Although workers’ compensation coverage is not a mandatory requirement in the State of Texas for employers who do not contract with the government, having workers’ compensation insurance has several key advantages to consider. Factor these in when thinking about Texas workers compensation rates.
• You would be less likely to face injured worker lawsuits;
• Employees will further have restrictions on the type of injured worker lawsuits they can file against you;
• Your insurance company will pay legal fees and defense costs to defend you in a worker’ compensation claim against you;
• You are protected from having to pay punitive damages in a worker’ compensation claim against you;
• There may be increased common law defenses such as claiming employee negligence if you have workers’ compensation insurance;
When reviewing your Texas workers compensation rates, it is important to know Texas law will not offer the same protections from an unlicensed provider as it does for a TDI licensed provider. By using a provider who is not licensed by the TDI, you will lose many of the protections and advantages mentioned above. Without a TDI licensed insurance policy, you may also be subject to limits on your coverage leaving you responsible for paying workers’ compensation claims that exceed your coverage limit.