What Is Workers’ Compensation Insurance?
Workers’ Compensation insurance can provide coverage for workplace accidents. Also known as Workers’ Comp, Workers’ Compensation is considered a crucial part of small business insurance.
Workplace accidents can occur in almost every industry. Workers’ Compensation offers support that Texas employees and business owners can rely on. Workers’ Comp coverage can help with ongoing care for employees after an injury or sickness. It could help protect employees from lost wages.
Workers’ Comp coverage also helps to protect businesses in the event of a lawsuit. If an employee gets hurt in the workplace or suffers lost wages, they could relinquish their right to sue. A business is responsible only if due to negligence or intentionality.
The safety of your employees and small business is important. Request a free quote for Workers’ Compensation in Texas or keep reading to learn more.
What Does Workers’ Compensation Cover?
Workers’ Compensation helps to cover employee-related medical bills and other expenses in the event of a workplace accident or illness. This could include lost wages, rehabilitation, medication, and other associated expenses.
What Does Workers’ Compensation Not Cover?
In some cases, carriers may deny Workers’ Compensation claims in Texas. This happens if an investigation determines that an injury or illness is not covered. Some examples include intentional injuries, those that violate company policy, and those that occur off the job site.
Carriers may also deny a claim if an employee instigates violence, doesn’t follow protocols, or uses illegal substances.
Who Needs Workers’ Compensation Insurance in Texas?
Most employers in Texas don't need to carry Workers’ Compensation coverage. But, private employers who contract with government entities may need to provide coverage for employees working on the project. Independent contractors and subcontractors may also need to have Workers’ Compensation.
Yet, employers with Workers’ Compensation could benefit from a critical feature. With Workers’ Comp, you could be covered from most lawsuits by injured or sick employees. Employees might be unable to sue unless due to negligence or intentionality.
Without it, you might be unable to argue that an incident may have occurred due to other reasons. These include employee negligence, horseplay, or willful acceptance of danger. There’s also no coverage from acts of God, intoxication from drugs or alcohol, or participation in an off-duty recreational activity.
Employers without Workers’ Compensation still must meet several legal requirements. They’ll need to file annual notices with the Division of Workers’ Compensation (DWC). Employers will also need to post notices around offices and workplaces. Finally, employers will need to notify new employees in writing that they are not covered.
How Much Does Workers’ Compensation Insurance Cost in Texas?
Rates for Workers’ Compensation in Texas vary depending on the insurance carrier. Carriers rely on several factors to determine costs. First is the type of work that your employees do. The higher the risk, the more it may impact your insurance price.
Other factors include payroll size and claims history. A safer work environment could contribute to a light claims history, meaning you could have a lower insurance cost. Meanwhile, heavy claims history may result in higher premiums. Payroll size affects your insurance rate since risk typically increases with the more employees you have.
Workers’ Compensation in Texas FAQ
Do I Need Workers’ Comp in Texas if I’m an Out-Of-State Employer?
No, private employers in Texas might not need Workers’ Compensation coverage. Yet, the upside of having Workers’ Comp could outweigh choosing to forgo it. Workers’ Compensation insurance can help protect your employers in the aftermath of an incident. It also could help protect you from most lawsuits related to workplace injury or illness.
What Happens if I Don’t Have Workers’ Comp in Texas?
If your business is not required to have Workers’ Compensation in Texas, you likely would not risk civil penalties for not having it. But, employers are still required to meet several legal requirements if they do not carry coverage.
These include filing a notice with the DWC reporting your status as a “non-subscriber” each year. You must also post notices around the workplace notifying employees that you do not have Workers’ Compensation coverage. You’re also required to have notice of this in your personnel office and workplaces.
What Are Some Workplace Safety Tips?
Employers should aim to provide a safe working environment for their employees. This starts with a careful selection of employees and formal training. Other tips may include implementing an emergency plan in the event of an accident. Identifying and fixing areas of loss or exposure to your business is another tip.
What Other Coverage Should I Consider for My Business?
Besides Workers’ Compensation coverage, another popular type of coverage we offer is Business Owners Policy (BOP). BOP coverage from PolicySweet combines general liability insurance, property insurance, and cyber risk insurance.
We also offer HomeHQSM, a type of insurance coverage for home-based businesses. HomeHQ coverage provides business liability, property, and stock insurance all in one package.
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PolicySweet provides affordable Workers’ Compensation coverage to small businesses in Texas. Help protect your business and employees with Workers’ Comp insurance today.
Please Note: State-specific information is subject to change at any time. Always consult with your state’s official information and resources for the most accurate information.