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    Texas Worker's Compensation

    Texas Worker's Compensation

    Texas, which is the second largest state, has a lot to offer. With so many new and thriving businesses, you may be wondering what kind of workers' compensation insurance you need. This coverage is also called workers' comp or workman's comp, and most states require employers to have it. In Texas, on the other hand, you don't need to have it. 

    But having workers' compensation insurance is still a good idea, even though it's not required by law in Texas. It can also help employers pay for legal costs if they are sued because of an injury or illness. This is in addition to helping injured workers get back to work. Without coverage, you'd have to pay for these costs out of your own pocket, which puts your business's finances at risk.

    Requirements For Worker's Compensation In Texas

    Even though employers are not required to have coverage in Texas, there are rules about how the insurance works. Workers' compensation laws in Texas limit how much an employee can get if they get hurt or sick at work.

    Employers have to do the following for workers' compensation:

    • Disclosure to employees regarding the existence of workers' compensation insurance.
    • Informing the Workers' Compensation Division (DWC) of the Texas Department of Insurance whether coverage has been terminated. This is possible with Form DWC005.

    Also excluded from coverage are injuries caused by:

    • Acts of God
    • Employee horseplay
    • Intoxication from drugs or alcohol
    • Willful criminal acts or self-injury
    • Voluntary participation in off-duty recreational activity

    Learning and comprehending Texas workers' compensation law is crucial for the safety of your business and employees.

    What Worker's Compensation Covers In Texas

    What Worker's Compensation Covers In Texas

    With coverage, business owners and workers can enjoy a variety of workers' compensation benefits, like:

    Income BenefitsIncome benefits, such as lost pay due to absence from work.
    Medical BenefitsMedical benefits to aid in the treatment of a work-related illness or injury.
    Legal BenefitsLegal benefits if an employee's family sues your company.
    Death BenefitsDeath benefits to be given to an employee's family in the event of a fatal workplace accident.

    According to Texas' workers' compensation laws, employees have 30 days to notify their employers of a work-related injury or illness. Additionally, they have one year to file the necessary papers for workers' comp. Employers have eight days after receiving a report of injury to inform their insurer.

    Rates Of Workers’ Compensation In Texas

    The Texas Department of Insurance (TDI) regulates the state's workers' compensation system, guaranteeing that all expenditures are kept at a reasonable value.

    In Texas, the costs of workers' compensation insurance include:

    • Insurance premiums
    • Payments paid under deductibles
    • Administrative expenses associated with handling claims and filing reports with the state of Texas and your insurer

    Varying rates for workers' compensation in Texas are determined by different factors, including:

    • The type of work your staff performs, since the higher the risk, the higher the influence on your insurance premium
    • Your claims history, as a safer workplace, equals fewer workers' compensation claims, which might result in reduced insurance costs
    • Payroll size since the more employees you have, the higher your insurance rate

    Quick Workers Compensation Claims Statistics In Texas

    According to NASI, Texas workers received the following cash benefits (in thousands):

    • 2012: $637,493
    • 2013: $599,513
    • 2014: $595,1113
    • 2015: $640,520
    • 2016: $628,436

    According to NCCI data, the national average for worker's compensation claims in 2016-2017 was $40,051. Included among the priciest claims by cause are:

    • Motor vehicle crashes – $78,293
    • Burns – $47,878
    • Falls or slips – $46,592
    • Caught – $40,791

    Frequently Asked Questions 

    Below are some of the frequently asked questions regarding worker’s compensation in Texas:

    How long can an employee be on workers compensation in Texas?

    When it comes to medical care, workers' compensation in Texas covers the claimant for his or her entire lifetime. In other words, the workers' compensation insurance company is required to cover all of your medical expenses for the duration of your life.

    Can you work while on workers comp in Texas?

    If you are permitted to work while receiving workers' compensation benefits, your earnings must be reported. Workers' compensation fraud occurs when an individual misrepresents their employment status while receiving temporary disability benefits.

    Can you settle a workers comp case in Texas?

    In a Texas workers' compensation case, there are no "settlements," and you cannot "sell" your lifetime medical benefit for any type of "settlement" or "payment."

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