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Texas-Specific · Insurance Term

DWC Form 005 (Employer Notice of No Coverage)

Definition

DWC Form-005 is the notice Texas employers without workers' compensation insurance, called non-subscribers, file with the state to report that they don't carry coverage. It is generally filed each year between February 1 and April 30, and also after hiring a first employee or ending a workers' comp policy.

In Plain English

Texas lets most private employers choose not to carry workers' compensation insurance. Employers who opt out are called non-subscribers, and the state requires them to report that choice. The Texas Division of Workers' Compensation, part of the Texas Department of Insurance, receives these filings, which employers or their agents can submit online.

Filing with the state is separate from telling your workers. Non-subscribers must also post a notice of no coverage where employees can see it, in English, Spanish and other languages as needed, and give new hires written notice.

Opting out has legal consequences. A non-subscriber loses key defenses in injury lawsuits, including the employee's contributory negligence, assumption of risk and a fellow employee's negligence. Many non-subscribers look at occupational accident or employer's liability coverage to address that risk.

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Example

Hypothetical and simplified: An owner-operated motel hires its first employee in July and decides not to buy workers' comp. The owner files the no-coverage notice after hiring, posts the workplace notice and gives the new employee written notice. The owner then files again between February 1 and April 30 the next year.

Why It Matters for Texas Property Owners

This is a Texas-only requirement. Texas Labor Code §406.002 makes workers' comp elective for most private employers, and §406.033 removes certain defenses for non-subscribers. Check with TDI or a Texas attorney about deadlines and any penalties for missed filings.

What to Watch For

  • Put the February 1 to April 30 annual filing window on your calendar.
  • File again whenever a workers' comp policy ends or you hire your first employee.
  • Post the workplace notice in every language your employees need.
  • Check contracts with general contractors or tenants, which may require workers' comp regardless of your choice.

Sources

  1. Texas Department of Insurance: Employers without workers' comp (non-subscribers)
  2. Texas Labor Code §406.033 (defenses unavailable to non-subscribers)

Last updated October 14, 2026 · Primesure editorial team · How We Write