By Liberty Union Insurance Group, Inc. · Published · Updated
Does Texas require workers’ compensation?
Most private Texas employers may choose whether to subscribe, but exceptions and contract requirements matter. Government project work can require coverage. Ask Liberty Union Insurance Group, Inc. to review your employees’ work, locations and customer requirements before treating Texas’s general rule as your answer.
What does a non-subscriber give up?
Going without statutory workers’ compensation changes more than the premium. In an employee injury negligence lawsuit, a non-subscriber loses defenses based on the employee’s own negligence, assumed risk and a fellow employee’s negligence. That does not mean every injury automatically establishes employer liability; the facts and applicable law still matter.
TDI explains the legal protections associated with subscribing and the lawsuit exposure associated with alternatives. Review the decision with qualified Texas counsel as well as your insurance advisor.
Occupational accident coverage is a different product
An occupational accident plan is not statutory workers’ compensation. Buying one does not by itself restore subscriber protections. Compare the benefit schedule, exclusions, caps, defense provisions and who is insured. Avoid making a decision from the product name or monthly cost alone.
Ask for a written explanation of how an employee injury would be handled, how a lawsuit would be defended and where your business would retain costs. Also review reporting and employee-notice responsibilities with current DWC instructions.
Map the decision to your actual work
- Which tasks involve heights, machinery, lifting, driving or chemical exposure?
- Where do employees work, including temporary work outside Texas?
- Do contracts require statutory coverage or specific endorsements?
- How are subcontractors classified and documented?
- Who will coordinate immediate reporting, payroll records and return-to-work communication?
A practical next step
Bring your payroll by job duty, work locations, current policies and customer insurance requirements to Liberty Union. We can help frame the coverage conversation; counsel should address your legal obligations. Read the illustrative worker-fall story to connect the decision to a possible loss.
Questions business owners ask
Does having only a few employees eliminate the risk?
No. A small staff does not eliminate the possibility of a serious work injury. Legal requirements, contract obligations and the work performed all need review.
Can I use a general liability policy as a replacement?
Do not assume so. Employee injury exclusions and other policy provisions can leave a gap. Review workers’ compensation and employers’ liability specifically.
Sources and further reading
Educational information. Policy terms and applicable law control; this is not an individual coverage determination or legal opinion.