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. 

• Part I of Workers Compensation addresses employee work related injuries or occupational disease. This is essentially the heart of the Workers Compensation policy where the insurer agrees to pay for injuries sustained during the course of employment. Part one of the policy has eight clauses. One thing to note: Health insurance and General Liability do not cover work related injuries. 

 

• Part II is Employers Liability Insurance (not to be confused with Employment Practice Liability (EPL)). This part addresses the employers protection. If the employee believes the employer is negligent in the work related injury, and decides to sue, this part of the policy will respond. It will cover attorney fees, court fees and judgments or settlements. There are nine clauses to part two of the policy. 

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? 

Jason Matison
Commerical Insurance Agent
Austin, Texas