Get Better Quotes 35+
Real Experts- Trusted
The Texas Department of Insurance's Division of Workers' Compensation (DWC) regulates the state's workers' compensation system and also certifies employers that want to self-insure.
Texas doesn't require most private employers to carry workers' compensation insurance. Employers who contract with the government are required to provide workers' compensation coverage for each employee working on the project. Some clients may also require their contractors to have workers' compensation insurance.
Employers who choose not to have workers' compensation insurance, Nonsubscribers, must file an annual notice with the Texas Department of Insurance. The must also display notices of no-coverage and give written statement to each new employee hired.
Insurers are encouraged to use premium payment grace periods, temporary premium payment suspension, payment plans, and other actions to allow continuing coverage. Automatic bank drafts may continue, unless a policyholder notifies the carrier of a specific hardship. TDI will work with carriers to minimize regulatory effects of an insurer’s actions to provide policyholder relief, specifically with respect to financial review requirements.
Discretionary order in effect from 03/23/2020 until further notice.
No current state orders.
Employers with workers' compensation have some important legal protection. They have immunity from most lawsuits by injured employees. If an employer has workers' compensation insurance, a lawsuit may only go to court after it's been through the Tex Department of Insurance's (TDI) administrative dispute process. The court will consider TDI's recommendations, and only issues in dispute may be used as evidence. Previously resolved issues can't be reintroduced. The employer's insurance company pays attorneys' fees and other defense costs.
Employers without workers' compensation coverage might have to pay punitive damages if they lose a lawsuit. They also lose certain common-law defenses, such as arguing that a) the injured employee's negligence caused the injury, b) the negligence of fellow employees caused the injury, or c) the injured employee knew about the danger and voluntarily accepted it.
Employer that can't find workers' compensation insurance through the voluntary market may buy coverage from Texas Mutual Insurance Company. This is the insurance carrier of last resort in Texas. Texas Mutual has a special program called START for employers who can't find coverage in the voluntary market. This coverage is generally more expensive than coverage bought in the voluntary market. For more information, contact us today.
Injuries that are excluded under the Texas Workers Compensation Act:
TX employers may cancel a policy before its expiration date by notifying the insurance company and DWC by certified mail. The insurance company must refund any unearned premium. Insurance companies may not charge a penalty if you choose to cancel your policy, there may be penalties involved if the policy is subject to retrospective rating or a deductible plan. Be sure to ask about penalties before you cancel a policy. An insurance company may also cancel or refuse to renew a policy. The company must provide advance notice to the policyholder and to DWC by certified mail. Companies must give 10 days' notice if they cancel or nonrenewal a policy because of delinquent premium payments or fraud. Cancellation or nonrenewal for most other reasons requires 30 day notice.
Employers with a premium too low to qualify for experience rating may benefit from the TX premium incentive plan. Businesses with an estimated annual premium of less than $5,000 are eligible for a 10 percent discount if they had no compensable lost-time injuries during the last year. The discount increases to 15 percent if there were no compensable lost-time injuries during the last two years. If there were two or more lost-time injuries in the last year, a 10 percent surcharge is applied.
Texas employers who do not carry workers' compensation insurance coverage are required to report their non-coverage status and work-related injuries or occupational diseases to the Division of Workers' Compensation (DWC). Employers who do carry workers' compensation insurance coverage are required to report all known occupational disease and any work-related injuries that result in more than one day of lost time. Employers that fail to meet these requirements commit an administrative violation and may be subject to administrative penalties.
Any person who knowingly or intentionally makes a false or misleading statement to either deny or obtain workers' compensation benefits or insurance coverage, or who, with such a purpose, misrepresents or conceals a material fact, fabricates, alters, conceals or destroys a material document or conspires to commit such acts commits an administrative violation that may result in a sanction, fine or penalty.
We're always working with our insurance carriers to develop specialized programs for a broad range of industry class codes.
Target Programs are designed to streamline the underwriting process and help
ensure we offer the lowest rates available anywhere.
Coverage is Paid by Employers
Employers may not charge workers for workers' compensation coverage. There are some exceptions for independent contractors and certain building and construction workers
Let Workers Compensation Shop.com help your business navigate workers comp insurance in Texas.
Employers liability insurance is an additional layer of coverage included as part of a workers' compensation insurance policy. Employers Liability is know as Part 2 of the policy. It adds two additional coverages for employers:
Employers Legal Liability and Legal Defense Costs
In todays world, there are a variety of reasons employees and third-parties sue employers for damages. Here a some common types covered by employers liability insurance:
Third Party Lawsuits
Your employee sues another party that may have contributed to the injury, In turn, the third party sues your business.
Consequential Bodily Injury
Another party or individual is injured while providing care for the injured employee.
Dual Capacity Legal Action
An employee files a claim but also attempts to sue the employer for being responsible in other ways outside of the employment relationship.
Loss of Consortium
A spouse sues for damages caused by the loss of companionship or relations.
Employers Liability coverage is not included with coverage in the four monopolistic states. Employers in these states can endorse this coverage onto their General Liability policy. That coverage is commonly know as Stop Gap Coverage.
Get more information about workers' compensation in Texas:
Workers Compensation Info
Workers Comp Programs
National Broker Services