In Texas, whether a business owner or corporate officer is covered by workers' compensation — and whether they can change that — depends on the entity type and Texas's own rules. Getting the election right affects both your protection and your premium. Here is how inclusion and exclusion work in Texas, the form or filing to use, and what it means for your policy.
Who must carry workers' compensation in Texas?
ELECTIVE — Texas is the only state where private employers generally need not carry workers' compensation. An employer that declines is a non-subscriber and must post notice, notify employees, and file an annual Notice of No Coverage with the state (and report injuries if 5+ employees).
Can owners and officers be included or excluded in Texas?
| Sole proprietor | Not employees and not automatically covered; may elect to include themselves by written notice to the carrier. |
|---|---|
| Partners | See sole proprietors. |
| LLC members | Members/managers are covered if the employer subscribes; may elect out. |
| Corporate officers | Covered if the employer subscribes; may elect out. |
How to make the election in Texas
- Our form: CWCO General Inclusion / Exclusion Form — records the election where Texas does not publish its own form.
- Official source: Texas DWC — non-subscription (Notice of No Coverage, DWC-005)
How Texas counts an included owner
Texas determines an included owner/officer's payroll by the state payroll-determination formula in the TDI/NCCI advisory filing rather than a single posted minimum/maximum. Texas workers' comp is also elective for most employers. We confirm the current figure and whether coverage makes sense for you (effective 7/1/2026). Source.
Texas's assigned-risk / residual market
An employer that can't secure workers' comp in the standard market can still get covered through Texas Mutual Insurance Company (carrier of last resort; not monopolistic, not an NCCI pool). We market your risk to voluntary carriers first and turn to the residual market only as a last resort.
Related
Texas business insurance · Workers' compensation coverage · Texas Department of Insurance, Division of Workers' Compensation.
Frequently Asked Questions
Do business owners have to carry workers' comp on themselves in Texas?
It depends on your entity and role. Not employees and not automatically covered; may elect to include themselves by written notice to the carrier. Covered if the employer subscribes; may elect out. Employees are always covered.
How do I include or exclude an owner from workers' comp in Texas?
The right form, portal, or endorsement depends on your entity type. Texas records the election on the policy with the carrier; our general inclusion/exclusion form documents it.
What payroll is used for an included owner in Texas?
Premium is figured between a state-set minimum and maximum that changes each year; we confirm the current amount for your policy.
Can Cory Washington & Co. handle my Texas workers' comp election?
Yes. We confirm which rule applies to your entity, prepare the correct form or election, coordinate it with your carrier, and keep your workers' comp aligned with the rest of your program. Request a quote or a policy review and we'll take it from there.
This page is general educational information from Cory Washington & Co. LLC about how workers' compensation owner inclusion and exclusion works in this state. It is not legal, tax, or insurance advice and is not a determination of your eligibility or obligation. Workers' compensation laws, forms, payroll limits, and residual-market programs change and depend on your entity type, ownership, and operations. Confirm the current rules and amounts with your licensed advisor at Cory Washington & Co. LLC and the state agency before making any election.