Workers’ compensation decisions affect injury reporting, employee notices, contracts, and risk. Texas employers should confirm the current rules for their business rather than import a rule from another state.
Coverage is a choice in many cases
TDI says most Texas private employers are not required to carry workers’ compensation insurance, but exceptions include certain governmental-entity construction contracts and contractual requirements from a customer or contractor.[1] Whether an employer may decline coverage, and which exceptions apply, is a legal question for the business’s facts.
An employer that chooses coverage may generally buy from a licensed insurer, become certified to self-insure, or join an approved self-insurance group, subject to TDI-DWC requirements.[2] Review the declarations, payroll basis, classifications, locations, effective dates, and endorsements with the agent; a certificate is not a substitute for the policy.
Notice and reporting questions
If an employer carries coverage, TDI-DWC says it must provide written notice of coverage to new employees and post the required workplace notice; changes or termination of coverage also trigger notice duties.[2] If an employer does not carry coverage, TDI-DWC says it is a non-subscriber and must notify employees, post the required notice, and file the applicable notice with DWC.[3] The exact form, timing, and exceptions should be checked against current DWC instructions.
TDI-DWC also describes reporting duties for certain non-subscribers and for employers with coverage when an employee is injured.[3] Ask DWC which report and deadline apply to the facts; do not assume that every incident, worker, or contractor is treated the same.
Risk and legal review
TDI explains that workers’ compensation coverage can provide statutory benefits and generally limits an insured employer’s exposure to employee lawsuits, subject to Texas law and exceptions.[1] TDI also explains that a non-subscriber may lose those protections and face a direct lawsuit, but the rights, defenses, burdens, and remedies depend on the governing law and facts.[1] Those statements are educational summaries, not legal advice or a prediction about a claim.
Ashford note: Subscriber status, employee classification, independent-contractor questions, notices, reporting, and contract requirements require current TDI-DWC guidance and, when legal interpretation is needed, qualified counsel. This article is not a coverage determination.