17 Jun Texas Worker’s Compensation Insurance
Do your employees ever make mistakes or have accidents? The answer to this question is an obvious and resounding “yes!” Mistakes are a part of business life, not because employees are careless or ignorant, but simply because they are human. Many times these mistakes are minor, such as someone forgetting to proofread an important memo or check that they signed the shipping receipt properly. Little problems are nothing more than an annoyance, but the bigger problems can cause accident or injury. When those accidents or injuries occur, issues surrounding who is responsible for paying medical bills or salary will arise and can quickly cause many headaches and hard feelings. For this reason, whether you operate an offshore oil rig or a flower shop in a small town, it is important to fully understand the topic of worker’s compensation in Texas.
In Texas, worker’s compensation insurance is NOT a required to operate a business. Unlike some other states, private employers in Texas are allowed to choose for themselves whether or not they obtain coverage. Maybe you are nodding your head, thinking, “Yes. This is how it should be- people making their own decisions. But before you skip the decision to obtain worker’s compensation insurance, it is important to understand what a policy can do for you.
Worker’s compensation insurance is meant to provide financial protection to both employee and employer. If your employee is hurt on the job and must miss work, worker’s compensation insurance will provide funds to cover the medical bills and a portion of the employee’s salary. Additionally, worker’s compensation insurance sets a limit on the liability that your company could face in the event that your employee sues for damages. In the short term it may seem cheaper to avoid an additional insurance premium, but in the long run a policy ensures that everyone is financially cared for and may actually save you money.
Unlike some other states, there is no state worker’s compensation program that employers can opt into. Rather, you as the employer must go out and find an insurance agency that will provide you with a policy. This may take a little detective work on your part, as not all insurance agents or agencies are licensed to offer worker’s compensation insurance. However, once you have found a licensed agent, you will have found an individual who is well-versed in the subject and will be able to guide you to the policy that best fits the needs of you and your business, all while meeting guidelines set forth by the Texas Department of Insurance. In the unlikely event that you cannot find a private insurer to purchase a policy from, there is a “last resort” program known as START.
Purchasing a worker’s compensation insurance policy is a smart investment for any Texas employer. The financial protection and peace of mind that is afforded to you as the employer is well worth the investment. Set aside some time today to talk to an insurance agent and learn all about coverages, limits, provisions, and premiums!
All information is general in nature and is intended to provide guidance only. It is up to you to request specific coverage options, the agency and agent do not bear this responsibility. Always read the policy if there is a questions about coverage or a claim. If any information herein should conflict with your actual policy’s specific language, the policy language will be controlling.
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