Texas workers compensation insurance
Even though, in most cases, workers’ compensation insurance is not required in Texas there is value in providing workers with this coverage. Some of the benefits of having workers’ compensation coverage is that it will provide lost wages and medical benefits to your employees if they are injured while on the job. The only exception to this is in cases where there is proof of gross negligence resulting in injuries or a fatality.
Your workers’ comp coverage also limits any liability on your part if one of your employees attempts to bring a lawsuit against your business for damages. This policy helps you with employee morale and retention as most workers appreciate that a policy is in place that aids them in the event of an accident.
Workers’ comp is a state-regulated insurance program that provides covered employees with income and medical benefits when they sustain a work-related injury or illness, but Texas private employers are given the option to choose whether or not to provide Texas workers compensation insurance coverage for their employees and should notify their workers if they choose not to provide this coverage.
Ways in which employers can purchase coverage
There are many insurance companies in the area that are licensed by the Texas Department of Insurance (TDI) available to sell workers’ comp insurance policies. In addition, some employers may have the option to be certified by the Texas Department of Insurance, Division of Workers’ Compensation (TDI-DWC), or they can decide to self-insure or even participate in a self-insurance group certified by TDI.
As an employer, if you purchase workers’ compensation coverage through a commercial insurance company you will then be considered a certified self-insurer. If you are designated as a member of a self-insurance group you are required to post Notice 6, Notice to Employees Concerning Workers’ Compensation in Texas at your work place.
This notice informs employees exactly who the Texas workers compensation insurance carrier is, gives them information regarding injured employee assistance provided by the TDI-DWC, and provides them with the telephone number to the Safety Violations Hotline for reporting unsafe work conditions. This notice must be placed in plain view in your personnel office. Speak to an agent familiar with this coverage for answers to specific questions.