Is workers comp required in Texas?

Not for most private employers, who can choose whether to carry it. Public employers must have it, and contractors on public building or construction projects must provide it for their employees on the project.

Is workers comp required for sole proprietors in Texas?

Most private Texas businesses, including sole proprietors, can choose whether to carry workers’ comp. A business that carries it can exclude a sole proprietor, partner or corporate executive officer by endorsement (Labor Code section 406.097). Contractors on public building or construction projects must cover their employees on the project.

What happens if workers comp lapses in Texas?

Employees must be told within 15 days after coverage ends or is canceled. An employer without coverage must notify the Division of Workers’ Compensation and cannot use certain defenses in an injury lawsuit.

Texas · Workers’ comp

Texas workers’ comp requirements

Most private employers in Texas can choose whether to carry workers’ compensation, but public employers must have it. Employers who carry it do so through an insurance company authorized in Texas or through self-insurance under the state’s rules.

This page is general information, not legal or insurance advice. InsuranceFinder doesn’t sell insurance, give quotes or take applications.

Official pages: Texas Department of Insurance, Division of Workers’ Compensation: Employer coverage; Texas Labor Code chapter 406

Who must carry it

All Texas governmental entities, such as public schools, cities, counties and utilities, must have workers’ comp.
Contractors on public building or construction projects must provide it for each employee on the project, and so must their subcontractors.
Other private employers can choose whether to carry it.

Official pages: Texas Department of Insurance, Division of Workers’ Compensation: Employer coverage; Texas Labor Code chapter 406

If you do not carry it (nonsubscribers)

Texas requires nonsubscribers to notify the Division of Workers’ Compensation in writing that they do not carry coverage.
Texas requires nonsubscribers to tell each new employee at hire whether they carry coverage, and to post a notice at the workplace.
Nonsubscribers with five or more employees who are not exempt must report deaths, injuries that cause more than one day away from work and occupational diseases to the division (DWC Form-007).
In an injury lawsuit, a nonsubscriber cannot defend by saying the employee was negligent, assumed the risk or was hurt by a co-worker’s negligence. The employee must still prove the employer was negligent.

Official pages: Texas Department of Insurance, Division of Workers’ Compensation: Employer coverage; Texas Labor Code chapter 406; Texas Administrative Code, 28 TAC section 160.2 (TDI rule adoption); Texas DWC Form-007: Employer’s report of nonsubscriber injury or illness

Employees and owners the law treats differently

Domestic workers, casual workers at a private home and farm or ranch employees (except those the law’s farm and ranch rules bring in) are not subject to the act. An employer can still choose to carry coverage for them.
A business that carries workers’ comp can exclude a sole proprietor, partner or corporate executive officer from its policy by endorsement. On public building or construction projects, only sole proprietors, partners and corporate officers who own at least 25% of the business can be excluded.

Official page: Texas Labor Code chapter 406

Starting or dropping coverage

Employers must tell employees within 15 days after coverage starts, ends or is canceled.
An employer that ends its coverage must file written notice with the division within 10 days after telling the insurance company.

Official page: Texas Labor Code chapter 406

Questions about this page

Is workers comp required in Texas?: Not for most private employers, who can choose whether to carry it. Public employers must have it, and contractors on public building or construction projects must provide it for their employees on the project.
Is workers comp required for sole proprietors in Texas?: Most private Texas businesses, including sole proprietors, can choose whether to carry workers’ comp. A business that carries it can exclude a sole proprietor, partner or corporate executive officer by endorsement (Labor Code section 406.097). Contractors on public building or construction projects must cover their employees on the project.
What happens if workers comp lapses in Texas?: Employees must be told within 15 days after coverage ends or is canceled. An employer without coverage must notify the Division of Workers’ Compensation and cannot use certain defenses in an injury lawsuit.
How do Texas employers get workers comp?: Through an insurance company authorized in Texas or through self-insurance under the state’s rules (Labor Code section 406.003).