Texas private employers may generally choose whether to carry workers’ compensation insurance, while governmental entities must provide coverage. A private employer that does not provide workers’ compensation is commonly called a nonsubscriber, but that status is not an owner exemption. First determine whether the business is covered by a carrier, an approved self-insurance program, a governmental self-insurance pool, or has no workers’ compensation coverage; then evaluate the owner’s role and the employer’s separate reporting duties.
Verify the employer’s coverage choice
Check the policy or certified self-insurer record. If the company is a nonsubscriber, current DWC guidance requires notice to employees and DWC. Employers must post the no-coverage notice where workers can see it and provide written notice to new employees. The DWC-005 filing schedule includes an annual filing from February 1 through April 30, after hiring the first employee, and after a workers’ compensation policy ends; check current Employer E-File instructions for the exact trigger and deadline. Certain nonsubscribers with five or more employees must also report specified work-related injuries, illnesses, or deaths using DWC-007. Do not infer status from a missing certificate or contractor portal.
Separate owners from workers and contractors
An owner’s title does not alone settle employee status, coverage, or a customer’s contract requirement. Review the entity, ownership, actual services, payroll treatment, and policy terms. Occupational accident coverage or another contractual policy does not become statutory workers’ compensation. A nonsubscriber also has notice, reporting, and potential liability duties; the choice is not an exemption from all workplace obligations.
Keep evidence current
Maintain policy or self-insurance proof, nonsubscriber filings and notices when applicable, and the contract’s separate insurance requirements. Recheck status when the business hires, changes entity, or changes its coverage election. Use current TDI-DWC instructions or qualified counsel for a case-specific determination.
| Subscriber | Non-subscriber | |
|---|---|---|
| Coverage choice | Carries workers’ compensation coverage | Does not carry Texas workers’ compensation |
| Article-stated follow-up | Verify policy and covered workforce | Notice and reporting obligations apply |
| Owner question | Review whether the owner document fits the facts | Do not use an owner label to bypass worker classification |
A contract may require coverage even where state law permits a different status. Keep the state analysis and project insurance clause separate.