Texas does not require Employers to purchase Workers Compensation Insurance. Although it is not a requirement, employers should seriously consider the consequences of not providing this coverage for their employees.
Workers Compensation is a “No Fault” system. If a worker is covered by Workers Compensation, he (and his family members) cannot sue the employer for expenses resulting from a work related injury. The employer does not have any say in whether or not a claim is paid.
Employers who purchase Workers Compensation Insurance protect themselves from being sued by an injured employee or a member of the employee’s family. Without the protection of this insurance, the employer can be sued by an injured employee. The employer cannot use” contributory negligence by the employee” and “negligence of a fellow employee” as defenses should they be sued.
Employers who do not provide Workers Compensation Insurance must notify existing employees and new hires that there is no coverage and must post a notice that there is no coverage. If a company has more than 4 employees, injuries with more than one day of lost time must be reported.
If you would like more information about Workers Compensation Insurance for your business, please contact Jeff.