The Basics of Texas Workers’ Compensation Law

Are you a defense contractor or interpreter? Would you like to know more about Texas workers’ compensation law?

The great state of Texas is a free-spirited and liberated republic. Consequently, its independent code of conduct spills over into areas such as compensation insurance for workers.

Worker’s compensation is the best way to protect yourself against any work-related injury you may incur.

As such, it’s important to understand it, and luckily, that’s exactly what we’ll be covering in this article. Keep reading to learn more. 

Freedom to Choose: Know Your Downside Risk

Compensation law in Texas permits employers to decline insurance for workers’ compensation. While the laws of Texas demand public organizations and establishments to supply compensation insurance, coverage, on the other hand, is optional for the majority of employers.

If an employer rejects workers comp insurance, they are referred to as “non-subscribers.”  And subsequently, have to inform their workers that they do not carry compensation insurance.

However, it’s in their [employers] best interest to carry it, because if a worker sustains an injury on the job, said worker has the right to sue their “non-subscriber” employer.

Additionally, the TDI (Texas Department of Insurance) stresses that if sued, a nonsubscriber employer will be unable to assert in court that the injury was due to employee negligence.

Guide to Workers Compensation Insurance

Benefits such as emergency care for employees who become ill or injured on the job get paid via workers’ compensation insurance. And depending on the policy terms, workers may even be compensated for lost revenue.

Moreover, in the unfortunate event of an employee passing away due to an injury or illness related to work, burial expenses will be paid for and families will be reimbursed as well.

However, no payout will occur should employees:

  • Deliberately injure themselves while on the job
  • horseplay or roughhouse while at work
  • get injured from non-work-related activities 

What Happens if You Don’t Provide Workers’ Compensation Insurance?

By not opting for this form of insurance, you by default forfeit legal protection from the majority of lawsuits. There are a few Texas requirements for workers’ compensation.

You’ll have to:

  • Send in a yearly report with DWC (Division of Workers Compensation)
  • Display alerts in your work and office space
  • Notify new workers in writing that they aren’t covered via worker’s compensation insurance

Purchasing Coverage

You should only purchase workers’ compensation insurance from firms that are licensed by the TDI. Purchasing a policy from a firm without this accreditation won’t count, as it is not recognized coverage by state law.

Additionally, you have to have a minimum of one worker in order to purchase compensation insurance. It would also be prudent to purchase insurance if you hire contract workers as well.

Texas Workers’ Compensation Law

With Texas workers’ compensation law, you’re free to choose whether you opt-in or not. However, it’s much better to have it in place, simply as a safety precaution, if nothing else.

If you enjoyed this article and have any questions that you would like answered, get in touch with us today.

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