Worker’s Compensation pays medical bills and provides income benefits to workers who are injured at work or those that have occupational diseases or illnesses.
The benefit to worker’s compensation for the employees is that it assures they are compensated for their injuries. For the employer, it relieves them of liability for claims, provides legal protections, and makes them immune to most injury lawsuits.
Note: Worker’s compensation does not pay for self-inflicted or intentional injuries, injures that are alcohol or drug related, off duty events, or for injuries inflicted by someone else that are not job related
Texas is the only state that does not require employers to carry Worker’s Compensation Insurance. Those who do not carry Worker’s Compensation though lose certain common-law defenses, i.e. the injured worker’s own negligence caused the injury, the negligence of a fellow employee caused the injury, or the worker knew the danger but voluntarily accepted it. Without worker’s compensation insurance employers could be subject to punitive damages if they lose lawsuits.
If you are still on the fence about carrying worker’s compensation, know that deciding not to carry the coverage still requires action from you. You must:
- File annual notice with the Texas Department of Insurance-Division of Worker’s Compensation
- Display notices of non-coverage throughout workplace and office
- Provide written notification to each new employee
Forget to do any of those and you could be fined up to $500 per day.
Providing Worker’s Compensation coverage can be does by:
- Purchasing a worker’s compensation insurance policy
- be a certified self-insurer by TDI
- join a self insurance group that has received a certificate of approval from TDI
For more information on how your company can be covered by worker’s compensation please call 866-730-8818