Texas is the notable voluntary-workers-comp state and now has a broad privacy law. Here is a plain-language overview, with the official sources to confirm it.
Workers compensation (largely voluntary)
Texas is the notable exception: workers comp is largely voluntary for private employers. A firm that opts out is a non-subscriber and must report its non-coverage to the state, notify employees, and report work-related injuries, and it gives up key legal defenses if an employee is injured. Government contracts require coverage. So opting out is a real decision with litigation exposure, not a free pass. Verify with the Division of Workers' Compensation.
Data breach notification
Texas's breach law generally requires notifying affected individuals no later than 60 days after the breach is determined, and reporting to the Texas Attorney General, electronically, when 250 or more Texans are affected. Confirm the current rule with the Texas AG.
Consumer privacy law
Texas has a broad consumer privacy law, the Texas Data Privacy and Security Act, in effect, giving residents access, correction, deletion, and opt-out rights with a 45-day response window. Small businesses as defined by the SBA are generally exempt, except they need consent to sell sensitive data, so applicability is not automatic and should be verified with counsel.
Professional licensing
Licensing varies by profession. CPAs are licensed by the Texas State Board of Public Accountancy, while many consultants, agencies, and IT firms need no state license. Confirm licensing with the applicable board.
Why this connects to your coverage
These are legal and licensing obligations, not insurance, but each one points to coverage: workers comp protects your team, cyber funds breach response and the incident counsel who advise on notification, and E&O backs the professional work licensing governs. We line your insurance up with how your firm operates here; the legal questions belong with your counsel and the applicable board.
Verify before you rely on this
Texas makes workers comp largely voluntary and has the Texas Data Privacy and Security Act in effect. This page is general information for Texas carriers, not legal, tax, or licensing advice, and these rules vary by profession and state and change. Confirm current requirements with the Texas state agencies, the applicable licensing board, and counsel below before you rely on this.
Last verified June 2026 by Vantage Point Risk.
