Texas is unusual in that the state does not require employers to carry workers compensation insurance. Nevertheless, business owners usually do buy this coverage because otherwise they are at risk of being sued if an employee is injured on the job. New businesses and those that do not yet have coverage can call independent agencies for a Workers Comp Insurance Quote in Houston TX.
State Laws
All other states require nearly all businesses to have this coverage. Typical exceptions include organizations with only one to five employees, farms, and households employing domestic services. These exemptions vary widely among states, but Texas is the only one that makes workers comp optional. This state only requires it for private companies working on government contracts. That protects governmental agencies from lawsuits in case of injury during projects.
Low Risk
Businesses that have an extremely low risk of injury may decide not to buy workers comp insurance, but this still leaves them susceptible to legal action if something unexpected occurs. An office worker, for example, may be diagnosed with carpal tunnel syndrome because of regular typing requirements or use of a mouse. In some instances, surgery is required to resolve this problem.
Self-Insurance
Larger companies may decide to create a self-insurance plan because they have the financial resources to do so. This generally is only done with organizations that have at least 200 workers. Smaller organizations, however, are advised to obtain a Workers Comp Insurance Quote in Houston TX and choose coverage from a private insurer.
Accident Coverage
Some organizations decide to buy accident coverage instead of workers compensation insurance. Unfortunately, employees may still file lawsuits in that circumstance. Workers comp is intended to pay for all related expenses to an accident, including not only medical bills, but also lost wages. The amount can be substantial if the person is off work for many weeks or even months.
Deciding to buy insurance only if the law requires it is risky business. Most types of insurance are intended to protect assets and keep stress levels low when dealing with troubling situations. Quotes can be obtained by an agency like Insurance Offices Texas. Visit website to get started.
