Insurance
Texas workers’ comp nonsubscribers: what the Division requires
Key takeaways
- Most private employers in Texas may choose whether to provide workers’ compensation coverage. Employers that do not are called nonsubscribers.
- Nonsubscribers must notify their workers (post a notice of no coverage, and give written notice to new employees) and file notices with the Texas Division of Workers’ Compensation.
- The official DWC page, retrieved November 13, 2026, says to file notice of no coverage after hiring the first employee, between February 1 and April 30 of each calendar year, and after ending a Texas workers’ compensation policy.
- General contractors and public-work contracts may still require coverage even when the statute allows a private employer to opt out. Choosing not to subscribe is not legal or insurance advice, and this page does not recommend that you go without coverage.
On this page
The official source for the process on this page is the Texas Department of Insurance, Division of Workers’ Compensation, Employer E-File / nonsubscriber page, retrieved November 13, 2026. DWC’s current page describes Employer E-File as the online reporting tool for nonsubscriber notices and for reporting workplace injuries, illnesses, and deaths as Texas law requires.
What a nonsubscriber is
The official page states that in Texas, private employers can choose whether to provide workers’ compensation insurance coverage. Employers that choose not to, or that end a policy, are nonsubscribers from the date coverage ends. That choice does not remove every duty. It also does not control what a general contractor, owner, or public-work contract may require as a condition of the job.
Notices to workers
Employers that do not provide Texas workers’ compensation coverage must, according to the official page, notify their workers by posting a notice of no coverage in the workplace in English, Spanish, and any other language as needed; placing the notice where employees can see it regularly; and giving written notice of no coverage to new employees.
Notices to the Division
The official page says an employer who does not have Texas workers’ compensation insurance, or that ends coverage, must file notice of no coverage with DWC:
- between February 1 and April 30 of each calendar year;
- after hiring the first employee; and
- after terminating a Texas workers’ compensation policy.
The same page also describes reporting work-related injuries, illnesses, and deaths with more than one day of lost time: required for employers with five or more employees, and due within one month and seven days from the date of death, knowledge of the work-related illness, or after lost time began. The page cites Texas Labor Code sections 406.004, 406.005, 406.007, and 411.032, and Texas Administrative Code 28 TAC 160.2 and 28 TAC 110.101, Subchapter B. Use Employer E-File or the Division’s current instructions; this website does not file notices for you.
This page follows the live TDI wording. It does not restate an older “30-day” filing shorthand that is not on the current nonsubscriber page.
If you choose to carry coverage
Carrying a policy is a voluntary choice for most Texas private employers, but it can be a contract requirement. If you do buy coverage, get a quote from a licensed agent or an authorized carrier. We do not recommend a specific insurer, and we do not quote or bind a policy. Payroll setup, if you have a W-2 hire, is a separate step from the insurance decision. In any event, confirm current filing rules on the official DWC page.
Frequently asked questions
Is workers' compensation required for a Texas contractor?
The official TDI DWC page says private employers can choose whether to provide coverage. Nonsubscribers still have notice and filing duties. A general contractor or public-work contract may require coverage anyway.
When does a Texas nonsubscriber have to file with DWC?
The official page says to file notice of no coverage after hiring the first employee, between February 1 and April 30 each year, and after ending a Texas policy. Use Employer E-File or the Division's current instructions.
Do I have 30 days to notify the Division after my first hire?
The current official nonsubscriber page, retrieved November 13, 2026, states the duty as filing after hiring the first employee, plus the annual February 1 to April 30 window and a filing after a policy ends. This page does not add a 30-day deadline that is not on that TDI page.
This page summarizes official agency pages retrieved or reviewed on November 13, 2026. It is not legal, tax, or insurance advice, not a quote, and not a recommendation of a specific insurer. Confirm current rules with the linked agency, and with counsel or a licensed agent when you need a determination on your facts.
If you need payroll set up for a first W-2 hire, you can Run payroll with Gusto. Gusto is a payroll service, not the insurer, and this is not a guarantee of a policy, a rate, or savings. In Ohio and North Dakota, do not use a private workers’ compensation policy — start with the official state fund (Ohio BWC or North Dakota WSI). Washington and Wyoming also use official state funds; see the state-fund guide.
Partner link. If you buy or sign up through this link, FirstHire may earn a commission at no extra cost to you. This is not an endorsement, not a quote, and not a guarantee of approval, coverage, or savings. Full disclosure.
When you want a private-market workers’ compensation quote in a state where private policies are sold, you can start with this partner form. We do not recommend a specific insurer, and we do not quote or bind coverage. This option is not a path in Ohio or North Dakota.
Compare a workers’ compensation quote
Partner link. If you request a quote through this link, FirstHire may earn a commission at no extra cost to you. This is not an endorsement or a guarantee of approval, coverage, or savings. Full disclosure.
To get a quote in a private-market state, talk to a licensed agent or a carrier authorized where the work is done. In Ohio, North Dakota, Washington, or Wyoming, start with the official state fund instead of a private policy.