Short answer. Private employers choose whether to carry it. Employers without it are non-subscribers and must file notices and post a notice of no coverage.
At a glance
- Who must carry it
- Private employers choose whether to carry it. Employers without it are non-subscribers and must file notices and post a notice of no coverage.
- Owners and officers
- If the business has coverage, a sole proprietor, partner or corporate executive officer is covered as an employee unless specifically excluded by a policy endorsement (Labor Code 406.097, as quoted by TDI).
- Independent contractors
- For the contractor rules in Labor Code Subchapter G, an independent contractor must be paid by the job, not by the hour or another time-based measure, among other tests (section 406.141).
- Self-insurance
- Some employers may be certified by TDI to self-insure.
- Going without
- Going without coverage isn't itself penalized on the pages we read, but a non-subscriber that doesn't file the notice of no coverage (DWC Form-005) or doesn't tell new employees in writing may face administrative penalties (Labor Code 406.004 and 406.005).
- Workplace notice
- Covered employers post Notice 6 (commercial insurance), Notice 7 (certified self-insurer) or Notice 10 (self-insurance group). Non-subscribers post Notice 5, in English and Spanish, and tell new hires in writing.
- Check a policy
- Use the division's Verify employer coverage page. Open the lookup
- Agency
- Texas Department of Insurance, Division of Workers' Compensation
In the agency's words
The rule
"In Texas, private employers can choose whether to provide workers' compensation insurance coverage."
Owners
"unless the sole proprietor, partner, or corporate executive officer is specifically excluded from coverage"
Contractors
"paid by the job and not by the hour or some other time-measured basis"
Going without
"An employer who does not file the form may face administrative penalties."
Notice
"If you have coverage through a commercial insurance company, use notice 6."
Three example businesses
What the stated rule says for three common setups:
- 2 employees, most businesses (not construction), llc: Your choice (private employers). See why
- 4 employees, construction, corporation: Your choice (private employers). See why
- 6 employees, most businesses (not construction), sole proprietor: Your choice (private employers). See why
Your own numbers: open the checker for Texas.
Worth knowing
Non-subscribers file a notice of no coverage each year between February 1 and April 30; those with five or more employees also report lost-time injuries.
Official sources
- Employer FAQ (Texas Department of Insurance, DWC) (checked November 2026)
- Employer E-File online reporting (non-subscribers, Texas DWC) (checked November 2026)
- Exempt filing notification on Manual Rules V and IX (Texas Department of Insurance, 2006) (checked November 2026)
- Texas Labor Code Chapter 406 (Texas Legislature) (checked November 2026)
- Employers without coverage (non-subscribers), Texas DWC fact sheet (updated 08/2022) (checked November 2026)
General information, not legal or insurance advice; we are not lawyers or insurance agents. Rules as published on the pages above, checked November 2026. We don't recommend or sell any insurer; the agency or a licensed agent can say how a rule applies to your business.
Common questions
Who has to carry workers' comp in Texas?
Private employers choose whether to carry it. Employers without it are non-subscribers and must file notices and post a notice of no coverage. The agency puts it as "In Texas, private employers can choose whether to provide workers' compensation insurance coverage."
Do owners and officers need coverage in Texas?
If the business has coverage, a sole proprietor, partner or corporate executive officer is covered as an employee unless specifically excluded by a policy endorsement (Labor Code 406.097, as quoted by TDI).
What about independent contractors in Texas?
For the contractor rules in Labor Code Subchapter G, an independent contractor must be paid by the job, not by the hour or another time-based measure, among other tests (section 406.141).
What happens to a Texas employer with no coverage?
Going without coverage isn't itself penalized on the pages we read, but a non-subscriber that doesn't file the notice of no coverage (DWC Form-005) or doesn't tell new employees in writing may face administrative penalties (Labor Code 406.004 and 406.005).
What notice must a Texas employer post?
Covered employers post Notice 6 (commercial insurance), Notice 7 (certified self-insurer) or Notice 10 (self-insurance group). Non-subscribers post Notice 5, in English and Spanish, and tell new hires in writing.
Can an employer self-insure in Texas?
Some employers may be certified by TDI to self-insure.
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