In Texas, workers’ compensation is not a mandatory state program that requires business employers to have insurance policies covering employees for job-related injuries.
However, employers who choose not to accept the provisions of this program will lose the right to assert certain defenses if they are accused. So, employers must give notice to their employees whether they are covered by workers’ compensation insurance.
Texas is the only state in which the employer may optionally purchase workers’ compensation insurance. Employers may choose between providing worker’s compensation coverage, or being subject to a civil suit in the case of worker injury. Worker's compensation insurance may be provided by a private insurance carrier, a competitive state fund, or the business employers may self-insure. In any case, the Texas Workers Compensation law will protect injured workers from any unlawful acts by their employers following an injury.