What’s Covered Under Workers Compensation?

Employers in the Lone Star State can choose whether or not to provide Workers’ Compensation, with the latest figures from the Texas Department of Insurance (TDI) showing that Workers’ Compensation insurance covers 81% of Texas employees. Of those who don’t have coverage, about 70% have some type of private occupational insurance. The remaining 30% without some sort of Workers’ Compensation adds up to at least 500,000 people.

Workers’ Compensation is a state-regulated insurance system that provides covered employees with income and medical benefits if they are injured on the job or have a work-related injury or illness. Workers’ Compensation insurance coverage also limits an employer’s liability if an employee brings suit against the employer for damages.

Facts About Workers Compensation?

Pros vs. Cons of Workers’ Comp Insurance

As a Texas employer, if you choose not to carry Workers’ Compensation insurance coverage, you must be aware of the following:

• You risk the possibility of losing certain statutory defenses and could be held responsible automatically.
• Employers without Workers’ Compensation coverage are required to report their non-coverage status and work-related injuries and occupational diseases to TDI’s Division of Workers’ Compensation (TDI-DWC).
• Employers without Workers’ Compensation might have to pay punitive damages if they lose a lawsuit. They also lose certain common-law defenses, such as arguing that:
  • The injured worker’s negligence caused the injury.
  • The negligence of fellow employees caused the injury.
  • The injured worker knew about the danger and voluntarily accepted it.

If you are a Texas business owner with Workers’ Compensation insurance coverage, consider the following:

• Employers with Workers’ compensation coverage are required to report all known occupational disease and any work-related injuries that result in more than one day of lost time. Employers that fail to meet these requirements commit an administrative violation and may be subject to administrative penalties.
• Employers with Workers’ Compensation have some important legal protections, including immunity from most lawsuits by injured workers. If an employer has Workers’ Compensation insurance, a lawsuit may go to court after it’s been through TDI’s administrative dispute process. The court will consider TDI’s recommendations, and only issues in dispute may be used as evidence. Resolved issues cannot be reintroduced. The employer’s insurance company pays attorneys’ fees and other defense costs.