Construction Claims Hinge on Employer Insurance Status

The legal path for a Texas construction worker after an injury depends on whether the employer carries workers’ compensation insurance.

In 2024, construction accounted for 128 of the 557 fatal occupational injuries in Texas, according to a report from the Texas Department of Insurance published in March 2026. These figures highlight the high stakes for workers and their families who must navigate complex legal standards to seek recovery.

Texas Labor Code Section 408.001 generally prevents employees from suing a subscribing employer for work-related injuries. This rule makes workers’ compensation the exclusive remedy against the employer. If an employer does not subscribe to the system, the worker may sue the company directly for negligence.

An exception exists for fatal claims. Under Texas Labor Code Section 408.001(b), a surviving spouse or children can sue a subscribing employer if the death resulted from gross negligence or an intentional act. To succeed, plaintiffs must prove by clear and convincing evidence that the employer knew of a life-threatening risk and acted with conscious indifference to safety.

Workers can collect compensation benefits while simultaneously pursuing a separate claim against a third party, such as a contractor, equipment manufacturer, or property owner. Texas Labor Code Chapter 417 governs how these claims interact. The insurance carrier may seek reimbursement, known as subrogation, from any settlement paid by the responsible third party.

Employers who do not carry workers’ compensation coverage are called nonsubscribers. Under Texas Labor Code Section 406.033, these companies generally cannot use common-law defenses like contributory negligence or assumption of risk. However, liability is not automatic. A worker must still provide evidence linking the employer’s specific negligence to the injury.

Legal experts advise workers to verify their employer’s coverage status immediately after an accident. They recommend requesting written confirmation of coverage for the date of the incident. Workers should also preserve photographs, witness contacts, and equipment identifiers before the job site changes. These steps help determine whether a claim should target the employer or an outside party.