Workers' Comp in Texas: Subscriber vs. Non-Subscriber

Texas does something no other state does: it lets most private employers opt out of workers’ compensation insurance. That option saves a premium — but it comes with a trade-off many business owners don’t fully understand until an employee gets hurt.

Here’s the plain-English version.

Subscriber vs. non-subscriber

If you carry workers’ comp, you’re a subscriber. If you don’t, you’re a non-subscriber. Both are legal in Texas for most private employers — but they put you in very different positions when someone is injured on the job.

The risk of going without it

The premium savings are real, but so is the exposure. As a non-subscriber:

• An injured employee can sue you directly for their injury.
• You lose key legal defenses that subscribers get — including, in many cases, the ability to argue the employee was partly at fault.
• Damages are open-ended — a jury decides, and there’s no cap like comp’s defined benefits.

In other words, you trade a predictable premium for an unpredictable, potentially unlimited liability.

What workers’ comp actually pays

When you carry comp and an employee is hurt or becomes ill on the job, it covers:

• Medical expenses tied to the injury
• Lost wages and disability benefits during recovery
• Rehabilitation and return-to-work costs
• Death and survivor benefits in the worst cases
• Employer’s liability — your legal defense if you’re sued

In exchange, comp generally shields you from injury lawsuits. For most employers with real payroll, that protection is well worth the cost.

Many contracts require it anyway

Even if you’d consider going without, your clients may decide for you. General contractors and larger clients routinely require subcontractors to carry their own workers’ comp and provide a certificate before work begins.

How premium works

Comp premium is driven mainly by your payroll and the class codes for the work your team does. We classify your business correctly and can set up pay-as-you-go billing so your premium tracks actual payroll instead of a big upfront estimate and a surprise audit bill.

Let’s weigh it for your business

There’s no one-size answer — it depends on your payroll, your risk, and your contracts. We’ll help you think it through honestly. Request a business quote or call 830-387-4032.