Workers compensation is a state-regulated system that provides employees with medical benefits and income substitution for work-related illnesses or injuries. Texas was one of the first states to embrace the system, enacting a Workers Compensation law in 1913.
But like so many other things about the Lone Star State, the administration of Texas workers compensation insurance differs from the rest of the nation. Whereas participation is mandatory for employers in 49 states, the system is a voluntary one in Texas.
That said, more than 80 percent of employers choose to carry Texas workers compensation insurance. Coverage doesn’t come cheaply, but the liability exposure is one that most employers cannot afford to risk. Typically, workers comp protects employers from the threat of litigation while also providing employees with essential income and medical compensation.
Consider Your Options
Cost-effective solutions do exist within the Texas workers compensation insurance system. Depending on the size and financial stability of your company, you may want to consider decreasing your premium expenses with one of the following:
Large deductible workers comp plans are designed to allow employers to self-insure a portion of claims by setting much higher than usual deductibles—thus sharply decreasing premiums.
Retrospective rating workers comp plans may be a good choice for companies that believe actual claims will be lower than the norm. Under these plans, premium costs can be reimbursed following a comprehensive review after the first 18 months.
Whatever your company’s needs, it is important to consult an experienced agent or broker. Protect your business—and your employees—with a cost-effective plan of insurance coverage.