Buying Texas workers compensation insurance is optional for business owners in the state, which means your decision to buy or skip this policy must be based on a detailed cost-benefit analysis. Being mandatory in other states, purchase of this cover is an unavoidable expense for business owners elsewhere.
Don’t ignore this insurance simply because it is optional. Instead, consider the advantages and benefits that you will enjoy against the premium cost that your business will have to bear and decide accordingly.
Features of Texas Workers Compensation Insurance
If your employees are covered under such a plan, then all reasonable medical expenses arising out of a work-related injury shall be paid by the insurer. Considering the high cost of healthcare, a serious injury to even one worker in your firm can impair profits significantly. A Texas workers compensation insurance policy will secure your firm as well as your employees from the financial implications of an injury.
Secondly, the policy will also provide compensation for wages lost due to the injury. From wages lost for the time spent in the hospital to loss arising out of permanent impairment arising out of the injury—the worker’s future will be protected without any significant payout from your firm’s revenue.
In the unfortunate event of death of a worker due to a work injury, the policy will provide comprehensive benefits to eligible beneficiaries along with additional coverage to pay for burial and funeral expense as well.
Advantages of Texas Workers Compensation Insurance
The real advantage of buying a Texas workers compensation insurance policy is that you are protected from risks that a non-subscriber firm, i.e. a firm that chooses not to obtain workers compensation insurance in the state, cannot avoid.
As per the law, the liability of subscribe firms for work-related injuries is restricted to the coverage under the policy. There is no such immunity for non-subscribers, which means such firm are at risk of being saddled with high compensation liability including punitive damages imposed as a punishment for negligence.
Choosing not to buy the cover may result in a situation where just a single work-related injury can push your business into bankruptcy.
Further, non-subscribers cannot rely on defenses like the injury was caused by negligence on the part of the employee or fellow employees or that the employee was aware of the risk of injury and had, by proceeding ahead with his/her duties, indicated acceptance of the same.
As you can see, buying Texas workers compensation insurance cover offers benefits beyond conventional financial protection that any conventional commercial insurance policy offers. Having this cover transforms the entire risk paradigm that your firm is exposed to as far as workers’ compensation is concerned. Without this cover, you will be subject to a different set of rules that are designed to operate in favor of employees even to the detriment of the employers’ interests.
Finally, securing this cover for your business will operate as the foundation for your firm’s HR policy. Protracted litigation may become inevitable where an employee suffers an injury in a non-subscriber firm.
The possibility of unlimited damages will transform every injury into a tug of war between the firm and affected employees. Needless to say, such a setup will be extremely detrimental to employer-employee relations and morale of even those employees who are not at risk of suffering any injury.
Considering the fact that benefits of a Texas workers compensation insurance plan go beyond mere limiting of financial liability, it is imperative you choose the right policy that has terms and conditions customized for your business. For more information about such a plan, just get in touch with your team of advisors by giving us a call or dropping an email.