Workers’ compensation insurance in Dallas
In Texas, private employers can choose whether to carry workers’ compensation. It is not required in most cases. The choice has real effects either way.
What it does
The Texas Department of Insurance says a workers’ compensation policy provides lost wages and medical benefits to employees hurt on the job.
TDI also notes that coverage limits your liability if an employee sues your business. The exception is when gross negligence results in a death.
Source: Texas Department of Insurance, Division of Workers' Compensation: Employer resources
Topics to discuss
- Medical care for workers hurt on the job.
- Part of their lost wages while they recover.
- Limits on lawsuits from employees, with the exception TDI describes.
- Whether owners and officers are included.
Source: Texas Department of Insurance, Division of Workers' Compensation: Employer resources
If you choose not to carry it
- Ask which notices you must give employees and the state if you do not carry coverage.
- Private employers with at least five employees who are not exempt must report certain work injuries, illnesses and deaths to the Division of Workers’ Compensation.
- A client or contract may still require coverage. Check yours.
- Injuries to customers or the public belong under general liability, not workers’ compensation.
What to gather before you ask
- Number of employees and what each one does.
- Yearly payroll by type of job.
- Any contracts that ask for workers’ compensation.
- Past workplace injuries.
- Whether you use subcontractors.
Questions about workers’ compensation
Is workers’ compensation required in Texas?
For most private employers, no. TDI says they can choose to carry it. Contracts and some kinds of work can change that, so check before you decide.
Source: Texas Department of Insurance, Division of Workers' Compensation: Employer resources
What happens if I do not carry it?
You take on reporting duties with the state. You also lose the lawsuit limits that coverage provides. Talk through both with a licensed agent.
Source: Texas Department of Insurance, Division of Workers' Compensation: Employer resources
Does it cover subcontractors?
It depends on the policy and your agreements. Gather your subcontractor contracts and any certificates they gave you before you ask.
Policy terms, exclusions and eligibility control what is covered. Talk through your needs with a licensed agent before you rely on any policy.