Owning a business is one of your most significant investments. Commercial insurance helps you protect your investment against some of the common risks involved with operating your business on a day-to-day basis. Your employees are a valuable part of your business. Workers’ compensation allows you to take care of your employees while also protecting your business if a liability dispute arises. Here is a guide to workers’ compensation for Texas businesses.
● Texas Workers’ Compensation Insurance Explained
Workers’ compensation helps pay for your employees’ medical care if they are injured on the job. The policy also helps take care of their lost income while they are recovering. In the unfortunate event that one of your employees dies due to a work-related injury, workers’ compensation can help pay for their funeral expenses and other benefits. It’s important to remember that there are several circumstances where your employees are not covered by workers’ compensation. Your employees are not covered if they suffered self-inflicting injuries or if they are injured outside of work.
● Is Workers’ Compensation Necessary?
If you run a private business, a workers’ compensation insurance policy in Texas is not mandatory. However, if your business has a contract with government entities, you are obligated to provide workers’ compensation. If you are organizing a project, you’ll need to add workers’ compensation before you hire any independent contractors or subcontractors.
Texas workers’ compensation insurance helps to prevent you from being sued if one of your employees suffers a serious injury in the workplace. Injured employees can file a claim. If there is a disagreement between you and the employee, you can settle the dispute in district court. The workers’ compensation policy will cover any attorney fees and other costs.
If you opt not to add workers’ compensation coverage, you will not be protected in the event of a lawsuit. You are also obligated to tell all your employees that they are not protected if they suffer an injury. If you are facing litigation, you will not be able to use the defense that your employees accepted the dangers caused by a lack of protection.
● Different Ways to Provide Texas Workers’ Compensation Insurance
If you operate a large business, you may opt to self-insure your workers’ compensation policy. You will have to meet certain financial qualifications before you can proceed. You also have the option to join a self-insurance group. The other group members must be involved in the same industry as your business.
Health Care Network
You can set up a health care network or consult with an existing one to treat your injured employees. You also have the option to choose an alternative policy. However, you will lose financial protection with this type of policy.
The most traditional way to purchase coverage is through the Texas Department of Insurance. If you have at least one employee, you should consider adding workers’ compensation.
Do you have any additional questions about business insurance? Contact the experts at First Insurance Solutions. We are ready to help you with all your coverage needs.