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Car accident while driving for work in Texas: workers' comp, claims against others and employer liability

What Texas law says when a crash happens while someone is driving for work: when driving counts as course and scope of employment, how workers' compensation and a claim against another driver fit together, what employers without coverage face, and what TDI says about personal and business auto policies.

12 min readPublished October 30, 2026Last updated October 30, 2026Edited by Joseph Budzinski, CTO, InjuryClaimGuide

The short answer

A car crash while someone is driving for work can raise two separate questions under Texas law: whether the injured worker's own claim is a workers' compensation claim, and whether someone else, such as another driver, may be responsible. Workers' compensation applies to an injury that arises "out of and in the course and scope of employment" (Lab. Code §406.031), a phrase the Labor Code defines and limits (Lab. Code §401.011(12)). An employee with a compensable injury "may seek damages from a third party who is or becomes liable" and "may also pursue a claim for workers' compensation benefits" (Lab. Code §417.001). The Texas Department of Insurance adds that an employer "may be liable for damages if you have an accident while driving for business purposes" (TDI).

This guide provides general informational guidance and is not legal advice. It does not say whether any crash was in the course and scope of employment, who is responsible, which policy covers it, or which deadline applies to anyone; an attorney can tell you that.

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Key facts (as of October 30, 2026)

  • "Course and scope" has a statutory definition. It covers activity that "has to do with and originates in the work, business, trade, or profession of the employer" and is performed in the furtherance of the employer's affairs (§401.011(12)).
  • Commuting is excluded unless an exception applies. Transportation to and from the place of employment is excluded, with three stated exceptions (§401.011(12)(A)).
  • Workers' compensation is no-fault. A carrier is liable for compensation "without regard to fault or negligence" when the employee is subject to the Act and the injury arises in the course and scope of employment (§406.031).
  • It is the exclusive remedy against a covered employer. Benefits are "the exclusive remedy of an employee covered by workers' compensation insurance coverage" against the employer or an employee of the employer (§408.001).
  • A third-party claim can run alongside it. An employee may seek damages from a liable third party and also pursue benefits (§417.001).
  • Two Labor Code deadlines exist. Notice to the employer not later than the 30th day, and a claim filed with the Division not later than one year (§409.001; §409.003).

When does driving count as work?

The Labor Code defines "course and scope of employment" as "an activity of any kind or character that has to do with and originates in the work, business, trade, or profession of the employer and that is performed by an employee while engaged in or about the furtherance of the affairs or business of the employer." The term "includes an activity conducted on the premises of the employer or at other locations." It does not include:

  • Commuting: "transportation to and from the place of employment unless: (i) the transportation is furnished as a part of the contract of employment or is paid for by the employer; (ii) the means of the transportation are under the control of the employer; or (iii) the employee is directed in the employee's employment to proceed from one place to another place"; or
  • Mixed-purpose travel: "travel by the employee in the furtherance of the affairs or business of the employer if the travel is also in furtherance of personal or private affairs of the employee unless: (i) the travel to the place of occurrence of the injury would have been made even had there been no personal or private affairs of the employee to be furthered by the travel; and (ii) the travel would not have been made had there been no affairs or business of the employer to be furthered by the travel" (§401.011(12)).

Those are the statute's words. Whether a particular drive was work is a question about the facts that this guide does not answer. It also does not address whether a particular driver is an "employee" or an independent contractor. Our guides on delivery drivers and rideshare drivers describe the Texas rules for app-based drivers.

How does workers' compensation treat a work crash?

If the employer has workers' compensation coverage, the Labor Code sets these rules in general terms:

  • No-fault benefits. The insurance carrier is liable for compensation for an employee's injury "without regard to fault or negligence" if the employee is subject to the Act and the injury arises out of and in the course and scope of employment (§406.031).
  • Exceptions. The carrier is not liable if, for example, the injury occurred while the employee was in a state of intoxication, was caused by the employee's wilful attempt to injure himself or to unlawfully injure another person, or the employee's horseplay was a producing cause (§406.032).
  • Exclusive remedy. Recovery of benefits is the exclusive remedy of a covered employee or a legal beneficiary against the employer or an agent or employee of the employer for the death of or a work-related injury sustained by the employee. Section 408.001 does not prohibit the recovery of exemplary damages by the surviving spouse or heirs of the body of a deceased employee whose death was caused by an intentional act or omission of the employer or by the employer's gross negligence, and a determination under §406.032, §409.002 or §409.004 that a work-related injury is noncompensable does not adversely affect the exclusive-remedy rule (§408.001).
  • Employee election. Section 406.034 lets an employee of an employer with coverage keep the common-law right of action instead. The employee must notify the employer in writing "that the employee waives coverage under this subtitle and retains all rights of action under common law," not later than the fifth day after beginning the employment or, if the employer obtains coverage later, after receiving the employer's written notice of that coverage. Except as otherwise provided by law, an employee who does not give that notice waives the right of action at common law or under a state statute to recover damages for personal injuries or death sustained in the course and scope of the employment (§406.034).

Our guides on being injured at work in Texas and the §408.001 reference entry explain workers' compensation in more detail, including the benefit categories.

Can a worker also pursue someone other than the employer?

Yes, the Labor Code says so in general terms. "An employee or legal beneficiary may seek damages from a third party who is or becomes liable to pay damages for an injury or death that is compensable under this subtitle and may also pursue a claim for workers' compensation benefits" (§417.001(a)). Several related rules follow:

  • Subrogation. If a benefit is claimed, the insurance carrier is subrogated to the employee's rights and may enforce the third party's liability in the employee's name, within a stated limit (§417.001(b)).
  • Reimbursement. The net amount recovered in a third-party action "shall be used to reimburse the insurance carrier for benefits, including medical benefits, that have been paid for the compensable injury," and any excess is treated as an advance against future benefits (§417.002).
  • The employer and the third party. The employer is not liable to the third party for reimbursement or damages based on a judgment against the third party, or on a resolution the third party agrees to, unless the employer signed a written agreement before the injury to assume the liability (§417.004).

In a work crash, the third party may be another driver or another party. This guide does not say who that would be in any crash.

What if the employer has no workers' compensation coverage?

Private employers in Texas may choose whether to provide workers' compensation insurance. Those that do not are called non-subscribers. TDI says they must notify their workers, and that filing non-subscriber notices with the Division of Workers' Compensation is required for employers with five or more employees (TDI). The Labor Code changes the rules for an injured employee's action against a non-subscriber:

  • Defenses. In an action against an employer without coverage, it is not a defense that the employee was contributorily negligent, assumed the risk, or was injured by a fellow employee's negligence, and the plaintiff must prove negligence of the employer or its agent or servant acting within the general scope of that person's employment. The employer may defend on the ground that the injury was caused by an act of the employee intended to bring about the injury or while the employee was in a state of intoxication (§406.033).
  • Waivers. The employee may not waive that cause of action before the injury or death, and any such earlier agreement "is void and unenforceable." A waiver after the injury is allowed only under conditions the statute lists, including that it is entered into not earlier than the 10th business day after the initial report of injury and after a medical evaluation from a nonemergency care doctor (§406.033).

TDI publishes a coverage verification page for finding out whether an employer has coverage (TDI). TDI says all Texas governmental entities (public school, utility, city, or county) must have workers' compensation coverage (TDI).

What does TDI say about auto policies and driving for business?

The Texas Department of Insurance's auto guide lists, among the things most policies do not cover, those "while you're driving for a ride-hailing service or delivering food or other items for a fee," those "while you're driving a car that doesn't belong to you but you could use regularly, like a company-owned car," and those "while you're driving in Mexico, driving for business, or racing." It also says: "Ask your insurance agent if your policy covers you if you're driving the rental car for work" (TDI auto guide).

Its page on driving for business says:

  • Personal policies. "Some personal use auto policies may cover you if you get into an accident during a paid delivery... Other personal use policies won't cover driving for business." TDI tells drivers to tell their insurer if they drive for business, because otherwise "the company could deny your claims."
  • Employer policies. "Some businesses have auto insurance that covers their drivers," but there are "often coverage gaps": a policy "might cover you when you are carrying goods for delivery, but not your drive to pick the goods up, the return trip, or side-trips for lunch or errands."
  • Employer liability. "Your employer may be liable for damages if you have an accident while driving for business purposes. As a result, some businesses require drivers to have a commercial auto insurance policy" (TDI).

This guide repeats those statements as written. It does not say what any policy covers or whether any employer is liable for any crash. A person may not operate a motor vehicle in Texas unless financial responsibility is established for that vehicle (Transp. Code §601.051); our guide to Texas minimum auto insurance explains the minimum amounts.

Which deadlines does the Labor Code set?

  • Notice to the employer. "An employee or a person acting on the employee's behalf shall notify the employer of the employee of an injury not later than the 30th day after the date on which... the injury occurs." For an occupational disease, the period runs from when the employee knew or should have known that the injury may be related to the employment. The notice may be given to the employer or to an employee of the employer who holds a supervisory or management position (§409.001). Under §409.002, failing to notify the employer as §409.001(a) requires relieves the employer and its insurance carrier of liability unless the employer, a person eligible to receive the notice or the carrier has actual knowledge of the injury, the Division determines that good cause exists, or the employer or carrier does not contest the claim (§409.002).
  • Claim for compensation. The claim must be filed with the Division of Workers' Compensation "not later than one year after the date on which... the injury occurred," or, for an occupational disease, after the employee knew or should have known that the disease was related to the employment (§409.003).
  • Claims against other drivers and similar third parties. Texas generally requires a personal injury suit to be brought not later than two years after the day the cause of action accrues, with exceptions the Code states (Civ. Prac. & Rem. Code §16.003). Our guide to the Texas statute of limitations for injury claims explains the general rule.

These periods are different from each other and run on different events. This guide does not say how any of them applies to anyone.

Where can injured workers get help from the state?

The Division of Workers' Compensation (DWC) regulates workers' compensation benefits in Texas, does not pay benefits (insurance carriers do), and says injured employees can call 800-252-7031, option 1. DWC says to report a work-related injury to the employer, after which DWC will send a packet that includes a notice of injury letter and an employee's claim form (TDI).

What does a Houston crash add?

TDI describes workers' compensation as an insurance program managed by the State of Texas (TDI). We found no City of Houston or Harris County rule on crashes during work driving. Two points matter in the Houston area, in general terms. First, TDI says a city or county, like every Texas governmental entity, must have workers' compensation coverage (TDI). Second, a crash with a government vehicle follows different notice rules; our guide on crashes with a City of Houston, Harris County or other government vehicle explains them. For the crash report, see our guide to getting a crash report in Houston.

What happens at the scene?

The duties after a collision are the same for a work driver as for anyone. The driver of a vehicle involved in a collision that injures or kills a person, or damages a vehicle driven or attended by a person, must give their name and address, the registration number of the vehicle being driven and the name of their motor vehicle liability insurer to the people the statute lists, show a driver's license if asked and available, and give reasonable assistance to anyone injured (Transp. Code §550.023). Our guide on what to do after a car accident explains the steps for everyone involved.

Records people commonly keep after a crash while driving for work

It can help to keep these in one place:

  • The date, time and place, and the crash report number and the agency that took the report
  • The vehicle's owner, registration and insurer information, whether it was a personal, employer-owned or rented vehicle
  • The other driver's name, insurer and registration number, as exchanged under §550.023
  • Any written assignment, schedule, dispatch message, mileage or trip record that shows what the trip was for
  • The date notice of the injury was given to the employer, and to whom
  • Names and contact details of witnesses, and photos of the scene and vehicles if it was safe to take them
  • Medical bills and records, and records of missed work and pay
  • Your own auto policy's declarations page, and any claim numbers or letters from an insurer or the workers' compensation carrier

Our guides on what evidence helps an injury claim and what to do after a car accident in Houston explain how records like these are commonly used.

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About InjuryClaimGuide

InjuryClaimGuide is a legal advertising service. We are not a law firm and do not provide legal advice. We do not recommend or endorse any attorney, and we do not analyze the merits of any potential claim. Routing to participating firms is based on geography, practice area, language, and firm capacity.

Frequently asked questions

How does Texas law define "course and scope of employment" for work driving?
Labor Code §401.011(12) defines it as "an activity of any kind or character that has to do with and originates in the work, business, trade, or profession of the employer and that is performed by an employee while engaged in or about the furtherance of the affairs or business of the employer." It includes an activity conducted on the employer's premises or at other locations. The definition has stated exclusions for transportation to and from work and for travel that also furthers personal affairs. This guide does not say whether any crash was in the course and scope of anyone's employment.
Does workers' compensation cover driving to and from work in Texas?
Under §401.011(12)(A), course and scope of employment does not include transportation to and from the place of employment unless "the transportation is furnished as a part of the contract of employment or is paid for by the employer," "the means of the transportation are under the control of the employer," or "the employee is directed in the employee's employment to proceed from one place to another place." This guide does not say whether the exceptions apply to anyone.
Can an injured employee also pursue another driver who caused the crash?
Labor Code §417.001(a) says an employee or legal beneficiary may seek damages from a third party who is or becomes liable to pay damages for a compensable injury or death and may also pursue workers' compensation benefits. If benefits are claimed, the insurance carrier is subrogated to the employee's rights, and under §417.002 the net amount recovered in a third-party action is used to reimburse the carrier for benefits paid. A third-party claim is a separate claim from the workers' compensation claim.
What if the employer does not have workers' compensation coverage?
Private employers in Texas may choose whether to carry it, and those that do not are called non-subscribers. Under Labor Code §406.033, in an action against an employer that lacks coverage, it is not a defense that the employee was contributorily negligent, assumed the risk, or was injured by a fellow employee's negligence, and the plaintiff must prove the employer's negligence. Section 406.033 also says an employee may not waive that cause of action before the injury, and it sets conditions for any waiver after the injury.
Can an employer be liable for an employee's car crash in Texas?
The Texas Department of Insurance says "Your employer may be liable for damages if you have an accident while driving for business purposes," and that some businesses require drivers to carry a commercial auto policy. TDI also says some businesses have auto insurance that covers their drivers, with possible gaps. This guide does not say whether any employer is liable for any crash.
Which Labor Code deadlines apply after a work injury in Texas?
Section 409.001 says an employee or a person acting on the employee's behalf shall notify the employer of an injury not later than the 30th day after the injury occurs, and §409.003 says a claim for compensation shall be filed with the Division of Workers' Compensation not later than one year after the injury occurred. Section 409.002 states what happens if notice is not given, and exceptions. This guide does not say how any deadline applies to anyone.
Can InjuryClaimGuide tell me whether my work crash is a workers' comp claim?
No. InjuryClaimGuide is a legal advertising service. We do not apply the law to anyone's situation and do not evaluate any claim. An attorney can advise you about your specific situation.

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