as businesses grow, and a policy that was adequate two years ago may not be now.
If you run a business in the Houston area and you're paying more than $100,000 a year in insurance premiums—or you're not sure whether your current coverage actually matches your risk—it's worth a conversation. At McDade Insurance, we work with businesses across the Greater Houston market to build insurance and risk management programs that are structured around your actual operations, not just a standard policy.
The data from Travelers is a clear signal: the cost of a single workplace injury is rising, and the gap between "covered enough" and "actually protected" is growing with it. Don't wait for a claim to find out where yours stands.
Contact McDade Insurance today to schedule a risk review for your Houston business.