Texas, unlike all other states, does not require employers to carry workers compensation insurance. While this is great news for themno monthly premiums!it can spell trouble if an employee gets injured on the job. If you operate a business in Texas, you may be wondering if workers compensation is a worthwhile investment. While the answer is always, It depends, it could serve you well to understand how workers compensation insurance in Texas works, and how it can save you time, money and headache in the long run.
Though you may save money on monthly premiums by not investing in workers comp, if an employee gets injured on the job, you could be looking at a multi-million dollar settlement depending on the extent of the employees injuries. Unlike the damages awarded in personal injury claims, damages in workers compensation claims are limited to economic damages. This means that an employee cannot be paid for their pain and suffering, future medical expenses, lost wages or loss of enjoyment for life. Damages simply include medical benefits, income benefits and death benefits, if applicable.
Additionally, the statute of limitations on a workers compensation claim is much shorter than those of a personal injury claim. The worker has 30 days to report their injury, up to 90 days to make an appeal and up to one year to file their claim.
Finally, workers compensation law places a huge emphasis on return-to-work programs, whereas personal injury law does not.
If you’re not sure whether or not workers compensation insurance in Texas is right for you, hopefully, the above information will sway your decision.