Workers Comp in Texas: Optional for Most Employers, With Strict Notices

The Texas Department of Insurance, Division of Workers' Compensation (DWC) regulates the system. This page uses DWC's employer resources page, its employer FAQ, its non-subscriber page and its coverage verification page, all read in October 2026.

Texas workers comp at a glance

Question	Texas answer (as of October 2026)
Must private employers carry it?	No, in most cases
Must public employers carry it?	Yes, all governmental entities
What coverage gives employees	Lost wages and medical benefits for work injuries
What coverage gives employers	Limits liability if an employee sues, except in fatal gross negligence cases
Employers without coverage are called	Non-subscribers

Why Texas is different

DWC states it plainly: in Texas, private employers can choose whether to carry coverage, and it isn't required in most cases. DWC says a policy provides lost wages and medical benefits to employees injured on the job and, except when gross negligence results in a death, limits your liability if an employee sues your business for damages. So the choice is a trade: pay premiums for that protection, or go without it and stay open to lawsuits. My workers' compensation guide explains how the system works in general.

If you don't carry coverage: the non-subscriber duties

Going without coverage doesn't mean doing nothing. DWC lists these duties for non-subscribers:

1. Post a notice of no coverage in the workplace, in English, Spanish and any other language needed, where employees see it regularly.
2. Give written notice of no coverage to every new employee.
3. File a non-subscriber notice with DWC every year between February 1 and April 30.
4. File the notice again after ending a Texas workers' compensation policy.
5. If you have five or more employees who aren't exempt from coverage, report work injuries with more than one day of lost time, work-related illnesses and deaths on DWC Form-007.

Form-007 reports are due no later than the seventh day of the month after the month when the death occurred, the employee was off work for more than one day because of the injury, or the employer learned about the work-related illness. DWC's Employer E-File tool lets non-subscribers file notices and reports online at any time.

If you do carry coverage: the subscriber duties

• Post the right workplace notice: notice 6 for a commercial insurer, notice 7 for a certified self-insurer or notice 10 for a self-insurance group member.
• Give new hires written notice of your coverage and of their right to reject it and keep their common law right to sue in district court.
• Tell employees within 15 days if your coverage ends or changes.
• File DWC Form-001 with your insurer within eight days of an employee being unable to work for more than one day because of an injury, or straight away for a work-related disease or death.

The insight: your insurer must help you prevent injuries

Here's a benefit many subscribers never use. DWC says insurance companies that sell workers' compensation policies must give their policyholders accident prevention services at no added cost. That includes surveys, consultations, recommendations, industrial hygiene services, claims history and accident analysis, and training. DWC also offers free workplace safety consultations through its OSHCON programme. If you're paying premiums, ask your insurer for these services.

Questions to settle before you decide

1. Do any contracts you sign, such as with public bodies or large customers, require you to carry coverage?
2. How many employees do you have who aren't exempt from coverage? Five or more triggers the injury reporting duty for non-subscribers.
3. Can the business carry the risk of an injured employee suing, without the liability limit a policy gives?
4. Who in the business will post notices, brief new hires and file the yearly notice on time?
5. If you buy a policy, will you use the insurer's accident prevention services?

Whatever you choose, write it down and brief every manager who hires staff, because the new-hire notice is due on the first day either way.

Self-insuring in Texas

Large private employers can apply to self-insure instead of buying a policy. DWC's FAQ says the application to TDI needs a non-refundable $1,000 fee, as of October 2026. Generally the employer must show a total unmodified Texas workers' compensation premium of at least $500,000, provide a security deposit, and show enough financial strength or a national premium of at least $10 million. This route is for large firms, not small businesses.

Checking another employer's coverage

DWC's coverage verification page explains how to check whether a business is a subscriber, a certified self-insurer or a self-insured government body. Subscriber lists are available on the Texas Open Data Portal. That's useful when you hire subcontractors and need to know whether their workers are covered.

Other workplace posters

Workers comp notices are only one set. DWC points employers to the Texas Workforce Commission's list of required postings from the Commission, the U.S. Department of Labor, OSHA and the EEOC. These posters are free from the agencies. Pay notices belong there too, and the Texas minimum wage guide covers the pay floor.

My verdict

In Texas you can skip workers' compensation insurance, but you can't skip the paperwork. Non-subscribers post notices, tell every new hire, file between February 1 and April 30 each year and report injuries. Subscribers get liability protection and free accident prevention help from their insurer, which is the part most small employers forget to claim.

Frequently asked questions

Is workers comp required in Texas?

Not for most private employers. Texas lets private employers choose. All governmental entities must have coverage.

What is a non-subscriber in Texas?

An employer that doesn't carry Texas workers' compensation insurance, or whose policy has ended.

When do Texas non-subscribers file their yearly notice?

Between February 1 and April 30 of each year, and again after ending a policy.

Do Texas non-subscribers have to report injuries?

Yes, if they have five or more non-exempt employees. Injuries with more than one day of lost time, illnesses and deaths go on DWC Form-007.

Does workers comp protect Texas employers from lawsuits?

Coverage limits an employer's liability if an employee sues, except when gross negligence results in a death.