Worker's Compensation

When it comes to worker's compensation we set our own rules.

While worker's compensation is required in most states, workers' compensation in Texas is voluntary minus a few select industries including public entities. 

Going Without Workers Compensation

As a voluntary state, Texas allows you as an employer to opt-out of carrying workers’ compensation insurance, which covers medical expenses, physical therapy expenses, and lost wages for employees who get sick or injured at work. The downside, you lose certain legal protections under the law. Without worker's compensation, you as the business owner are responsible for all costs related to a personal injury lawsuit. Even if it’s your employee's fault that they got hurt or sick, you’d still have to pay for costs related to the lawsuit.  

If you choose to not carry workers' compensation in Texas you are considered a non-subscriber and must notify employees that you do not carry workers' compensation insurance. You are also required to file an annual notice or DW-005 form with the Texas Department of Insurance between Feb 1st and April 30th of each year. 

Purchasing Workers Compensation

Should you choose to purchase worker’s compensation you can purchase coverage through most private insurance companies in the state. There are two options for coverage with most workers' compensation carriers in Texas, “in-network” and “out of network”. You as the employer must inform your employees if they must use a particular provided network in the event of a claim. Typically “in-network” options are more affordable as the carrier has negotiated rates with the in-network providers to keep claim expenses lower. 

Benefits for workers' compensation include income benefits for lost wages, medical benefits for work-related injuries, legal benefits if a family member sues your business, and death benefits if an employee's life is lost in a work-related accident. Coverage is typically excluded from events that are willful criminal acts, intoxication from alcohol or drugs, off-duty recreational activities, acts of God, and horseplay. 

In the event of an injury, your employee has the responsibility to notify you of the injury within thirty days and a year to file formal paperwork for the claim. As the employer, you must notify the carrier within 8 days of the notice. 

Without workers' compensation coverage you could be leaving your business exposed to costly lawsuits from employees while working on your behalf. Obtaining a quote is quick, policies are rated on the employee's job duties, your claims history, and the payroll figures for each employee type. Of course, more risky job duties are rated higher due to the likely hood of claims. Contact us today to review worker's compensation options for your business.