May 18, 2026

Learn about upcoming class code changes, rate reductions and more

We’re sharing several updates from the Texas Department of Insurance (TDI) and National Council on Compensation Insurance (NCCI), including:

  • Class code updates
  • NCCI general rate update
  • Texas workers' comp loss cost change
  • Market conditions

Keep reading to see what you need to know.

Class code updates

The following updates are applicable to policies effective on or after July 1, 2026.

New code for telecommuters: 8871

TDI has approved an amendment to NCCI's Basic Manual for Texas Classifications to establish standard exception class code 8871 for clerical telecommuter employees who:

  • Perform clerical work from home (or a remote office)
  • Telecommute more than 50% of the time
  • Are not included in another basic classification for the employer

Class code 8810 will continue to be used for clerical staff working at the employer’s physical premises.

Revisions to hazardous material remediation class codes: 5183, 5479 and 5474

TDI has approved an amendment to NCCI’s Basic Manual to replace Texas codes and phraseologies relating to hazardous material remediation services with multistate codes and phraseologies. Current Texas code and phraseology 5183 has been replaced with multistate code and phraseology 5472, and 5479 has been replaced with 5473. Additionally, the current Texas phraseology for code 5474 has been replaced with the multistate phraseology of the same code.

NCCI general rate update

To increase workers’ comp pricing precision, NCCI has implemented a shift to three decimal places for loss costs, rates and expected loss rates. Starting July 1, 2026, you’ll see three decimal places for rates on quotes and policies.

Texas workers’ comp loss cost change

TDI has approved the National Council on Compensation Insurance’s (NCCI) recommended loss cost filing for Texas policies effective on or after July 1, 2026. According to the filing, the statewide average loss cost is expected to decrease by 3.8%. Actual premium for individual employers will differ based on their assigned classifications and other factors.

This means many new and renewal policies with Texas Mutual could see rate decreases. As an agent, you can see these lower rates in our system by submitting your quote online.

Market conditions report

We’re proud to announce that Texas Mutual remains a stable source of workers’ compensation as well as the top provider in the state with 38.1% of the market, according to TDI’s 2025 market conditions report (PDF 1741KB). It’s thanks to our hard-working agent partners, like you, that we’re able to deliver on our mission and lead the market in providing a competitive product.

Get your clients the best workers’ comp coverage

If you still have clients that aren’t benefiting from our outstanding service, we encourage you to get them a quote today! We’re ready to help you provide them with competitive pricing, unequaled dividend potential, valuable safety resources and so much more.

We’re here to help

As your workers’ compensation partner, we’re committed to keeping you up to date on the latest industry, regulatory and safety news to help you serve your clients and support your agency’s success. If you have any questions about these topics, please reach out to your Texas Mutual territory manager or underwriter.

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