Who must carry it in Texas
Texas does not require most private employers to carry workers' compensation. An employer that goes without (a non-subscriber) must file an annual notice with the Division of Workers' Compensation, post and give written notice to employees, and loses its common-law defenses when an injured employee sues.
Who counts as an employee
Contractors on public construction projects and some licensed businesses must carry coverage as a condition of the work, and many general contractors and clients require it by contract. The label on the paycheck does not settle it: Texas applies its own employee test, and a worker who fails it is an employee for workers' compensation no matter what the contract says.
Owners, officers and LLC members
Sole proprietors, partners and corporate officers may include or exclude themselves on a Texas policy. The election is made on the policy and affects both coverage and premium, so decide it before the policy is bound rather than at audit.
The day you hire
CoverMatch quotes workers' compensation from the first employee, with pay-as-you-go billing through most payroll companies where a carrier offers it, so the policy can start the week you hire without a large deposit. Add the policy to your wallet and the live certificate is ready for the general contractor or client who asks for proof.
If you go without
A non-subscriber that skips the Division filings faces administrative penalties, and an injured employee may sue the employer, which cannot plead contributory negligence or assumption of risk. The specific amounts and procedures are in the statute and on the agency page linked above; they change, and the licensed agent who reviewed this page checks them on each update.