Texas is the only state that does not require employers to obtain workers’ compensation insurance coverage for their employees. This practice is known as “going bare,” and employers who do not obtain workers’ comp coverage are referred to as “nonsubscribers.”
If your business is a workers’ comp nonsubscriber, you must file an annual report with the Texas Department of Insurance (TDI).
This form, DWC Form-005, informs TDI that the employer has opted out of the workers’ compensation coverage. Form-005 must be filed each year between February 1 and April 30. Form-005 can be downloaded here.
Additionally, if you are a nonsubscriber with five or more employees, you should know that you are required by state law to notify TDI if an employee experiences a work-related injury, illness, or fatality. These incidents should be reported on DWC Form-007, available here.
Finally, THLA’s legal team recommends that employers avoid going bare. While it can be tempting to cut costs in the short-term and avoid paying for yet another insurance policy, in our experience, it is not prudent to do so.
We recommend contacting Zenith Insurance Company, THLA’s longstanding endorsed workers’ compensation insurance provider for a quote and list of benefits.