Texas does not require most private employers, including churches, to carry Workers’ Compensation. However, choosing not to purchase coverage can leave the church responsible for an injured employee’s medical expenses, lost income, and potentially a lawsuit.
The Janitor’s Fall in Jacksonville
A small church in Jacksonville, Texas, decided to save a few thousand dollars a year by not carrying workers' comp. They figured their general liability policy was enough. When their part-time custodian fell off a ladder while changing lights in the sanctuary, he shattered his hip and required multiple surgeries.
Because the church didn't have workers' compensation insurance, the custodian's only path to getting his medical bills paid was to sue the church for negligence. Under Texas law, non-subscribers lose their legal defense protections. The church couldn't argue that the custodian was clumsy or should have known better. They were hit with a $150,000 judgment for medical bills, lost wages, and pain and suffering. None of it was covered by their general liability policy.
Texas Churches Can Choose Whether to Carry Coverage
Texas is different from most states because private employers are generally allowed to decide whether to purchase Workers’ Compensation. An employer that carries coverage is called a subscriber. An employer without coverage is called a non-subscriber. Those choices create two very different systems.
Subscriber: The Church Carries Workers’ Compensation
When a church purchases a Texas Workers’ Compensation policy, an injured employee may receive medical care and income benefits through the state-regulated system.
The church also receives an important legal protection known as the exclusive remedy. In most cases, Workers’ Compensation benefits become the employee’s only remedy against the church for a covered workplace injury. Texas law includes limited exceptions, including certain fatal claims involving gross negligence or intentional conduct.
This gives the injured employee a defined process for receiving benefits while limiting the church’s exposure to a civil lawsuit.
Non-Subscriber: The Church Does Not Carry Coverage
A church that does not purchase Workers’ Compensation may be sued by an employee who is injured because of the church’s negligence.
Texas law also removes several defenses that would normally be available to an employer. A non-subscriber cannot defend the claim by arguing that the employee contributed to the injury, accepted the risk, or was injured because of a co-worker’s negligence. The employee must still prove that the church was negligent, but the church enters the lawsuit with fewer legal protections.
Non-subscribers may also have state notice and reporting responsibilities. They must notify employees that Workers’ Compensation coverage is not provided, and certain employers must report qualifying workplace injuries, illnesses, and deaths to the Texas Division of Workers’ Compensation.
What Workers’ Compensation Covers
A Texas Workers’ Compensation policy provides several types of benefits after a covered injury or illness occurs while an employee is on the job.
- Medical treatment related to the injury
- A portion of the employee’s lost income
- Benefits for certain lasting impairments
- Some burial expenses
- Benefits for qualifying family members after a work-related death
The amount and duration of those benefits depend on the injury, the employee’s wages, and Texas Workers’ Compensation law.
Common Misunderstandings for Churches
Church leaders often skip Workers’ Compensation because they believe another policy or benefit will take its place. That assumption can create a serious coverage gap.
1. General Liability Insurance Does Not Cover Employee Injuries.
General Liability protects the church from the liability associated with opening their doors to the public. It provides protection for the church against claims involving visitors, members, vendors, and other third parties. It is not intended to replace Workers’ Compensation or Employers Liability coverage for paid employees
2. Health Insurance Will Not Pay the Medical Bills.
An employee’s health insurance plan often will exclude work-related injuries and direct those claims to Workers’ Compensation. Even when a health plan pays part of the medical cost, it does not provide the church with the legal protections of a Texas Workers’ Compensation policy.
3. It is Covered By Our Accident Policy.
An accident policy may pay a limited benefit after an injury, but it is not the same as Texas Workers’ Compensation.
Alternative plans can include dollar limits, time limits, and exclusions. They also do not provide the church with the same exclusive remedy protection. If the employee’s expenses exceed the plan’s limit, the church may remain responsible for the difference
4. Pastors Can’t Be Included on Workers’ Compensation.
Most churches pay their pastors and other pastoral leadership as 1099 employees. This does not mean that these leaders should not be included on the church’s workers’ compensation policy. An insurance agent with expertise in church insurance can help you make sure that your pastor is adequately protected.
The church should review every paid position with its agent and insurance carrier. That includes pastors, administrators, teachers, childcare workers, custodians, maintenance employees, musicians, and part-time staff. Payroll and job duties must be reported accurately so the policy reflects the people who actually work for the church.
Church Employees Face Real Workplace Risks
A church may feel safer than a factory or construction site, but employees still perform physical work throughout the week.
Custodians climb ladders, move furniture, use cleaning chemicals, and maintain buildings. Pastors drive to hospitals and member homes. Childcare employees lift children and work around playground equipment. Kitchen staff handle hot surfaces and sharp tools. Maintenance teams work with electrical systems, roofs, landscaping equipment, and heavy machinery.
One accident can create medical expenses and lost income that neither the employee nor the church is prepared to absorb.
Protecting Church Employees
Workers’ Compensation is not simply another policy expense. It creates a process for caring for employees after they are injured while serving the church.
It is a policy designed to provide medical benefits and replace part of the employee’s income while also protecting church reserves, operating funds, and ministry budgets from a workplace injury lawsuit.
Is your church protected? True Texas Church Insurance helps churches review their employees, payroll, ministry activities, and workplace risks. We explain the difference between subscriber and non-subscriber status and help leadership decide how Workers’ Compensation fits into the church’s overall protection strategy.