Workers comp for trucking companies in Texas: what to know

Workers comp for trucking companies in Texas works differently than in most of the country. In many states, a business with employees must carry it. In Texas, most private employers can choose. But choosing to go without it is not the same as doing nothing. It comes with paperwork, notices and real risk. If you are about to hire your first driver, here is what to know. This article is general information, not legal advice.

What workers' comp is

Workers' compensation insurance, or workers' comp, helps pay for an employee's medical care and part of lost wages after a work injury or illness. It is a policy the employer buys for its employees.

It is different from the insurance on your truck. Your auto liability pays for harm you cause to other people on the road. Workers' comp is about your own employees getting hurt on the job.

Workers comp for trucking companies in Texas: a choice

Texas lets most private employers decide whether to carry workers' comp. An employer with one or more employees that does not have workers' comp, or that cancelled it, is called a non-subscriber by the Texas Department of Insurance, Division of Workers' Compensation (DWC).

Being a non-subscriber is allowed. But the state expects you to say so, in writing, on time.

What a non-subscriber must file

According to the DWC's own form, a non-subscriber files DWC Form-005, the non-subscriber notice:

• Within 30 days of hiring your first employee.
• Every year between February 1 and April 30.
• Within 10 days of ending a workers' comp policy, or of the DWC asking you to file.

You can file online through the TDI website or by email or fax, as the form explains.

What you must tell your employees

A non-subscriber must also tell its people:

• Written notice to new employees that you do not carry workers' comp.
• Written notice of termination if you had coverage and ended it, with the date it ended.
• A posted notice at the workplace, in English, Spanish and any other language that fits your team. The DWC calls it Notice 5. Put it where employees see it regularly.

Reporting injuries

If you have five or more employees, the DWC form says you report certain work injuries and illnesses monthly using DWC Form-007. That includes an injury that caused an employee to miss one or more days of work or that resulted in a death, and work-related illnesses you know about.

What about owner-operators who lease on?

Workers' comp is about employees. A leased-on owner-operator is often treated as a contractor, not an employee, and may look at other ways to protect themselves, like occupational accident insurance. Our article on occupational accident insurance for truckers explains that option. Whether a driver is an employee or a contractor depends on the facts, so get advice if you are not sure.

Questions to ask before you hire your first driver

1. Will I carry workers' comp or be a non-subscriber? Ask an agent to explain both paths.
2. Do my broker or shipper contracts ask for workers' comp? Some contracts do. Read them.
3. If I go without it, who pays for a work injury? Think about what an injury could cost your business.
4. Is my calendar set? 30 days after the first hire, then February 1 to April 30 every year.
5. Are my notices ready? Written notice for each new hire and the posted notice.

Mistakes to avoid

• Thinking "optional" means "no paperwork." A non-subscriber has filings and notices.
• Missing the 30-day window after the first hire.
• Forgetting the yearly filing between February 1 and April 30.
• Posting the notice only in English when your team speaks Spanish.

Want to see how the main truck coverages fit together? Read our guide to trucking insurance coverage.

When to call us

Hiring your first driver, or growing your small fleet? Call TCZ Insurance Agency at 956-526-6727. We can explain your options in plain words before you decide.

Common questions

Is workers' comp required for trucking companies in Texas? Texas lets most private employers choose. If you have employees and go without it, you are a non-subscriber and must file DWC Form-005 and give the required notices.

When do I file the non-subscriber notice? Within 30 days of hiring your first employee, and every year between February 1 and April 30.

Do I need workers' comp if I drive alone with no employees? Workers' comp is for employees. If you have none, the non-subscriber filing is not triggered. Ask about other coverages for yourself, like occupational accident insurance.