{"id":42,"date":"2026-10-30T11:12:50","date_gmt":"2026-10-30T17:12:50","guid":{"rendered":"https:\/\/www.amityinsurancegroup.com\/blog\/?p=42"},"modified":"2026-10-27T11:41:57","modified_gmt":"2026-10-27T17:41:57","slug":"texas-workers-comp-nonsubscribers-what-mckinney-employers-risk","status":"publish","type":"post","link":"https:\/\/www.amityinsurancegroup.com\/blog\/texas-workers-comp-nonsubscribers-what-mckinney-employers-risk\/","title":{"rendered":"Texas Workers\u2019 Comp Nonsubscribers: What McKinney Employers Risk"},"content":{"rendered":"

Texas is the only state that lets most private employers choose whether to carry workers’ compensation insurance. For McKinney businesses, that choice has real consequences, and it helps to understand them before the next renewal.<\/p>\n

Subscriber vs. Nonsubscriber at a Glance<\/h2>\n\n\n\n\n\n\n\n
Topic<\/th>\nWith Workers’ Comp<\/th>\nWithout Workers’ Comp (Nonsubscriber)<\/th>\n<\/tr>\n<\/thead>\n
Injury benefits<\/td>\nPaid through the workers’ comp system<\/td>\nDepend on any plan the employer sets up<\/td>\n<\/tr>\n
Employee lawsuits<\/td>\nGenerally limited for on-the-job injuries<\/td>\nInjured employees can sue for negligence<\/td>\n<\/tr>\n
Common legal defenses<\/td>\nNot the main issue, since benefits are no-fault<\/td>\nKey defenses are generally unavailable<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Your Nonsubscriber Questions, Answered<\/h2>\n

Which defenses does a nonsubscriber lose?<\/h3>\n

Under the Texas Labor Code, a nonsubscribing employer sued by an injured employee generally can’t argue that the employee was partly at fault, that the employee assumed the risk of the job, or that a coworker caused the injury. Those limits can make negligence claims harder to defend.<\/p>\n

Are there notice requirements?<\/h3>\n

Yes. Nonsubscribers generally must file an annual notice with the Texas Department of Insurance, Division of Workers’ Compensation, and inform employees in writing about their coverage status, including new hires.<\/p>\n

Can employees agree in advance not to sue?<\/h3>\n

Texas law generally voids agreements that require employees to waive their rights before an injury occurs.<\/p>\n

Are there jobs where coverage is required?<\/h3>\n

Yes. Certain public contracts, including many government construction projects, require workers’ comp coverage.<\/p>\n

Options Nonsubscribers Often Consider<\/h2>\n