Does Texas Require Workers Comp?

In the past, the plight of workers was pathetic. They were ill-treated and paid less for their efforts. Over time, the situation has gone varying changes. Governments and organizations started focusing on the well-being of workers. Today, various laws geared toward workers’ welfare are in place. Compensating the injured is a special mention here. Almost all regions have laws concerning workplace injuries. However, many states don’t make it compulsory for the employer. If you wish to set up a venture in Texas, you may wonder – does Texas require workers comp? Let’s figure out what the State Law has to say in this respect.

Does Texas require workers comp?

Unlike other states, Texas doesn’t require an employer to have a workers’ compensation policy. Some potential employers may get taken aback by reading the answer. Then others may be happy to know that they won’t have to invest in this coverage. However, the assumptions of all such business owners fall flat. You might get confused by reading this line. What does that mean? Whether you should buy a policy or not? Let’s get clear on all points below.

Buying coverage isn’t mandatory

First of all, no employer is obligated to carry workers’ compensation coverage in Texas. Whether you run a small enterprise or a big corporation, it’s up to you to buy or ignore the policy. You may continue your business operations without the fear of being questioned by the state. Yes, that’s true!

Compensating the injured is compulsory

While Texas doesn’t force an employer to buy a workers’ compensation plan, it has other laws in place. If a worker gets injured at your workplace, you’ve to compensate him substantially. In addition to reimbursing the injured’s medical bills, you should pay the worker for absenteeism and other losses. Buying a policy is optional. However, taking care of the injured for a workplace injury is mandatory. No organization can turn its back on an injured worker. If a company does so, it’ll face serious consequences. In extreme cases, the operations of the venture will be shut down.

If the employer chooses to buy a workers’ compensation policy in Texas, he has to follow the State Law. Subscribing to workers’ compensation coverage puts a limit on the type and amount of compensation that an injured may receive. Those limits are already set in the law. Both the employer and the employee have to follow those rules in the case of a workplace injury.

Advice on buying Texas workers’ compensation coverage

It’s best to have this vital coverage as per the limits set in the law. That should help you make reimbursement provisions in the case of an unfortunate incident. Not just that, you can continue your business operations without disturbing your finances.

Bottom line

The above discussion clarifies that buying workers comp isn’t mandatory in Texas. However, the employer is accountable for workplace injuries. It’s advisable to have a comprehensive policy to take care of possible workplace injuries. Just ensure you turn to a reliable insurer to maximize the benefits of the plan.