When it comes to Business Insurance policies, Workers Compensation should be at the top of your list as a business owner or risk manager. Although it is not required in Texas, it is highly recommended. That being said, YES, it is necessary. Lets take a quick look at Part I and Part II of the Workers compensation policy and see why it's necessary.
As you can see, there's a reason most states require employers to have Workers Compensation coverage because it is extremely necessary. To be honest, in my 12 years as an insurance agent, I've seen more claims from Workers Compensation policies than any other policy. If you have questions about Workers Compensation coverage or any other Business Insurance policy, please feel free to contact me. If you would like a quote, please fill out the application below. To read another post about Workers Compensation, see this previous post Is Workers Comp Insurance Required?
Commerical Insurance Agent
Workers Compensation Insurance is one of those coverages that some businesses overlook when it comes to Business Insurance. It is often asked, is it required? The answer is, no, the State of Texas does not require you to have it. However, some companies you do business with, or businesses that you want to do business with, may require it. So there you go, pretty straight forward, right? Well, it might not be required, but I highly recommend Workers Compensation.
I think a lot of businesses feel they don't need it, because they use subcontractors. Taking the stance that they are not technically employees, so they don't need it. As a business owner, you have to ask yourself, are they acting as employees? Do they show up representing your company? Are they doing work and collecting money on your behalf? If the answer is yes, the courts have pretty much already determined that they are your employees. Just a few things to ponder when trying to figure out who needs Workers Compensation coverage.
You still might be thinking it's not necessary and your employees are not at risk. Here's a list of 5 leading causes of work place injury taken from the U.S. Bureau of Labor Statistics and National Academy of Social Insurance:
1) Overexertion involving outside source: 24.4%
2) Falls on same level: 16.4%
3) Falls to lower level: 8.7%
4) Struck by object or equipment: 8.6%
5) Other exertions or bodily reactions: 6.7%
In addition to your employees being at risk, your business could be at risk. Workers Compensation provides protection to the employer. You can have piece of mind knowing that if an employee gets injured, you don't have to worry about them suing you and your business.
So, again, Texas does not require you to have Workers Compensation (yet), but it's not a bad idea to get it anyway. A lot of business owners are under the assumption that it is expensive. If you haven't gotten a quote, or it's been a while since your last quote, let me know if we can get you a quote. I've helped many businesses in Austin get Workers Compensation and would love the opportunity to help you. Feel free to call or email me.
You're still not required to carry Workers Compensation in Texas (although we recommend it), the following changes were made recently:
In addition to providing notices at the time of termination, an employer without coverage must: (1) file Notice of No Coverage with DWC annually between Feb. 1 and April 30 of each calendar year; (2) post notice of no coverage in the workplace; (3) notify each newly-hired employee at the time of hire; and (4) report work-related injuries involving absence from work for more than one day (applicable only to employers with five or more employees).
The form used to notify TDI can be found below. You can also access the form by going to TDI's website by clicking here.