TX STATETexas Supreme Court
2009

HCBeck, Ltd. v. Rice

284 S.W.3d 349Texas Supreme Court • Decided 2009Enforced

HOLDING

A general contractor can qualify as a statutory employer in Texas by requiring subcontractors to enroll in an owner-controlled insurance plan, even if the owner purchases the policy. The Texas Supreme Court ruled that this written agreement satisfies the requirement to 'provide' workers' compensation insurance. This matters because it determines whether the general contractor gets immunity from lawsuits by injured subcontractor employees.

KEY FINDINGS

Insurance Requirements

Get a written agreement in place requiring subcontractor enrollment in the site's workers' compensation plan—this protects you from employee injury lawsuits

Flow-Down

Owner-controlled insurance plans count as 'providing' coverage under Texas law, so you don't have to purchase a separate policy yourself

Change Order

Make sure your contract clearly states the subcontractor must enroll in the specified insurance plan to establish your statutory employer status

FULL COURT OPINION