In Texas, workers’ compensation insurance is not mandatory for private employers, making it unique among states. However, employers who opt to provide coverage must follow stringent reporting and benefit distribution guidelines. Public employers and contractors on public projects are required to carry workers’ compensation insurance. Sole proprietors, partners, corporate officers, and LLC members can choose whether or not to participate in the insurance coverage. The Texas Department of Insurance, Division of Workers’ Compensation, oversees compliance and enforces regulations, ensuring that employers who opt into the system adhere to state requirements and provide necessary protections and benefits to their workers.