Want to Know More about Worker Compensation?

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 Worker Compensation Insurance

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Information Provided by Texas Department of Insurance:

Workers’ compensation insurance is a state regulated insurance system that ensures medical bills and some lost wages are paid for employees injured on the job or who have work-related diseases or illnesses.

 

Employees covered by workers’ compensation receive benefits based on the type and severity of their injuries. Benefits include:

• medical benefits for medically necessary treatment of work-related injuries and illnesses;

• income benefits for a specified period of time up to a certain dollar limit set by law; and

• compensation for burial expenses for employees killed on the job;

• death benefits for dependents of employees killed on the job.

 

If there is a workers’ compensation claim for benefits, an employee’s family may be entitled to pursue other remedies through the courts if the employee is killed and the death was caused by the employer’s gross negligence or intentional act or omission.

 

Workers’ compensation doesn’t pay for injuries that:

• are intentional or self-inflicted,

• result from horseplay or voluntary drug or alcohol intoxication,

• are inflicted by someone else for personal reasons unrelated to the job,

• result from voluntary participation in off-duty recreational, social, or sports events, or

• result from “acts of God” (like floods or hurricanes), unless the job has a particularly high risk of such injuries.

 

The Texas Department of Insurance- Division of Workers’ Compensation (TDI-DWC) regulates the state’s workers’ compensation system by:

• administering the workers’ compensation law to ensure that medical and indemnity benefits are paid to injured workers according to the workers’ compensation law,

• providing a mechanism for dispute resolution of workers’ compensation claims,

• coordinating return-to-work efforts between insurance company and policyholder,

• providing workplace safety services, and

• issuing certificates of authority to self-insure for workers’ compensation to employers that qualify.

 

Texas doesn’t require most private employers to carry workers’ compensation insurance. However, private employers who contract with governmental entities are required to provide workers’ compensation coverage for each employee working on the public project. Some contractors may require their sub-contractors and independent contractors to carry workers’ compensation insurance.

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Employers may not charge employees for workers’ compensation coverage. There are some exceptions for independent contractors and certain building and construction workers.

 

Non-subscribers

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Employers who choose not to have workers’ compensation insurance - called non-subscribers – must:

• file an annual notice with TDI-DWC,

• display notices of non-coverage in the personnel office and throughout the workplace, and

• give a written statement of non-coverage to each new employee.

Employers without workers’ compensation coverage don’t have the same legal protections as employers that provide workers’ compensation coverage.  If an injured employee of a non-subscriber files suit and is able to prove that the injury was due to the employer’s negligence, the non-subscriber could be subject to high damage awards, including punitive damages and damages for pain and suffering. The non-subscriber might also be required to pay defense-related legal expenses, such as attorney’s fees.

Non-subscribers also lose certain common-law defenses, including:

• the injured employee’s negligence caused the injury,

• the negligence of fellow employees caused the injury, and

• the injured employee knew about the danger and voluntarily accepted it.

 

Providing Workers’ Compensation

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If employers choose to provide workers' compensation, they must do so in one of the following ways:

• buy a workers’ compensation insurance policy from an insurance company licensed by TDI,

• be certified by TDI-DWC to self-insure workers’ compensation claims,

• join a self-insurance group that has received a certificate of approval from TDI, or

• be a self-insured governmental entity.

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Even though East Texas businesses are not required to carry workers compensation coverage, it remains true that every business throughout the state has a legal obligation to keep employees safe while they perform their work duties. No matter how many safety precautions are put into place, accidents are bound to occur and this is one of the reasons why it’s important for organizations to invest in a workers comp plan.

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With a workers compensation insurance policy, East Texas businesses can help provide medical care and compensation for lost income to employees who are injured on the job. Providing this type of benefit to your staff will help protect you and your organization against lawsuits that could arise from a workplace accident. No matter who is at fault, a workers comp plan will provide coverage for the injured party if they are injured while performing their job or if they have a work-related illness.

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Talk to a professional at The Nolen Agency Insurance toady about a Workers Compensation insurance package for your Athens, Texas - Chandler, Texas region business.