Workers’ Compensation Insurance is not mandated by law, but is state-regulated. Texas employers who do not carry workers’ compensation are required to report their non-coverage status and work-related injuries and illnesses to the Texas Department of Insurance.
Employers without workers’ compensation could be forced to pay punitive damages if they lose injury lawsuits. They also lose certain common-law defenses, such as arguing that:
- the injured worker’s negligence caused the injury
- the negligence of fellow employees caused the injury
- the injured worker knew of the danger and voluntarily accepted it.
For this reason, having workers’ compensation can protect your business from major liability. Employers with workers’ compensation have some important legal protections, including immunity from most lawsuits by injured workers. If an employer has workers’ compensation, a lawsuit may go to court only after TDI’s administrative dispute process has been exhausted. TDI’s recommendations must be presented to the court, and evidence is limited to the issues in dispute. Resolved issues cannot be reintroduced. The employer’s insurance company pays attorneys’ fees and other defense costs.
Workers' compensation insurance covers your employees’ medical expenses and at least some portion of their lost wages if they are injured on the job. It also provides employers’ liability coverage which protects employers against gross negligence. It can also provide funeral expenses, financial support for dependents, lifetime benefits for serious injuries, and coverage for employees who are injured in other states.
You need a personal insurance agent to sort it all out! Covington Insurance Agency is an Independent insurance agency dedicated to finding you the comprehensive insurance coverage you need at a competitive price.
Contact us today for an insurance assessment and free personal insurance quote.