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Q. 5. What Do You Have To Do To "Opt Out" of Worker's Compensation ?

A. To "opt out" an employer must:

  • File a DWC Form 5 (You can file it on-line by clicking on the link) with the Texas Department of Insurance .  This notifies the Texas Department of insurance of your decision to remain outside the workers compensation system.
  • In addition, employers with 5 or more employees must file a DWC-7 form for every fatality or occupational disease and every work related injury that results in a more than one day of sick time.
  • Notify all employees, both current and new, that the employer is a non-subscriber.
  • Post notices, in both English and Spanish, in a common area. You can get the notice in English here (English Poster Link) and in Spanish here (Spanish Poster Link)
We also recommend that the company obtain sufficient insurance coverage to protect it in the event of a workplace injury or claim.

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