Do I need workers’ compensation insurance?
Texas doesn’t require most private employers to have workers’ compensation. But private employers who contract with government entities must provide workers’ compensation coverage for the employees working on the project. Some contractors may require their subcontractors and independent contractors to have workers’ compensation.
Employers with workers’ compensation have a key legal protection.
If you have workers’ compensation insurance, you’re protected from most lawsuits by injured employees. You can’t be sued unless an employee died because of your negligence.
Injured employees resolve their claim disputes through DWC’s dispute resolution process. If you or the employee is unhappy with DWC’s decision, you may appeal the decision to district court. The court will consider DWC’s decision. Your workers’ compensation insurance company will pay for your attorneys’ fees and other costs.
What if I don’t provide workers’ compensation?
If you don’t provide workers’ compensation coverage, you lose the legal protection against most lawsuits. This means an injured employee can sue you over a workplace injury or illness. Also, if you’re sued, you can’t argue in court that:
• The employee’s negligence caused the injury.
• Another employee’s negligence caused the injury.
• The injured employee knew about the danger and accepted it.
Employers have several legal requirements if you don’t have workers’ compensation. You must:
• File an annual notice with DWC.
• Post notices in your offices and workplaces.
• Tell new employees in writing that they’re not covered by workers’ compensation.
Contact us today to discuss the Workers’ Compensation coverage for your business or nonprofit.
Employers with workers’ compensation have a key legal protection. If you have workers’ compensation insurance, you’re protected from most lawsuits by injured employees. You can’t be sued unless an employee died because of your negligence.
Texas Department of Insurance Workers' Compensation Insurance Guide