If you run a Texas partnership, you are not legally required to carry workers compensation insurance. Texas is the only state where coverage is elective (optional) for private employers, and a partnership is a private employer, so nothing forces the firm to buy it. As with sole proprietors, if the partnership carries a policy, the partners are treated as covered unless they are specifically left off, so partner coverage is a choice the firm makes on the policy.
Who this is for: General partners in a Texas partnership, whether a two-partner shop with no staff or a partnership with a payroll of employees.
The short version
- A Texas partnership may choose to carry workers comp, but it is not required in most cases.
- If the firm carries a policy, each partner is included as a covered person unless specifically excluded by endorsement (a written add-on to the policy that names who is on or off).
- Employees of the partnership are covered by the policy; the include-or-exclude choice applies to the partners.
- General partners can be personally exposed if an uninsured worker sues the firm for negligence.
- Many clients and general contractors require the partnership to show proof of coverage before work begins.
How partners are covered
Texas law lists a partner alongside a sole proprietor and a corporate officer: if the partnership carries a policy, a partner is included as a covered person entitled to benefits, unless that partner is specifically excluded by endorsement (a written add-on to the policy). So the firm decides, partner by partner, whether their own on-the-job injuries are paid by comp or kept off the policy to reduce premium. Partners who do physical or field work often stay covered; partners who only manage the business often opt out.
Partners and staff on one policy
| Who | Default if the firm has a policy | Notes |
|---|---|---|
| General partner | Included unless excluded | Choose coverage by endorsement, partner by partner |
| Employee of the partnership | Covered | Employees are covered by the policy |
| Firm with no employees and no contract requirement | Optional | Often only the partners to consider |
| Firm on a government construction contract | Coverage required | Every worker on the public project must be certified as covered |
Why personal exposure raises the stakes
In a general partnership, the partners can be personally liable for the firm's obligations. If the partnership opts out of comp, it is a non-subscriber, and an injured worker can sue the firm for negligence while the law removes the defenses that the worker was at fault, knew the risk, or was hurt by a co-worker. Because a judgment can reach the partners personally, going without coverage concentrates risk on the very people who own the business. Carrying a policy makes comp the worker's exclusive remedy and generally blocks the lawsuit, which protects both the firm and the partners.
A Fort Worth example
Illustrative, not a quote. Two partners run a plumbing partnership in Fort Worth with three employed plumbers. Both partners still work in the field, so they elect to keep themselves covered rather than exclude themselves, and they cover all three employees. A general contractor they subcontract for requires proof of coverage, which the firm can produce right away because the policy is already in place. When an employee strains his back lifting a water heater, comp pays and the partnership keeps its exclusive-remedy protection. The partners ask us to review their payroll classifications so the plumbing work is rated correctly.
Real questions Texas owners ask
Does a Texas partnership have to carry workers comp?
In most cases, no. A partnership is a private employer, and coverage is elective in Texas, so it is not required. The main exception is work on a government building or construction contract.
Am I covered by our partnership's policy?
Yes by default. If the partnership carries a policy, you as a partner are included as a covered person unless specifically excluded by endorsement. The firm decides partner by partner.
Can one partner be covered and another excluded?
Yes. Coverage is set by endorsement for each partner, so a partner who does field work can stay covered while a partner who only manages the office opts out to reduce premium.
Are our employees covered if partners are excluded?
Yes. Excluding the partners does not affect the staff. Employees of the partnership are covered by the policy regardless of whether the partners include or exclude themselves.
Can an injured worker reach the partners personally?
In a general partnership, partners can be personally liable for the firm's obligations, so a negligence judgment can reach them. Carrying comp makes it the worker's exclusive remedy and generally blocks that lawsuit.
Why do clients ask our partnership for proof of coverage?
General contractors and commercial clients often require a certificate of coverage to manage their own risk. The state does not require the firm to buy comp, but you usually cannot take the job without it.
Is workers comp the same as our general liability policy?
No. General liability covers harm to other people and their property, while workers comp covers your own workers' on-the-job injuries. A client contract may require both, and they do different jobs.
Why Texas owners choose Morrow
- We shop the right market for you. Texas is the only state where workers' comp is optional for private employers, so Morrow helps you decide whether to subscribe or go without coverage, and places coverage fast through the competitive private market (or Texas Mutual, the insurer of last resort) when a client or public contract requires it.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Texas guides
Every Texas business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Texas (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Do sole proprietors need workers comp?
- What workers comp does not cover
- Texas plumber workers comp
This guide is general information, not legal advice. Texas rules and penalty amounts can change, so verify current requirements with Texas Department of Insurance, Division of Workers' Compensation (TDI-DWC) or a licensed advisor before you rely on them. Last updated: July 2026.