Short answer
Usually not by law. Texas Labor Code Section 406.002 lets a private employer elect whether to carry workers compensation, so a Texas trucking company can legally operate without it. But a company that opts out loses its main defenses if an injured employee sues, must file a notice with the Texas Department of Insurance every year, and must tell its employees in writing.
- Shippers, brokers, and customers can still require workers comp by contract, so "optional" under state law does not always mean optional in practice.
- Workers comp covers employees. Leased owner-operators are a separate question, usually handled with occupational accident coverage.
What Texas law actually says
Texas is the only state where most private employers can choose not to carry workers compensation. Section 406.002 of the Labor Code says an employer "may elect to obtain" coverage. Companies that make the other choice are commonly called nonsubscribers.
The choice comes with strings:
- Lost defenses. Under Section 406.033, if an employee without workers comp coverage sues for a work injury, the employer cannot argue that the employee was partly at fault, that the employee accepted a known risk, or that a co-worker caused the injury. For a trucking company whose drivers spend all day on the highway, those are the defenses you would most want.
- Notice to the state. Section 406.004 requires a nonsubscriber to notify the Division of Workers' Compensation. TDI says the notice of no coverage (DWC Form-005) is filed between February 1 and April 30 each year, after hiring the first employee, and after terminating a Texas workers comp policy.
- Notice to employees. Section 406.005 requires employers to tell new hires whether they have coverage, and to tell employees within 15 days when coverage is obtained, ends, or is canceled.
Why many trucking companies carry it anyway
The statute is only half the picture. A few things push trucking companies toward buying coverage:
- Contracts. Shipper agreements and some broker-carrier agreements ask for workers comp and employers liability, sometimes with a waiver of subrogation. Read the insurance section before you sign. Our page on shipper contract insurance requirements covers what those clauses usually ask for.
- Out-of-state exposure. Texas's opt-out is a Texas rule. Drivers who are hired, based, or injured in other states can raise questions under those states' laws, which is a reason interstate fleets look closely at this.
- Loading-dock and yard injuries. Strains, falls from trailers, and cargo-handling injuries are routine in trucking, and without workers comp the employer is defending those claims as lawsuits.
For a deeper look at the coverage itself, see Texas trucking workers comp.
Nonsubscriber does not mean uninsured
Some Texas nonsubscribers buy an employer's liability or occupational injury benefit plan instead of workers comp. Those are different products with different rules. If you go that route, have the plan documents and your employee notices reviewed, and confirm your DWC Form-005 filing is current.
Owner-operators are a separate question
Workers comp is for employees. Owner-operators leased to your authority are usually treated as independent contractors, and they typically carry occupational accident insurance instead. Whether someone is truly an independent contractor depends on the facts and the lease, and misclassification is a legal question for an attorney. See occupational accident vs workers comp and leasing owner-operators for how the two fit together.
Common questions
Is workers comp required for Texas trucking companies with only a few drivers?
State law does not require it for most private employers regardless of size. Contracts can, and a nonsubscriber still has to file the annual notice with TDI and notify its employees.
What happens if a nonsubscriber does not file DWC Form-005?
The filing is required by Section 406.004 and TDI rules, and TDI can assess administrative penalties for failing to file. The filing does not restore any lost defenses; it only satisfies the notice requirement.
Does my truck liability policy cover my own injured driver?
No. Commercial auto liability responds to injury to other people, and auto policies typically exclude injury to your own employees. That is the gap workers comp or an alternative plan is meant to fill.
Do brokers check for workers comp?
Some do. Many carrier onboarding packets ask for a certificate showing workers comp or a statement that you are a Texas nonsubscriber. Check each packet's insurance list.
Sources
- Texas Labor Code, Chapter 406. Section 406.002 (elective coverage), 406.004 (notice to the division), 406.005 (employee notice, 15-day rule), 406.033 (lost common-law defenses).
- Texas Department of Insurance, Employer E-File online reporting. Notice of no coverage filed February 1 to April 30 each year, after hiring the first employee, and after terminating a policy.
This page explains insurance, not law. Have your attorney review indemnity and contract language; our job is making the insurance match it.
Keep reading
Coverage
Workers’ comp for Texas trucking companies: elective, but not optional in practice
Coverage
Occupational accident insurance: injury coverage for owner-operators and nonsubscribers
Questions
What is the difference between occupational accident and workers comp?
Contracts and deadlines
We are leasing owner-operators onto our authority. Who insures what?
Contracts and deadlines
A shipper wants us to sign a transportation agreement. Can our insurance meet it?