Tex. Labor Code Section 406.051
Security by Commercial Insurance

(a)

An insurance company may contract to secure an employer’s liability and obligations and to pay compensation by issuing a workers’ compensation insurance policy under this subchapter.

(b)

The contract for coverage must be written on a policy and endorsements approved by the Texas Department of Insurance.

(c)

The employer may not transfer:

(1)

the obligation to accept a report of injury under Section 409.001 (Notice of Injury to Employer);

(2)

the obligation to maintain records of injuries under Section 409.006 (Record of Injuries; Administrative Violation);

(3)

the obligation to report injuries to the insurance carrier under Section 409.005 (Report of Injury; Modified Duty Program Notice; Administrative Violation);

(4)

liability for a violation of Section 415.006 (Employer Chargebacks Prohibited; Administrative Violation) or 415.008 (Fraudulently Obtaining or Denying Benefits; Administrative Violation) or of Chapter 451 (Discrimination Prohibited); or

(5)

the obligation to comply with a commissioner order.
Acts 1993, 73rd Leg., ch. 269, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1999, 76th Leg., ch. 954, Sec. 4, eff. Sept. 1, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 265 (H.B. 7), Sec. 3.032, eff. September 1, 2005.

Source: Section 406.051 — Security by Commercial Insurance, https://statutes.­capitol.­texas.­gov/Docs/LA/htm/LA.­406.­htm#406.­051 (accessed May 26, 2025).

406.001
Definition 406.002
Coverage Generally Elective 406.003
Methods of Obtaining Coverage 406.004
Employer Notice to Division 406.005
Employer Notice to Employees 406.006
Insurance Coverage and Claim Administration Reporting Requirements 406.007
Termination of Coverage by Employer 406.008
Cancellation or Nonrenewal of Coverage by Insurance Company 406.009
Collecting and Maintaining Information 406.010
Claims Service 406.011
Austin Representative 406.012
Enforcement of Subchapter 406.031
Liability for Compensation 406.032
Exceptions 406.033
Common-law Defenses 406.034
Employee Election 406.035
Waiver of Compensation Prohibited 406.051
Security by Commercial Insurance 406.052
Effect of Other Insurance Coverage 406.053
All States Coverage 406.071
Extraterritorial Coverage 406.072
Principal Location 406.073
Agreement on Principal Location 406.074
Interjurisdictional Agreements 406.075
Effect of Compensation Paid in Other Jurisdiction 406.091
Exempt Employees 406.092
Alien Employees and Beneficiaries 406.093
Legally Incompetent Employees 406.094
Certain Persons Licensed by Texas Real Estate Commission 406.095
Certain Professional Athletes 406.096
Required Coverage for Certain Building or Construction Contractors 406.097
Executive Employees of Certain Business Entities 406.098
Volunteer Emergency Service Members and Personnel 406.121
Definitions 406.122
Status as Employee 406.123
Election to Provide Coverage 406.124
Cause of Action 406.125
Restriction of Unsafe Work Practices Unaffected 406.126
Exemption 406.127
Effect of Certain Contracts of Hire 406.141
Definitions 406.142
Application 406.143
Provision of Workers’ Compensation Insurance 406.144
Election to Provide Coverage 406.145
Joint Agreement 406.146
Wrongful Inducement Prohibited 406.161
Definitions 406.162
Scope 406.163
Liability of Labor Agent 406.164
Elective Coverage of Employer and Family Members 406.165
Not Applicable to Independent Contractors
Green check means up to date. Up to date

Verified:
May 26, 2025

§ 406.051. Sec. by Commercial Ins.'s source at texas​.gov