Texas Workers Compensation Insurance Frequent Questions

1. What is Texas Workers Compensation Insurance?
2. What does workers compensation cover?
3. How does workers compensation work?
4. What affects my Texas Workers Compensation Insurance rates?
5. If you fail to make payments and your policy is canceled, it will be hard to get workers comp again?
6. Which industries often carry Workers Compensation insurance?
7. Will be starting business in Texas. Researching W/C find that each county in Texas requires that contractor register and that they be named as “certificate holder”. Does this mean a separate policy for each county or is there one policy with multiple counties named or all counties named?
8. Can you provide insurance anywhere in the state?
9. Do you work in any other states?

What is Texas Workers Compensation Insurance?

This insurance pays benefits to your employees if they are injured while on the job. Specifically, it covers their medical bills, a portion of lost wages, vocational rehabilitation and death benefits. Almost every state requires by law that employers carry some form of workers compensation insurance. State law sets the coverage amount, so benefits do not vary from company to company within the same state. Limit exposure from your employees with Texas Workers Compensation Insurance.

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What does workers compensation cover?

Workers compensation covers all the employees of the small business. Make special provisions if employees work out-of-state. It can cover the business owner if the business is a corporation and the owner is actively involved in the business. It does not cover independent contractors.

Benefits paid to employees generally include:

• Unlimited Reimbursement of Medical Expense
• Portion of Lost Wages
• Some Vocational Rehabilitation
• Survivors Death Benefits

Employers liability coverage generally includes:

• Responses to lawsuits brought by injured employees or their dependents for grossly negligent acts by the employer
• Protection against employee claims for pain and suffering and loss of relationship (except in North Dakota, Nevada, Washington, West Virginia, Wyoming and Ohio)

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How does workers compensation work?

When a worker suffers an injury, even a minor one, you report it to the workers compensation insurance carrier immediately. The employee seeks necessary medical attention, and the insurance company pays the bills. If the employee misses work because of the injury, the insurance company pays the employee limited benefits for the lost time.

If a permanent injury prevents the employee from returning, the insurer pays to re-train them for another line of work. If the employee dies, the insurer pays a death benefit to the employee’s family.

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What affects my Texas Workers Compensation Insurance rates?

Texas Workers Compensation Insurance premiums are based directly on the amount of your payroll. The higher your payroll, the more you will pay in premiums.

Job classifications also matter. The cost of workers compensation insurance varies widely depending on the work function of an employee. In general, the premium for a roofer is much higher than the premium for a clerical worker. Employers must report payroll accurately by classification of work performed. Your insurance company can advise you which classes apply to your employees.

If you fail to make payments and your policy is canceled, it will be hard to get workers comp again?

Unfortunately, yes. If you have current coverage, do everything you can to keep it in place. It can be very difficult to buy a policy after a lapse in coverage, especially for construction class policies. You may be able to change insurance companies without a lapse. Once there is a lapse, though, many insurance companies automatically decline you.

Will be starting business in Texas. Researching W/C find that each county in Texas requires that contractor register and that they be named as “certificate holder”. Does this mean a separate policy for each county or is there one policy with multiple counties named or all counties named?

The Certificate Holder is the person or entity named on the Certificate of Liability Insurance. Being named does not give that person or entity any rights or coverage. A Certificate of Liability Insurance is basically an informal summary of the coverages on your policy.

Most municipalities, not only counties, require proof of both liability and workers compensation insurance. You need that proof to obtain permits or a license. A workers compensation policy is written on a business as a whole. You can get Certificates of Liability Insurance as many times as you need, for any number of Certificate Holders, throughout the policy period.

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Which industries often carry Workers Compensation insurance?

Industries that commonly carry Workers Compensation insurance include, but are not limited to, these:

Can you provide insurance anywhere in the state?

We have helped customers all across the state of Texas. Below are some of the cities we have done business in.

Do you work in any other states?

Yes. We can also help you with workers’ compensation insurance in Florida. For more information, visit our Florida Workers Compensation page.