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Texas workers' compensation insurance: Your guide to requirements and getting a policy
If you’re a Texas employer looking to protect both your business and your team, you’re in the right place. At Beyond, we provide the essential information you need to understand how workers’ compensation works and how to stay compliant in 2026.
If an employee is injured or becomes ill on the job (and is unable to work for an extended period), workers’ compensation insurance can provide medical care and partial wage replacement during recovery. For employers who choose to carry coverage, workers’ comp can also help reduce legal exposure—because the system generally provides an exclusive remedy for covered, work-related injuries (with limited exceptions under Texas law).
Common benefit categories under Texas workers’ compensation include:
Texas is different from most states: most private employers are not required to carry workers’ compensation insurance. Instead, private employers generally may elect whether to subscribe (carry workers’ comp coverage) or not. Public employers and certain situations “as otherwise provided by law” may differ.
However, even when coverage is optional, some employers may effectively be required to carry workers’ comp for specific work—especially where government contracts or public construction projects require it. For example, Texas law requires certain building or construction contractors on public projects to certify that they provide workers’ compensation coverage for employees working on the public project.
If you do not carry workers’ compensation coverage (a non-subscriber), Texas rules typically require employers to:
• File the appropriate non-subscriber notice with the state (commonly DWC Form-005, depending on your situation).
• Provide written coverage-status notices to employees at hire and when coverage status changes.
• Post the required workplace notice(s) (including Notice 5 for non-subscribers, and related posting/notice requirements).
Official employer overview.
Coverage is generally elective (Texas Labor Code § 406.002).
Required coverage for certain public construction contractors (Texas Labor Code § 406.096).
Non-subscriber employer notice form (DWC Form-005 landing).
Non-subscriber required posting notice (Notice 5)
Coverage-status notice to employees (Notice 6).
Private carriers
Employers who decide to subscribe should purchase workers’ comp coverage through an insurer authorized to write workers’ compensation in Texas. For coverage verification and related employer resources, use the official Texas Department of Insurance pages.
Self-insurance / group self-insurance (where applicable)
Some employers may qualify for self-insurance or group self-insurance, but these arrangements involve formal qualification and approval through Texas workers’ compensation authorities. Because eligibility and approval requirements can be technical, rely on official resources and counsel/insurance professionals for confirmation.
Because most private employers are not required to carry workers’ comp, Texas generally does not impose a blanket penalty solely for being a non-subscriber. That said:
If your business is working under a contract (especially with a government entity) that requires workers’ comp coverage, failure to maintain coverage may also create contract compliance and legal issues.
Non-subscriber reporting and guidance.
Consumer guide (includes government-contract note).
Employer reporting (subscribers with workers’ comp coverage)
When an injury results in an employee’s first day of absence from work due to the injury (or involves occupational disease reporting triggers), employers generally use DWC Form-001 (Employer’s First Report of Injury or Illness). The official form instructions specify the timeline for sending it.
DWC Form-001 (English).
DWC Form-001S (Spanish).
Employee notice and claim filing
Under Texas law, an employee (or someone on their behalf) generally must:
Notice of injury statute (Texas Labor Code § 409.001).
Claim filing statute (Texas Labor Code § 409.003).
Employee claim form (DWC Form-041).
Injured employee resources hub.
While Texas does not mandate workers’ compensation for most private employers, choosing coverage can still be a strong risk-management decision. For employees, it helps ensure medical care and income support after a work-related injury. For employers, it can help provide predictable claim handling and reduce certain types of legal exposure compared to operating without coverage.
Have questions about securing coverage for your business in 2026? The Beyond team is here to help.
