Non-subscriber workers compensation status in Texas — what it means for homeowners

Texas allows most private employers to opt out of the state workers compensation system. Employers who opt out — "non-subscribers" — must file DWC Form-005 (Employer Notice of No Coverage) with the Texas Department of Insurance annually between February 1 and April 30. Non-subscriber status is legal but changes the legal landscape when a worker is injured: a non-subscriber employer loses certain common-law defenses that subscribing employers retain, and an injured worker can sue the employer directly rather than being limited to the workers-comp benefit system. In a roofing context, the practical question for a homeowner is: if a roofer is a non-subscriber and one of their workers is injured on the homeowner's property, what exposure does the homeowner have? The answer depends on specific facts, case law, the homeowner's own liability policy, and whether the contractor carries alternate coverage. Because outcomes vary, homeowners considering a non-subscriber contractor often ask the contractor about alternate injury coverage in writing, and consult their own insurance agent or attorney about personal liability exposure — those are the correct resources for an individualized answer. [Source: Texas Department of Insurance; Texas Division of Workers' Compensation]