Workers Compensation in Texas
Texas is the only state in the country that does not require most private employers to carry workers' compensation insurance. That flexibility can sound appealing, but choosing to go without it, known as becoming a "non-subscriber," removes long-standing legal protections and opens your business to lawsuits with no cap on damages.
Subscriber vs. Non-Subscriber: What It Means for Your Friendswood Business
Employers who carry workers' compensation, called subscribers, are generally protected from employee lawsuits over workplace injuries in exchange for providing guaranteed medical care and wage replacement. Non-subscribers lose that protection entirely. If an employee is hurt on the job, they can sue in civil court, and the employer cannot use common defenses like contributory negligence, even if the employee was partly at fault.
What a Workers' Compensation Policy Covers
- Medical treatment for work-related injuries and illnesses
- A portion of lost wages while an employee recovers
- Disability benefits for temporary or permanent impairment
- Death benefits and funeral costs for a fatal workplace accident
Premiums are typically based on your payroll, your industry classification, and your claims history, so a landscaping crew and an office of accountants pay very different rates for similar coverage limits. Businesses with a strong safety record can also qualify for lower rates over time.
Texas employers who choose to carry coverage must file the required notices with the Texas Department of Insurance, and many client contracts and construction bids require proof of coverage before you can even bid on the work.
Workers' compensation works alongside your general liability and commercial auto coverage to round out your protection as an employer. Contact our Friendswood agents to review whether subscribing makes sense for your business or start a free quote today.
