Do You Need To Carry Workers’ Comp In Texas?


The answer to that question is no. Texas state law does not require all owners of private businesses to carry workers’ compensation. Private businesses that contract with the government, however, are required to cover the employees involved in the government project. In such cases, if those business contractors are also using independent contractors or subcontractors they may also require them to carry workers’ comp. Just because Texas state law does not require you to carry workers’ comp, however, doesn’t mean that you shouldn’t. Find out why you should carry workers’ comp in Texas.

Are You A Non-Subscriber?

What is a non-subscriber? It is an employer who does not carry workers’ compensation on their employees. If you choose not to carry workers’ comp, then you must take certain steps including:

  • Providing each employee with a statement of non-coverage
  • Posting non-coverage notices around the workplace and particularly in the personnel office
  • Filing notice with the Texas Department of Insurance Division of Workers’ Compensation (TDI-DWC) annually

More About Non-Subscribers

Employers who are non-subscribers are not legally protected. If for instance, an employee were injured on the job because the employer was negligent in some way and the employee filed a legal suit that proves the employers negligence, the employer can be found at fault and be required to pay for:

  • The employees legal expenses
  • Punitive damages
  • Financial damages for the employees pain and suffering

Why Carry Workers’ Comp?

If an employee is injured during work and the employer carries workers’ comp on their employees, the insurance will cover:

  • Financial costs for employee work-related illnesses and injuries
  • Lost income (up to a certain dollar limit and for a certain period of time according to state law) for a work-related injury or illness
  • Burial expenses in the case of a work-related death
  • Death benefits for employee dependents in the case of a work-related death

Carrying workers’ compensation insurance on your employees is a wise decision and can protect you from considerable and unexpected financial loss.


With over 20 years of experience in the insurance industry, the Jeff Van Matre Insurance Agency can help you choose the right coverage plan to protect your personal and business assets and put your mind at ease. To learn more, or to get a free quote,  call our Carrollton office today at 972-492-8500.