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.
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.
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.