No. Texas is the only state where workers’ compensation is optional for most private employers (Texas Department of Insurance). Employers who opt out become non-subscribers, must notify employees and the state, and can be sued directly for workplace injuries. Government contractors must carry coverage.
FAQ_category: (HIDDEN) Industry FAQs
Texas does not require most business insurance by law. Vehicles used for business must carry liability coverage, and government contract work requires workers’ compensation. Most businesses still need general liability insurance to sign leases, win contracts, and provide certificates of insurance to clients.
A basic certificate can often be issued quickly after coverage is active. Requests involving additional insured status, special wording, higher limits, or project-specific endorsements may require carrier review. The certificate cannot promise coverage that is not included in the policy.
https://www.acord.org/docs/default-source/forms/acordcertificatesfaq.pdf
Not under a standard commercial property policy. Flood damage requires a separate flood policy. The National Flood Insurance Program covers businesses in participating communities, and private flood options also exist. Most new flood policies include a 30-day waiting period, so buy coverage before storm season, not during it.
Often, yes. Clients may require coverage before work begins. General liability is common for physical work. Professional liability matters when advice or services could cause financial loss. Construction contractors should verify Tennessee workers’ compensation and licensing rules before assuming an independent contractor classification removes the requirement.