Workmen's Compensation Insurance

Unfortunately, most states reuire companies to carry workers compensation by law. In some instances, employers can "self-insure" which appears to be what you are attemtping to do. However, before a state will let you do this, in most cases, they will require posting of a bond or some other proof that you have stashed away enough money to cover a certain dollare amount of workers compe claims (i.e. have th emoney "in the bank"). Failure to carry workers compensation, in some instances, may subject the company's owners to personal lability, or in some instances, misdemanor crimes. You really should check your local laws, or consult with an attorney. I am not admitted in Texas, so I am unable to give you legal advice for your state, but a good suggestion would be to call your state's Department of Labor or similar agency and get connected to the folks who oversee the workers comp laws. They will probably tell you the answer or send you an informational pamphlet. Good luck.

This answer is for educational purposes only, and does not create an attorney-client relationship.

Since 1913, Texas law has allowed many employers the opportunity to opt out of the workers' compensation insurance system, which is commonly called electing to be a "nonsubscriber." Depending on your number of employees and other factors, you will likely be required to file an application for self insurance with the Texas Department of Insurance. You can research the applicable law in Chapter 114 of the Texas Workers' Compensation Rules.